Islamabad, April 27, 2015 (PPI-OT): Finance Minister, Senator Mohammad Ishaq Dar here on Monday inaugurated state of the art Yamaha motorcycle plant which brings in investment of USD 150 million. Dar also welcomed the Japanese company’s return to Pakistan with the new venture.
“We welcome the initiative of establishment of Yamaha Motor Cycle plant which has the honour of being first enterprise in Bin Qasim Special Economic Zone”, Dar said addressing the inaugural ceremony also attended by senior Yamaha company officials, Minister for Privatization, Muhammad Zubair, Chairman BOI, Miftah Ismail and Japanese Ambassador to Pakistan Hiroshi Inomata. The Minister visited the assembly line of the plant after cutting the ribbon and unveiling the plaque, marking the inauguration.
The new plant would provide job opportunities to 45,000 people, directly and indirectly. The company plans to produce motorcycles of 125 cc and above in this production facility and export them to distant markets like Latin America, increasing the export earnings of Pakistan.
The Minister in his address said that the establishment of Special Economic Zones was the main pillar of PML-N Government’s Investment Policy. The Government had equal and non–discriminatory treatment to local and foreign investors. Almost all sectors of economy were open for foreign investment with 100% equity basis and repatriation of investment, profits/ dividends and capital gains was allowed, he said.
The Minister also on this occasion dilated on the state of economy saying that with commendable efforts and various policy initiatives, the economy had been put on the right track. The growth rate was projected to rise to 5.1% during 2014-15. The tax revenues showed an upward trend and revenue growth of 13% in the period July-March 2014-15 was witnessed compared to last year, despite a massive decline in oil prices.
He said the reduction in inflation had enabled the State Bank of Pakistan to reduce the Discount Rate to 8% which was lowest in the last ten years. He said that SBP reserves were now over US$ 12.5 billion while commercial banks’ reserves exceed US$ 5 billion.
The balance of payments position would improve further and the current account deficit would be brought to less than1% of GDP. The Karachi Stock Exchange Index which stood at 19,916 on 11th May 2013, the day the elections were held, had continuously scaled new heights and stood at 33, 490 on 22nd April 2015, showing an increase of nearly 68%, the Minister said.
Dar said Moody’s had improved Pakistan’s rating outlook first from negative to stable and then, more recently, from stable to positive. Moreover Japan’s Trade Organization JETRO, the British economist Peter O’Neil and Morgan Stanley have all predicted that Pakistan would soon be one of the most significant economies in the world.
The Minister congratulated Yamaha Motor Pakistan (Pvt.) Limited, BOI and other relevant stakeholders for their efforts in materializing this project. “I must appreciate the firm commitment shown by Yamaha, Japan for bringing this project on ground.”
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Category: General Business News