The agreement also covered distribution and access to a market where demand for new vehicles has grown to more than 200,000 units a year.
Under the agreement, Gandhara Nissan will invest 4.5 billion rupees over a period of four years.
The agreement was signed at a local hotel in presence of print and electronic media representatives. President, Ghandhara Nissan Limited, General (Retired) Ali Kuli Khan Khattak, Chief Executive Officer of the company Ahmed Kuli Khan Khattak, Regional Chairman and Senior Vice President of Nissan Motor Corporation limited, Peyman Kargar, Senior Director of the company Roland Buerk, Regional Vice President Masahiko Sakamoto and Japanese Consul General in Karachi Toshihaku were also present.
Nissan Motor Corporation's Regional Chairman and Senior Vice President peyman Kargar, during the media briefing, said that the move was a part of Nissan's strategy to engage with emerging automotive markets around the world, bringing brands and products tailored to meet rising consumer demand.
Sales of the first locally built vehicles were expected to begin in Pakistan within the 2019 fiscal year.
This entrance to Pakistan automotive market represented a significant step in the on-going development of local manufacturing infrastructure and economic activity, he said.
He said, 'We are confident, in close collaboration with and support of Pakistani government, this will deliver sustainable benefits for the national economy, customers, partners and Nissan.'
He said that together with Ghandhara, Nissan Motor Corporation would be working actively with suppliers to localize and exchange technology and skills, which would provide a lasting benefit to the emerging local component industry,' Kargar added.
Ghandhara Nissan Limited's CEO Ahmed Kuli Khan said that Nissan's entry would provide Pakistani customers with a fresh and desirable lineup designed and built with the most modern Japanese engineering.
It will also provide a significant boost to the automotive industry, which already accounts for about 4 percent of Pakistan's gross domestic product.
Ghandhara would invest 4.5 billion Pakistani rupees (about $41 million) over the first four years. The project and the development of a retail network will create more than 1,800 jobs.
Nissan and Ghandhara would work together to develop Ghandhara's facilities at Karachi's Port Qasim into a world-class manufacturing plant.
The partners had a long-standing relationship, bringing a wealth of local knowledge and experience. The project had qualified for brown-field category status under the Government of Pakistan's Automotive Development Policy, he said.
This agreement would introduce world-class facilities and the best of Japanese engineering technologies, said Ahmed Kuli Khan Khattak
'By localizing the manufacture of parts and components and boosting development in the auto supplier industry, it would provide Pakistan with technical assistance and promote partnerships with Japan,' he re-assured.