Automobiles

Sector Brief

  • Pakistan’s Automobile industry contributes (2.8%) to its GDP and 30 billion rupees to the national exchequer in terms of taxes and duties.
  • Pakistan is home to the world’s sixth largest population with a growing middle class. There are approximately 17 million middle class households and 102 million middle class individuals as of 2018.
  • Pakistan’s automobile industry is fastest growing in Asia. The production and sales have both grown by 171% and 172.5% respectively between (2014 and 2018), all of which has been fueled by the Automotive Development Policy introduced in 2016.
  • On the 18th of March 2016, Economic Coordination Committee (ECC) passed the "Automotive Development” Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing plants. In response various car manufacturers have expressed their interest in entering the market including, but not exclusive to, Renault, Nissan, Kia, SsangYong, Volkswagen and Hyundai.
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Automotive Development Policy Goals

Sector Brief Image

Eligibility Criteria

The Board of Investment shall be the single point of contact for the investor with the government. Any new investor shall be required to submit a detailed business plan and relevant documents for manufacturing of vehicles to the Board of Investment. The Board of Investment shall have the Business Plan assessed by the Engineering Development Board, which shall verify the investor’s in-house assembly/manufacturing facilities for the manufacture of road worthy vehicles.

The Engineering Development Board shall determine eligibility of the applicant under the defined criteria to be declared as Category A or Category B Investor. The Ministry of Industries and Production, on recommendation of the Engineering Development Board, shall approve a new investor under the relevant category. The Auto Industry Development Committee (AIDC) and Engineering Development Board shall review results of the new investor policy once every two years and shall recommend modifications, if any.

Documents Required

Following documents are required by a new investor to submit BOI alongwith an application:

  • Registration with SECP
  • Registration with FBR
  • Detailed Business Plan on EDB format alongwith documentary evidences, wherever applicable, of the following:
    • Land and Building
    • Plant and Machinery
    • IPO receipt of brand name and logo IV. Verified / authenticated copies of Contract Agreement (Technical Transfer / Assistance) from the following organizations:
      • Foreign Office in the country of Foreign principal
      • Chamber of Commerce & Industries in the country of Foreign principal
      • Pakistan Embassy in the country of Foreign principal
      • Federation of Pakistan Chamber of Commerce & Industry (FPCCI), Pakistan
Categories of New Investment
  • Greenfield Investment
    Greenfield Investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of a make not already being assembled / manufactured in Pakistan. [Note: “Make” is defined as any vehicle of whatever variant produced by the same manufacturer]

    Greenfield Investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of a make not already being assembled / manufactured in Pakistan. [Note: “Make” is defined as any vehicle of whatever variant produced by the same manufacturer]

  • Brownfield Investment
    Greenfield Investment

    Brownfield Investment is defined as revival of an existing assembly and/or manufacturing facilities, that is nonoperational or closed on or before July 01, 2013 and the make is not in production in Pakistan since that date and that the revival is undertaken either independently by original owners or new investors or under joint venture agreement with foreign principal or by foreign principal independently through purchase of plant.

<h3>Documents Required</h3> <p>Following documents are required by a new investor to submit BOI alongwith an application:</p> <ul> <li> Registration with SECP </li> <li> Registration with FBR </li> <li> Detailed Business Plan on EDB format alongwith documentary evidences, wherever applicable, of the following: </li></ul>  <ul> <li >Land and Building</li>  <li>Plant and Machinery </li> <li>IPO receipt of brand name and logo IV. Verified / authenticated copies of Contract Agreement (Technical Transfer / Assis

Recent investments

  • 123Approved Cases 15
  • dollarInvestment of Approved CasesPKR 85,995.39m
  • asafUnder Process Cases 05
  • asfgInvestment of Under Process CasesPKR 10,805.25m

Major Investors

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  • Mr. Muhammad Aslam

    Deputy Assistant Director

    Prime Minister’s Office

    Board of Investment

    Tel: 051-9244562

  • Mr. Usman Ali

    Deputy Manager

    Engineering Development Board (EDB),

    Ministry of Industries & Production

    Tel: 051-9210285

  • Mr. Zakria Khan

    Assistant Chief

    Engineering Development Board (EDB),

    Ministry of Industries & Production

    Tel: 051-9202899