Leave it to bureaucracy in Pakistan to create problems in projects that will benefit the country in the long run. Thanks to the Auto Development Policy 2016, international automakers are making their way to the Pakistani market but Hyundai and Renault after allegedly facing bureaucratic hurdles of National Investment Park (NIP) are changing the location of car assembly plant from Karachi to Faisalabad.

According to Dawn, investors at the Bin Qasim Industrial Park (BQIP) and Korangi Creek Industrial Park (KCIP) have alleged that NIP is delaying the implementation of projects which is resulting in mounting costs and time overruns.

Hyundai who initially planned to set up the car assembly plant in at BQIP is shifting its investment to the Faisalabad Special Economic Zone (FIEDMC).

Al-Futtaim Motors which has joined hands with Renault to assemble cars in Pakistan was allocated 50 acres of land in BQIP but the repeated delays by the Board of Directors of NIP have forced the company to change the location of its car assembly in Pakistan.

The non-availability of infrastructure can become a major turn off for the serious investors in the country

Reportedly, the two companies agreed to purchase the land at BQIP for almost double the actual land price as they were assured by NIP of the creation of a world-class industrial park where all the related facilities and infrastructure will be available to them.

Despite the commitment of providing electrical connections to the units by January 2018, the projects are plagued with serious problems related to the availability of utilities and infrastructure.

Some investors at BQIP have sent an SOS to NIP to gain a No Objection Certificate (NOC) so they can talk directly to the utility companies to fulfill their power requirements. Even if they get a NOC, it will take around 10 months to get the electricity and gas connections.

Apart from Hyundai and Renault, Kia-Lucky Motors, Tecno Auto Glass, Hitech Auto Parts, Horizon Steel and Ahmed Glass were also investing in BQIP and apparently they do not plan to shift their investment yet.

As we have previously reported, Volkswagen, Sazgar, and United Motors will also manufacture passenger cars in the country.