Adviser to Prime Minister on Commerce and Industry Abdul Razak Dawood reassured Renault Al-Futtaim of full cooperation and support amid their decision to exit from the Pakistani market even before officially beginning the activities.
In a bid to safeguard the investment of $165 million by Renault Al-Futtaim that will generate more than 500 jobs, Faisalabad Industrial Estate Development and Management Company (FIEDMC) arranged the meeting in Islamabad on Thursday to facilitate Al Futtaim Group for establishing Renault car plant in Pakistan.
The group has already bought 67 acres of land in the M-3 Industrial City Faisalabad back in mid-2018. Although the production was expected to start by 2020, the company has yet to start construction work on the site. Though the group was initially considering setting up the plant in Karachi but suffered from enormous delays due to documentation and various other issues.
Renault Al-Futtaim has demanded for an extension in the time frame to launch their cars along with an extension in the 10-year tax holiday under the SEZ incentives. The meetings, held at the Board of Investment (BoI) and Ministry of Commerce, discussed matters related to extension in SEZ incentives as well as the time period of Auto Policy 2016-2021 to be extended till 2023 as per Renault demands.
An official, who was present in the meeting, said talks between the government and Al Futtaim representatives may prove fruitful in improving the confidence level of investors and early start of the plant.