Board of Investment Chairman Muhammad Zubair on Tuesday announced that the government has granted permission to Yamaha Company to establish motorcycle plant in Karachi and the company would invest $150 million during the next 5 years but would start operations in December 2014.

He, while praising the performance of current regime, said that the last government of Pakistan People’s Party did not issue licence to Yamaha that was  applied in 2009 but under the new government, BoI in just 3 months made it possible. This would help boost the foreign direct investment and technology transfer in the country, he said.

He said in a media briefing that Ishaq Dar took up the matter in Economic Coordination Committee of the Cabinet that after detailed deliberations and expediting the process, allowed the company to setup the plant. Yamaha at the initial stages would produce 25 percent motorcycles in Pakistan that will be increased with the passage of time.

Muhammad Zubair said that the government had formulated a motorcycle policy just in 3 months while taking all the stakeholders on board. He said that government has offered incentives to local and foreign companies for introducing latest technologies.

All steps are being taken to attract foreign direct investment and development of local industry. But local industry would have to introduce modern technology to be the beneficiary of new policy formed by the government, he added.

Muhammad Zubair said that decision of Yamaha to establish its plant in Pakistan will encourage other famous brands to invest in different sectors of the economy as the country offers more lucrative business opportunities as compared to the regional countries.

He also said that government was also negotiating with laptop manufacturers to establish their plants in Pakistan. He mentioned that Foreign Direct Investment fell significantly during the tenure of previous government.