Pakistan, Japan join hands to boost auto industry growth and investment

Pakistan's current industrial policy will increase exports, reduce tariffs, and be generalised to attract foreign investment
An undated image of parked cars. — Canva
An undated image of parked cars. — Canva 

Pakistan and Japan have agreed to strengthen their cooperation in the auto industry, to attract more Japanese investment in the automobile sector and to help Pakistan in becoming a regional hub for auto production and exports.

Special Assistant to the Prime Minister for Industries & Production Haroon Akhtar Khan and the Ambassador of Pakistan to Japan, Abdul Hameed, met with Japan's Vice-Minister for International Affairs at the Ministry of Economy, Trade and Industry (METI), H.E. Matsuo Takehiko, where the cooperation was discussed.

Clouded by Pakistan's growing consumption potential, growing population, and young and growing workforce, it creates an opportunity for Japanese automakers, and with over 70 Japanese companies in the market within the sectors of automobiles and manufacturing in the country, including Toyota and Suzuki, the meeting was concluded.

Japan stressed the importance of providing defined regulations with concrete plans for implementation and a future investment plan based on incentives to encourage Japanese automakers to sustain production in Pakistan or to consider possibilities for exporting production from Pakistan.

Both sides reviewed the global auto industry, such as biofuels, and trends in automotive technology.

Pakistan's current industrial policy will increase exports, reduce tariffs, and be generalised to attract foreign investment.

Government officials are hopeful that these policy proposals will also achieve the government's target of 6–7% annual GDP growth to bolster the Pakistan auto industry.

The two sides also looked at opportunities for Japanese investment in textiles, IT, and special economic zones. They agreed to keep close coordination and follow-ups to turn these discussions into practical results.