Over 50 Chinese companies attend Pakistan Automobile Industry seminar in Beijing
BEIJING, Oct 23 (APP):The representatives of over 50 renowned automobile companies from different parts of China attended Pakistan Automobile Roundtable seminar and were briefed about the conducive investment environment and attractive incentives offered by the present government for the foreign entrepreneurs especially from China.
The seminar organized by Pakistan Embassy Beijing was attended by Anhui Jianghuai Automobile Group, Beijing Henrey Auto, Hozon New Energy Automobile, BAIC Intl, Great Wall Motor Company, Beijing Sanxing Automobile, Foton Motor Group, Tianjin Tianqi Group Meiya Automobile, Zhongtong Bus Holding Co., Youtong Bus, Dongfeng Motor Company, Jiangxi Jiangling Motor, Xiamen Golden Dragon Bus Co., Liaoning Aerospace Automobile Co., Wolkswagen Group, Geely Automobile International Corporation and several others companies.
While addressing the participants, Pakistan Ambassador to China, Moin ul Haque said that the government is planning to enhance existing production of buses, trucks and cars as well as energy vehicles.
He said that a number of the Chinese companies are already in Pakistan in automobile manufacturing sector and added that up to 10 new companies have showed interest to invest in Pakistan and are in the process of having joint ventures with their local partners in the private sector.
Ambassador Haque informed that the government is formulating a new automobile sector policy which will be announced soon, adding, more incentives and concessions in taxes are likely to be offered in the new policy.
The automobile companies including manufacturers of energy vehicles from China will be invited to set up their plants both in the Greenfield and Brownfield sectors.
Sharing more detail, he said that the automobile is the fastest growing sector in Pakistan because of the large demand in view of the population which is close to 220 million people.
In the past, the Japanese automobile manufacturers set up their production units but in the recent times, automobile companies from China also started looking at opportunities available in Pakistan.
Appreciating China as one of the leaders in automobile manufacturing in the world with very high quality products, he expressed the pleasures that the Chinese companies have also entered to the Pakistani automobile market.
While sharing other opportunities under the China Pakistan Economic Corridor (CPEC), he said that the flagship project of the Belt and Road Initiative (BRI) has entered into the second phase which is focusing on industrialization, science and technology and agriculture sectors.
“We are setting up special economic zones where we are inviting Chinese investors to come and set up their manufacturing units,” he added.
Ambassador Haque said that special incentives and policies have been announced especially for the Chinese companies and so far close to 100 Chinese companies have already established or in the process of establishing their units in the special zones.
He said that the infrastructure like roads, highways and communication network are being upgraded in Pakistan and asked the Chinese companies to take advantage of all these incentives and expand their presence.
Welcoming the representatives of the automobile companies, Commercial Counselor, Badar uz Zaman said that the new automobile policy for the years 2021 to 2026 will soon be announced, and added, more incentives and benefits to local and foreign investors will be offered under the new policy.
He informed that a number of new companies particularly Chinese manufacturers entered in Pakistani market under the existing automobile policy which was announced in 2016.
Badar said that a number of Chinese companies are already setting up their businesses in Pakistan while some new companies are keen to invest in Pakistan owing to investment friendly policies offered by the present government.
He informed the companies that government has more attractive formulated rules and regulations which support the foreign investment in Pakistan.
Badar also shared details of the incentives, concessions in the taxation and easy repatriation of profits.
“Many local companies listed with the stock exchange are very keen and are looking forward to the Chinese partners for the joint ventures,” he added.
He said that there are over 600 auto parts manufacturers who are also supplying the parts to the existing players, adding, “We offer very comprehensive auto financing policies and the banks are very active. And the amount that has been financed in cars is three times more than the housing finance in Pakistan.”
The commercial counsellor also shared with companies the details of concessions on taxes, duties and particularly cheap labour.
He said that in the current global scenario when there is a supply chain shock, and it is difficult to move things from one place to another place, it is right time for the Chinese investors to take advantage of Pakistan location, low wages and other benefits.
Later, representatives of the companies who are already operating in Pakistan shared their experiences and put forward some useful proposals.
Some new companies which plan to enter into Pakistani automobile industry also put questions and sought more details about the policies.
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