ISLAMABAD – In collaboration with Premier Motor Limited, the Germanautomaker, Volkswagen is planning on investing $135 million on a vehiclemanufacturing plant in Balochistan. The land for this project has alreadybeen acquired and the plant will be fully operational by 2021.
The development comes in the aftermath of ‘category-A Greenfield investmentstatus’ awarded to Karachi-based Premier Motor Limited under itsagreement with Volkswagen.
The partnership will initially manufacture double-cabin vehicles and vans.Premier group is also the only distributor of Audi cars in the country andthe Greenfield status was awarded by the Ministry of Industries andProduction, confirmed Engineering Development Board (EDB) Deputy GeneralManager Asim Ayaz.
13 out of the 15 interested players have been awarded the Greenfield statusin line with the new Auto Policy which aims at bringing in investment andmore competition among automakers in Pakistan’s Japanese-dominated carindustry.
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The entry of new automakers will not only reduce the prices but also leadto increased competition for quality, therefore, providing the masses withmore options. It will also create a large number of jobs in the country.
To avail incentives under the Auto Development Policy 2016-21, the companyawarded with Greenfield investment will have to comply with projectcompletion timelines and relevant statutory regulatory orders by enteringinto an agreement with the Ministry of Industries and Production.
