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
Lifting of EU safety agency ban on PIA flights will make air travel easier for Pakistanis — PM
- European Aviation Safety Agency suspended PIA’s authorization in June 2020 over aviation safety concerns
- The suspension came days after Pakistan launched an investigation into the validity of pilots’ licenses
ISLAMABAD: Pakistan has welcomed the decision of the European Aviation Safety Agency (EASA) to lift a ban on Pakistan International Airlines (PIA) flights to the bloc, with Prime Minister Shehbaz Sharif saying it would make air travel easier for Pakistanis living in Europe.
EASA suspended PIA’s authorization to operate in the EU in June 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
The suspension came days after Pakistan launched an investigation into the validity of pilots’ licenses issued in the country following a PIA plane crash that killed 97 people.
In his statement on Friday, PM Sharif said the lifting of EASA’s ban would strengthen the national flag carrier’s reputation and bring financial benefits to the airline, the state-run Radio Pakistani broadcaster reported.
“The lifting of the ban reflects the successful policies of Pakistan and air travel will become easier for Pakistanis living in Europe,” Sharif was quoted as saying by the broadcaster.
The ban was costing PIA nearly 40 billion Pakistani rupees ($144 million) in revenue annually, according to government records presented in parliament.
PIA and the government had been pressing EASA to lift the ban even provisionally. The government’s attempt to privatize the airline fell flat when it received only a single offer this year, that too well below its asking price.
In a statement, the PIA also vowed to abide by the EASA regulations as it welcomed the lifting of the ban.
“The PIA administration will remain fully compliant with EASA and its rules and regulations,” the airline said.
‘Incredible experience’: Pakistani artisans urge stronger cultural ties at Saudi exhibition
- The handicrafts week in Riyadh featured over 500 artisans who displayed a blend of traditions and skills
- Pakistani participants say they were delighted to see Saudi women entrepreneurs in huge numbers
KARACHI: Pakistani artisans participating in Saudi Arabia’s International Handicrafts Week, Banan, on Friday called for deepening cultural ties between the two nations, emphasizing the role of art and crafts in fostering mutual understanding.
The exhibition, held in Riyadh from Nov. 23 to Nov. 29, featured over 500 artisans from 25 countries, showcasing a vibrant blend of traditions and skills.
The event, organized by the Heritage Commission of the Saudi Ministry of Culture, highlighted the role of crafts in promoting cross-cultural dialogue.
Several Pakistani artisans were facilitated by their embassy to participate in Banan and represent their country’s rich culture.
“It is important to explore the ties between Pakistan and Saudi Arabia through a cultural lens, which has started to happen,” Danish Jabbar Khan, CEO of Kaarvan Crafts Foundation and a participant at the event, told Arab News over the phone.
“The cultural exchange is the way forward for two countries to understand each other," he continued. "It’s simpler and long-lasting. People-to-people exchange is very important that such platforms allow.”
Khan’s foundation works with rural communities, particularly women, to preserve traditional crafts such as truck art, blue pottery and woodwork.
“The experience [of participating in the exhibition] was phenomenal,” he said. “The culture here is so open in terms of its scale, work, and inclusion. I am delighted to see Saudi women entrepreneurs in huge numbers.”
A highlight of the exhibition was truck artist Ejaz ul Allah Mughal, who created custom pieces for attendees.
“I am happy that I represented Pakistan,” Mughal said, adding: “Though language was a barrier, art knows no boundaries. People here really appreciated my craft. Truck art is famous worldwide, so people know about it.”
Mariya Suhail, who uses a diverse range of Pakistan’s gemstones in jewelry, also took her craft to Banan. She set up Pakistan’s first gemstone cutting and processing facility in Lahore over a decade ago, though she later launched her own label, Orah Jewels.
Suhail's work blends Pakistan’s diverse gemstones into jewelry and home décor.
“People here picked up gemstones from Pakistan and loved it," she told Arab News. "There is a lot of demand for Pakistani products here. People of Riyadh also have a very positive outlook towards Pakistan.”
She maintained that despite the language barrier, there was a lot of learning, networking and exposure.
“Cultural exchange is very important," she added. "I wish we can have more such events and opportunities to present this very beautiful image of Pakistan. It's been an incredible experience here.”
The Embassy of Pakistan in Riyadh also commended the artisans’ participation, calling the Pakistani pavilion a testament to the country's rich cultural heritage and the unparalleled quality of its craftsmanship.
"From intricate handmade designs to traditional artistry passed down through generations, the showcased crafts highlighted the deep-rooted legacy of Pakistan's artisan community,” it said in a statement.
At least five killed in road crash in Pakistan’s Balochistan province
- The crash occurred after driver of a speeding car lost control of it and hit a truck
- Fatal road accidents are common in Pakistan where traffic rules are rarely followed
QUETTA: At least five people were killed after a speeding car hit a truck in Pakistan’s southwestern Balochistan province, an official said on Friday.
The vehicle carrying five people onboard was en route to Loralai from Quetta, when it crashed into the truck coming from the opposite direction in Sarki Jangal area, according to Loralai Deputy Commissioner Meeran Baloch.
The accident occurred after the driver of the speeding car lost control at a curve section of the highway.
“Five people traveling in the car, including principal of the Government Boys Degree College Loralai, were killed,” Baloch told Arab News.
“The bodies were shifted to the District Headquarters Hospital Loralai, where four of them have been identified.”
Fatal road accidents are common in Pakistan where traffic rules are rarely followed and roads, particularly in rural and mountainous areas, are in poor condition.
Such accidents are frequent in Balochistan where single-carriage roads connect various cities, and even some highways lack modern safety features.
Late last month, at least 12 people were killed and more than a dozen others sustained injuries in three fatal road accidents in the southwestern Pakistani province.
Pakistan forms task force against Islamabad protesters as Imran Khan’s party seeks action against ministers
- Task force will be headed by the interior minister and will identify those who ‘spread violence’ in the capital
- PTI’s information secretary shares 12 names, saying the party has evidence they were killed in Islamabad
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday formed a task force to identify and prosecute individuals involved in last week’s protest in Islamabad, as the opposition Pakistan Tehreek-e-Insaf (PTI) claimed 12 supporters were killed in clashes and demanded police cases against top government ministers.
The PTI protest began on November 24 as the party supporters demanded the release of jailed leader, former premier Imran Khan, who has been incarcerated for over a year.
The government had warned against demonstrations in the federal capital, but protesters gathered in defiance, resulting in a crackdown against them. While PTI accuses the government of using live ammunition to kill and seriously injure demonstrators, officials claim PTI activists fired on security forces, killing five personnel.
The task force, headed by Interior Minister Mohsin Naqvi, was announced as Sharif chaired a high-level security meeting, with Chief of Army Staff General Asim Munir in attendance, in Islamabad.
“The task force will ensure those responsible for spreading chaos and violence on November 24 are identified and brought to justice in accordance with the law,” the PM Office said in the statement.
Meanwhile, PTI’s Secretary Information Sheikh Waqas Akram, speaking at a news conference in Peshawar, alleged that the government had indiscriminately targeted protesters, sharing names of 12 individuals the party said were killed.
He said videos and evidence from the protest site near the parliament building in Islamabad corroborated the party claims, adding that the actual death toll could be higher as many were missing or critically injured.
“We strongly demand police complaints be lodged against the prime minister, the interior minister and information minister,” he said. “Without this, public unrest will continue to grow.”
“We urge the judiciary to step forward and ensure these killers are brought to justice,” he added.
The government has also announced plans to create a federal riot control force, saying it would be equipped with international-standard resources and skills to prevent such protests in the future.
Pakistan, China hold joint military drill amid Beijing’s concerns over attacks on nationals
- Warrior VIII, which began on November 19, aims to bolster counterterrorism capabilities
- Pakistan’s army chief interacted with the participants of the exercise and praised their morale
ISLAMABAD: Chief of Army Staff (COAS) General Asim Munir on Friday visited the National Counter Terrorism Center (NCTC) in Pabbi, located in the Gujrat division of Punjab province, to observe a joint counterterrorism exercise between the Pakistan Army and the People’s Liberation Army (PLA) of China, said an official statement.
The three-week “Warrior VIII” exercise, which began on November 19, is the eighth iteration of bilateral training aimed at bolstering counterterrorism capabilities and enhancing military cooperation.
The exercise comes as China’s security concerns in Pakistan have grown following a spate of attacks targeting Chinese nationals working on dozens of lucrative projects in the country.
“The COAS was briefed on the scope and conduct of the exercise,” the military’s media wing, Inter-Services Public Relations (ISPR), said. “He also interacted with the participants of the exercise.”
Thousands of Chinese nationals have been working on the multibillion-dollar China-Pakistan Economic Corridor (CPEC) for nearly a decade, with several of them being targeted by different militant groups operating in Pakistan.
Earlier this year, in March, a suicide bomber attacked a convoy near Besham in Khyber Pakhtunkhwa, killing five Chinese engineers. A few months later, in October, a bombing near Karachi airport targeted Chinese workers ahead of the Shanghai Cooperation Organization (SCO) Summit in Islamabad.
Beijing has voiced concerns over the safety of its citizens working in Pakistan and has reportedly proposed a joint security mechanism.
However, the foreign office said this month the two countries have a “robust dialogue and cooperation” on a range of issues, including counterterrorism and the security of Chinese nationals in the country.
It also expressed the government’s resolve to work with Chinese authorities to ensure the safety and security of their nationals, as well as their projects and investments.
According to Voice of America, Warrior VIII is the first joint counterterrorism exercise between the two countries in five years.
The ISPR said General Munir also praised the professionalism and high morale of the officers and soldiers participating in the joint military exercise.
