The government took a huge stride towards shaking up the Japanese-dominated automobile industry, granting permission to three new, but non-European, companies to set up their car assembly plants in Pakistan.
The companies in collaboration with local partners will invest $372 million to set up the assembly/manufacturing plants.
The Ministry of Industry and Production allowed United Motors Private Limited, Kia-Lucky Motors Pakistan Limited and Nishat Group to set up units for assembly and manufacturing of vehicles under the Greenfield investment category.
As many as nine companies had sought permission to set up manufacturing plants but only three could get the approval in the first phase. It said that the documents of other applicants are being scrutinized.
The government in March 2016, had approved the new automobile policy, offering tax incentives to new entrants to help them establish manufacturing units and compete effectively with the three existing Japanese assemblers.