Topic: International Finance

Renault to produce cars in Pakistan THE NEWSPAPER'S CORRESPONDENT - UPDATED NOV 29, 2016 02:10PM Share Tweet 10 COMMENTS EMAIL PRINT ISLAMABAD: Renault will start producing vehicles in Pakistan in 2018, the Board of Investment (BOI) announced on Thursday. Miftah Ismail, the BOI chairman, told Dawn that the French car manufacturer had submitted its application to the government for the manufacture of vehicles. The application is now under process at the BOI and the Engineering Development Board. This will be the first time that a European car manufacturer will set up a plant in Pakistan. Mr Ismail said that Renault would initially make an investment of $100 million to produce 6,000 vehicles per shift at the plant set up by Ghandhara Nissan Motors in Karachi. A technical team of Renault visited the plant on Thursday. Renault intends to manufacture 16,000 vehicles in three shifts and to raise the production capacity to 50,900 in two phases. . Assume Renault is starting production in Pakistan in 2021 . Renault has to make payment of Rs 20 bn, payable quarterly amount of Rs. 5 billion on Oct 2020, Jan 2021, April 2021, July 2021. . How can Renault hedge currency position? Currency Options/Derivatives