Al-Futtaim goes into top gear with $300m Renault plant in Pakistan

Updated 13 October 2018
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Al-Futtaim goes into top gear with $300m Renault plant in Pakistan

  • UAE group awaiting permissions to kickstart process
  • Manufacturers in Islamabad predict major demand for vehicles

KARACHI: If the plan gathers steam, UAE’s Al Futtaim Group could soon collaborate with Renault to set up a car manufacturing plant in Pakistan worth $300 million.

Industry analysts say that Pakistan’s automobile manufacturers were already increasing their production capacity in anticipation of the project.

“Pakistan is expecting 10 new players in the greenfield projects who will set up new plant and machinery while two existing players have announced plans for a brownfield project, which will upgrade their plants. Al Futtaim is one of the new entrants in the greenfield project,” Syed Danyal, an auto sector analyst at Topline Securities, told Arab News.

Al Futtaim plans to set up the assembling plant in Faisalabad, in the Punjab province, and is in the process of securing approval from Pakistan’s authorities. “The company plans to introduce Renault vehicles in Pakistan. The installed production capacity it aims to target is around 25,000 units per year that will be gradually attained,” Danyal added.

Headquartered in Dubai, Al Futtaim Group has presence in many countries including Pakistan, Afghanistan, Sri Lanka and Saudi Arabia and distributes Ford, Honda, Toyota, Nissan, Suzuki Chrysler, Volvo, Lexus and other auto brands under its banner.

Pakistan’s car assemblers expect that the demand for the vehicles will be 5,00,000 units by 2024-2025. The sale of new/imported cars in Pakistan currently stands at 268,000 units, which includes used cars imported mainly from Japan. The installed production capacity is currently 285,000 units per year, data released by the Pakistan Association of Automotive Parts and Accessories Manufactures (PAPAAM) showed.

“We are ready to welcome new entrants because their arrival will not only increase the market share but will create employment opportunities and provide people more options to choose from,” Muhammad Ashraf Shaikh, Chairman of PAPAAM, told Arab News.

Pakistan’s automobile industry is dominated by Japanese car assemblers with a visible presence of Korean brands, with recent additions of Chinese brands. However, the French car manufacturer Renault, would be the first European brand to produce cars in Pakistan, if the proposed plant is setup.

Pakistan’s domestic auto vending sector provides up to 70 per cent of locally made parts for cars and light commercial vehicles, up to 94 per cent for motorcycles, and up to 55 per cent for heavy vehicles such as buses. The overall investment in the sector is around Rs140 billion, according to PAPAAM’s data. 

“We are enhancing our capacity to meet the growing demand by putting up new machinery and technology with approximately Rs15-16 billion investment ,” Shaikh said.

Experts believe that the new entrants will not face immediate competition due to the incentives offered by the government under the Automobile Development Policy 2016-21. “The new entrants will enjoy concessional duty rates at least for the five years [that they are] in operations,” Aamir Allawala, a senior auto expert, told Arab News.

Allawala added: “The new entrants will pay only 10 per cent import duty on the auto parts which are not being manufactured in Pakistan while they will pay 25 per cent duty on the import of those available in Pakistan.”

At present auto manufacturers pay around 33 per cent on the account of various taxes, Allawalla said, adding that “the government should reduce taxes and resolve the issue of non-filer to expand the auto market”.

Pakistan’s automobile industry contributes around 2.8 per cent to the country’s GDP. With the arrival of new players, the economic activity is expected to double with many plyers vying for the market share. “At present the consumer segment of less than 1000cc cars has a lot of vacuum. Those entering this segment with a reasonable price bracket will benefit to a large extent,” Danyal said.


Pakistan reports 43rd polio case this year amid alarming surge in infection

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Pakistan reports 43rd polio case this year amid alarming surge in infection

  • Latest poliovirus case reported from the southwestern Chagai district in Balochistan
  • Pakistan launched nationwide campaign this week to vaccinate over 45 million children

PESHAWAR: Pakistan reported its 43rd poliovirus case of the year on Wednesday with the latest infection reported from the southwestern Balochistan province, the country’s national polio program confirmed, as Islamabad struggles to contain an alarming surge of the disease. 

The latest case was reported from the southwestern Chagai district in Balochistan, where a child contracted the disease. 

This makes it the first poliovirus case reported from the Chagai district this year and Balochistan’s 23rd. The development takes place as Pakistan launched a nationwide campaign on Monday to vaccinate over 45 million children against polio.

“On Wednesday, 30 October 2024, the lab confirmed detection of Type-1 Wild Poliovirus in a child from Chagai District of Balochistan,” Pakistan’s polio eradication program said in a statement. 

Giving a breakdown of the cases, the program said Pakistan has reported 23 polio cases from Balochistan, 12 from the southern Sindh province, six from the northwestern Khyber Pakhtunkhwa and one each from Punjab and Islamabad this year.

Polio has caused a headache for Islamabad as Pakistan remains one of only two countries worldwide where the disease is endemic.

Its efforts to eliminate the disease have been hit hard by frequent militant attacks targeting vaccination teams. Religiously motivated militants, including the Tehreek-e-Taliban Pakistan, accuse polio vaccination teams of using inoculation campaigns to sterilize Pakistani children based on a Western conspiracy. 

The masses’ doubts regarding polio campaigns were exacerbated in 2011 when the US Central Intelligence Agency set up a fake vaccination program to gather intelligence on former Al-Qaeda chief Osama bin Laden.

Two police officers were killed and three militants gunned down in northwestern Pakistan on Tuesday after armed men attacked a polio vaccination team during an inoculation drive. 

This followed a September attack in which two people were killed when gunmen attacked a polio vaccination team in the northwestern Bajaur tribal district.


Bosnia arrests 8 for trafficking illegal migrants from Pakistan, India, among other nations

Updated 45 min 50 sec ago
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Bosnia arrests 8 for trafficking illegal migrants from Pakistan, India, among other nations

  • Human ring smuggled at least 1,400 migrants to Italy, authorities say 
  • Bosnia lies along “Balkan route” migrants regularly use to reach Europe

SARAJEVO: Bosnian police arrested eight people suspected of being part of a human trafficking ring that smuggled at least 1,400 illegal migrants to Italy, authorities said on Wednesday.

“Members of the criminal group organized the trafficking of at least 1,400 illegal migrants from Pakistan, Afghanistan, India, Eritrea and China,” Dragana Kerkez, a spokeswoman for the interior ministry in Bosnia’s Serb-run statelet, told AFP.

The eight suspects were arrested in several towns across northern Bosnia during an operation carried out in cooperation with Europol and Croatian, Slovenian and Italian police.

During the raids, police also seized weapons, over 100,000 marks ($55,000) and used cars and boats, the spokeswoman said, adding that the group was also suspected of trafficking drugs.

The group used the Sky ECC encrypted communications network system, which was cracked in 2019 by a team of Belgian, Dutch and French investigators.

That gave authorities unprecedented access to the information on the practices of some of the most dangerous criminal groups, including ones in the Balkans.

Bosnia lies along the so-called “Balkan route” that migrants regularly use to reach the European Union.

According to Kerkez, the group trafficked migrants by first taking them to neighboring Croatia.

From there, they were transported in cars and trucks to Italy, she added.

Bosnian and Croatian authorities regularly arrest human traffickers in an ongoing crackdown hoping to stem the surge of migrants heading to the EU.

During the first nine months of the year, 1,430 migrant smugglers were arrested in Croatia, according to official figures — marking a nearly 40-percent increase compared with the same period last year.

In August, 12 migrants died when their boat capsized as they tried to cross a river between Bosnia and Serbia.


Pakistan expresses solidarity with Spain as torrential rains, floods kill 62 

Updated 59 min 57 sec ago
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Pakistan expresses solidarity with Spain as torrential rains, floods kill 62 

  • Heavy storms in Spain’s southern and eastern regions since Tuesday have triggered flash floods
  • Spain has deployed over 1,000 soldiers in affected areas to coordinate rescue efforts for citizens

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Wednesday expressed solidarity with Spain as flash floods triggered by torrential rains killed at least 62 people in the country, local authorities said.

Heavy rains triggered floods in southern and eastern Spain on Tuesday, with footage on social media showing cars being swept away by raging waters. 

Over 1,000 soldiers from Spain’s emergency response units have been deployed in affected areas to coordinate rescue efforts, Spanish media reports said. 

“On behalf of the people and government of Pakistan, I extend our deepest sympathies and solidarity to the people of Spain and Prime Minister Pedro Sánchez following the tragic floods and loss of life,” Sharif wrote on social media platform X. 

“Pakistan stands in solidarity with friendly people of Spain at this challenging time.”

Spain’s Valencia has been the hardest-hit province in the country. Emergency services in the province urged citizens to avoid any road travel and to follow further updates from official sources.

As the crisis looms, Sánchez said the government would not abandon those affected by the floods. 

“All of Spain weeps with all of you,” he said during a televised address. “Our absolute priority is to help you… We won’t abandon you.”

Pakistan is ranked consistently as one of the world’s worst affected countries due to climate change effects. Heavy monsoon rains in 2022 killed over 1,700 people and caused damages over $30 billion to the South Asian country. 


Pakistan vows action against suspects that ‘attacked’ ex-chief justice’s car in London

Updated 30 October 2024
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Pakistan vows action against suspects that ‘attacked’ ex-chief justice’s car in London

  • Video clips show ex-PM Khan supporters in London chasing after and hitting the car of Qazi Faez Isa
  • Interior minister directs Pakistan’s database registration authority to identify suspects, vows to cancel passports

ISLAMABAD: Interior Minister Mohsin Naqvi on Wednesday vowed the government would identify expatriates who had “attacked” former chief justice Qazi Faez Isa’s car in London, threatening to register cases against them and cancel their Pakistani passports and identity cards. 

Isa, who retired as Pakistan’s top judge last week after what is widely considered to be a controversial stint in office, arrived in London on Tuesday night to attend an event at Middle Temple, one of the four Inns of Court entitled to call their members to the English Bar as barristers.

Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party had organized a protest outside the event venue ahead of the former judge’s arrival. The PTI accuses Isa of being aligned with the coalition government led by Prime Minister Shehbaz Sharif, alleging that it had tried to provide an extension in office to him through a controversial constitutional amendment that was passed earlier this month. The government rejects these allegations. 

Video footage widely circulated online on Tuesday evening showed angry Khan supporters running after Isa’s car in London, with a few of them hitting the vehicle with their hands before it sped away. 

Pakistan’s high commissioner to the UK, Dr. Mohammad Faisal, condemned the attack.

“It is condemnable, we will take action,” he told reporters in London. 

State-run Associated Press of Pakistan (APP) said Interior Minister Mohsin Naqvi had “strongly condemned” the attack on Isa, who was traveling in a Pakistani High Commission vehicle in London.

Naqvi urged Pakistan’s National Database and Registration Authority (NADRA) to identify the suspects through available footage and vowed that cases would be registered against them in Pakistan. 

“Naqvi stated that the attackers’ ID cards and passports will be blocked,” APP said. “Immediate action would be taken to revoke their citizenship.”

Naqvi said the ministry would seek the federal cabinet’s approval in revoking the alleged attackers’ citizenships. 

“He also questioned why security was not provided to Qazi Faez Isa despite the fact that he was receiving threats,” APP said. 

It was under Isa’s tenure as chief justice that Pakistan’s top court denied Khan’s PTI its iconic bat symbol ahead of Feb. 8 general elections, saying the party had failed to hold intra-party elections. The verdict meant all PTI candidates had to contest elections as independents, which angered Khan supporters, who accused Isa of being biased in favor of the Sharif government. 

Khan, arguably Pakistan’s most popular, was ousted from office after a parliamentary no-trust vote in April 2022 and has since waged an unprecedented campaign of defiance against the country’s powerful military, government and what his party considers pro-establishment judges. 

Khan has been in prison since August 2023 after being convicted on several charges ranging from corruption to treason that he says are politically motivated. 


Islamabad, Baku seek deeper military ties during Azerbaijan visit by top Pakistani general

Updated 44 min 55 sec ago
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Islamabad, Baku seek deeper military ties during Azerbaijan visit by top Pakistani general

  • General Shamshad Mirza meets Azerbaijan president to discuss regional security dynamics
  • Pakistan has always been vocal in its support for Azerbaijan in its conflict against rival Armenia 

ISLAMABAD: Pakistan’s General Sahir Shamshad Mirza on Wednesday discussed enhancing defense ties and the evolving regional dynamics as he met Azerbaijan’s president and its senior civil and military leadership during his visit to the country, the army’s media wing said. 

Pakistan and Azerbaijan have been enjoying cordial diplomatic ties since 1992, with the two countries having a shared history of cooperation, particularly in the areas of trade, defense, and energy. 

In July, both governments signed 15 agreements in various fields including transit trade, mineral resources and tourism during Azerbaijan President Ilham Aliyev’s two-day visit to the South Asian country.

“During the interaction, both sides appreciated deep and historic relations between the two countries and discussed matters of mutual interest including evolving security dynamics of the region and enhancement of existing defense ties in multiple domains,” the army’s media wing, the Inter-Services Public Relations (ISPR) said in a statement.

Mirza met Aliyev, Azerbaijan’s Defense Minister Col. General Hasanov Zakir Asgar, Foreign Minister Jeyhun Aziz Oghlu Bayramov, Deputy Defense Minister and Chief of General Staff Col. General Karim Tofig Oghlu Valiyev and the Defense Industry Minister Vugar Mustafayev, the ISPR added.

Highlighting the importance of military cooperation between both countries, he reaffirmed Pakistan’s commitment toward peace and stability, the army’s media wing said. 

Azerbaijan’s leadership appreciated the sacrifices rendered by Pakistan’s armed forces and their professionalism, the ISPR said. 

Pakistan and Azerbaijan have a history of military and defense cooperation. In 2021, Pakistan participated in an eight-day joint military drill with Azerbaijan and Turkiye as part of their tripartite military cooperation agreement. 

Pakistan was also among two countries that provided support to Azerbaijan during the 44-day-long Second Karabakh War from September to November 2020, in which Azerbaijan fought against Armenian armed forces until the conclusion of a Russia-brokered truce.