Government says automotive sector retained all multinational companies as it seeks to attract fresh investment
ISLAMABAD: No multinational company operating in Pakistan’s automotive sector has exited the country during the past three years, Advisor to the Prime Minister on Industries and Production Haroon Akhtar Khan told the Senate on Thursday.
Responding to a question in the Senate, Haroon Akhtar said the government’s economic policies and incentives for investors were expected to attract further investment into Pakistan in the coming days.
In a written response, the adviser said the Engineering Development Board (EDB) was responsible for regulating the automotive sector and, according to its records, no multinational automotive company had left Pakistan during the last three years.
He clarified, however, that investment facilitation was the responsibility of the Board of Investment (BoI), while records relating to company closures were maintained by the Securities and Exchange Commission of Pakistan (SECP).
Government prepares VSS for Utility Stores employees
Haroon Akhtar also provided details about the proposed Voluntary Separation Scheme (VSS) for employees of the Utility Stores Corporation (USC).
He said that, in accordance with directions from the Prime Minister’s Office, a VSS was to be formulated for regular employees of the corporation.
The USC, however, also prepared a compensatory package for its contractual and daily-wage workers. The package was subsequently approved by the federal cabinet, he said.
Pakistan Steel Mills records losses after 2008-09
Responding to a separate question concerning Pakistan Steel Mills (PSM), the adviser said the state-owned corporation had remained profitable until 2007-08.
According to Haroon Akhtar, PSM had accumulated profits of Rs9.54 billion by the end of 2007-08.
The corporation, however, began incurring substantial losses from 2008-09 onwards.
He attributed the deterioration in PSM’s financial position to several factors, including the global recession, higher raw material and freight costs, depreciation of the Pakistani rupee and other economic pressures.
Haroon Akhtar said the government was continuing to pursue policies aimed at improving the investment climate and encouraging both domestic and foreign investors to expand their presence in Pakistan.