Later the operationalization of new auto strategy Automotive Development Policy (ADP 2016-21), different financial investors have demonstrated enthusiasm to put resources into the Auto Sector of Pakistan under the new policy.
Keeping in mind the end goal to encourage the imminent financial investors under ADP and to trade sees with respect to worries of auto organizations in the light of the said strategy, a meeting was held under the Joint Chairmanship of Secretary, Ministry of Industries and Production (MoIP) and Secretary Board of Investment (BoI), on Tuesday 12th July, 2017 at 10:30 a.m. in the BoI Islamabad.
The following investors attended the meeting.
- M/s Cavalier Automotive Corporation (Pvt) Ltd., Islamabad
- M/s Foton JW Auto Park (Pvt) Limited, Lahore
- M/s Habib Rafiq (Pvt) Ltd
- M/s Hyundai Nishat Motor (Private) Limited, Lahore
- M/s Khalid Mushtaq Motors (Pvt) Ltd
- M/s Kia Lucky Motors Pakistan Limited, Karachi
- M/s Pak-China Motors Pvt Limited, Karachi
- M/s Regal Automobiles Industries Limited, Karachi
- M/s United Motors (Pvt) Limited, Lahore
The meeting was likewise attended by the Senior Joint Secretary MoIP, CEO Engineering Development Board (EDB) and additionally other senior officers of the Ministry, Board of Investment and Engineering Development Board.
It is crucial to highlight that the Category-A Greenfield speculation status has been conceded to four auto investors under the pertinent approach and principles in vogue i.e Hyundai Nishat Motor (Private) Limited, Kia Lucky Motors Pakistan Limited Karachi, Regal Automobiles Industries Limited Karachi, United Motors (Pvt) Limited Lahore.
As indicated by a government official, one plant would require a $500 million venture, which would bring about a $2 billion spending by the separate organizations.
He additionally said that 2 more organizations are joining within a week and will get their authorization for setting up an assembling plant in Pakistan. They have finished their paperwork pending endorsement from the government. This would mean an extra $1 billion investment.
Secretary MoIP highlighted that the organizations granted with Greenfield investment status would be required to go into a concurrence with Ministry of Industries and Production to guarantee consistency to the states of the ADP 2016-21 pertinent SRO’s and different timetables for the culmination of the undertakings for benefiting incentives under the said arrangement.
Once the agreement is marked between the investors and the Ministry, the concerned auto area financial specialists would have the capacity to benefit the motivators of the ADP. The secretary included that the agreement would be accessible for marking and countersigning for all concerned by Monday, July 17, 2017.
Different issues and inquiries of the automobile business agents were clarified on the spot by officers of EDB, BoI and MoIP. Both the government secretaries guaranteed that in near future the rest of the auto financial specialists would likewise be granted the status of Green or Brownfield venture status in quick design.
Auto part agents communicated their entire fulfillment over the help and support of BoI, MoIP and EDB and the investors’ applications being handling and assessed in the briefest conceivable time.
Toward the finish of the meeting, Secretary BoI expressed gratitude toward the auto investors organizations’ CEOs and MDs and valued their efforts to support interest in the auto segment and utilizing the local business of Pakistan.