Renowned Chinese automobile companies express interest in investment in Pakistan

Renowned Chinese automobile companies express interest in investment in Pakistan

BEIJING: The representatives of over 50 renowned automobile companies from different parts of China attended the Pakistan automobile roundtable seminar and were briefed about the conducive investment environment and attractive incentives offered by the present government for the foreign entrepreneurs, especially from China.

The seminar, organised by the Pakistan Embassy in Beijing was attended by Anhui Jianghuai Automobile Group, Beijing Henrey Auto, Hozon New Energy Automobile, BAIC Intl, Great Wall Motor Company, Beijing Sanxing Automobile, Foton Motor Group, Tianjin Tianqi Group Meiya Automobile, Zhongtong Bus Holding Co, Youtong Bus, Dongfeng Motor Company, Jiangxi Jiangling Motor, Xiamen Golden Dragon Bus Co, Liaoning Aerospace Automobile Co, Wolkswagen Group, Geely Automobile International Corporation and several others companies.

Addressing the participants, Pakistan’s Ambassador to China, Moin ul Haque said that the government is planning to enhance the existing production of buses, trucks and cars, as well as energy vehicles.

A number of Chinese companies were already in Pakistan in automobile manufacturing sector, he said, adding that up to 10 new companies have showed interest to invest in Pakistan and are in the process of having joint ventures with their local partners in the private sector.

Ambassador Haque said that the government is formulating a new automobile sector policy, which will be announced soon, adding that more incentives and concessions in taxes are likely to be offered in the new policy.

The automobile companies, including manufacturers of energy vehicles from China will be invited to set up their plants both in the Greenfield and Brownfield sectors.

He said automobile is the fastest growing sector in Pakistan because of the large demand in view of the population, which is close to 220 million people.

In the past, the Japanese automobile manufacturers set up their production units but in the recent times, automobile companies from China also started looking at the opportunities available in Pakistan.

Appreciating China as one of the leaders in the automobile manufacturing in the world with very high quality products, he expressed the pleasures that the Chinese companies have also entered the Pakistani automobile market.

Sharing other 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 Chinese investors to come and set up their manufacturing units,” he added.

Ambassador Haque said that special incentives and policies have been announced, especially for the Chinese companies and so far close to 100 Chinese companies had already established or in the process of establishing their units in the special zones.

The infrastructure such as roads, highways and communication network are being upgraded in Pakistan, he said and asked the Chinese companies to take advantage of all these incentives and expand their presence.

Welcoming the representatives of the automobile companies, Commercial Counsellor Badar uz Zaman said that the new Automobile Policy for 2021 to 2026 will soon be announced, adding that more incentives and benefits to local and foreign investors will be offered under the new policy.

He said a number of new companies, particularly Chinese manufacturers entered in the Pakistani market under the existing automobile policy, which was announced in 2016.

Badar said that a number of Chinese companies are already setting up their businesses in Pakistan, while some new companies are keen to invest in Pakistan, owing to the investment-friendly policies offered by the present government.

The companies that the government has more attractive formulated rules and regulations, which support the foreign investment in Pakistan.

Badar also shared the details of the incentives, concessions in the taxation and easy repatriation of profits.

“Many local companies listed with the stock exchange are very keen and are looking forward to the Chinese partners for joint ventures,” he added.

There are over 600 auto parts manufacturers who are also supplying the parts to the existing players, he said, adding: “We offer very comprehensive auto financing policies and the banks are very active. And the amount that has been financed in cars is three times more than the housing finance in Pakistan.”

The commercial counsellor also shared with the companies the details of concessions on taxes, duties, particularly cheap labour and said in the current global scenario, when there is a supply chain shock, and it is difficult to move things from one place to another, it is the right time for the Chinese investors to take advantage of Pakistan location, low wages and other benefits.

Later, representatives of the companies who were already operating in Pakistan shared their experiences and put forward some useful proposals.

Some new companies, which plan to enter into the Pakistani automobile industry also posed questions and sought more details about the policies.