As per new initiatives to encourage investments undertaken by the Government of Pakistan, Japanese companies are being targeted to invest in different sectors.
Sojitz Corporation, a leading Japanese Company, created after the merger of Nissho Iwai and Nichimen, has finalized a joint venture with the Nishat Group of Pakistan and Hyundai Motors to assemble multiple categories of vehicles, including commercial vehicles in the Special Economic Zone (M-3 Industrial City) in Faisalabad. The project is expected to be formally launched soon. The commercial production of vehicles is expected to start in 2019.
Similarly, Mitsui & Co. Ltd., a Japanese multinational operating in multiple sectors has entered into a Joint Venture agreement worth US$310 million with the Singapore based BW Group. The Japanese Co. has acquired a 49% stake in it to jointly own a Floating Storage and Re-gasification Unit (FSRU). The Unit will be located at Bin-Qasim Port, Karachi. This is the first FSRU project for Mitsui and the first for a Japanese company to participate in the LNG infrastructure business in Pakistan.
By entering into the FSRU business, Mitsui aims to further expand its presence in the gas-value-chain business in the newly emerging LNG markets including Pakistan as Pakistan’s second LNG facility, Mitsui has promised to deliver a key energy infrastructure project of high national importance through this project.
Both these developments are very significant as Mitsui and Sojitz are important Japanese companies with global standing and credibility. While Mitsui has already gone public in announcing its joint venture for FSRU, Sojitz has still not announced the launch of its project. They plan to announce it once all the required formalities are completed.