In Pakistan, the auto sector is booming in recent times. Every year the demand for automobiles is just increasing. As the demand is rising, the local and foreign investment in the auto industry of Pakistan is also increasing at a fast rate.
Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Iftikhar Ahmad spoke at the Pakistan Auto Show-2018 in Lahore He said, “The investment in the Pakistan-based auto manufacturing industry has risen to Rs370 billion. The auto industry is contributing revenue worth Rs110 billion per year to the Pakistan government, while it has achieved import substitution of $3.3 billion a year, besides generating a foreign exchange of $210 million a year through exports.”
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Auto Sector is one of the growing industries in Pakistan. In recent times many foreign automakers have shown interest in entering Pakistan which includes Hyundai, Kia, Renault, and Volkswagen. The government is quite content with the performance of the auto industry as it is producing increasing tax revenues with every passing year.
In 2013-14 car production rose to 250,000 from 50,000 in 2011-12. By 2019-20 the auto sector wants to produce 350,000 units to meet the rising demand.
Naveed Ahmad, a renowned investor, manufacturer and exporter of high-tech auto spare parts to the US, France, UK, and China said, “A number of foreign auto manufacturers who have unveiled plans to start manufacturing automobiles in Pakistan are likely to nearly double investment in the next couple of years. France’s Renault, Germany’s Volkswagen and South Korea’s Hyundai & KIA have either started establishing their plants in Pakistan or have received permission to do so. They are granted concessions such as tax-free investment and other benefits, including the provision of low-priced land for their plant. These automakers also are allowed to repatriate their annual profits or even their entire investment if they so desire.”