Renault, a French automaker collaborated with Al Futtaim group in UAE to manufacture locally assembled vehicles in Pakistan. Earlier we informed our readers about the news regarding Al Futtaim-Renault exiting the Pakistani market.
The company was having a few issues, thus a meeting was called between the Adviser to Prime Minister on Commerce and Industry Abdul Razzak Dawood and Al Futtaim-Renault.
Al Futtaim-Renault is seeking the Automotive Development Policy (ADP) 2016-2021 extension to 2023. As the benefits of the auto policy will soon expire by 2021, Renault is looking into the extension of the policy.
Also, the company wants an extension in the tax breaks that are linked with the Special Economic Zone (SEZ). Al Futtaim-Renault’s total foreign direct investment amounts to $165 million.
Earlier the company wanted to develop a plant in Karachi. But due to a delay in the procedural work the company moved the plant location to M-3 SEZ in Faisalabad.
The Faisalabad Industrial Estate Development and Management Company (FIEDMC) arranged the meeting. The FIEDMC wants to safeguard the $165 million investment in the region. The investment will not just benefit the auto industry but also produce around 500 jobs.
Al Futtaim-Renault planned to begin production of vehicles by 2020. But in the current situation, it does not seem likely. Thus the company has asked for an extension in the auto policy and 10-year tax incentives connected with the Special Economic Zone (SEZ).