KARACHI, June 27: Two new foreign car manufacturing companies would establish their units in Pakistan and if all goes smoothly, they would start manufacturing in 2007. “Moreover Volkswagon company has also been invited to establish its business in Pakistan,” Industries and Production Minister Jehangir Khan Tareen said.

A press release issued by the Press Information Department on Monday said that the statement was made by the minister while talking to the press after the inauguration of Programme Monitoring Unit (PMU) in Karachi on Monday.

Mr Tareen also said that a meeting with all cement manufacturers would be held on June 30 in Islamabad to discuss various issues, including increase in prices of cement. He said that six to seven cement industries were being established in the country and expressed the hope that the production of cement would double in two years. “Increase in demand of cement is mainly due to active industrial growth in the country,” the minister said.

Earlier giving details about the national programme for improvement of watercourses, the minister informed the press that the total cost of the project in Sindh would be Rs22,523.34 million, out of which 80 per cent funds would be provided by the federal government, two per cent by the Sindh government and 18 per cent by the farmers.

The minister observed that the project of watercourses, which started in March 2004, would be completed in June 2008 and it would be looked after by the PMU Sindh.