Auto makers shifting assembly plants to Punjab

Bin Qasim Industrial Park (BQIP) and Korangi Creek Industrial Park (KCIP) investors claim that National Investment Park (NIP) is going through administrative difficulties. Thus, the projects are being delayed, cost and time are increasing. So many automakers are shifting their assembly plants to Punjab.

Hyundai had initial plans of setting up its assembly plant in BQIP. But now because of the bureaucratic problems of NIP Hyundai is shifting its investment to the Faisalabad Special Economic Zone (FIEDMC).

Similarly, Renault and Al-Futtaim Motors also facing issues to set up an assembly plant in Karachi. National Industrial Parks Development and Management Company (NIP) is demanding Renault to sign an agreement saying clearly that any rise in land cost will be provided by the company for developing a vehicle manufacturing plant in Karachi city. Renault is also now compelled to change its plant location to Faisalabad.

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These issues have forced the investors to talk to the National Industrial Parks and Development and Management Company, discuss the problems and ask why the infrastructure which was promised is not available at BQIP.

As per the sources, the stakeholders of the auto companies even agreed to purchase land of BQIP giving the double land price at the Port Qasim Eastern Zone. NIP, in turn, promised the establishment of the best industrial park with all the facilities and infrastructure. Furthermore by January 2018 electricity connections were promised. But its March 2018 now and the project is just facing lack of facilities and no proper infrastructure. NIP does not have an extra electricity supply to provide to the automaker’s project.

Now as per NIP the Board of Directors will decide the power policy and facilities. Chairman NIP Muhammad Afzal was contacted by the investors but he never answered.

An SOS has been sent by BQIP investors to NIP to issue no objection certificates for them to approach other utility firms for power supply. Now even NIP issues the NoC it will take at least 10 months to get the power and gas connections.