A six-member delegation of Daimler Chrysler of Germany and Coastal Group of UAE disclosed the plan in a meeting with Minister of State for Privatisation and Investment Umar Ahmad Ghuman here at the Board of Investment (BoI) on Monday, says a press release.
In the first phase, the group will produce trucks for defence forces and set up a production line for two new economical models of Mercedes Benz cars in addition to constructing the high-rise "international commercial city" for offices/show rooms for Multinational Companies (MNCs).
In the second phase they will start manufacturing commercial trucks. The group was persuaded to come to Pakistan by Umar Ahmad Ghuman who held series of formal and informal discussions with the top management of the group.
This would be the biggest ever foreign investment in the history of Pakistan.
Assuring full co-operation on behalf of the Government of Pakistan as well as the 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 to 40 percent proved 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 any losses. Pakistan is a gateway to Central Asian Republics and offered tremendous opportunities to make it a hub for export.
President Musharraf and the present government led by Prime Minister Shaukat Aziz are dedicated to ensure the continuity of policies, good governance, liberalisation and facilitation to foreign investors, the Minister of State maintained.
The delegation comprised Yusuf Najibi, Chairman Coastal Group of UAE, Peter Grosch, SVP Daimler Chrysler, Martin Daum, SVP Daimler Chrysler, Dr Thomas Hegel, SVP ZF Friedrichshafen AG, Hans P Transmission, Head of ZF Friedrichshafen, Norbert Erichsen, Chairman and CEO, FFG Flensburg AG.
Talat Miyan, EDG and other senior officials of the BoI also attended the meeting.
OUR CORRESPONDENT ADDS: During a meeting with Senate Chairman Mohammedmian Soomro here, the delegation said their firms were eager to set up a plant for the assembling of automobile engines in Pakistan.
The Coastal Group chairman informed the Senate chairman that his firm was planning to set up an assembly line of Mercedes military and commercial trucks.
Besides, the firm was also interested in setting up a plant for a particular model of Mercedes cars, production of special military engines and transmission for armoured vehicles and main battle truck, he said.
The Dubai-based Coastal Group would set up the plant with the technical and financial assistance of a German company operating in Pakistan, Najibi told Soomro.
The Senate chairman assured the group that the government would provide maximum facilities to the group to bring its proposed plan of investment on the ground.
Soomro told the delegation that the investment climate in Pakistan was conducive and foreign investors must take advantage of the government's investor-friendly policies.
Minister of State for Privatisation and Investment, Umar Ahmad Ghuman was also present during the meeting.