ISLAMABAD – An international group has launched investment worth millionsof dollars in the automotive sector on Pakistan.
As per the media report, The United Arab Emirates (UAE) conglomerate, AlFuttaim group is investing $230 million in the automobile sector ofPakistan through a joint venture with Renault.
Technologically beefed up, Al Futtaim-Renault cars will hit the roads in2020 as Renault has already acquired 54 acres land in the country’s biggestindustrial zone, Faisalabad Industrial Estate Development and ManagementCompany (FIEDMC).
The Auto Development Policy (ADP) 2016-21 has proved to be quite lucrativefor Pakistan, with as many as 12 car makers having invested $746 million sofar. 2 companies have gotten Brown Field investment status, where a companypurchases or leases an existing facility for a new production activity. 10companies have been awarded Green Field investment status which allows themto initiate their operations in the local market from the ground up.
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The investment bodes well for the Pakistani market which previously used tobe monopolized and dominated by the Japanese carmakers Honda, Toyota andSuzuki for decades. The new auto policy has attracted several key foreignplayers in the auto arena.
The investment comes at a time when Pakistan is in dire need of foreigndirect investment considering the crippling state of the economy and itsfalling forex reserves.
