M/s. Daimler Chrysler of Germany and Coastal Group of The United Arab Emirates are planning to invest around $3 billion in Pakistan's hydel power generation and automobile sectors, according to an official statement. The group intends to invest $2 billion in hydel power generation and approximately $one billion in automobile sector to set up a production plant for Mercedes Benz cars and trucks. A six-member delegation of Daimler Chrysler of Germany and Coastal Group of UAE disclosed their plan during a meeting with Pakistan's Minister of State for Privatization and Investment Umar Ghuman here at the Board of Investment (BOI) on Monday, the statement said. In the first phase, the group will produce trucks for defense forces and set up a production line for two new economical models of Mercedes Benz cars in addition to constructing the high-rise "international commercial city" for offices and show rooms for Multinational Companies. In the second phase, they will start manufacturing commercial trucks. This would be the ever-biggest foreign investment in the history of Pakistan, the statement said. Assuring full cooperation on behalf of Pakistan, the minister said that the presence of more than 600 foreign companies in Pakistan, out of which 300 are multinationals and the return on equity, which ranges from 30% to 40%, proves that Pakistan is a place where business environment is conducive. He told the group that no foreign company in Pakistan has gone back because of any losses. Pakistan is a gateway to Central Asian Republics and offers tremendous opportunities to make it a hub for export, the minister said. The delegation comprised Yusuf Najibi, Chairman, Coastal Group of UAE, and Peter Grosch, Martin Daum and Dr. Thomas Hegel among others.
