Pakistan, Oct. 15 -- The announcement of a ten year tax holiday for Chinese and Saudi investors by the Punjab government has sparked both hope and unease among local industry operators. While the concession is viewed by many as a golden opportunity to attract foreign capital in the province, representatives from the hosiery and apparel segment warn that without parallel incentives for domestic players, the move could distort competition and undermine local investment.

Also, the situation in the textile industry is already very tight - reports show that hundreds of mills have shut down nationwide recently due to high energy costs. Many others are struggling to stay afloat. Granting exclusive tax-free incentives to foreign investors now ri...