While many multinational companies are planning to exit the Pakistani market, citing internet disruptions, the investment climate remains a blend of both entries and exits. On a positive note, sectors such as mining, automotive, and electric vehicles (EV) are showing promising developments, as detailed below:
Weir Group awarded $69m contract in Reko Diq project
The Weir Group PLC (Weir), a global mining technology leader, has been awarded a £53 million ($69 million) contract to provide industry-leading energy-efficient, sustainable solutions to the Reko Diq copper-gold project, a 50% owned greenfield development by Barrick Gold Corporation (Barrick). The tier one copper project is located in the Chagai district of Balochistan in Pakistan and is targeting first production in 2028 with an estimated mine life of 40-plus years.
During the first phase of the project, Weir will provide fine grinding, separation, and tailings solutions with their market-leading HPGR technology particularly suited for the water-scarce climate and geology of the Reko Diq copper-gold project. Barrick is partnering with Weir to deliver sustainable mining and processing in the new mining frontier of Balochistan. The Reko Diq project will grow Barrick’s strategically significant copper and gold portfolios as well as benefitting all its Pakistan and Balochistan stakeholders.
Transsion Holdings to invest in mobile phones, agri and EV sector
Chinese company Transsion Holdings is interested in enhancing investment in mobile phone manufacturing unit, and investing in electric bikes, modern agriculture, mobile phone manufacturing and fintech sectors. The government has invited Transsion Holdings to manufacture goods in Pakistan for export purposes, considering the country’s immense resources and youth bulge. The company has already established a mobile phone manufacturing unit in Pakistan providing employment to around 5,000 Pakistani workers. The Chinese firm desires to expand its investment in the mobile phone industry that would also increase mobile phone export from Pakistan.
Master Changan Motors unveils EV brand
Master Changan Motors Limited (MCML) has unveiled its electric vehicle brand in Pakistan, launching the Deepal L07 sedan and Deepal S07 SUV. The vehicles are available for pre-booking with prices starting at Rs15.5 million for the L07 and Rs16.5 million for the S07. The company has also announced plans to invest $50 million in the entire EV value chain, including establishing charging infrastructure across Pakistan. The company said CKD manufacturing could begin in eight to 10 months. Both cars have a range of around 500 kilometres in a complete charge that can take up to four hours.
59% of Pakistan’s energy consumption comes from fossil fuels. EV solves three problems – controls pollution, oil imports and supports climate change efforts.
BYD to introduce three EV models, opens plant and stores
Build Your Dreams (BYD) is making its debut in Pakistan as an electric vehicle (EV) automotive brand. Recognised as the world’s leading EV manufacturer in terms of sales and production, BYD’s entry into Pakistan marks a significant milestone in the country’s automotive industry. The company, known for its wide range of products including EV buses, smartphone batteries, semiconductors, and even electric rails for city metros, is set to introduce three models as its initial offering. BYD officially announced the three vehicles that will be available in Pakistan: the Atto 3 (EV), Seal (EV), and Sealion 6 (PHEV).
The company announced that BYD along with Mega Motors Co will establish three state-of-the-art flagship stores in Karachi, Lahore, and Islamabad. They plan to set up 20 to 25 dealerships across the country within the first three years. The company will build the first state-of-the-art New Energy Vehicle (NEV) assembly plant in Karachi along with establishing electric car charging stations in major cities and along motorways and highways to alleviate range anxiety for customers. Pakistan has the potential to become an export hub for BYD vehicles as the country has the capacity to play a significant role in the global EV market.