Govt May Not Grant Greenfield Status to Pak Suzuki

The government on Thursday has informed the Senate Standing Committee on Industries and Production that it would not bring any changes in the Auto Policy 2016-21 announced by the previous PML-N government.

Related: Senate Displeased with Quality and Prices of Local Assembled Cars

The committee, in a meeting chaired by Senator Ahmed Khan, was informed by the Adviser to Prime Minister on Commerce, Textile, Industry, Production and Investment Abdul Razak Dawood that the PTI government would continue to enforce the Automobile Development Policy 2016-21, which was announced and implemented in March 2016. He said:

We will focus on increasing vehicle production in the country as Pakistan is a big country; demand is high while production is low.

The committee was told that 55-70% spare parts of cars were being produced in Pakistan, whereas in the case of tractors and motorcycles, 95% and 85% spare parts were being produced in the country.

Related: Newcomers Not Happy With Pak Suzuki Seeking Greenfield Incentives

While replying to a question from Senator Sitara Ayaz who asked whether the government would be giving Greenfield status to Pak Suzuki’s proposed $460-million investment, the adviser said that among local companies, only Pak Suzuki had asked for changing the investment category under the auto policy.

The company wants to build a new plant with an investment of $460 million along with its existing plant.

Related: Pak Suzuki Production Reduced by 40%

Mr Abdul Razak Dawood pointed out that any change in the category would be decided after meeting with and taking into confidence all the stakeholders. He added:

“If they [stakeholders] do not agree, we will not be giving Pak Suzuki Motor Greenfield status for its new plant because this category is only for new investors and new technology.”

The Senate committee was also informed that under the auto policy, 13 new car manufacturing companies had entered into Pakistan which were interested in manufacturing commercial vehicles, passenger cars and motorcycles. These companies are from South Korea, Japan, France and China and have promised investment of $1.16 billion in the sector.

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