The first phase of Challenge Special Economic Zone (SEZ) Lahore has secured financial close after completing financing arrangements with a consortium of banks and financial institutions, enabling work on the project’s initial development phase to move forward.

The financing agreements were signed at a ceremony held at the Prime Minister’s Office in the presence of Federal Minister for Planning Ahsan Iqbal and Special Assistant to the Prime Minister Haroon Akhtar Khan.

The project is being developed by Challenge Fashion (Private) Limited, while the financing package has been arranged by The Bank of Punjab, Pak China Investment Company Limited, Habib Metropolitan Bank Limited, Bank of Khyber, BankIslami Pakistan Limited, and Pak Libya Holding Company Limited.

Reaching financial close means the project’s funding has been finalized, allowing Phase-I construction and infrastructure development to begin.

Addressing the ceremony, Ahsan Iqbal said Pakistan continues to deepen its economic partnership with China and noted that Chinese investment in the country has been expanding. Haroon Akhtar described the completion of the financing process as an important milestone for the project.

Located near Lahore, Challenge SEZ is planned as an export-oriented industrial zone designed to attract investment in manufacturing. The project aims to expand industrial production, strengthen supply chains, encourage technology transfer, and create new employment opportunities.

Once operational, the industrial zone is expected to support export-led manufacturing by providing businesses with dedicated infrastructure and facilities for industrial operations.