Officials are seeking to boost auto investment.

The South Asian country of Pakistan wants to attract big foreign automakers and shake up its car market, dominated by Japanese companies.

Currently, the country is flooded by vehicles from Toyota, Honda, and Suzuki that are produced locally and sold at relatively high prices. The government is trying to change the situation, wooing foreign manufacturers like Volkswagen Group, Renault-Nissan, and FCA with low import duties.

The Pakistani economy is growing at its fastest pace in the last eight years and interest rates are at their lowest in 42 years, making officials believe the country has enough stability to attract investors into a market of around 200 million people.

“We expect that there will be one or two foreign investors coming into Pakistan,” Miftah Ismail, chairman of Pakistan's Board of Investment, told Reuters. He also confirmed he had held initial talks with Nissan and Renault for “some time,” while last month he met FCA executives.

Automotive News reports Renault sources said an investment in Pakistan is under consideration along with several other locations, but there is “no news to announce at this time.” Nissan is also considering a future presence in the country, as “Pakistan is certainly a market of interest for us at present.”

Source: Automotive News