SECP Opens New Shariah-Compliant Investment Options
May 12, 2026
China’s Dongjin Group will invest $15 million in Faisalabad to boost Pakistan’s battery production for EVs and renewable energy growth.
China’s Dongjin Group has announced plans to establish a $15 million dry battery manufacturing facility at Allama Iqbal Industrial City, aiming to support Pakistan’s rapidly growing demand for batteries used in electric vehicles and solar energy systems. The investment agreement was signed with the Punjab Board of Investment and Trade as part of broader industrial cooperation under Pakistan’s Special Economic Zone framework.
Speaking about the decision, PBIT Director Marketing Sharqi Ali Tipu said the company identified strong market potential in Pakistan due to the accelerating adoption of clean energy and electric mobility solutions. “The company decided to invest after observing strong and growing demand for batteries in Pakistan,” Tipu said in comments reported by Wealth Pakistan.
He added that the project is expected to stimulate industrial activity while introducing advanced manufacturing expertise to the local market. According to Tipu, the facility will support sectors such as electronics, automotive components, chemicals, packaging, and engineering services, while also creating employment opportunities across Faisalabad and nearby regions.
Tipu further noted that Allama Iqbal Industrial City, developed under the China-Pakistan Economic Corridor framework, offers modern infrastructure and investor-focused incentives designed to attract high-tech manufacturing projects. Under Pakistan’s Special Economic Zone incentives, Dongjin Group will qualify for a 10-year income tax exemption alongside a one-time waiver on customs duties and taxes for imported machinery and plant equipment.
Industry stakeholders believe the project could help Pakistan reduce dependence on imported batteries while strengthening local renewable energy infrastructure. Former Engineering Development Board chairman Almas Hyder said Pakistan is steadily moving toward domestic lithium-ion battery manufacturing to improve energy security and industrial self-reliance.
Highlighting the strategic importance of the sector, Hyder said rising global demand linked to renewable energy systems and electric vehicles has made battery production increasingly critical for emerging economies. “The greater the battery production in Pakistan, the higher the chances of reducing dependence on expensive electricity and imported fossil fuels,” he stated.
