One of the most awaited brands in Pakistan, Renault, as per our credible source, is likely not coming to Pakistan.
According to the details, the French automaker, as of now has canceled its license(franchise) of Al-Futtaim to build its manufacturing plant in Pakistan, whereas, on the other hand, Al-Futtaim has put a hold on investment. While talking with PakWheels.com, a senior EDB official, said that Al-Futtaim has not officially intimidated to discontinue, however, it is highly likely that it will completely withdraw manufacturing plant.
He further told us that it is happening due to economic instability in the country, i.e. rupee depreciating against the US Dollar; moreover, the project in the eyes of Renault is not feasible now, he added.
Foreign Minister of Pakistan, Shah Mehmood Qureshi applauded the initiative taken by the French carmaker – Renault to manufacture cars in the country.
The company signed an agreement with Al-Futtaim to manufacture its cars in Pakistan, last year in November. Al-Futtaim Renault, Pakistan has also acquired land in Faisalabad for its assembly and manufacturing plant. As per the details, the design and the pre-engineering works are underway, and after completion, the manufacturing of the plant will begin. The joint venture is committed to producing 50,000 units per year and is investing the US $140 million in the local industry.
Shah Mehmood Qureshi, in a meeting with Ambassador France Marc Barety, said that other French companies should also take advantage of friendly investment policies and come to Pakistan. He also expressed his satisfaction over the two-way flow of investment.
The company was planning to establish the plant in Karachi, but, due to some problems with the authorities gave up the idea of setting up a plant in Sindh and moved to Punjab.