Amid economic meltdown, Pakistan’s auto manufacturers expect 40 percent decline in sales

This photograph taken on August 2, 2013 shows Khalid Yousaf Pakistani, the owner of a factory that outfits cars a bomb and bulletproof, examining a vehicle in Karachi. (AFP/FILE)
Short Url
Updated 23 May 2022
Follow

Amid economic meltdown, Pakistan’s auto manufacturers expect 40 percent decline in sales

  • Toyota has invested $100 million to produce hybrid vehicles, says another $80 million are in pipeline
  • Manufacturers expect highest sale of 350,000 units in Pakistan’s history during the current fiscal year

MUZAFFARABAD: Pakistan’s auto manufacturers fear their sales will squeeze by about 40 percent in the next fiscal year after achieving the highest ever growth during the ongoing one, as the country finds itself in a major downward economic spiral which is hurting the auto sector.
Pakistan witnessed 18 percent decline in car sales, from 22,799 to 18,625 units, in April due to restrictions on car financing imposed by the central bank along with increased import duties to curtail current account deficit.
The sector posted 51 percent growth during the current fiscal year beginning in July 2021 by selling 191,237 units, the Pakistan Automotive Manufacturers Association’s (PAMA) data show.
“The current economic situation is hurting the auto industry to a large extent,” Ali Asghar Jamali, chief executive officer of the Indus Motor Company (IMC) told Arab News on Friday during an auto industry workshop held in Muzaffarabad, the capital city of Pakistan-administered Kashmir.
The IMC, which manufactures Toyota vehicles, arranged the workshop to highlight the localization level achieved by the auto industry while gauging the impact of auto policies on the sector.
“The automobile market will fall by 30-40 percent in the next fiscal year [FY22-23],” he said. “However, the market will be of around 350,000 units this year which will be the highest ever in the history of Pakistan due to the current orders placed.”




Ali Asghar Jamali, chief executive officer of Indus Motor Company, addresses an auto industry workshop in Muzaffarabad, Pakistan, on May 20, 2022. (AN Photo)

Jamali, who is also the former chairman of PAMA, said the total number of cars sold in the next year was likely to be between 200,000 and 215,000.
Pakistan has imposed a ban on the import of non-essential luxury goods, including vehicles, in a bid to stabilize the economy after its current account deficit spiraled out of control. The country’s foreign exchange reserves have also witnessed a decline while its national currency is trading at low levels against the US dollar.
Supporting the government’s decision to ban import of luxury goods, Jamali said Pakistan’s auto sector required consistent policies.
“The future of Pakistan’s auto sector is bright but at present the country is facing a crisis situation and we have to get out of it,” he said. “We have a major current account deficit due to a high import bill and in the current situation the country will have to take tough decisions. We need to device a sustainable policy to avoid crisis-like situation after every two years.”
Pakistan’s auto sector has witnessed an inclusion of two new entrants and made an investment of about $2 billon since 2016 while providing 2.5 million employment opportunities. The sector contributes 2.2 percent to the overall economy of the country.
“The new entrants have made substantial investment in the sector,” Jamali said. “We [the IMC] have already invested $100 million to make Hybrid Electric Vehicles (HEVs) in Pakistan and another $70-$80 million are in the pipeline.”
“We have invested Rs15-18 billion in plant expansion during the last five years to introduce new models in Pakistan,” he added. “Pakistan’s auto market is still very attractive and what we need is to fix our fundamentals and improve it.”
The IMC chief, who is planning to launch locally assembled hybrid vehicles in Pakistan from next year, said his company was gradually moving toward complete electric vehicles (EVs) with improvement in infrastructure development in the country.
“I agree that the ultimate future is electric vehicle but we think that first it would be hybrid and then it would move into the next stage that is completely electric because at present there is no infrastructure for EVs,” he said, adding: “In the next five to seven years, share of renewable energy in the overall energy mix will improve and the infrastructure for EVs will be available so our strategy is to first bring in hybrid and then move on to the EVs.”
Pakistani auto manufacturers have recently increased prices of the vehicles between seven to 55 percent due to the rise in freight charges by about 252-272 percent, foreign exchange by 24 percent, and 18 to 80 percent rise in the prices of other related goods, according to a presentation given during the workshop.
“The whole world has witnessed unprecedented inflationary pressures in the last couple of years and Pakistan is no exception,” Jamali said. “The pandemic resulted in the disruption of global supply chain which was further aggravated by the Russia-Ukraine conflict.”
“The rupee-dollar disparity, exponential increase in utilities, overwhelming freight charges and government taxation of up to 40 percent have contributed to Pakistan’s economic challenges,” he continued.
However, he warned that any bid to regulate the auto sector, including price fixation, would lead to exit of Toyota cars from the Pakistani market.
In Pakistan, 400 registered vendors have been supplying parts to the auto manufacturers whose number is expected to increase in coming years.
“Vending industry is playing key role in the localization of vehicles and they are investing in modernizing their product lines,” Syed Nabeel Hashmi, former chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers, said while speaking at the workshop. “As a nation, we have to look at the future technology.”
Hashmi called for action against a huge influx of Chinese products which, he said, lacked requisite quality and damaged the automobile sector.
“We want long term policy in Pakistan so that we can manufacture high tech equipment for EVs that are the future of transportation,” he said.
 


Multan to host back-to-back cricket Tests between Pakistan and West Indies next month

Updated 7 sec ago
Follow

Multan to host back-to-back cricket Tests between Pakistan and West Indies next month

  • Multan has been the only option for Pakistan to host matches, with stadiums in Rawalpindi, Lahore and Karachi being upgraded for Champions Trophy
  • It will be West Indies’ first Test series in Pakistan for more than 18 years, although both nations played a Test series in the United Arab Emirates

ISLAMABAD: Multan will host back-to-back Tests when Pakistan plays the West Indies next month, the domestic cricket board said on Tuesday.
With stadiums in Rawalpindi, Lahore and Karachi being upgraded for February’s Champions Trophy, it has left the Pakistan Cricket Board with Multan as the only option to host the two-Test series against the West Indies.
England also played back-to-back Tests in Multan in October because of the renovation work in Karachi and Lahore.
The West Indies squad arrives on Jan. 6 and will play a three-day warm-up game in Rawalpindi against Pakistan Shaheens. The first Test is held from Jan. 17-21 and the second starts on Jan. 25.
It will be West Indies’ first Test series in Pakistan for more than 18 years, although both nations played a Test series in the United Arab Emirates in 2016 when UAE was Pakistan’s home venue.
West Indies named uncapped batter Amir Jangoo in its 15-strong squad after he smashed a century on his ODI debut against Bangladesh earlier this month.
Left-arm spinner Gudakesh Motie returns to the fold after missing the two Tests against Bangladesh last month because he was playing in the inaugural Global Super League.
Kevin Sinclair and Jomel Warrican are the other spin options in the squad.
West Indies is without fast bowler Shamar Joseph, who is suffering from shin splints. Alzarri Joseph is also unavailable because of his commitments with International League T20 in the UAE.
“Motie rejoins the squad to bolster the spin attack, while Jangoo’s selection comes on the back of his consistency across formats in regional cricket, as well as his demonstrated high level of competency against spin bowling,” head coach Andre Coley said.
The series is part of the World Test Championship. Pakistan is seventh in the standings while rock-bottom West Indies is ninth.
West Indies squad: Kraigg Brathwaite (captain), Joshua Da Silva, Alick Athanaze, Keacy Carty, Justin Greaves, Kavem Hodge, Tevin Imlach, Amir Jangoo, Mikyle Louis, Gudakesh Motie, Anderson Phillip, Kemar Roach, Kevin Sinclair, Jayden Seales, Jomel Warrican.


Pakistan defends military court sentencing of civilians after US, UK and EU voice concerns

Updated 24 min 55 sec ago
Follow

Pakistan defends military court sentencing of civilians after US, UK and EU voice concerns

  • Pakistan’s military on Dec. 21 announced the sentencing of 25 civilians for partaking in violent protests in May last year
  • The US, UK and EU said the verdicts were ‘inconsistent’ with Pakistan’s international obligations and lacked ‘transparency’

ISLAMABAD: Pakistan on Tuesday defended the recent sentencing of 25 civilians by military courts for partaking in violent protests last year, dismissing concerns expressed by the United States (US), United Kingdom and the European Union (EU) regarding Islamabad’s global human rights obligations.
Pakistan’s military on Dec. 21 announced the sentencing of 25 people to “rigorous imprisonment” of two to 10 years for participating in violent protests on May 9, 2023, when hundreds carrying flags of former prime minister Imran Khan’s party attacked government and military installations.
The protests erupted after Khan’s brief detention on corruption charges, resulting in damage to major military facilities and martyrs’ monuments in the country. Khan’s party challenges the military’s version, denying it was involved in the violence and calling the May 9 incident a “false flag” operation aimed at crushing it.
The EU said on Sunday the sentencing was “inconsistent” with Pakistan’s international obligations and every person was entitled to a “fair and public trial in a court that is independent, impartial and competent.” The US and the UK joined the EU in expressing concern over the convictions, with the State Department saying on Monday the Pakistani military courts lacked “judicial independence and due process guarantees.”
“Pakistan’s legal system is consistent with international human rights law including provisions of the International Covenant on Civil and Political Rights (ICCPR). It has remedies of judicial review by the superior courts and guarantees promotion and protection of human rights and fundamental freedoms,” the Pakistani foreign ministry said in a statement.
“Pakistan is fully committed to fulfilling all its international human rights obligations.”
The Foreign Office in London said while the UK respected Pakistan’s sovereignty over its own legal proceedings, “trying civilians in military courts lacks transparency, independent scrutiny and undermines the right to a fair trial.”
In its statement on Sunday, the EU had noted that under the its Generalized Scheme of Preferences Plus (GSP+), beneficiary countries, including Pakistan, had voluntarily agreed to effectively implement 27 international core conventions, including the ICCPR, in order to continue benefitting from the special trade arrangement. The preferential trade status under the GSP+ scheme grants Pakistani exports duty-free access to the European market.
The Pakistani foreign ministry responded by saying that the verdicts had been made under a law enacted by the Pakistan parliament and in line with a judgment of the country’s top court.
The Dec. 21 announcement of sentences by the military followed a ruling by a seven-member Constitutional Bench of the Supreme Court of Pakistan on Dec. 13, in which it allowed the military courts to share their verdicts. Prior to that, the top court had unanimously declared last year that prosecuting civilians in military courts was in violation of the Constitution.
“Pakistan believes in constructive and productive dialogue to promote principles of democracy, human rights and the rule of law. We remain fully committed to implementing our commitments under the GSP Plus Scheme and core international human rights conventions,” the foreign ministry said.
“We will continue to engage with our international partners including the European Union to uphold the international human rights law, without any discrimination and double standards.”
The sentencing of civilians in May 2023 riots cases has also raised concerns among supporters of ex-PM Khan, who has been in jail since August 2023 on a slew of charges, including inciting attacks against the armed forces, and may potentially be tried in a military court.
Pakistan has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote in April 2022, which has also exacerbated Pakistan’s economic hardships.
The Pakistani government this week opened talks with Khan’s PTI opposition party in a bid to address political polarization. Senior government representatives have also recently acknowledged that the negotiations could offer a pathway out of the current political impasse.


South Africa opt for all-pace attack in first Test against Pakistan

Updated 24 December 2024
Follow

South Africa opt for all-pace attack in first Test against Pakistan

  • The two-match series is crucial for South Africa, who will qualify for next year’s World Test Championship final if they win one of the matches
  • Pakistan have only won two out of 15 Tests in South Africa but they will go into the series on the back of a convincing 3-0 one-day series win

CENTURION: South African captain Temba Bavuma on Tuesday announced an all-pace attack for the first Test against Pakistan starting at SuperSport Park in Centurion on Thursday.
The two-match series is crucial for South Africa, who will qualify for next year’s World Test Championship final if they win one of the matches.
“We back our seamers at Centurion,” Bavuma said at his pre-match press conference.
Fast bowler Corbin Bosch will make his debut for a team missing several leading pace bowlers because of injury. He plays for the Titans provincial team whose home ground is at Centurion.
Bosch, 30, is the son of the late Tertius Bosch, who played in South Africa’s first post-isolation Test, against the West Indies in Barbados in 1992.
“He will be playing at the venue where he has made a name for himself in the provincial set-up,” said Bavuma. “He adds that element of extra pace. He’s a big, strong guy who hits the deck hard and he offers a role with the bat as well.”
Bosch bowled at more than 140kmh (87mph) when he made his one-day international debut against Pakistan in Johannesburg on Sunday and hit 40 not out as a lower-order batsman.
Bavuma said his players were aware of the significance of being on the verge of reaching the world championship final.
“We know what’s at stake. There’s confidence and belief because of the good cricket we have played over the last while. Nothing has happened by accident.”
South Africa’s progress in the Test championship final has come despite Cricket South Africa’s deliberate downgrading of Test cricket to accommodate a high-profile Twenty20 franchise series.
South Africa’s schedule of 12 Tests — all in two-match series — is the joint lowest with Bangladesh in the championship cycle. England have played 22 matches, while Australia and India will have played 19 each when they complete their fixtures.
The system of average points has propelled South Africa to the top of the table despite virtually forfeiting a series in New Zealand when coach Shukri Conrad was prevented from selecting any players contracted to the SA20 league.
South Africa did not play against Australia or England and their only series against one of the “big three” Test nations was a tied one against India.
Pakistan have only won two out of 15 Tests in South Africa but will go into the series on the back of a convincing 3-0 one-day series win. Seven of the Pakistan squad and eight of the South African Test team players were involved in the one-day games.
Teams:
South Africa:
Temba Bavuma (captain), Aiden Markram, Tony de Zorzi, Ryan Rickelton, Tristan Stubbs, David Bedingham, Kyle Verreynne (wkt), Marco Jansen, Corbin Bosch, Kagiso Rabada, Dane Paterson.
Pakistan: Shan Masood (captain), Saud Shakeel, Aamir Jamal, Abdullah Shafique, Babar Azam, Haseebullah Khan, Kamran Ghulam, Khurram Shahzad, Mir Hamza, Mohammad Abbas, Mohammad Rizwan (wkt), Naseem Shah, Noman Ali, Saim Ayub, Salman Ali Agha.


Azeri air and ground crew undergo training at Pakistan Air Force base

Updated 24 December 2024
Follow

Azeri air and ground crew undergo training at Pakistan Air Force base

  • A high-level Azerbaijani delegation also called on Pakistan’s air chief on Tuesday to discuss training cooperation
  • The visit signifies resolute commitment of both countries to reinforce military partnership, Pakistani military says

ISLAMABAD: The Pakistan Air Force (PAF) has been enhancing operational capabilities of the Azerbaijan Air Force by training Azeri air and ground crews at an operational Pakistani base, the Pakistani military said on Tuesday.
The statement came after a high-level Azerbaijani delegation, comprising Deputy Defense Minister Agil Gurbanov and Air Force Commander Lt. Gen. Namig Islamzade, called on Pakistan’s air chief, Air Chief Marshal Zaheer Ahmed Baber Sidhu, at the Air Headquarters in Islamabad.
The officials discussed the importance of training cooperation, with Air Chief Marshal Sidhu reaffirming his commitment to strengthening bilateral relations and enhancing cooperation in operational and training areas, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“He noted that the [ongoing] training program is on schedule, with over 50 percent of the training objectives successfully achieved,” the ISPR said in a statement.
“He further emphasized that the initiative is expected to culminate within one-month timeframe, reflecting the commitment of PAF to enhance the operational capabilities of Azerbaijan Air Force.”
The air chief highlighted the PAF’s recent accomplishments, reflecting his vision of operational excellence in modern warfare, according to the ISPR.
The visiting dignitaries lauded the professionalism demonstrated by PAF personnel and their notable progress in developing a thriving domestic capability in the aviation industry in a short timeframe.
“The dignitaries expressed satisfaction on the training imparted to 70 aircrew & technicians getting trained in PAF and expressed their desire for enhanced Air Force to Air Force collaboration between the two sides,” the ISPR statement read.
“Emphasizing on the need to adapting to the evolving landscape of modern warfare, the Azerbaijan military leadership also proposed the establishment of a more comprehensive training regimen focusing on niche and disruptive technologies, as well as cyber and electronic warfare capabilities.”
Later the delegation visited the PAF Cyber Command at the Air Headquarters, where it was briefed about the operational capabilities and ongoing projects of PAF’s modernization drive.
The Pakistani military said the visit of the high-level defense delegation from Azerbaijan signified a resolute commitment of both countries to reinforce their military partnership, fostering collaboration and promoting robust relations.
In recent months, there has been a flurry of visits by Azerbaijani officials to Pakistan, highlighting the growing cooperation between the two countries in various sectors. Pakistan, which has been facing an economic crisis, is currently making efforts to position itself as a pivotal trade and transit hub connecting Central Asian states and China with the rest of the world.
In July, Azerbaijan President Ilham Aliyev’s arrived in Pakistan on a two-day visit, during which both nations agreed to enhance the volume of bilateral trade to $2 billion and vowed to increase cooperation in mutually beneficial economic projects.
Last week, Pakistan waived customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement. The agreement signed on July 11 aimed to boost economic cooperation by reducing tariffs on goods like Pakistan’s sports equipment, leather, and pharmaceuticals apart from Azerbaijan’s oil and gas products.


Pakistan’s Imran Khan demands ‘time frame’ for progress in talks with government

Updated 23 min 32 sec ago
Follow

Pakistan’s Imran Khan demands ‘time frame’ for progress in talks with government

  • The jailed ex-premier seeks a meeting with his negotiating team to get the details of the process
  • Government asked Khan’s PTI to bring its demands in writing in the next round of talks on Jan. 2

ISLAMABAD: Former Prime Minister Imran Khan on Tuesday called for a “time frame” within which negotiations with the government should progress and the demands of his Pakistan Tehreek-e-Insaf (PTI) party, including the release of political prisoners, should be addressed.
Khan’s message was conveyed by Barrister Gohar Ali Khan, chairman of PTI, after meeting the ex-premier at a high-security prison in Rawalpindi. The former prime minister, who has been imprisoned for over a year on charges he claims are politically motivated, has threatened to launch a civil disobedience movement by urging overseas Pakistanis to halt remittances if his demands are not met.
Khan’s demands include the release of all PTI political prisoners and the establishment of judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government claims involved PTI supporters.
His insistence on a time frame comes just a day after the government initiated formal negotiations with the PTI, asking it to bring all its demands in writing.
“I informed Khan Sahib about the negotiations that have started,” Gohar said while speaking to the media after the meeting. “Khan Sahib said it’s a good thing that negotiations are taking place, but there should be a time frame within which progress should be made.”
Asked about the exact time frame he had in mind, Gohar said Khan had not specified one, only emphasizing that progress on his party’s demands should happen “as soon as possible.”
He described his interaction with Khan as a “routine meeting” lasting half an hour.
Gohar said PTI plans to present its charter of demands in the next round of talks, scheduled for Jan. 2, and expressed hope for meaningful results.
Meanwhile, Khan reiterated his stance through a post on X, formerly Twitter, calling for his nominated negotiation team to meet him.
“To make the negotiation process meaningful, it is important that I meet with my nominated negotiation team so that I can have a proper understanding of what is going on,” he said.
The ex-premier maintained that his party would postpone the civil disobedience movement if its demands were implemented but expressed skepticism about the government’s willingness to investigate the May 9 and November 26 incidents.
“We will not allow that to happen,” he added.