Why Pakistan has rejected automobile giant Audi's investment offer

ISLAMABAD – The government of Pakistan has declined automobile giant Audi’s offer of establishing an assembly-only plant in the country.

The startling decision amid government’s business-friendly policies was given by Board of Investment (BOI) apparently due to pressure from local automobile firms.

BOI spokesman Shah Jahan Shah detailing the decision expressed that the government refused to budge regarding its auto policy.

‘Pakistan has already been criticised for an inconsistent policy, therefore, the government is not in a mood to amend the policy under any pressure to accommodate some auto players’ said Shah Jahan Shah.

Earlier, the government also turned down Pak Suzuki Motor Company’s investment plan worth $460 million.

‘We promise to give some incentives to attract new entrants, however, no incentives are for the old players who have been working for more than 20 years in the country,’ he said.

Shah maintained that Audi officials visited Pakistan and wanted to invest in MKD (medium knocked down) model with only vehicle assembly in Pakistan and that was against the auto policy.

‘We want Audi to further strengthen the vendor base and the dealer network, besides creating employment’ noted BOI official.

Shah pointed out that new players like Renault, Ghandhara Nissan, Nishat Group, Kia and Hyundai had contacted and applied for incentives.

‘Dewan Motors and Faw China have also sought incentives, but their cases are under consideration as they are in the grey areas’ added Shah.