MIGA issues guarantees worth $66m for Hyundai Nishat Motor assembly plant
The plant will have a maximum annual production capacity of 30,000 vehicles.
ISLAMABAD (Dunya News) - MIGA, a member of the World Bank Group, has issued guarantees worth $66 million in support of the design, construction and operation of the Nishat Group s Hyundai Nishat Motor (Pvt) Ltd motor vehicle assembly plant in Faisalabad and associated dealership in Pakistan.
With a maximum annual production capacity of 30,000 vehicles, the plant will assemble Hyundai-brand vehicle models including mid-size and small-size sports utility vehicle, as well as a light pickup.
The project will generate a significant number of job opportunities and will contribute positively to economic growth while boosting foreign investment in Pakistan.
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In 2017, Hyundai Nishat Motor and the then Government of Pakistan inked an agreement to assemble and sell passenger and one-tonne commercial vehicles in the country.
On February 3, 2017, Nishat Mills signed an agreement with Hyundai Motor Company of South Korea and Sojitz Corporation Japan for negotiating and establishing a framework for setting up a green field project for plant’s assembly and sales of passenger and one tonne range commercial vehicles in Pakistan.
In March 2016, the government unveiled its Automobile Development Policy 2016-2021, which provides various incentives for automakers entering the market, such as reduced import taxes on parts.
