Business

Chinese interested in setting up auto unit in Pakistan

Punjab woos foreign investors with fool-proof security

Our Correspondent July 26, 2016

Punjab woos foreign investors with fool-proof security. PHOTO: REUTERS

LAHORE: The atmosphere is now conducive for investment and trade in Punjab by foreign investors in all development sectors where they will be provided fool-proof security, said Provincial Minister for Labour and Human Resource Raja Ashfaq Sarwar.

During a meeting with a six-member delegation of Chinese investors and industrialists, led by the director of renowned automobile manufacturer JAC Motors, Chen Zhi Qiang, matters of bilateral interest were discussed along with mutual promotion in different sectors including automobile, infrastructure development, agriculture, livestock, energy and trade.

Auto policy approved, door wide open for new entrant

The Chinese delegates expressed their keen interest in setting up an automobile manufacturing unit in Punjab.

The minister welcomed the proposal and said the Punjab government had set up a number of industrial zones in the province with tax exemptions to encourage investment, particularly Chinese investment since both countries had a remarkable opportunity for economic, industrial and business growth under the China-Pakistan Economic Corridor (CPEC).

He said CPEC would provide employment for the youth of Punjab and for which the government had drafted a plan of action for imparting latest skills training to about two million youth.

Manufacturers gear up for Chinese interest

Sarwar also praised efforts of the Chinese government to eliminate the energy crisis from Pakistan and cooperate in mega projects of infrastructure development.

Premier Group of Companies CEO Shaukat Mubarak and Premier Engineering Pakistan Country Head Ahmad Danial were also present on the occasion.

Published in The Express Tribune, July 27^th, 2016.

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COMMENTS (28)

Sami Shahid | 7 years ago | Reply @observer: so what is your problem when one country is ready to invest ? do you want to snatch investment at a gun point from Europe and America

Sami Shahid | 7 years ago | Reply @DNiwasi: Pakistan cannot totally depend on import via sea route....so Chinese investment is essential for Pakistan.

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Sami Shahid | 7 years ago | Reply Pakistan cannot totally depend on import via sea route....so Chinese investment is essential for Pakistan.

observer | 7 years ago | Reply @Arslan: "We can not become a satellite state of China and become their second manufacturing country of cheap products." Too late for that. Pakistan is already a Chinese satellite state.

genesis | 7 years ago | Reply @Arslan: All that is Chinese will find a place in China's colony or is it colonialism...

Ravi | 7 years ago | Reply @Ali: Foxconn is Taiwanese, not chinese!

Sameet Raj | 7 years ago | Reply I appreciate it.

Idiotbox | 7 years ago | Reply @N.S: Apple products are also manufactured in china then Apple will not become an Chinese company, you need to understand that most of the things manufactured in china is not conceptualized in china. China does have only Sweat shops.

M. Ikram Khan | 7 years ago | Reply Suzuki Mehran costs nearby equal to Auto Rickshaw being assembled locally in Pakistan with china imported engin.

M. Ikram Khan | 7 years ago | Reply But , what we did with electric railways engines and electric transmission line Lahore to Khanewal. That was not supplied by China. Please keep in mind before to blame others because we are Pakistani first.

Anony | 7 years ago | Reply That's good, CPEC will make it easy and cheap. The cars will be easily shipped from China to Pakistan, after that to Gulf nations and neighboring countries. I hope these cars kick other car companies in the gut. Because paying too much money for a car like Mehran is ridiculous - it's no different than a taxi. And no I don't wanna pay $7,000 for a shitty taxi car. Japan you should be ashamed of your ridiculous free market economy, it's not an RPG game for people in South Asia. China we got your back. Keep up the good work!

Haris | 7 years ago | Reply After looking at the quality and value proposition the big three offer in Pakistan and the horrendous quality of newly introduced Honda Civic....I am of the opinion that these auto makers should be heavily penalised for not optimising their operations and training their staff to improve quality. Put them on regulated prices with only 5 to 10 % profit.

DNiwasi | 7 years ago | Reply @Sami Shahid: biggest exporter to Europe for small products whose cost of failure will not be high.

DNiwasi | 7 years ago | Reply One needs to read between the lines. Have people forgotton the railway engines experience with China...those new engines lying as junk for many years now, past warranty period, hence no question of unpaid support, the ministers or bureaucrats didnt raise the matter while within warranty period for some mysterious reason. When a country wants a captive market for its products, what better place than ever-ready-to-please Pakistanis When a country wants to setup its nascent industries and need them to grow, what better place than in every-ready-to-please Pakistan..after all Pakistan is paying for CPEC and since it is incapable of setting up or running anything on its own, it is most welcoming of anyone setting up anything irrespective of quality or price. Of course the Chinese are clever enough to just price below the other market prices for the poor to go for it only to have their pockets broken on account of constant repairs. What's stopping China from bringing its industries in other sectors to make ingress into ever-welcoming insecure Pakistan. Make hay while the sun shines...Strike quick and hard while the iron is hot.

Fahim | 7 years ago | Reply When I visted China about 50% cars were european/american brand specially Volkswagen and ford. All cars were locally manufactured. I hope they can make high quality cars in their own brand. Fingers crossed

Malik Saab | 7 years ago | Reply @Condemned Pakistani: 90 Percent of the total cars of Pakistan are produced in Sindh. Still you are not satisfied. Punjab do not even produce 5 percent of the cars in Punjab. Why A biggest province of Pakistan do not have any right to set up a car plant in Pakistan?. Enough should be enough. You get all the economic benefits and in the end bash Punjab. What do you want actually that Sindh should get everything in Pakistan. Sindh should get every big manufacture unit and the biggest province will be blackmailed?.

N.S | 7 years ago | Reply @Sandip: Chances are the Monitor you are reading this news is made in China, so is the Keyboard you are typing and the computer you are using and the smart phone and and...the list is endless. This is just a myth that China produces junk, China produces grade A, grade B, grade C, grade D, Grade E and it goes further. It depends on the country the products are supplied to, like Chinese companies will ship Grade A products to US and Europe and Grade C and D products to India and Pakistan, but there are exceptions. China two way trade is about 4000 billion USD and exports are around 2200 billion USD, China-India trade is just 4% of their trade.

Sami Shahid | 7 years ago | Reply @Arslan: Arsalan...China is the biggest exporter in Europe and has the biggest market in Europe...even the UK wants Chinese investment....I'm sorry if you already knew it.

Sandip | 7 years ago | Reply @AJ: Cmon. If the brave pilots of the air force can dare to fly chinese junk, can't you buy one chinese car? It's all for the sake of that friendship dear.

Arslan | 7 years ago | Reply Pakistan has to start looking beyond China for FDI. We can not become a satellite state of China and become their second manufacturing country of cheap products. In the absence of a foreign minister, international lobbying and lack of political will or even common sense to develop a long term sustainable global strategy, we have become isolated and oblivious of global trends.

Faisal Hamid | 7 years ago | Reply A competition should always be welcome. Because without that, it is not possible in any economic sector in our country to stop monopoly by others. Such competition should be implemented in all forms of governance in Pakistan.

Sami Shahid | 7 years ago | Reply We should welcome Chinese investment and we should not worry about the big three's ! Because this is how those big three's will reduce their prices !

AJ | 7 years ago | Reply Seriously , Chinese Cars ? I know they would be no where near as bad as the perception they carry, but I am yet to meet anyone who wants to buy Chinese cars. They would have to put up a very compelling value proposition to even consider such an option. How have these cars fared against the competition in non-Chinese markets ?

Kushal | 7 years ago | Reply @ali: Foxconn is not Chinese but Taiwanese and they have no reason to set up shop in Pakistan.

Condemned Pakistani | 7 years ago | Reply

The Chinese delegates expressed their keen interest in setting up an automobile manufacturing unit in Punjab.

So China also believes Punjab is 'Pakistan', just like politicians and the national media in Pakistan do...!

ali | 7 years ago | Reply Any investment is welcome especially it will help common people against the big 3 auto monopoly in Pakistan. But we want major Chinese firms like *Foxconn* to invest in Pakistan.

Farah | 7 years ago | Reply Would love to see the big 3's sabotaged by Chines automobile industry. Its a shame that such a horrendous car as suzuki mehran now costs 7 lacs. It'd be a welcome change..

Woz ahmed | 7 years ago | Reply Although would have preferred a European brand to come to Pakistan, Cheap Chinese cars will be welcome, with CPEC parts and cars will be shipped cheaply.

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