International group launched investment worth millions of dollars in automobile sector in Pakistan
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ISLAMABAD - An international group has launched investment worth millions of dollars in the automotive sector on Pakistan.
As per the media report, The United Arab Emirates (UAE) conglomerate, Al Futtaim group is investing $230 million in the automobile sector of Pakistan through a joint venture with Renault.
Technologically beefed up, Al Futtaim-Renault cars will hit the roads in 2020 as Renault has already acquired 54 acres land in the country’s biggest industrial zone, Faisalabad Industrial Estate Development and Management Company (FIEDMC).
The Auto Development Policy (ADP) 2016-21 has proved to be quite lucrative for Pakistan, with as many as 12 car makers having invested $746 million so far. 2 companies have gotten Brown Field investment status, where a company purchases or leases an existing facility for a new production activity. 10 companies have been awarded Green Field investment status which allows them to initiate their operations in the local market from the ground up.
The investment bodes well for the Pakistani market which previously used to be monopolized and dominated by the Japanese carmakers Honda, Toyota and Suzuki for decades. The new auto policy has attracted several key foreign players in the auto arena.
The investment comes at a time when Pakistan is in dire need of foreign direct investment considering the crippling state of the economy and its falling forex reserves.