BEIJING: Pakistan plans to enhance its annual automobile production fromthe existing 250,000 units to around six to eight million units during thenext five years, Pakistan’s Ambassador to China, Moin ul Haque said.
“It is a bit ambitious target but it is possible to achieve this target dueto the yearly growth in production, as well as interest showed by variousautomobile companies from across the world, especially from China, whichplans to invest in Pakistan,” he said, while addressing the PakistanAutomobile Industry Roundtable Seminar held at the Pakistan Embassy,Beijing.
The representatives of over 50 renowned automobile companies from differentparts of China attended the seminar.
The ambassador said a number of Chinese companies were already in Pakistanin the automobile manufacturing sector, while up to 10 new companies haveshown interest to invest in Pakistan and are in the process of having jointventures with their local partners in the private sector.
The government is formulating a new and very attractive automobile sectorpolicy, which will be announced soon, he said, adding that more incentivesand concessions in taxes are likely to be offered in the new policy.
Ambassador Haque said that the automobile companies, includingmanufacturers of energy vehicles from China will be invited to set up theirplants both in the Greenfield and Brownfield sectors.
Giving details about the automobile sector in Pakistan, he said automobileis the fastest growing sector in Pakistan because of the large demand inview of the population, which is close to 220 million.
In the past, the Japanese manufacturers had set up their production unitsbut in the recent times, the Chinese automobile companies also startedlooking at the opportunities available in Pakistan.
The ambassador said China is now becoming one of the leaders of automobilemanufacturers in the world with very high quality products and expressedthe pleasure that the Chinese companies have also entered in the Pakistaniautomobile market.
Sharing the opportunities under the China-Pakistan Economic Corridor(CPEC), he said, the flagship project of the Belt and Road Initiative (BRI)has entered into the second phase, which is focusing on industrialisation,science and technology and agriculture sectors.
“We are setting up special economic zones where we are inviting the Chineseinvestors to come and set up their manufacturing units,” he added.
Ambassador Haque said that special incentives and policies have beenannounced for the Chinese companies and so far close to 100 Chinesecompanies are in the process of establishing their units in the specialzones.
The infrastructure like roads, highways and communication network is beingupgraded in Pakistan, he said and invited the Chinese companies to takeadvantage of all these incentives and expand their presence.
Welcoming the representatives of the automobile companies, CommercialCounsellor Badar uz Zaman said that the new automobile policy for 2021/26will soon be announced, offering more incentives and benefits to the localand foreign investors.
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Under the current automobile policy, a number of new companies,particularly Chinese manufacturers entered in the Pakistani market.
Zaman said that a number of Chinese companies were already setting up theirbusinesses in Pakistan, while some new companies are keen to invest inPakistan, owing to investment-friendly policies offered by the presentgovernment.
The government has formulated rules and regulations, which support theforeign investment in Pakistan, he added.
Zaman also shared details of the incentives, concessions in the taxationand easy repatriation of profits.
“Many local companies listed with the stock exchange are very keen and arelooking forward to the Chinese partners for joint ventures,” he added.
There are over 600 auto parts manufacturers who are also supplying theparts to the existing players, he said, adding: “We offer verycomprehensive auto financing policies and the banks are very active. Andthe amount that has been financed in cars is three times more than thehousing finance in Pakistan.”
The commercial counsellor also shared with the companies the details ofconcessions on taxes, duties, particularly cheap labour.
He said, in the current global scenario, when there is a supply chainshock, and it is difficult to move things from one place to another, it isthe right time for the Chinese investors to take advantage of Pakistan’slocation, low wages and other benefits.
Later, representatives of the companies who were already operating inPakistan shared their experiences and put forward some useful proposals.
Some new companies, which plan to enter the Pakistani automobile industry,asked questions and more details about the policies.
The representatives of Anhui Jianghuai Automobile Group, Beijing HenreyAuto, Hozon New Energy Automobile, BAIC Intl, Great Wall Motor Company,Beijing Sanxing Automobile, Foton Motor Group, Tianjin Tianqi Group MeiyaAutomobile, Zhongtong Bus Holding Co, Youtong Bus, Dongfeng Motor Company,Jiangxi Jiangling Motor, Xiamen Golden Dragon Bus Co, Liaoning AerospaceAutomobile Co, Volkswagen Group, Geely Automobile International Corporationand others attended the seminar.
