KARACHI: The recent historic cuts in prices of multiple car models were a “marketing stunt” by automakers in Pakistan, experts and dealers said on Friday, attributing it to slow demand in the South Asian country.
Lucky Motor Company, which assembles KIA cars in Pakistan, reduced the price of KIA Stonic by as much as Rs1,500,000, followed by a cut in Swift price by up to Rs710,000.
The rate cuts by Kia and Pak Suzuki Motors came on the heels of a reduction in prices of Toyota Yaris by Rs133,000 and Honda City by Rs140,000 respectively in March.
While KIA and Pak Suzuki Motors have said they received an “overwhelming” to the price drops, experts believe it to be a marketing stunt to help struggling models fare better in the Pakistani market.
“They (LMC) played a game because they had about 300-350 (KIA Stonic) cars lying dead which were not sold,” Hajji Muhammad Shahzad, chairman of All Pakistan Motor Dealers Association (APMDA), told Arab News.
“They threw [them] in the market and stopped the booking.”
Shahzad said the price cut by the LMC generated interest among investors who booked the car instead of “genuine buyers,” noting that the car would come with around Rs500,000 own money as well.
Mashood Ali Khan, an auto industry expert, believed that price plays a key role in the auto sector, because of the current economic situation and prevailing high inflation. He said the LMC wanted to “test” the market.
“The people who have booked, maybe I am wrong, but I think they are mostly the investors,” Khan told Arab News. “It could not reach the end consumers as it was opened for two days.”
Reached for comment, LMC Chief Executive Officer Muhammad Faisal said they corrected the KIA Stonic price to help it compete with sedan cars available in Pakistan and “took the hit” themselves, though the automaker didn’t anticipate the overwhelming response to the price cut.
“We tried to bring it to the price point at which competing sedans are available,” Faisal told Arab News. “When we brought it to this price point, the response from the market was unbelievable and better than our expectations.”
Though a Pak Suzuki Motor official did not respond to Arab News query about the cut in Swift price, the company said in a circular it had received an “overwhelming” response and was now introducing “stylish combinations” of a two-tone exterior.
Shahzad, however, said Swift did not get a “good response” despite the price cut.
A decrease in car prices was already expected as the Pakistani government notified in March it would charge 25 percent sales tax on locally assembled cars, if their invoice price exceeded Rs4 million.
Car sales declined in Pakistan by 38 percent during nine months of the current fiscal year, which began on July 1, amid a declining trend in auto financing, historic high interest rate, soaring prices and shrinking purchasing power of consumers, according to a research report by the Karachi-based Darson Securities.
Asked about the delivery of vehicles to customers, LMC CEO Faisal said the company had not delivered the newly booked Stonic cars and was still filtering buyers.
“We have just made a commitment that we will deliver it now,” he told Arab News. “We have ensured that we will book one car per CNIC (computerized national identity card), we are filtering the investors, we are giving preference to genuine customers, so that we can deliver it soon.”
Faisal said the automaker was evaluating its stock position after the current response and it would resume bookings, however, the company would be giving delivery commitments for October onwards.
Car prices have increased in Pakistan by around 40 percent in the last two years and the costs of vehicles remain high despite the recent cuts, according to car dealers.
Khan, the auto sector expert, called for localization of auto parts and a 10-year policy to promote auto industrialization to make affordable cars in Pakistan.
Historic cuts in Pakistan car prices a ‘marketing stunt’ amid slow demand — experts
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Historic cuts in Pakistan car prices a ‘marketing stunt’ amid slow demand — experts
- Lucky Motor Company, which assembles KIA cars in Pakistan, and Pak Suzuki Motors recently reduced Stonic, Swift prices by up to Rs1.5 million
- Experts say the automakers wanted to “test” the market through the stunt and the benefit would not end customers as it was opened for few days
Pakistan Navy takes over command of CTF-151 anti-piracy force at ceremony in Bahrain
- Task force set up in 2009 in response to piracy attacks in Gulf of Aden, off eastern coast of Somalia
- Pakistan has held command of CTF-151 a record 11 times followed by Turkiye which has led it 7 times
KARACHI: Pakistan Navy has taken over command for the eleventh time of the Combined Task Force-151 (CTF-151), a multinational body set up in 2009 as a response to piracy attacks in the Gulf of Aden and off the eastern coast of Somalia, the navy’s media wing said on Thursday.
CTF-151’s mission is to disrupt piracy and armed robbery at sea and engage with regional and other partners to build capacity and improve relevant capabilities in order to protect global maritime commerce and secure freedom of navigation. It operates in conjunction with the EU’s Operation Atalanta and NATO’s Operation Ocean Shield.
“Change of Command ceremony held at Combined Maritime Forces Headquarters, Bahrain,” the Pakistan navy said in a statement. “Commodore Sohail Ahmed Uzmi of Pakistan Navy appointed as new Commander of Combined Task Force-151.”
Earlier, the command was held by the Turkish Navy. Pakistan has held the command of the CTF-151 force a record 11 times followed by Turkiye, which has led it 7 times.
“Pakistan Navy will continue to work with navies of other countries for peace and stability in the region,” the statement quoted Uzmi as saying.
Command of CTF 151 is rotated between participating nations on a three-to-six-monthly basis. Countries that have led CTF 151 include Bahrain, Brazil, Denmark, Japan, Jordan, Kuwait, Pakistan, the Philippines, New Zealand, Republic of Korea, Singapore, Thailand, Türkiye, the UK, and the US. A variety of countries assign vessels, aircraft, and personnel to the task force.
Pakistan arrests suspected human smuggler behind Morocco migrant boat tragedy
- Boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants including 66 Pakistanis
- Moroccan authorities have said 36 people were rescued, survivors include 22 Pakistanis
ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) said on Thursday it had arrested a human trafficker suspected of illegally sending Pakistanis to Spain on a migrant boat that capsized off the coast of Morocco last week.
The boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders. Moroccan authorities said a day later 36 people were rescued from the vessel which left Mauritania on Jan. 2, while the Pakistani Foreign Office has said the survivors include 22 Pakistanis.
The tragedy has once again underscored the perilous journeys many migrants, including Pakistanis, embark on due to conflict and economic instability in their home countries.
“Human smuggler involved in Moroccan boat accident arrested,” the FIA said in a statement, identifying the suspect as Muhammad Aslam and saying he was arrested after a raid in the small town of Sambrial in Pakistan’s Punjab province.
The statement said Aslam and his accomplices had taken Rs5.35 million from the family of Aamir Ali, who died in the boat accident, and had tried to smuggle him to Spain via Mauritania.
“A case has been registered against the accused and an investigation has been launched. More arrests are expected after the accused are identified,” the FIA said.
A record 10,457 migrants, or 30 people a day, died trying to reach Spain in 2024, most while attempting to cross the Atlantic route from West African countries such as Mauritania and Senegal to the Canary islands, according to Walking Borders.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a shipwreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests.
Prime Minister Shehbaz Sharif has also urged increased collaboration with international agencies like Interpol to ensure swift action against human trafficking networks.
Imran Khan calls off talks with Pakistan government over deadlock on judicial commissions
- First round of talks aimed at cooling political instability took place on Dec. 23 with two follow up sessions on Jan. 2 and 16
- At last round of talks, PTI gave government seven days to announce judicial commissions into May 2023 and Nov. 2024 protests
ISLAMABAD: Jailed former prime minister Imran Khan has called off negotiations with the government over its failure to establish judicial commissions to investigate violence at anti-government protests organized by his Pakistan Tehreek-e-Insaf (PTI), party chairman Gohar Khan said on Thursday.
Negotiations started last month with the aim of cooling political temperatures in the South Asian nation and three rounds have been held so far.
The PTI’s demands to the government revolve around the release of all political prisoners including Khan, and the formation of two judicial commissions to probe into violent protest rallies, including one on May 9 , 2023, when PTI supporters rampaged through military offices and installations, and a second one on Nov. 26, 2024 to demand Khan’s release, in which the government says four troops were killed. At the last meeting on Jan. 16, the PTI had given the government seven days to announce the truth commissions, a deadline that expired today, Thursday.
A Pakistani court last week sentenced Khan to 14 years in prison in a land corruption case, a setback to the nascent talks’ process.
“We [PTI] had given the government time of seven days [to form commissions],” Gohar told reporters outside the Adiala Jail in Rawalpindi where Khan has been incarcerated since 2023.
“Khan had made it clear that if the formation of the commissions is not announced during this time, then further rounds of talks will not continue … It is sad that the government did not announce anything till today. Hence Khan has called off the negotiations.”
Irfan Siddiqui, the spokesperson for the government’s negotiation committee, said on Wednesday the government would respond to the PTI party’s written demands on Jan. 28.
The talks opened last month as Khan had threatened a civil disobedience movement and amid growing concerns he could face trial by a military court for allegedly inciting attacks on sensitive security installations during the May 9 protests.
Khan’s first arrest in May 2023 in the land graft case in which he was sentenced last week sparked countrywide protests that saw his supporters attack and ransack military installations in an unprecedented backlash against Pakistan’s powerful army generals. Although Khan was released days later, he was rearrested in August that year after being convicted in a corruption case. He remains in prison and says all cases against him are politically motivated.
Protests demanding Khan’s release in November also turned violent, with the PTI saying 12 supporters were killed while the state said four troops had died.
Pakistan holds first training session for Hajj 2025 pilgrims
- Around 500 selected pilgrims from the Pakistani capital, suburban areas attended the training workshop
- The first phase of pilgrim training sessions will continue across the country till February 27, ministry says
ISLAMABAD: Pakistan’s religious affairs ministry has held its first training session in Islamabad for pilgrims selected for this year’s Hajj pilgrimage, it said on Thursday.
Around 500 selected pilgrims from the federal capital and its suburban areas attended the training workshop, who were briefed on administrative matters and Hajj rituals.
Hajj pilgrims are being provided training through audio-visual devices and other materials, according to the Pakistani religious affairs ministry.
“The first phase of training will continue across the country till February 27,” the ministry said. “The second phase of training will start after Ramadan.”
The development comes days after Pakistan began training of pilgrims, with the first session in the northwestern city of Peshawar.
Pakistan and Saudi Arabia this month signed the Hajj agreement 2025, under which 179,210 pilgrims from the South Asian country will perform the annual pilgrimage this year. The quota is divided equally between government and private schemes.
Pakistan’s latest Hajj policy has allowed pilgrims to make payments in installments for the first time. Under this scheme, the first installment of Rs200,000 ($717) had to be submitted with the application, the second installment of Rs400,000 ($1,435) within 10 days of balloting and the remaining amount by Feb. 10 this year.
The Pakistani religious affairs ministry has also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to guide pilgrims.
Additionally, the government has announced a reduction in airfare, lowering ticket prices for federal program pilgrims to Rs220,000 [$785.41], down from last year’s Rs234,000 [$835.39].
The Pakistan International Airlines, Saudi Airlines, and private carriers have agreed to transport pilgrims this year.
Pakistan lawmakers seek Musk apology before Starlink approval
- Musk’s Starlink satellite Internet service has applied for a license to operate in Pakistan, but is awaiting clearance before users will be allowed to log on
- ‘Several senators denounced’ Musk’s ‘anti-Pakistani propaganda’ in recent comments he made on social media platform X, says Senate committee chair
Islamabad: Pakistan senators are demanding an apology from billionaire Elon Musk, a lawmaker told AFP on Thursday, accusing him of “anti-Pakistan propaganda” as he seeks regulatory approval for his Starlink service in the country.
Musk’s Starlink satellite Internet service has applied for a license to operate in Pakistan but is awaiting clearance before users will be allowed to log on.
A senate committee on information technology and telecommunications met Wednesday to hear updates from officials assessing his application.
But committee chair Palwasha Mohammad Zai Khan told AFP “several senators denounced” Musk’s “anti-Pakistani propaganda” in recent comments he made on his social media platform X.
Musk has repeatedly highlighted claims that men of Pakistani origin were responsible for a spate of historic rape cases targeting mostly white girls in England.
“It was said that approval should be given on condition of his apology,” Khan told AFP.
“We are not saying it should be a pre-condition but it was a part of the discussion and we can only give our recommendations to the government,” she added.
Musk began launching attacks against the UK government this month after it resisted calls for a national inquiry into the historic abuse cases.
In Rotherham, a town of 265,000 inhabitants, a gang drugged, raped and sexually exploited at least 1,400 girls over a 16-year period from 1997, a public inquiry concluded in 2014.
A series of court cases eventually led to the conviction of dozens of men, mostly of South Asian origin. The victims were vulnerable, mostly white, girls.
An Indian lawmaker made a post on 8 January saying: “They aren’t ASIAN Grooming Gangs but PAKISTANI grooming gangs. Why should Asians take the fall for one absolute rogue nation?“
Musk commented with a message saying: “True.”
The historic abuse cases regularly prompt debate in the UK, where some claim they are used to enflame Islamaphobia while others say they are being quashed to prevent debate.
Whilst Musk’s electric vehicle and space ventures made him a billionaire, he has recently emerged as a political figure affiliated with newly inaugurated President Donald Trump.
Trump has tasked Musk, the world’s richest man, with slashing billions of dollars of federal government spending as head of a new “Department of Government Efficiency.”
