ISLAMABAD ( MEDIA REPORT )
Volkswagen plans to invest and undertake business ventures in Pakistan. Prime Minister Shahid Khaqan Abbasi has applauded the move. Furthermore, he assures Volkswagen full support and facilitation of the government.
Volkswagen is world’s largest automaker and it is good news for Pakistan to have another player in the sector. The business environment in Pakistan has improved and it is leading to more interests from foreign companies to invest in Pakistan.
Joseph Baumert, Board of Management member met the Prime Minister in the PM Office. Mr. Abbasi informed him about the strengths of Pakistan’s economy and credited investor-friendly policies for an “economic turnaround” in the last four years.
Furthermore, he stated that both local and foreign investors have enormous incentives to invest and gain profits from a fast-growing economy. This improvement is mainly contributed to improved security situation.
Moreover, Prime Minister also gave credit to China-Pakistan Economic Corridor (CPEC) for improving the image of Pakistan. The project aims to improve infrastructure and energy sector, which is generating great interest from international market.
The premier also highlighted various features of the Auto Policy 2016-2021 which offers tax and other incentives to new entrants to enable introduction of new brands, develop market share, create distribution and after-sales service networks besides a parts-manufacturing base.
Pakistan automobile sector has been dominated by Japan’s, so Volkswagen entering Pakistan is great news for the industry. The government also has recently imposed duties on import; it has also paved way for more players in the market.
In the past year, Lucky has announced a joint venture with Kia Motors, while Hyundai Motor Company also plans to set up a car assembly plant with textile group Nishat Mills.
Mr Baumert has expressed hope for a successful business venture in Pakistan and is looking forward to starting the venture soon.