According to a statement released by Board of Investment (BOI) on Thursday evening in Islamabad, the world-renowned French car manufacturer Renault has announced to start assembling cars in Pakistan.
They are expected to initiate the assembling as early as 2018. The special assistant to PM and Chairman of BOI confirmed on the official Twitter page that, “The French automaker Renault decides to invest in Pakistan. Showing its confidence in the new Auto policy and government’s economic management.”
The surprising news is primarily dedicated to the efforts of Government, especially the new policy which lets the manufacturers import all manufacturing plant equipment tax-free.
This system also offered very nominal taxes at the import of car parts once the assembly has started. This and other lucrative incentives are a major reason that such a prestigious set-up as Renault has decided to move to Pakistan.
The major attraction for companies such as Renault is the new policy which allows these investors to import tax-free manufacturing plant equipment and pay fewer taxes on import of parts when assembly starts plus various other incentives that can help new entrants in the automotive industry to set up their operations in Pakistan.
With PM Nawaz Sharif’s approved automotive policy, Ishaq Dar, along with (BoI) Miftah Ismail, met the many prominent companies’ representatives, like Volkswagen, Peugeot, Renault and Nissan. Ishaq Dar resolved the Renault official’s queries about the new import/export policy Pakistan has devised for car manufacturers looking to expand their businesses here.
According to the Board’s officials, this kind of endeavour can be very beneficial for the ordinary people as it is expected that The Duster could come at a price of around Rs2.5 million, which is even lower than the prices of 1500cc Japanese made cars. The company will also introduce up to 1200cc cars to cater the needs of the upper-middle class, the officials added.