Millat Equipment Limited, a Millat Group Company, and Muslim Commercial Bank, signed an agreement on Thursday, under which MCB will provide long-term financing to the company for setting up of automotive gear manufacturing facility in Lahore.
When completed, this state-of-the-art plant, the first of its kind in the private sector, will manufacture a full range of automotive gear box components under technical assistance of AGC/ Massey Ferguson UK, said a press release issued by Millat Tractors.
This major investment in the engineering sector, with an initial cost of Rs one billion is likely to increase the product range.
The business friendly and consistent policies introduced by the government have encouraged setting up of such projects in the engineering sector, to meet the challenge of lowered tariffs under WTO/Safta.
This project would not only be a major foreign exchange saver but will also be a foreign exchange earner through exporting components to Massey Ferguson tractors world wide, as well as meeting the local market demands, the release added. This project will also provide substantial job opportunities to engineers and technicians in the country.
On the banking side, MCB has always been proactive in funding such projects and this financing will act as a catalyst to boost the local engineering industry, the release concluded.