Pakistan is planning to increase its yearly automotive production from 250,000 units to six to eight million units in the next five years, according to Pakistan Ambassador to China Moin ul Haque.
“It is an ambitious target, but it is achievable due to annual growth in production and interest shown by various automobile companies from around the world, particularly from China, which plans to invest in Pakistan,” he said at the Pakistan Automobile Industry Roundtable Seminar held at the Pakistan Embassy in Beijing.
The conference was attended by representatives from approximately 50 well-known vehicle businesses from all over China.
The ambassador told the audience that a number of Chinese companies are already operating in Pakistan’s automobile manufacturing industry and that up to ten new companies have expressed interest in investing in Pakistan and are in the process of forming joint ventures with local partners in the private sector.
He stated that the government is working on a new and extremely attractive vehicle industry strategy, which would be announced soon, and that the new policy will likely include greater tax benefits and concessions.
Automobile businesses, particularly Chinese makers of energy cars, would be welcomed to set up operations in both the Greenfield and Brownfield sectors, according to Ambassador Haque.
He claimed that the vehicle market in Pakistan is the fastest expanding because of the high demand due to the country’s population of close to 220 million people.
In the past, Japanese manufacturers established manufacturing facilities in Pakistan, but in recent years, Chinese automakers have begun to investigate the possibilities in Pakistan.
He stated that the China Pakistan Economic Corridor (CPEC), which is the flagship project of the Belt and Road Initiative (BRI), has reached its second phase, which focuses on industrialization, research and technology, and agriculture.