ISLAMABAD: Great news! Japanese monopoly is going to an end in Pakistan as government took a huge stride towards shaking up the automobile industry by granting permission to three new (non-European) companies to set up their car assembly plants in Pakistan.
These three companies with local partners will invest $372 million to set up the assembly/manufacturing plants.
The Ministry of Industry and Production allowed United Motors Private Limited, Kia-Lucky Motors Pakistan Limited and Nishat Group to set up units for assembly and manufacturing of vehicles under the Greenfield investment category, said Ministry of Industries Secretary Khizar Hayat Gondal reported by Pakistani Media.
The Secretary said that these companies would bring in foreign investment worth $372 million. The maximum investment of $190 million will be made by Kia-Lucky, followed by $164 million by Nishat Group and $18.1 million by United Motors, he added.
As many as nine companies had sought permission to set up manufacturing plants but only three could got the approval in the first phase.
The secretary said that the documents of other applicants are being scrutinized.
The decision comes days after the Prime Minister’s Office decided to abolish the Engineering Development Board (EDB) on allegations of corruption and creating hurdles in the way of setting up new car manufacturing plants in Pakistan.