Japan plans to diversify auto sector in Pakistan

ISLAMABAD: Japanese government planned to help Pakistan improve exports and build up the country’s automobile industry, a foreign envoy said on Thursday.

“The Japanese government has plans to support the government of Pakistan in export promotion, improvement of security through the provision of security equipment at the airports and diversification of automobile industry,” Ambassador of Japan Takashi Kurai added.

Kurai called on the Minister of State for Finance Rana Afzal Khan, according to a government statement.

Exports sector showed recovery in the first half after declining for the couple of years as the government announced trade enhancement package, and is disbursing tax refunds.

Japan-based car assemblers, Suzuki, Honda and Toyota dominate the auto sector, but the market dynamics are changing after the introduction of new auto policy that is encouraging new entrants. Foreign and local ventures are setting up new plants to meet the growing demand of cars, sales of which increased 20 percent to more than 100,000 units in the first half of the current fiscal year of 2017/18.

Kurai congratulated the state finance minister on assuming his responsibilities.

The minister said Pakistan highly values its relationship with Japan. “Economic cooperation between the two countries would be brought to a much higher level with the passage of time.”

Khan invited attention of the ambassador to assist Pakistan in promoting its textile products in Japan through preferential trade agreements.

The state minister informed the ambassador that Pakistan offers numerous opportunities for the potential investors from Japan and they could invest in tourism, processing and packaging of sea food, halal food and its export.

“Japan can invest in these sectors and bring in her technology and sanitary and phytosanitary standards with the investment,” he added.

The foreign envoy asked the minister to participate in the Expo 2025 to be held in Kazakhstan. “Joint government business dialogue process between the two countries should be revived for the benefit of both the countries,” he said. The minister assured the ambassador of all possible support from his side. Senior officials of the finance and economic affairs divisions attended the meeting.