Pakistan receives Proton X70 delivery from Malaysia

ISLAMABAD: Malaysian car manufacturer Proton on Monday delivered X70 to Pakistan government as per promise made by Malaysian Prime Minister Dr Mahathir Mohamad to Prime Minister Imran Khan during his visit to Pakistan earlier this year.

Adviser to Prime Minister on Commerce Abdul Razak Dawood received the delivery from the Malaysian High Commissioner Ikram Mohammad Ibrahim. Dawood welcomed the Malaysian automobile manufacturer for its pledge to establish its manufacturing plant in Pakistan. Proton’s production activities were scheduled to begin in 2021 in Pakistan, with plans being formulated for the assembly of several models.

This would assist the company in achieving its long-term goals to sell 400,000 vehicles by 2027. The new CKD assembly plant in Karachi would be built with an initial investment of $30 million and would create 2,000 direct employment opportunities in its first three years of operations.

“It is estimated that a further 20,000 indirect jobs will also be created as a result of the new plant being commissioned,” Dawood added. The advisor said that under a joint venture, Proton would usher in a new era of auto manufacturing in the country. “I see it as a beginning for more partnership between Pakistan and Malaysia in future.”

The adviser said the present government always laid great emphasis on creating an investment ecosystem for both foreign and local investors, and offered attractive investment opportunities and substantial returns in various sectors of the economy.

He said the government was playing a significant role in facilitating entrepreneurs and ease of doing business and there was an enabling environment of investment in various sectors, including information technology, financial services, engineering, goods and textiles.

“In consonance with the international best practices in car manufacturing, the federal cabinet has recently approved an electric vehicle (EV) policy for Pakistan which is also a step towards achieving sustainable development,” the adviser said.

Currently, trade between Pakistan and Malaysia was being regulated under Malaysia-Pakistan closer Economic Partnership Agreement encompassing goods, services and investment, he said. “Both countries are working on further extending the trade ties through Malaysia-Pakistan closer Economic Partnership Agreement Phase II.

Speaking on the potential for improved business ties between the two countries, the High Commissioner of Malaysia Ikram Mohammad Ibrahim said, “The High Commission of Malaysia is supportive of the efforts between Proton and Alhaj Automotive to sell and then assemble Proton vehicles in Pakistan.”

He said that such commercial activities would contribute towards fostering closer and stronger economic ties between the two brotherly countries. The high commissioner said Malaysia certainly looks forward to welcoming Prime Minister Imran Khan when he arrives in Kuala Lumpur for the 2019 KL Summit later this week.

He said by building an assembly plant in Pakistan with Alhaj Automotive, Proton hopes to take advantage of reduced duties for CKD vehicles in the country. Alhaj Automotive chairman Al-Haj Shah Jee Gul Afridi, the official distributor for Proton vehicles in Pakistan, said that Alhaj Automotive would leverage on its current dealerships located nationwide to start selling Proton vehicles as soon as possible, while standalone 3S/4S outlets were being developed.

“We will source CBU units from Malaysia to kick things off in Pakistan before switching to locally assembled units once the new assembly plant begins operations,” the chairman added.