BEIJING: The representatives of over 50 renowned automobile companies fromdifferent parts of China attended the Pakistan automobile roundtableseminar and were briefed about the conducive investment environment andattractive incentives offered by the present government for the foreignentrepreneurs, especially from China.
The seminar, organised by the Pakistan Embassy in Beijing was attended byAnhui Jianghuai Automobile Group, Beijing Henrey Auto, Hozon New EnergyAutomobile, BAIC Intl, Great Wall Motor Company, Beijing SanxingAutomobile, Foton Motor Group, Tianjin Tianqi Group Meiya Automobile,Zhongtong Bus Holding Co, Youtong Bus, Dongfeng Motor Company, JiangxiJiangling Motor, Xiamen Golden Dragon Bus Co, Liaoning Aerospace AutomobileCo, Wolkswagen Group, Geely Automobile International Corporation andseveral others companies.
Addressing the participants, Pakistan’s Ambassador to China, Moin ul Haquesaid that the government is planning to enhance the existing production ofbuses, trucks and cars, as well as energy vehicles.
A number of Chinese companies were already in Pakistan in automobilemanufacturing sector, he said, adding that up to 10 new companies haveshowed interest to invest in Pakistan and are in the process of havingjoint ventures with their local partners in the private sector.
Ambassador Haque said that the government is formulating a new automobilesector policy, which will be announced soon, adding that more incentivesand concessions in taxes are likely to be offered in the new policy.
The automobile companies, including manufacturers of energy vehicles fromChina will be invited to set up their plants both in the Greenfield andBrownfield sectors.
He said automobile is the fastest growing sector in Pakistan because of thelarge demand in view of the population, which is close to 220 millionpeople.
In the past, the Japanese automobile manufacturers set up their productionunits but in the recent times, automobile companies from China also startedlooking at the opportunities available in Pakistan.
Appreciating China as one of the leaders in the automobile manufacturing inthe world with very high quality products, he expressed the pleasures thatthe 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 Chineseinvestors to come and set up their manufacturing units,” he added.
Ambassador Haque said that special incentives and policies have beenannounced, especially for the Chinese companies and so far close to 100Chinese companies had already established or in the process of establishingtheir units in the special zones.
The infrastructure such as roads, highways and communication network arebeing upgraded in Pakistan, he said and asked the Chinese companies to takeadvantage of all these incentives and expand their presence.
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Welcoming the representatives of the automobile companies, CommercialCounsellor Badar uz Zaman said that the new Automobile Policy for 2021 to2026 will soon be announced, adding that more incentives and benefits tolocal and foreign investors will be offered under the new policy.
He said a number of new companies, particularly Chinese manufacturersentered in the Pakistani market under the existing automobile policy, whichwas announced in 2016.
Badar said that a number of Chinese companies are already setting up theirbusinesses in Pakistan, while some new companies are keen to invest inPakistan, owing to the investment-friendly policies offered by the presentgovernment.
The companies that the government has more attractive formulated rules andregulations, which support the foreign investment in Pakistan.
Badar also shared the details of the incentives, concessions in thetaxation and 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 and said in thecurrent global scenario, when there is a supply chain shock, and it isdifficult to move things from one place to another, it is the right timefor the Chinese investors to take advantage of Pakistan location, low wagesand 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 into the Pakistani automobileindustry also posed questions and sought more details about the policies.
