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.


Pakistan's Punjab bans entry to parks, zoos and playgrounds amid pollution

Updated 13 sec ago
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Pakistan's Punjab bans entry to parks, zoos and playgrounds amid pollution

  • The province has set up a ‘smog war room,’ using satellite, drones and AI to monitor and address pollution
  • Environmentalists want government to address fuel quality, renewable electricity and industrial emissions

LAHORE: Pakistan's eastern Punjab province banned entry to parks, zoos, playgrounds and other public spaces on Friday to protect the public from polluted air, and is considering closing down universities after shutting schools earlier this week.

The air quality in Lahore has deteriorated drastically, earning Punjab's regional capital the rank of world's most polluted city from Swiss air purification equipment maker IQAir.

"We are closely monitoring the situation. There's a possibility of closing universities and colleges on Monday to reduce vehicle emissions," said Jahangir Anwar, Secretary of the Environment Protection Department Punjab.

Friday's order from the regional government placed a "complete ban on public entry in all parks ... zoos, playgrounds, historical places, monuments, museums and joy/play lands" until Nov. 17 in areas including Lahore.

In addition to shutting schools, the province has already taken other steps such as suggesting half of employees work from home and banning rickshaws in certain areas.

South Asia annually faces severe pollution due to trapped dust, emissions and stubble burning - the practice of setting fire to fields after the harvest of grain.

Punjab has attributed this year's particularly high pollution levels to toxic air from neighbouring India, where air quality has also reached hazardous levels.

Punjab has set up a "smog war room," using satellite, drone technology and AI to monitor and address pollution. Nevertheless, Anwar says there is not enough equipment to effectively monitor the province, with only four air quality monitoring machines for the entire city of Lahore, "whereas we should have 50.”

Anwar said the department had imported and deployed five mobile monitoring units and plans to deploy eight more by year-end.

Ahmad Rafay Alam, an environment lawyer and member of the Pakistan Climate Change Council, stressed the need for robust data and policy changes.

"Right now, we just simply don't have those monitors, we simply don’t have as robust data as we should have to make decisions," Alam said.

He warned that without addressing fuel quality, renewable electricity and industrial emissions, the problem will continue to worsen.

 


Father accused of killing daughter tells UK jury wife told him to confess

Updated 35 min 46 sec ago
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Father accused of killing daughter tells UK jury wife told him to confess

  • Urfan Sharif is accused of murdering Sara Sharif last year, alongside her stepmother and uncle
  • Police found the girl’s body with multiple fractures, bruises, burns and bite marks at her home

LONDON: The father of a 10-year-old British-Pakistani girl on trial in London for her murder on Friday said his wife told him to confess to killing his daughter.
Urfan Sharif, 42, is accused of murdering Sara Sharif on August 8 last year, alongside her stepmother Beinash Batool, 30, and the girl’s uncle, Faisal Malik, 29.
All three deny the charge and of causing or allowing her death.
A jury at the Old Bailey court was told that all three left the family home in Woking, southwest of London, the day after Sara died and flew to Pakistan.
Sara’s body, which had multiple fractures, bruises, burns and bite marks, was found by police after a tip-off from Sharif in Islamabad.
Giving evidence for a fourth day, he said he was devastated by her death but agreed to leave because Batool had told him Sara had been beaten by another of his children, and he feared the consequences for them.
Before leaving, he wrote a note taking the blame. “Whoever sees this note, it’s me Urfan Sharif who killed my daughter by beating,” it read.
But Sharif told the jury that the confession was dictated by his wife.
“I was merely writing, the wording was not mine,” he said, insisting he took the blame to protect his other children.
Before leaving on August 9, 2023, Sharif left the house keys under the doormat, so the police would not have to break through the door, and had resolved to tell the authorities about Sara when he was out of the country.
A recording was played in court of Sharif’s garbled phone call to police in the UK after arriving in Islamabad.
“I killed my daughter, I killed my daughter,” he said.
Instructing police to the house, he said he “left in a panic” and added: “I promise I’ll come back.”
One month later, Sharif, Batool and Malik returned to the UK and were arrested.


Pakistan PM unveils winter power relief package to cut electricity costs for consumers

Updated 08 November 2024
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Pakistan PM unveils winter power relief package to cut electricity costs for consumers

  • PM Shehbaz Sharif says the initiative will alleviate financial pressure on consumers, stimulate economic activity
  • Relief package will reduce tariffs for domestic, industrial and commercial users for three months starting December

ISLAMABAD: Prime Minister Shehbaz Sharif announced on Friday a three-month electricity relief package starting in December, aimed at reducing tariffs for domestic, industrial and commercial consumers.

The announcement comes after the government faced widespread protests earlier this year over rising inflation and high electricity costs following the presentation of its first budget in June. Political parties urged the Sharif administration to renegotiate agreements with independent power producers to lower tariffs.

Pakistan’s manufacturing sector has also expressed concerns over the years due to the rising cost of electricity, saying the elevated power tariffs render national exports uncompetitive in the global market.

“The government has decided to offer an electricity relief package for the three winter months of December, January and February, providing substantial reductions in electricity prices for additional usage,” the prime minister said during a ceremony in Islamabad.

“Under this package, domestic consumers will pay a flat rate of Rs26.07 per unit for incremental electricity usage, resulting in savings of Rs11.42 to Rs26 per unit for household users,” he continued. “The package will apply across Pakistan.”

Electricity consumers in the country pay their bills according to the number of units that fall into various slabs, each with its own tariff rates.

Under the new winter package, industrial consumers will benefit from savings ranging between Rs5.72 and Rs15 per unit, according to Sharif, translating to an 18 percent to 37 percent reduction in electricity costs.

Commercial consumers are set to save between Rs13.46 and Rs22 per unit, equating to overall savings of 34 percent to 47 percent.

Sharif also emphasized the broader economic benefits of the initiative, saying it would alleviate financial pressures on consumers and stimulate economic activity in the country.

“With reduced electricity costs, industries will grow across Pakistan, agriculture will flourish, business and exports will expand, production will increase and Pakistan’s economy will strengthen further,” he said.


No official word from India it will participate in Champions Trophy in Pakistan — PCB

Updated 08 November 2024
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No official word from India it will participate in Champions Trophy in Pakistan — PCB

  • Mohsin Naqvi’s statement comes amid Indian media reports their team may not play the tournament
  • PCB chief maintains sports should be free from politics, says Pakistan’s preparations are continuing

ISLAMABAD: Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Friday there has been no official communication from Indian cricket authorities regarding their national team’s participation in the International Cricket Council’s (ICC) Champions Trophy scheduled to take place in Pakistan next year, despite recent reports in the Indian media suggesting otherwise.
Political tensions between India and Pakistan mean the two South Asian rivals only face each other at international tournaments. The Indian team last visited Pakistan in 2008 for the 50-over Asia Cup.
India’s refusal to play on Pakistani soil since then forced the PCB to settle for a “hybrid model” during last year’s Asia Cup, in which only four of the 13 matches were held in Pakistan, with the remaining nine played in Sri Lanka.
“For the past two months, there have been reports in Indian media that the Indian team is not coming [to Pakistan for the ICC Champions Trophy],” Naqvi said during a news conference in Lahore.
“As far as what Indian media is reporting, if the Indian media is reporting this, then with that there must also be a letter that the ICC will give us [Pakistan] or the Indian [cricket] board must have announced [this decision] somewhere,” he continued. “So far, no such letter has reached me or the PCB.”
The ICC Champions Trophy, set to take place from February 19 to March 9, 2025, marks Pakistan’s first time hosting this prestigious tournament. The PCB has been preparing extensively, investing in stadium upgrades and infrastructure improvements to meet international standards.
Naqvi emphasized the need to keep sports free from political influence, adding the preparations for the Champions Trophy would continue as planned with hopes for a successful event.
The ICC has previously expressed satisfaction with Pakistan’s preparations, signaling that the tournament remains on track.
The PCB chief said during his media talk he was in contact with the cricket authorities in other countries, saying they were all excited about the upcoming event and wanted to play the tournament in Pakistan.


Pakistan, UAE sign agreements in customs, rail, airport infrastructure, maritime sectors

Updated 08 November 2024
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Pakistan, UAE sign agreements in customs, rail, airport infrastructure, maritime sectors

  • UAE minister of state for foreign trade calls on Pakistani PM Sharif
  • In May, Pakistan said UAE had committed $10 billion in investments

ISLAMABAD: Pakistan and the UAE on Friday signed four MoUs in the sectors of customs, rail and airport infrastructure, maritime shipping and logistics, Prime Minister Shehbaz Sharif’s office in Islamabad said in a statement.
The MoUs were signed between the Pakistani ministries of maritime affairs, aviation and railways and the Federal Board of Revenue with the Abu Dhabi (AD) Ports Group.
“As per these MoUs, Pakistan and AD Ports Group would explore potential collaboration in customs, rail, airport infrastructure and maritime shipping and logistics sectors,” the PM’s office said after Sharif met a delegation of UAE investors led by Dr. Thani bin Ahmed Al Zeyoudi, UAE minister of state for foreign trade.
“These MoUs are aimed at improving digital customs controls, developing dedicated freight rail corridors, upgrading Pakistan’s maritime fleet and marine services, as well as Pakistan’s international airports.”
Sharif said the delegation’s visit demonstrated that the UAE government wanted to enhance its “investment footprint” in Pakistan and continue to play a “crucial role” in boosting Pakistan’s economy.
“The Prime Minister highlighted the comprehensive economic partnership between the two nations across sectors such as trade, energy, and investment, which has contributed to growth and prosperity in both countries.”
The UAE delegation’s visit to Pakistan comes as Islamabad is seeking to strengthen trade and investment ties with friendly nations. 
In May this, Pakistan said the UAE had committed $10 billion to invest in promising economic sectors in Pakistan.
Riyadh has also promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up its dwindling foreign reserves and fight a chronic balance of payment crisis. Pakistan and Saudi Arabia also signed 34 MoUs worth $2.8 billion last month.