The French automaker, Renault is not launching its vehicles in Pakistan, as per sources and news reports. Renault has canceled its Al-Futtaim license to develop its manufacturing plant in Pakistan.
Senior EDB officials claim that Al-Futtaim has not officially discontinued yet, but chances are that the company will fully withdraw its manufacturing plant.
Furthermore, he said that due to the economic instability in Pakistan, Renault has taken this decision. The rupee continuously devaluing against the US dollar has led to this withdrawal by Renault. Also, Renault officials feel that the project is no more feasible.
Earlier the Foreign Minister of Pakistan, Shah Mehmood Qureshi appreciated the initiative taken by Renault to establish a manufacturing plant in Pakistan to manufacture cars.
An agreement was signed between Al-Futtaim and Renault to manufacture cars in Pakistan in November 2018. Thus Al-Futtaim Renault acquired land in Faisalabad for the manufacturing plant.
Currently the design and pre-engineering work was being done which once completed would have led to the construction of plant. But it seems that Renault has had a change of heart.
The project would have produced 50,000 vehicles annually at an investment of $140 million. But now it seems that it will not see the light of the day.