ISLAMABAD, Aug 30: Prime Minister Raja Pervez Ashraf has said that the $150 million investment by Yamaha Motors to set up Yamaha plant near Karachi will be a success story and bring foreign investment in the country.

Every second person in Pakistani villages has a motorcycle which reflects huge potential for motorcycle industry in the country, the prime minister told a delegation of Yamaha Motors which met him here on Thursday.

The Yamaha plant will not only introduce latest technologies but also create job opportunities and contribute to revenue generation for the country, the prime minister observed.

The PM assured the delegation that the government would provide all facilities to Yamaha in its endeavour to expand operations and introduction of state-of-the-art technologies.

General Manager Yamaha Motors Ito Yasushi informed the prime minister that the company intends to further expand its manufacturing units in Pakistan with the setting up of motorcycle manufacturing facility in Karachi. The plant will manufacture motorcycle units having EFI, automatic transmission and European standard exhaust system.

The company will not only be the pioneer in Pakistan but would also target the Middle East, Central Asia and African markets and contribute towards Pakistan’s exports, he said.

Mr Yasushi also informed the prime minister that on attaining full production capacity the project will produce 45,000 units of motorcycles annually.

He said that Yamaha is planning to initially import CKD kits but would develop local capacity through a relationship with local vendors. Yamaha also plans to achieve indigenisation of motorcycle manufacturing to 85 per cent in ten years which would enable the workforce to develop expertise in manufacturing different parts of motorcycles.