In order to facilitate the prospective investors under ADP and to exchange views regarding concerns of auto companies in the light of the said policy, a meeting was scheduled under the Joint Chairmanship of Secretary, Ministry of Industries & Production (MoIP) and Secretary Board of Investment (BoI), on Tuesday 12th July, 2017 at 10:30 a.m. in the BoI Islamabad.
The following investors attended the meeting.
M/s Cavalier Automotive Corporation (Pvt) Ltd., Islamabad
M/s Foton JW Auto Park (Pvt) Limited, Lahore
M/s Habib Rafiq (Pvt) Ltd
M/s Hyundai Nishat Motor (Private) Limited, Lahore
M/s Khalid Mushtaq Motors (Pvt) Ltd
M/s Kia Lucky Motors Pakistan Limited, Karachi
M/s Pak-China Motors Pvt Limited, Karachi
M/s Regal Automobiles Industries Limited, Karachi
M/s United Motors (Pvt) Limited, Lahore
The meeting was also attended by the Senior Joint Secretary MoIP, CEO Engineering Development Board (EDB) as well as other senior officers of the Ministry, Board of Investment and Engineering Development Board.
It is important to highlight that the Category-A Greenfield investment status has been granted to four auto investors under the relevant policy and rules in vogue i.e Hyundai Nishat Motor (Private) Limited, Kia Lucky Motors Pakistan Limited Karachi, Regal Automobiles Industries Limited Karachi, United Motors (Pvt) Limited Lahore.
According to a government official, one plant would need a $500 million investment, which would result in a $2 billion spending by the respective companies.
He also said that 2 more companies are joining in within a week and will get their permission for setting up a manufacturing plant in Pakistan. They have completed their paperwork pending approval from the government. This would mean an additional $1 billion investment.
Secretary MoIP highlighted that the companies awarded with Greenfield investment status would be required to enter into an agreement with Ministry of Industries & Production to ensure compliance to the conditions of the ADP 2016-21 relevant SRO’s and various timelines for completion of the projects for availing incentives under the said policy.
Once the agreement is signed between the investors and the Ministry, the concerned auto sector investors would be able to avail the incentives of the ADP. The secretary added that the agreement would be available for signing and countersigning for all concerned by Monday, July 17, 2017.
Various issues and questions of the auto industry representatives were clarified on the spot by officers of EDB, BoI and MoIP. Both the federal secretaries ensured that in the near future the remaining auto investors would also be awarded the status of Green or Brown field investment status in speedy fashion.
Auto sector representatives expressed their complete satisfaction over the facilitation and support of BoI, MoIP and EDB and the investors’ applications being processing and evaluated in the shortest possible time.
At the end of the meeting, Secretary BoI thanked the auto investment companies’ CEOs and MDs and appreciated their efforts to boost investment in the auto sector and leveraging the local industry of Pakistan.
