French car manufacturer Renault which is a big player in automobile industry, has agreed to start assembling cars in Pakistan by year 2018. The continuous efforts of the Chairman Board of Investment Miftah Ismail and Pakistan’s Finance Minister Ishaq Dar have borne fruit which help boost Pakistan’s economy in the near future. Pakistan’s Economic Policy provided room for interaction with foreign automobile companies to invest in Pakistan, and Renault has finally given the green signal.
Miftah Ismail also met a few other giants of the automobile industry like Nissan, Volkswagen and Peugeot urging them to invest in Pakistan by considering its new improved policy regarding the automobile sector. The Chairman of BoI also held meetings with local investors and stakeholders, under the Prime Minister’s Economic Policy and Vision. The revamped Auto Policy aims to help open up the closed local vendors as well as to lure the leaders of the auto industry.
The new entrants will enjoy profuse benefits and incentives from the Pakistan government including tax-free setup and curtailed taxes on import of parts. The new Auto Policy was formulated under the supervision of the Economic Coordination Committee. Another committee headed by Federal Minister Khawaja Asif and also including Mr. Ismail, held various meetings with stakeholders and eventually drafted different measures to attract investors by providing manifold perks.
The official Board of Investment statement said:
During Eidul Azha holidays, Finance Minister Ishaq Dar and Dr Miftah Ismail, chairman BoI, visited France and met the top leadership of Renault. Renault has decided to invest in Pakistan. They will start assembling cars in Pakistan by 2018.
Miftah Ismail asserted about the importance of this revolution, saying:
We want greater competition, and we expect with greater competition consumers will be offered better choices.
While other auto market-rulers are yet to make their final decision, Nissan has also shown keen interest in joining hands with Pakistan, however, the final decision is yet to be disclosed. Nissan wants to explore the lately untapped domain, rather a Japan-dominated industry. Jonathan Adashek, the Chief Spokesperson of Nissan told about exploring Pakistani market, saying:
Pakistan is certainly a market of interest for us at present but no final decision has been made yet.
The other companies like Volkswagen and Peugeot haven’t answered to Pakistan’s request, but it is sure that they will respond sooner or later. The introduction of Renault will be a great step and the car lovers will certainly welcome their arrival. The Renault’s assembled vehicles will be available at lower prices than the current ones which include Honda, Toyota and Suzuki. The beast Renault Duster will be available at around 2.5 million rupees which is less than the other 1500 cc Japanese cars, which are assembled locally. The company will also assemble 1200 cc cars for consumers.