LAHORE - A Nigeria-based joint venture of German and Chinese auto giants, National Motors intends to invest US$25 million in Pakistan to establish an assembling plant for small trucks and large-sized prime movers.
"The production of this joint venture company is expected to start within a year, which will cater to the domestic as well as emerging regional markets," said Inaam ul Haq, a local representative of the company.
He said that the company is currently manufacturing prime movers and small trucks in Nigeria under the brand name of National Trucks with the technical support of Styer (Germany) and its Chinese partners.
The company is owned by an expatriate Pakistani, Tariq Ashraf, who settled down in Nigeria about two decades ago and wanted to invest back home.
After starting with prime movers, the company would begin manufacturing small trucks of 2.5 to five tonnes, which would cater to the domestic market, he said, noting they have no intention of entering Pakistan's booming car-assembly sector.
He said that a delegation of National Motors Nigeria has already landed in China to discuss the possibilities of Chinese support for this project. After making the necessary arrangements, the delegation is expected to land in Pakistan next week, he added.
Economic relations between Pakistan and China have been solid for some time now, and appear poised for further expansion. A high-level Chinese delegation, led by Assistant Commerce Minister Yi Xiaozhun Zhun, is set to visit Pakistan next month to initiate talks on establishing a free trade area (FTA) to boost bilateral trade. The official sources told newsmen here on January 27 that the two sides would also finalize matters relating to the expansion of the preferential trade agreement (PTA), adding the talks on the FTA were likely to be completed by the end of that year.
During Prime Minister Shaukat Aziz's visit to China last month, the two countries agreed to deepen concessions on 186 items, covered under the existing PTA, and extend tariff concessions to a further 913 items.
Pakistan and China would be very accommodating to each other in the FTA talks because of their existing good relations, said an official of the Chinese Commerce Ministry, Chen Chao.
The FTA was raised at a time when such trade arrangements are becoming increasingly popular and Pakistan stepped up its efforts to promote the trade and investment.