Renault, a French auto fabricating organization, is planning to begin assembling cars in Pakistan in the coming year 2018. The government of Pakistan legislature was encouraging international car producers like Nissan and Renault by giving relief in import duties. After the endorsement of Ex-Prime Minister Nawaz Sharif’s vision and economic policy, Special Assistant to the Prime Minister and Board of Investment (BoI) Chairman Mr. Miftah Ismail held official meetings with all the stakeholders in Pakistan and international automobile companies.
Renault To Start Assembling Cars in Pakistan by 2018
Moreover, Ismail also said that more than one foreign companies have plans for investment in Pakistan. He had said that new contestants would be able to import duty-free plant’s machinery. For importing cars he customs duty is set to be 10% whereas the previous companies have to pay 30pc. Furthermore, he gives his views that they need competition in this field. So, that people will get quality and variety for cars at a reasonable price. A source near Renault revealed to Reuters not long ago that Pakistan was under thought for investment in new production, alongside other potential areas. Whereas, they included that talks were at beginning stages.
Nissan chief representative Jonathan Adashek had stated: “Pakistan is surely a market of enthusiasm for us at this time.” But at the current stage, we are not in the position of taking any decision. Ismail met with foreign firms like Peugeot, Volkswagen, Renault, and Nissan. During the holidays of Eid, the BoI executive and Finance Minister Ishaq Dar went to France and met top leadership of Renault. Chairman Bol Miftah Ismail said that “the French company Renault would invest about $100 million to extend the volume of Gandhara plant. And in this plant, Renault will assemble the cars.”
The finance minister headed the Economic Coordination Committee of Cabinet constituted a board of trustees to review the Auto Policy. Also, the aim was to prescribe new measures for the extension, consumer protection, and investment in the auto business.
Officials Providing Suitable Atmosphere For Assembling Cars in Pakistan
Khawaja Asif the Minister for Water and Power along with Ismail headed the committee. The board held many gatherings with all partners for thought of new arrangement bundle to pull in Greenfield venture. Additionally restore existing shut auto units for assembling cars in Pakistan. Experts say the situation is anything but favorable for Pakistan finishing bargains, in spite of the concessions on offer.
A noteworthy hurdle is a perpetual concern about the country’s political stability. Whereas, the military has engaged with militants and many other terrorist organizations. The danger of militancy likewise stays high, notwithstanding the military’s long-running effort against bunches including the Taliban.
Remote organizations have been hesitant to contribute huge totals when the long haul standpoint is so unverifiable. “There is potential in Pakistan. There is no uncertainty about that,” said Puneet Gupta, relate executive at expert IHS Automotive said not long ago. “Be that as it may, we truly don’t feel Pakistan is in a generally stable condition, from a mid to long haul viewpoint.”
Another potential kill for financial specialists is the span of Pakistan’s auto showcase, where 180,000 autos sold in the 2014/2015 financial year. That contrasts and more than 2 million traveler vehicles a year in neighboring India. A few Pakistanis are disappointed by high costs. The nature of privately delivered autos, which tend not to have airbags, electronically monitored slowing mechanisms (ABS) and different highlights considered standard somewhere else.
Pakistan’s Least Expensive Car Suzuki Mehran
The least expensive Pakistani auto, the Suzuki Mehran, offers for 6.8 – 8.0 lacs Pakistani rupees ($6,200), which is two times expensive than comparable model in India.