Pakistan Toyota manufacturer eyes sales growth amid improving economic indicators  

Ali Asghar Jamali, chief executive officer of Indus Motor Company (IMC), during an interview with Arab News in Karachi, Pakistan on December 23, 2023. (AN photo)
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Updated 23 December 2023
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Pakistan Toyota manufacturer eyes sales growth amid improving economic indicators  

  • Pakistan’s economic indicators are improving that will boost annual auto sales to 350,000 units in next two years, top official says
  • Toyota, which invested $100 mln in Pakistan to launch locally made hybrid vehicles, is in talks with government to increase exports

KARACHI: Leading Japanese automaker, Toyota, is optimistic that the Pakistani auto market will rebound soon and achieve a 500,000-unit milestone by 2030 despite a staggering 50 percent drop in automobile sales in recent months, a top official said this week, amid improvement in economic indicators.     

Automobile manufacturers sold 7,700 units in Pakistan in November, which was 60 percent lower than the previous year’s, according to the Pakistan Automotive Manufacturers Association (PAMA) and the Karachi-based Topline Securities brokerage house. The combined sales have dropped by 50 percent to 33,638 units in the first five months of current fiscal year (July-November) as compared to 67,104 units sold during the same period last year.     

Though the auto industry continues to grapple with a prevailing sales crisis, there is a sense of optimism among automakers that the market will soon rebound.  According to global data and business intelligence platform Statista, the passenger-car market in Pakistan is projected to generate a revenue of more than $4 billion in 2023.  

“This year we are going through a crisis situation, the economic situation is quite struggling, but we've seen auto market going up and down,” Ali Asghar Jamali, chief executive officer of Indus Motor Company (IMC) that makes Toyota vehicles in Pakistan, told Arab News in an exclusive interview on Thursday.    

Currently, Jamali said, the auto industry was operating at up to 30 percent of its capacity, but post-January 2024 things would rebound because of agricultural income, various fiscal steps taken by the government and the upcoming elections, scheduled to take place on Feb. 8.    

The auto market would surpass 350,000-unit annual sales in the next two years and 500,000-unit milestone by 2030 on the back of improving economic indicators, according to the IMC chief.  

“Hopefully, as the economic indicators improve, which are improving in our country, we are seeing slow and steady progress... and hopefully in the next 24 months market comeback to 350,000 units,” he said.  

To a question about key factors behind low sales, Jamali said high interest rates, which made financing expensive, and record inflation had resulted in a drop in auto sales in the country.   

“[But] as our market is improving, our economic situation is improving, we will see that the financing, interest rates are going to start coming down and we'll see financing coming back which will improve the sales,” he said.  

Pakistan currently has one of the highest interest rate regimes, maintained by the central bank at 22%, to curb high inflation that hit a record high of 38 percent in May this year.     

Despite the prevailing challenges, Toyota this week launched its first locally manufactured hybrid electric vehicle (HEV), Corolla Cross, in Pakistan that is over 50 percent localized in terms of value. The company claims that the vehicle has 35 percent less carbon emissions.  

“Toyota has decided to launch its product because times are tough right now but this too shall pass and remember, we are not in a sprint, we are in a marathon,” the IMC chief said, adding the Japanese automaker had invested $100 million in Pakistan for the launch of the HEV.     

“We constantly invest in Pakistan so this product that we brought in here, we invested $100 million. There is investment that is constantly going on and right now also, we're investing in our products to enrich, to bring new products.”     

In a groundbreaking development this year, Master Changan Motors Limited (MCML) also exported vehicles worth approximately $250,000 from Pakistan to Kenya.     

Jamali, a former chairman of PAMA, said his company was also in talks with the Pakistani ministry of industries for the export of automotives from Pakistan.     

“Right now, obviously, those discussions have just started,” he said. “We are going to submit some plans to them, obviously we do plan to do some exports also, but because in case of auto, we've just started and there are a lot of impedance.”     

The IMC chief said his company was exporting vehicles, but its exports were minimal and needed to be jacked up through collaboration with the government.    

“We do small exports, right, which are in our control but there are some things that we want to have collaboration with the government where we could have in some countries we would need FTAs (Free Trade Agreements),” he said.  

Jamali said the IMC was focusing on the countries in the African region, where a market existed for right-hand drive vehicles.     

“In Africa, there are some countries which are right-hand drive,” he explained. "We are looking into those markets to tap those markets and we are working with both the government of Pakistan and Toyota Motor Corporation [as to] how we can tap these markets so that we can also have some export from Pakistan."  

Pakistan needs localization and upsurge in production to increase export of automotives to other countries, according to the IMC chief.     

“Localization is the key. If you don't localize, how will you export,” he said. “If you localize, obviously your competitiveness will increase to export, so that's the key. If you're going to import everything, how can you export.”     

Pakistan could increase export of some basic raw materials including fabric, leather seats, auto parts and vehicles at present, which would increase with the increasing volume, Jamali suggested.


Sri Lankan artist immortalizes Pakistan’s Olympic hero Arshad Nadeem with special painting

Updated 11 sec ago
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Sri Lankan artist immortalizes Pakistan’s Olympic hero Arshad Nadeem with special painting

  • Arshad Nadeem won Pakistan its first Olympic gold medal since 1992 in August with record-breaking javelin throw
  • Titled “The Throw,” Mueen Saheed’s painting features an abstract portrayal of Nadeem and his mother

ISLAMABAD: Sri Lankan artist Mueen Saheed has paid tribute to Pakistani Olympian Arshad Nadeem by dedicating a “special painting” to the sportsman, state-run media recently reported, as a mark of respect for bagging the gold medal for his country earlier this year. 
Nadeem made history at the Paris Olympics in August by setting a new record for the longest javelin throw in the global competition, winning Pakistan its first gold medal since 1992 with a record-breaking 92.97m javelin throw. 
Saheed last week concluded an art cultural tour in Pakistan where he showcased his artwork at three major exhibitions in Lahore and Islamabad.
“Renowned Sri Lankan artist, Mueen Saheed made a memorable addition to his tour of Pakistan by presenting a special painting dedicated to Arshad Nadeem, Pakistan’s celebrated Olympic gold medalist, to the Pakistan National Council of the Arts (PNCA),” the state-run Associated Press of Pakistan (APP) reported on Sunday. 
The painting, now a part of the PNCA’s prestigious permanent collection, pays homage to Nadeem’s remarkable achievements and his role in uniting fans across borders.
Titled “The Throw,” the painting features an abstract portrayal of Nadeem and his mother, veiled behind Saheed’s distinctive brushstrokes and use of small squares, the APP said. 
The presentation ceremony at the PNCA in Islamabad, part of the artist’s “Passages of Light” exhibition, was attended by key figures in the arts and culture sector, including PNCA Director General Muhammad Ayoub Jamali and Information Minister Attaullah Tarar. 
“Arshad Nadeem’s story is one of resilience and humility,” Saheed explained. “His victory at the Olympics and the moments of sportsmanship with his Indian counterpart, Neeraj Chopra, were powerful examples of unity in competition.”
Tarar praised Saheed’s gesture, noting the significance of honoring a national hero whose journey resonates beyond sports, inspiring audiences from Pakistan, India, and around the world, the state-run media said.


Belarus President Lukashenko to arrive in Pakistan today amid Islamabad protest

Updated 11 min 14 sec ago
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Belarus President Lukashenko to arrive in Pakistan today amid Islamabad protest

  • Thousands of ex-PM Khan supporters expected to arrive in Pakistan’s capital for anti-government protest
  • Pakistan, Belarus expected to sign several agreements during Aleksandr Lukashenko’s three-day visit to Pakistan

ISLAMABAD: Belarus President Aleksandr Lukashenko is scheduled to arrive in Pakistan on a three-day visit today, Monday, as thousands of supporters of former prime minister Imran Khan march toward the capital for an anti-government march. 
Pakistan’s state media said last week that Lukashenko was expected to hold talks with Prime Minister Shehbaz Sharif on bilateral cooperation while several agreements would be signed between the two countries. 
His visit comes at a time when thousands of supporters of jailed ex-PM Khan’s Pakistan Tehreek-e-Insaf (PTI) party are headed toward Islamabad for a protest “long march.” Khan’s party is demanding his release from prison, independence of the judiciary and protesting against alleged rigging in the February national elections. 
“President of the Republic of Belarus Aleksandr Lukashenko will undertake three-day visit to Pakistan from today,” state broadcaster Radio Pakistan reported. 
As a 68-member delegation from Belarus arrived in Pakistan’s capital on Sunday ahead of Lukashenko’s visit, Pakistan’s government described the PTI’s protest as a “deliberate conspiracy” against the country’s “honor,” vowing stern action against any persons found violating the law. 
The government last week took measures to enhance security in Islamabad, sealing off key highways and motorways leading to the capital from surrounding areas with shipping containers. 
Security in the capital has also been beefed up with the deployment of paramilitary forces and police while the government has suspended Internet services in areas deemed sensitive for security. 
PTI CARAVAN
Meanwhile, the PTI convoy led by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur left Peshawar around 1:30 p.m. on Sunday and reached Swabi in the evening, where it was joined by protesters from across the province.
The caravan then proceeded to Ghazi Barotha near Punjab, where it expects resistance from federal authorities.
Hajji Fazal Elahi, a PTI provincial lawmaker, told Arab News the party workers were determined to reach D-Chowk, the protest venue in Islamabad.
“There are hurdles as the government has placed barriers in different places. We will try our best to remove them, but if we don’t succeed, we’ll spend the night here,” he said, referring to Ghazi Barotha.
“We will go to D-Chowk and cross all the barriers, even if it takes a day or two,” he added.


Pakistan says protests cost $684 million daily as Imran Khan’s supporters march on Islamabad

Updated 25 November 2024
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Pakistan says protests cost $684 million daily as Imran Khan’s supporters march on Islamabad

  • Finance Ministry’s estimates exclude losses from IT, telecom sectors and provincial economies
  • Imran Khan has called for protests demanding his release, with demonstrations also held abroad

ISLAMABAD: Pakistan’s Ministry of Finance has prepared a report estimating economic losses of Rs190 billion ($684 million) per day due to political protests, Federal Finance Minister Muhammad Aurangzeb said on Sunday, as supporters of jailed former prime minister Imran Khan march toward Islamabad to demand his release.
The protest, led by Khan’s Pakistan Tehreek-e-Insaf (PTI) party, has effectively cut off the federal capital from other cities, with authorities using shipping containers to seal all entry and exit points and announcing the closure of all educational institutions in Islamabad.
The disruption has also impacted small businesses, with slow Internet and telecom services further compounding the economic losses.
“Protests result in a daily loss of Rs190 billion,” the finance minister said in a statement circulated by his office, warning of repercussions for the national economy.
According to the ministry’s report, the GDP suffers a daily loss of Rs144 billion, accounting for the largest share of the economic impact. Additionally, a decline in exports results in a daily loss of Rs26 billion, while disruptions in foreign direct investment contribute Rs3 billion to the daily losses.
Losses in the IT and telecom sectors are significant but separate from these figures.
“The federal government’s daily loss is Rs190 billion, while provincial losses are even higher,” Aurangzeb noted, without providing detailed provincial breakdowns.
Khan, who has been incarcerated for over a year on charges he claims are politically motivated, has urged his followers to rally both in Pakistan and abroad.
PTI supporters in countries such as the United Kingdom, France, Sweden, Spain and Japan have also organized demonstrations, calling for the former prime minister’s release.
As tensions persist, the government remains firm in its resolve to maintain public order, with Finance Minister Aurangzeb stressing that the ongoing unrest is severely undermining the country’s economic recovery efforts.


Pakistan urges climate justice at COP29, highlights gaps in global commitments

Updated 24 November 2024
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Pakistan urges climate justice at COP29, highlights gaps in global commitments

  • It highlights mismatch between developed nations’ pledges and developing countries’ needs
  • Romina Alam says Pakistan is forced into debt to manage the fallout of climate disasters

ISLAMABAD: Pakistan’s top climate change official on Sunday voiced concern over the widening gap between global climate commitments and the needs of vulnerable nations as COP29 ended in Azerbaijan.
Addressing the closing plenary, Romina Khurshid Alam, Prime Minister’s Coordinator on Climate Change, emphasized Pakistan’s acute vulnerability to phenomenon, citing devastating floods, glacial melt, extreme heatwaves and droughts that have affected millions and strained the country’s resources.
“Climate justice is not charity; it is a moral obligation,” she said during her statement, criticizing the mismatch between developed nations’ pledges and the requirements of developing countries to implement their climate plans.
The Pakistani official welcomed the adoption of the Baku Climate Unity Pact, though she expressed “mixed feelings” about the outcomes.
“We note critical gaps in the decisions adopted here,” she said. “Global solidarity is important, but the goals set by developed countries fall short of addressing the needs of developing nations to implement their NDCs [Nationally Determined Contributions] and National Adaptation Plans.”
Alam highlighted the inequity in the international climate finance system, pointing out that countries like Pakistan are being forced into debt to manage the fallout of climate disasters.
“The climate crisis is turning into a debt crisis because the means of implementation are not clear,” she added.
The Pakistani official urged all parties to return to the negotiating table with renewed determination ahead of COP30.
“Multilateralism remains the cornerstone of Pakistan’s climate diplomacy, and we hope for greater equity and commitment in addressing outstanding critical issues,” she added.
Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. Apart from floods, droughts and heatwaves, the country’s eastern cities in Punjab have also witnessed unprecedented smog, taking the AQI level as high as 2,000.


Imran Khan’s party decries ‘crackdown’ as caravan nears Punjab amid government’s protest ban

Updated 24 November 2024
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Imran Khan’s party decries ‘crackdown’ as caravan nears Punjab amid government’s protest ban

  • Government says it will not allow anyone to disrupt public order amid Belarusian delegation visit to Pakistan
  • PTI caravan from KP expect resistance from federal authorities near Punjab, plans to camp overnight if needed

ISLAMABAD/GHAZI BAROTHA: Sporadic clashes erupted near Islamabad on Sunday as jailed ex-premier Imran Khan’s supporters from nearby Rawalpindi tried to enter the capital in response to a protest call, while their party leaders criticized what they described as a government “crackdown” to block the demonstration.
Khan’s Pakistan Tehreek-e-Insaf (PTI) has launched a “long march” to Islamabad, seeking the release of its founding leader after more than a year of his incarceration on charges it claims are politically motivated.
The party is also protesting alleged rigging in February’s general elections and raising concerns about judicial independence, which it says has been undermined by recent constitutional amendments, a claim the government denies.
Speaking to Arab News, Sayed Zulfikar Bukhari, a senior PTI leader and close aide to Khan, expressed dismay at the government’s response, saying his party only wanted to hold a peaceful protest.
“There is a heavy crackdown in Rawalpindi, as they [the law enforcement officials] have shot rubber bullets, teargas and also picked up people,” he said.
“We just want to do a peaceful protest,” he added. “We will continue [the demonstration] for days to come because we have the right to peaceful assembly and protest.”
Arab News reached out to police officials for comment but did not receive a response.
SECURITY MEASURES
Interior Minister Mohsin Naqvi toured Islamabad, Rawalpindi and Attock by air on Sunday to review security arrangements, expressing satisfaction with the measures and reiterating that the government would take every step to maintain law and order in Islamabad.
“The government has made every possible effort to protect the lives and property of citizens,” Naqvi said, warning that “troublemakers will be dealt with strictly according to the law.”
He added that police, paramilitary Frontier Corps and Rangers were performing their duties with vigilance.
The government has described PTI’s protest as a “deliberate conspiracy” against the country’s “honor,” citing its timing as a 68-member Belarusian delegation arrived in Islamabad for bilateral economic talks.
President Aleksandr Lukashenko is scheduled to arrive in the federal capital on Monday, with officials characterizing the PTI march as an attempt to sabotage Pakistan’s economic recovery.
Naqvi underscored earlier in the day that no one would be allowed to disrupt public order in the federal capital during the visit.
PTI CARAVAN
Meanwhile, the PTI convoy led by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur left Peshawar around 1:30 p.m. and reached Swabi in the evening, where it was joined by protesters from across the province.
The caravan then proceeded to Ghazi Barotha near Punjab, where it expects resistance from federal authorities.
Hajji Fazal Elahi, a PTI provincial lawmaker, told Arab News the party workers were determined to reach D-Chowk, the protest venue in Islamabad.
“There are hurdles as the government has placed barriers in different places. We will try our best to remove them, but if we don’t succeed, we’ll spend the night here,” he said, referring to Ghazi Barotha.
“We will go to D-Chowk and cross all the barriers, even if it takes a day or two,” he added.
Elahi also acknowledged challenges due to “insufficient machinery” for clearing blockades, adding that the group was prepared to camp at their current location if necessary.
PTI leaders remain defiant, with Gandapur vowing to reach the federal capital “at any cost.”
The party has hinted at an indefinite sit-in in Islamabad, pledging not to return until their demands are met by the government.