MAN Truck and Bus AG, a German company will manufacture trucks in Pakistan in collaboration with National Logistic Cell, a state-owned transportation and construction company, according to a media report.
NLC will initially invest up to 700 million rupees to build a production plant in Pakistan which will manufacture heavy commercial vehicles, an NLC official was quoted as saying by the DAWN online newspaper.
Pakistan is expected to attract the much-needed foreign investment after it was upgraded to emerging markets from frontier market by the global MSCI index early this year. The South Asia’s second biggest economy posted a healthy 4.25 percent growth after averaging around 3 percent in the preceding five to six years.
China is building China-Pakistani Economic Corridor (CPEC) with a total investment of $46 billion that includes building of roads, bridges, power plants and other infrastructure. China intends to use CPEC to access international destinations for its goods.
NLC’s investment in the auto sector is to cater to the rising demand of heavy commercial vehicles in the wake of CPEC project.
The joint project would produce trucks to meet the requirements of the Pakistan Army and will later produce heavy commercial vehicles as well, according to the report. The project aims to produce up to 1,00p heavy trucks annually.
Headquartered in Munich, MAN Truck and Bus is one of the leading international providers of commercial vehicles heavy good trucks.