I wonder how feasible these plans are… and what did they say to convince them to overlook the law and order situation in Pakistan… Don’t get me wrong I am all for it but I find it hard t believe that it will actually materialize…
The other thought that comes to mind how big of a market is there for Mercedes Benz even if it is an economical model…
UAE, German groups to invest $3b in Pakistan
BY MUZAFFAR RIZVI
11 January 2005
DUBAI - Coastal Group of UAE and Daimler Chrysler of Germany have plans to invest around $3 billion in hydel power generation and automobile sector to produce Mercedes Benz cars and trucks in Pakistan. This would be the ever biggest foreign investment in the history of Pakistan.
As many as $2 billion will be invested in hydel power generation to overcome power shortage in Pakistan while approximately $1 billion will be poured in automobile sector of the country to set up a production plant for Mercedes Benz cars and trucks, sources revealed it to Khaleej Times yesterday.
In this connection, a six member delegation of M/s Daimler Chrysler of Germany and Coastal Group of UAE yesterday held a meeting with Pakistani Minister of State for Privatisation & Investment Umar Ahmad Ghuman in Islamabad and discussed the business opportunities.
The business group which discussed the business plans comprises chairman Coastal Group of UAE Yusuf Najibi, senior vice-president Daimler Chrysler Peter Grosch, SVP Daimler Chrysler Martin Daum, SVP ZF Friedrichshafen AG Dr. Thomas Hegel, Head of ZF Friedrichshafen Hans P. Transmission, Chairman & CEO FFG Flensburg AG Norbert Erichsen. Other senior officials of BoI also attended the meeting.
As per details, the group will produce trucks for defence forces during the first phase and set up a production line for two new economical models of Mercedes Benz cars in addition to constructing the tallest high-rise “international commercial city” for offices and show rooms for MNCs. However, in the second phase, they will start manufacturing commercial trucks.
According to the sources, the group was persuaded to come to Pakistan by the Pakistan Minister of State for Privatisation & Investment Umar Ahmad Ghuman who held series of formal and informal discussions with the top management of the group.
Assuring full cooperation on behalf of Government of Pakistan as well as the Board of Investment (BoI), the minister pointed out that the presence of more than 600 foreign companies in Pakistan, out of which 300 are MNCs and the return on equity which ranges from 30 per cent to 40 per cent that proves that Pakistan is a place where business environment is conducive.
He further informed the group that no foreign company in Pakistan has gone back because of losses.
“Pakistan is a gateway to Central Asian Republics and offer tremendous opportunities to make it a hub for export,” he maintained.
“With the gradual improvement of law and order situation in Afghanistan, lucrative opportunities of export will be available to foreign investors to reach the European markets. The investment policy of Pakistan is liberal as compare to any country of the region,” the minister concluded.