It is of high importance to convince new investors coming in auto sector for complete transfer of production capability and technology to Pakistan, which will not only reduce Pakistan's dependence on imports in this sector but will improve the country's automotive exports, said President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain.
Zahid said that the in the backdrop of Pakistan's investment-friendly automotive development policy, Pakistan is considered as the best destination for investment in this sector. The auto sector is dominated by Japanese companies including Honda, Suzuki, and Toyota which even after passing 33 years could not transfer 100 percent technology to Pakistan. It is vital to transfer complete production and technology to Pakistan in order to develop this sector and Country's automotive exports. Talking to the business community, he said that to increase production by 1 lac cars annually, Pak Suzuki motor company is expanding its operations by installing a new plant comprised of 80 acres of land with handsome investment of $ 450 million. The government has offered incentives of Greenfield investment to the company despite its status of Brownfield investment, which is certainly against the spirit of existing automotive development policy. Government needs to address the reservations of new entrants into this sector and take all stakeholders into confidence before making any changes to the policy.
He said that JW SEZ, the first Pakistani company with initial investment of $ 150 million has started a joint venture project with Chinese company Foton with the aim to make Pakistan an automotive hub. Initial capacity of the company is 30 thousand units which will be expanded up to 1 lac units and 4 thousands new job will be created. JW Foton Auto Park is focused to become the largest auto company of Pakistan and bring competition in this important sector dominated by Japanese companies, which is vital to improve the quality of vehicles and reduced price.
Mian Zahid Hussain said the world's largest car manufacturing company Volkswagen has started its assembling in collaboration with Premier Systems to produce 28 thousand commercial vehicles in first phase which will add $ 500 million to country's exports and $ 200 million to the national exchequer. 6 thousand new jobs will be created in the country.
KIA has already started partnership with Lucky Group in automotive sector while Hyundai is going to start automotive manufacturing plant in Lahore with Nishat Group. The Nissan Group is also looking for the opportunities of manufacturing and assembling of vehicles in Pakistan.
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