Ministry of Industries to Cancel the Greenfield Status of 3 New Automakers

The Ministry of Industries and Production (MIP) has decided to scrap the Greenfield status of three new automakers for not making any headway in terms of establishing plants in Pakistan. The decision has been made by the Auto Industry Development Committee (AIDC) which met with the Chief Executive Officer (CEO) of the Engineering Development Board (EDB) on August 13, 2020.

The report further says that the new arrivals, i.e. Pak CAMC, Pak China Motors and AI-Futtaim were given adequate time under Automotive Development Policy 2016-21 to show some progress. Unfortunately, neither did any of the aforementioned companies sign any contracts, nor did they make any physical headway in terms of production or infrastructural development.


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Secretary AIDC did, however, inform that under ADP 2016-21, 19 new investors have been given Greenfield status. In addition, under the Brownfield category, two units that had been shut down earlier, have been restarted. He also mentioned that almost $1 billion of total investment has come in under the ADP 2016-21.

Reports further state that the firms that have started manufacturing in Pakistan with a committed investment of $476 million include names such as United Motors (Pvt) Ltd, Regal Automobile Industries Ltd, Foton JW Auto Park (Pvt) Ltd, Master Motors Ltd, M/s KIA Lucky Motor, M/s Hyundai Nishat Motors.

Also among the new entrants, is Sazgar Engineering Works Ltd, which has come in with an investment of $23 million and is expected to begin producing vehicles soon.

Reportedly, the government is also planning to re-evaluate the progress measuring protocols and determining a fixed time-frame under which the automakers must show progress, otherwise their greenfield status shall be abolished.



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