Fresh investment in auto sector appreciative: Zahid

Staff Reporter

Karachi

President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday 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.
The Veteran Business Leader while talking to the business community 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.
The Former Minister 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.

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