Volkswagen and Volvo have been talking to the government of Pakistan for the past 6 months. Estimated start date in around 2018-2019 if everything works out.
But one thing is for sure, the Japanese cars are about to become "very modern". They watch the market, this will ruin their market share in Pakistan as VW and Volvo will introduce nice looking cars with advanced electronics in them. Japanese, due to their monopoly have been selling total CRAP cars to Pakistan for a very high price tag. IMO, majority of the vehicles, from a functionality and electronics standpoint, are close to the junk of the 90's. This news would serve as a wake up call to them.
More competition, more features for uses and vendors will provide higher quality and will compete for profits. The right way to do it
Its fine. If a company cheats like this, they lose billions too. Like VW is going to. And they'll sure lose market share. And some executives who know about it, will probably end up in a jail like the execs of Enron did. But overall, the US emission standards are much higher than majority of the countries out there. Pakistan might not have such high standards, which means, these cars should meet those easily. They still have to have basic German standards, which wold still be a LOT for Pakistan's environment.