The government has decided to revive Pakistan Automobile Company (Paco) as a joint venture with Dong Feng, one of the biggest Chinese auto manufacturers rather than selling it to the private sector.
"We have decided not to privatise Paco and deliberations are in progress with Chinese firm which will acquire 51 percent shares while the government will hold 49 percent shares of the company," said Federal Industries Minister Jahangir Khan Tareen while talking to Business Recorder.
The minister and the Dong Feng Automobile Company Limited representatives had held initial parleys in Beijing during the visit of Prime Minister Shaukat Aziz in which the company representatives promised to visit Pakistan for further deliberations.
"Today, we discussed the possibility and terms and conditions of a joint venture with Dong Feng and as they send their consent, we will move a summary to the ECC for approval," said Tareen. Earlier, Tareen chaired a meeting with the delegation of a Chinese company and appreciated them for showing interest in Pakistan's auto sector.
Dong Feng's representatives in their presentation told the meeting that Dong Feng is one of the biggest automobile manufacturers in China. Trucks, pick-ups and buses are the main products of the company, they said. The delegation members also said that they want to introduce their products in Pakistan according to the market demand.
It was decided in the meeting that discussions would continue between experts from both the sides to work out possibility of a joint venture between Dong Feng and Paco. The minister assured full co-operation and support to the Chinese delegation and said that every effort would be made to make the proposed joint venture a success, once all the formalities and modalities are settled.
Comments
Comments are closed for this article.