Italy to double investment in Pakistan this year

[touela]

http://tribune.com.pk/story/1150789/italy-double-investment-pakistan-year/

ISLAMABAD: Italian Ambassador to Pakistan Stefano Pontecorvo has stated that the European country sees doubling investment in Pakistan within a year as more Italian firms are looking for partnership with Pakistani businessmen.

“A mission consisting of 80 to 120 Italian businessmen will visit Pakistan in the current year to look into opportunities for partnership with Pakistani counterparts in different sectors,” said Pontecorvo during the signing ceremony of Pak-Italy friendship contract between Agha Steel Industries and Italian Danieli.

This is a maiden agreement between any industry of Pakistan and Italy and the project includes complete reconstruction of the electric arc furnace (EAF) and a new fume treatment plant.

Under the project, Aga Steel Industries will utilise the largest steel manufacturing furnace in Pakistan to make quality grade reinforcing bars (rebars) for the upcoming growth in steel demand due to China Pakistan Economic Corridor (CPEC) related projects.

Pentecorvo said this time around the delegation was small however as business collaboration expands so will delegates. “Italy sees significant potential for partnership and investment in Pakistan in various fields as the country has a dynamic economy with significant growth opportunities.”

In the first phase, the Italian companies will focus on steel, agriculture machinery/technology, ICT, infrastructure, mining, textile, pharmaceutical and leather goods.

Besides, there is also potential in the automotive sector, both in the two wheels and four wheels industry.

“Italy is the fourth largest investor in Pakistan following China, UAE and Hong Kong with a total investment valuing at $100 million along with bilateral trade worth €1 billion,” said the ambassador.

Concerning the challenges of doing business in the country, the ambassador said there were certain issues regarding the imbalance and clarity of tariff, which need to be addressed by the government.

Also present on the occasion, the Board of Investment Chairman Miftah Ismail said Pakistan and Italy have a good relationship in a variety of fields and it is now time to further strengthen it.

Meanwhile, the Agha Steel Industries Executive Director Hussain Agha said his firm was the fastest growing steel manufacturing company in Pakistan and revealed the company intended to have an Initial Public Offering (IPO) soon. “By choosing Denieli as our technology supplier, it is a testament that we are focused on the utmost value creation for our upcoming shareholders during the IPO,” he said

Indeed very good news. Especially the part with investment from Denieli, which is a well known company for their products.... Lets hope it creates a win-win situation for both companies and countries.

 

[Max Pain]

Bring these two back in Pakistan. Japanese are killing us. You will get good business here. Just bribe a few politicians


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There's another famous two wheeler Company called "Benelli"

They've officially entered Pakistan and we'll see their Bikes from August onwards on our roads,
http://pakistan.benelli.com/

 

[v9s]

Manufacturing is local except a few high end parts but they are way scaled down from international versions. They don't even put airbags in a car selling for $20,000 here. Can you belive that?

Altis 1.6, a car under $20k does have airbags. And cars aren't "scaled down." Specs are determined based on how the market values them - if the market undervalues a spec, there's no point offering it for a niche audience if it brings up the price to one that the majority doesn't value.

 

[Thorough Pro]

Failure of the government (ministry of transportation to be specific) in failing to legislate road safety laws. It's their job to make the laws and force businesses to abide.

Besides airbags, we should also have catalytic converters to control emissions and mandatory emission checks every two years for vehicles less than 6 years old and every year for vehicles older than 6 years.

Manufacturing is local except a few high end parts but they are way scaled down from international versions. They don't even put airbags in a car selling for $20,000 here. Can you belive that?

 

[Paksanity]

Altis 1.6, a car under $20k does have airbags

No, it doesn't.
http://www.toyota-indus.com/altis-1-6/

 

[v9s]

No, it doesn't.
http://www.toyota-indus.com/altis-1-6/

Sorry, i meant 1.8 altis. Price is 20.69 Lakhs

 

[Paksanity]

Sorry, i meant 1.8 altis. Price is 20.69 Lakhs

You have deducted taxes. With tax it costs to a tax paying consumer above 22 lac and guess what? It only has one airbag. No airbag for any of the passenger.

 

[Hyde]

One thing I must confess is Italy have produced some of the best architects in the world. They are damn good in innovativr ideas

But Italy is currently having too many internal issues since days of recession. I don't think they have fully recoveref as yet and upon my last visit to Milan and its surrounding areas where Pakistani community is residing, I discovered that most people are not able to find a proper job, the real estate price is even cheaper than most places in Pakistan as people cannot afford to buy homes. The entire industrial sector had come to halt and so many industries were moved to Eastern Europe etc...

So they should also spare a moment to try to come out of financial mess first and their investment is always welcomed by us. I doubt it would be too much

 

[denel]

Manufacturing is local except a few high end parts but they are way scaled down from international versions. They don't even put airbags in a car selling for $20,000 here. Can you belive that?

no. i mean % of content in terms of manufacturing e.g. sheet metals, engine block casting etc, radiators etc. Here back in the 70s there was mandatory guidelines to increase local contents to full 100%; the only which is not the case is hyundai as well as Honda - the later is around 60%.

What! - 20k - no airbags. that is stealing!

One thing I must confess is Italy have produced some of the best architects in the world. They are damn good in innovativr ideas

But Italy is currently having too many internal issues since days of recession. I don't think they have fully recoveref as yet and upon my last visit to Milan and its surrounding areas where Pakistani community is residing, I discovered that most people are not able to find a proper job, the real estate price is even cheaper than most places in Pakistan as people cannot afford to buy homes. The entire industrial sector had come to halt and so many industries were moved to Eastern Europe etc...

So they should also spare a moment to try to come out of financial mess first and their investment is always welcomed by us. I doubt it would be too much

But in terms of car industry, it is pathetic. pray that you dont have a fiat; you will know what a lemon tastes like - that is what you will feel when you get ulcers with anger.

 

[Hyde]

no. i mean % of content in terms of manufacturing e.g. sheet metals, engine block casting etc, radiators etc. Here back in the 70s there was mandatory guidelines to increase local contents to full 100%; the only which is not the case is hyundai as well as Honda - the later is around 60%.

What! - 20k - no airbags. that is stealing!


But in terms of car industry, it is pathetic. pray that you dont have a fiat; you will know what a lemon tastes like - that is what you will feel when you get ulcers with anger.

I currently have Citroen... which is not far off Fiat

 

[v9s]

You have deducted taxes. With tax it costs to a tax paying consumer above 22 lac and guess what? It only has one airbag. No airbag for any of the passenger.

Ok. Then you're right.

The problem is, the average Pakistani doesn't value the airbag feature more than it costs - which leads to Indus motors not including it in spec. But you'll see a change next year.

no. i mean % of content in terms of manufacturing e.g. sheet metals, engine block casting etc, radiators etc. Here back in the 70s there was mandatory guidelines to increase local contents to full 100%; the only which is not the case is hyundai as well as Honda - the later is around 60%.

60-61% of the corolla is locally manufactured. The more critical parts are imported.

The Pakistani market is quite small, so it's not cost effective to have high value items like engines to be locally manufactured. It will drive up costs massively.

 

[American Pakistani]

As the security situation getting better and as the CPEC progress goes upwards, many countries are now planning to tap and take advantage of Pakistan's huge cheap young manpower.