Prime Minister Shahid Khaqan Abbasi has welcomed Volkswagen’s decision to start operations in Pakistan.
PM Abbasi assured complete cooperation of the Government of Pakistan in facilitating Volkswagen.
Joseph Baumert, member of Volkswagen Board of Management at PM Secretariat, was met by PM Abbasi where he expressed various strengths of Pakistan’s economy especially CPEC, which will boost Pakistan’s economy and credited investor-friendly and business-friendly policies.
Pakistani’s Prime Minister expressed hope that Volkswagen would provide quality vehicles to the Pakistani market. Other officials including Volkswagen’s head of overseas production – Andreas Sprindler, head of Asia Pacific – Oliver Glaser, International Policy Foreign and Governmental Relations – Klaus Bo Steindorff, head of CKD – Yuri Konushin, Premier Systems CEO – Syed Arshad and Board of Investment secretary were present during the meeting.
PM Abbasi said that both local and foreign investors had huge incentives to invest and reap benefits from a fast-growing economy as a result of the improved situation.
Pakistan’s automobile industry is dominated by three Japanese companies who face capacity and manufacturing issues due to the high demand for cars. At the moment, the three local manufacturers fail to meet the international standards of quality and safety.
Just recently, the government imposed a increased regulatory duty on new and used imported cars. Volkswagen and other companies which are investing in Pakistan’s automobile industry have an opportunity to meet the demand-supply gap in the market.
Hyundai Motor Company is planning to set up a car assembly plant with the help of the textile giant Nishat Mills, also Lucky Cement has announced a joint venture with Kia Motors.
The recent investment of international brands, including Volkswagen and Kia Motors, shows that the economic situation of Pakistan is better and investors have a keen eye on the economic and security situation of Pakistan. New plants for manufacturing and distribution are expected to start operations soon.
PM Abbasi said:
Due to improved and enhanced road networks as a result of the China-Pakistan Economic Corridor (CPEC) project and greater spending on communication infrastructure, Pakistan offers great opportunities to international automobile companies to fill in the existing demand-supply gap through local production.
Volkswagen’s representatives expressed their hopefulness for a successful start of business venture in Pakistan.
