Renault Group of France, eager to set up cars and truck assembly plant in Pakistan, on Thursday urged the Government to finalise the project which was being discussed for the last one year.
Jerard Etourebet a representative of Renault Group along with the French Ambassador to Pakistan Pierre Charasse called upon CEO, Engineering Development Board (EDB) Imtiaz Rastgar, and discussed ongoing progress reminding that his company has been discussing the project since November 2005, and "now is the time to finalise things".
Jerard said that the facility would be mainly used for export purposes, therefore, they need incentives in the shape of tariff concession and duty drawbacks. When asked to give specific proposals he said that South African scheme would suit them. He assured of using maximum local component in assembly of their products. He also referred to his earlier meetings with the officials of PAAPAM.
CEO, EDB Imtiaz Rastgar informed that South African proposal given by him during his last visit was seriously taken up by the EDB and a delegation was sent there to study the system in-depth. On return, he said the delegation recommendations were submitted to the authorities and could be taken up again.
He also gave overview of export potential of the local auto sector and incentives given by the government. He specially mentioned two SROs of CBR having in-built incentives for exporters. However, he underlined the importance of sustainable long-term policy for development of the auto sector.
He said that EDB was working on a duty drawback scheme for engineering sector including auto with the approval of the CBR, which will be ready by end of next month. It will also meet specific needs of the engineering sector, which are different from others. He assured that the scheme is totally business friendly and based on views expressed by all the stakeholders.
In another meeting with the representative of Business Support Fund an international organisation, David Hoakman, Imtiaz Rastgar discussed the modalities of co-operation to improve business plans of the industry in Pakistan. The BSF works with the assistance of Asian Development Bank and Ministry of Finance whereas the EDB has to identify the industry that has to be supported.
Hoakman said that BSF is looking for partners to reach SMEs sector especially those companies interested in improving their working and EDB was the suitable organisation for this purpose. Technology is a less important area for them as brands, packing and target markets play an important role in progress of the companies, he added.
His attention was drawn to various clusters in Punjab especially fan industry of Gujrat and their special problems like downscaling of export and management issues. It was suggested that specialised seminars could help them solve problems.