Industrial Bulletin - Engineering Development Board

Volume 15-No. 2
April - June, 2016
4
Minister for Industries and Production Chaired 34th Meeting of BOM of EDB
6
Federal Minister for Industries & Production leads Pak businessmen delegation to Minsk,
Belarus
7
Engineering Industry’s Successful Participation in Hannover Messe 2016
11
PUM - Senior Volunteer Experts from the Netherlands
12
Japanese Welcome to invest in auto sector, says Finance Minister
12
Industry hails reduction in sales tax on tractors
13
Rethinking Marketability and Market Stagnation of Automobiles in Pakistan
16
Provisional Figures of Exports/Imports
17
Engineering Sector’s Exports : Top 15 Countries
18
Engineering Sector’s Exports : Top 15 Items
19
Pakistan’s Exports of Engineering Sector to Various Regions
Car Prices of various brands in Pakistan
20
Federal Minister for Industries and Production, Ghulam Murtaza
Khan Jatoi talking to Media in Multan on April 4, 2016
Federal Minister for Industries and Production, Ghulam Murtaza Jatoi
offering dua after foundation stone laying ceremony of NFC Instituted of
Engineering/Technology in Multan on April 4, 2016
Mr. Stefano pontecorvo, Ambassador of Italy along with Mr. Crosetto,
Chairman of Italian Industries Federation for Airspace called on Federal
Minister for Industries & Production, Ghulam Murtaza Khan Jatoi in
Islamabad on May 17, 2016
Federal Minister for Industries and Production, Ghulam Murtaza Jatoi being
presented with a memento upon his visit to Pakistan Institute of Management
(PIM), Karachi on May 2, 2016.
Federal Minister for Industries and Production, Ghulam Murtaza Khan Jatoi visited Export Processing Zone Authority (EPZA), Karachi
Minister for Industries and Production
th
Chaired 34 Meeting of BOM of EDB
34th meeting of the Board of Management (BOM) of EDB
was held on June 6, 2016 under the Chairmanship of Mr.
Ghulam Murtaza Khan Jatoi, Federal Minister for Industries
and Production. Most of the Board Members from Government
as well as Private Sectors attended the Board meeting. Since
the meeting was convened after the period of 20 months from
last meeting, so many issues related to the organization
including Administration, Finance, performance of the different
functional heads of the organization was discussed in the
meeting. Most of the issues were approved by the Board
except for the few financial issues related to Budget 2016-17
which was dropped till the approval of the Federal Budget
2016-17. The next meeting of the Board was proposed to be
held after Eid to discuss the remaining agenda and any other
issue.
During meeting the participants emphasized the Chair to
strengthen the role of EDB to perform its functions effectively
for the growth and development of engineering industry. It was
also emphasized that industry academia coordination may be
accelerated to take benefits from the experts available with
academia to resolve the problems of the local industry and to
improve their productivity. The members also stressed upon
the Ministry of Industries and Production to effectively perform
its role in the CPEC Projects for the integration of the local
industry. They also emphasized that level playing field may be
provided to the local industry in the CPEC Projects.
On the advice of the Secretary MoIP, the Minister
constituted a committee comprising Secretary I&P as convener
and Mr. Noman Wazir, Mr. Sohail and representatives from M/s
PAMA and MoST/PSQCA as members. The committee would
suggest its own TORs. The committee would also suggest a
regulatory framework for the EDB. Members also commented
that while framing legislation for the organization working of
other similar bodies responsible for the development of the
engineering industry in other emerging economies must also
be taken into account.
rd
EDB Organized 23 Meeting of Auto Industry
Development Committee
23rd meeting of the Auto Industry Development Committee
(AIDC) was held on June 9th, 2016 under the chairmanship of
Mr. Tariq Ejaz Chaudhary, CEO, EDB. The meeting was
attended by the members including Government officials and
private sector organizations. During the meeting the committee
approved new products of M/s New Allied Motors and M/s
Gandhara DF (PVT) Ltd. Moreover, the technical issues of
compliance were also discussed.
4
A 3-member delegation headed by Mr. Andrei Grinkevich Head of the
Department of Asia, Australia & Oceania of the Ministry of Foreign Affairs
of the Republic of Belarus called on CEO, EDB and discussed the matters
of mutual interests of two countries on April 8, 2016 at EDB, Islamabad.
Mr. Tariq Ejaz Chaudhary, CEO, EDB meeting with Ms. Mary Harrington,
economic officer of US Embassy in Islamabad regarding Automotive
Development Policy (ADP) at EDB office, Islamabad on May 9, 2016
Mr. Tariq Ejaz Chaudhary, CEO, EDB and Mr. Ajmal Sharif, GM (Policy)
presenting a souvenir shield to Mr. Kimo Takanaka, Automotive Policy
former Advisor, EDB from Japan to EDB office, Islamabad.
Mr. Takashi Harada, Economic Counsellor, Embassy of Japan in Pakistan
called on Mr. Tariq Ejaz Chaudhary, CEO, EDB and exchanging views
regarding Automotive Development Policy 2016-21 in Islamabad
on May 3, 2016.
Mr. Tariq Ejaz Chaudary, CEO, EDB in a meeting of budget exercise
with the stakeholders of Auto Sector at EDB headquarters, Islamabad
on April 7, 2016
Budget exercise meeting of other industries held on April 12, 2016 to
develop consensus about tariff rationalization proposals for
budget at EDB, Islamabad.
5
INDUSTRIAL BULLETIN
Federal Minister for Industries &
Production leads Pak businessmen
delegation to Minsk, Belarus
A 17-member delegation under the leadership of
Honorable Minister for Industries & Production, Mr. Ghulam
Murtaza Khan Jatoi visited Minsk - Belarus from April 12th – 13th,
2016. The delegation comprised of the leading businessmen
from engineering sectors in the Auto Parts and Components
manufacturing, Steel, Chemical, Domestic Appliances,
Industrial Machinery and Equipments, Tiles/Insulators, Wires
and Cables, Sanitary Ware and Textile. A part from the private
sector, Mr. Shafqat-Ur-Rehman Ranjha, Additional Secretary,
Ministry of Industries & Production, Mr. Tariq Ejaz Chaudhary,
CEO, EDB and Eng Sarfaraz Ahmed, Director General, PITAC
were also a part of the delegation.
The primary objective of this visit was to promote industrial
cooperation and bilateral trade between the two countries.
Moreover, acquisition of new technologies through Joint
Ventures in various fields for technology up gradation was also
in focus.
During the visit, an inaugural meeting of the Joint Working
Group (JWG) on Industrial Corporation was also held and a
protocol was signed by the Honorable Minister for Industries
and Production, Mr Ghulam Murtaza Khan Jatoi and Mr. Vitaly
Vovk Minister of Industries-Republic of Belarus to strengthen
bilateral ties in the sphere of industrial collaboration.
The delegation also visited several
manufacturing/production units, like “Belshina” the tyre making
company, petro-chemical producer “Belneftikhim”, “Atlant
Refrigeration Company”, “Belaz” Trucks Manufacturing
Company, “Amkodor” road construction machinery unit, “Minsk
Tractor Works”, and “Minsk Automobile Plant”. The Minister of
Industries & Production and delegates greatly appreciated the
strong industrial base of Belarus. Mr. Jatoi greatly emphasized
on technology transfer to Pakistan and declared it the corner
stone of industrial cooperation between both countries.
Further B2B meetings of the Pakistan businessmen
accompanying the delegation were also arranged with their
counterparts. During the visit the businessmen not only
negotiated on trade but also on the transfer of technology as
Federal Minister for Industries and Production, Ghulam Murtaza Khan
Jatoi in a Group Photo during the visit to Minsk, Belarus.
well. “House of Habib” the vendor of Toyota in Pakistan had
fruitful negotiations with “Minsk Tractor Works”, while “PEL”, a
Pakistani refrigeration firm had productive meeting with
“Atlant”, Refrigeration Company of Belarus. Moreover, M/s
General Tyre, Pakistan concluded an agreement with
“Belshina” the tyre making company for setting up a tyre
manufacturing plant in Pakistan. Similarly, Faisal Sanitary and
Super Asia Group of Gujranwala also finalized business deals
with a high tech ceramic partner in Belarus. Furthermore, M/s
“Nimar Chemicals” held inclusive meeting with “Belneftkhim” to
import 200 tons of “Pthylene Anhydride” to Pakistan. “New Age
Cables” of Pakistan also held a meeting at the Ministry of
Energy of Belarus. Discussions were held on the huge
opportunities for infrastructure projects coupled with
investment opportunities in the Special Economic Zone under
CPEC.
The visit had a substantive content with delegation
interacting with Belarusian companies as Pakistan is looking
forward to extend trade and investment ties with Belarus by
opening up of the economies and providing a comfort level to
each other in terms of trade facilitation measures, elimination of
non-Tariff Barriers and having Preferential Trade Agreements
between both countries stated CEO (EDB) – Mr. Tariq Ejaz
Chaudhary.
6
Engineering Industry's Successful
Participation in Hannover Messe 2016
“Vibrant Pakistan” was chosen with a theme of “One Nation
Thirty-two prominent engineering companies from
One Vision”.
Pakistan participated in “Hannover Messe” 2016, the world's
It is pertinent to mention that Pakistan resumed its group
largest fair of industrial technologies held in Hannover
participation after a gap of six year and its presence in the
Germany from April 25th to 29th, 2016.
fairground was deeply appreciated by the relevant quarters.
Engineering Development Board (EDB) organized
The product line of Pakistani Exhibitors ranged from Auto Parts
Pakistan's Pavilion at the event, after a gap of six years, with
& Components to Plastic Injection Molded parts,
the funding support provided by Ministry of Commerce through
Tractor/Agriculture Farm Machinery Parts and Components,
Export Development Fund.
Low and High Pressure Compressors, Towing Parts, LED
Hannover Messe is world's premier industrial fair that
Lights, Rubber Hoses, Industrial Rubber Product, Precession
attracts leading professionals from across the globe, from all
Engineering Components, Cast and Machined Parts, LPG
sectors of industry. The high profile event was inaugurated by
Cylinders, Fiber Reinforced Plastic Molded Products,
the President, Mr. Barrak Obama along with the German
Automotive Lamp Assemblies, Steel Tubes and Pipes, Forged
Chancellor Angela Merkel of United States as US was the
and Machined Steel Components, Automobile Diesel Engine
partner country this year at Hannover Messe.
Components, High Carbon Steel Wires, Industrial Valves,
The Fair status as an innovation platform for the global
Heat Blowers Condensers, Wire Harnesses, Tyres and Rims
market place was clearly evident from 2016 edition which was
staged under the
key note motto of
“Integrated
I n d u s t r y D i s c o v e r
Solutions”.
Over five
action-packed
days, some 5,000
exhibitors from
across the world
were showcasing
t h e l a t e s t
technologies in
the manufacturing
and integrated
energy systems.
The Hannover
Messe has always
succeeded in
putting major
spotlight on
CEO, EDB in a group photo along with Pakistan’s engineering industry’s
p r o d u c t
exhibitors/participants at Hannover Messe-2016, Germany.
innovations,
industry trends
and the latest
etc. Most of the Exhibitors have received inquiries from
advances in Research and Development. The Messe also
customers across the world. The government is gradually
featured five parallel shows on Industrial Automation, Energy,
realizing importance of engineering sector as it has been
Digital Factory, Industrial Supply and Research & Technology.
selected as one of the priority sectors in the recently
Pakistan's Pavilion at the Trade Fair showcased a wide
announced strategic trade policy framework commented by
spectrum of product line of 32 top of the line Pakistani
Mrs. Raazia Shakir, General Manager(BDG), EDB, who was
engineering companies in the Industrial Supply Category. A
positive on the continuity of such activities in the long run to
group of 10 delegates from leading Technical Universities and
drive real benefit.
Industries were also accompanying the delegation. Besides, a
The Pakistan participant's of the Hannover Messe 2016
ten Member delegation from Faisalabad Chamber of
highly appreciated the efforts put in by EDB for organizing this
Commerce and Industries also visited the Messe. A slogan of
Trade Fair and providing them the platform to find new
7
CEO, EDB along with two other officers of EDB standing at the EDB’s stall set up at the Hannover Messe 2016, Germany
markets. They also acknowledged the support provided to
them by the Commerce Minister, Engr. Khurram Dastgir Khan
for understanding the importance of such participation for
enhancing exports of value added engineering products.
It is important to note that there is a mismatch in Pakistan's
export product mix vis-à-vis global market. While 34% of
international trade is in engineering goods, Pakistan's export of
engineering products is barely 1% of the total exports. The
future for Pakistan's stagnating exports lies in fast track
development of engineering sector, said by CEO EDB, Mr Tariq
Ejaz Chaudhary and we look forward to participate with high
Mr. Tariq Ejaz Chaudhary, CEO, EDB (from left to right 2nd in a row) in a group
photo along with youngsters who took Pakistani foot balls in their hands
distributed by EDB at the event so as to build a soft image of the country.
Visitors inspecting the Pakistani Company’s product displayed at stall
numbers of exhibitors next year. He extended his special
thanks to the Prime Minister of Pakistan Mian Muhammad
Nawaz Sharif for patronizing the Engineering Industry of
Pakistan. He also acknowledged the support provided by the
Minister for Industries & Production, Mr Ghulam Murtaza Khan
Jatoi, Minister for Commerce, Engr. Khurram Dastgir Khan,
Secretary Industries & Production, Secretary Commerce,
Chairman/Secretary TDAP, Pakistan Ambassador at Germany
and Commercial Counsellor at Consulate General of Pakistan
Frankfurt for all facilitation to make this a success.
CEO, EDB exchanging views with participant of the event.
CEO, EDB shaking hand with visitor at Hannover Messe
8
Hannover Messe, Germany at a Glance
held from April 25th to 29th, 2016
CEO, EDB representing Pakistan at EDB’s stall set up at the event.......
CEO, EDB in a group photo with others at EDB stall
CEO, EDB meeting to another company’s
representative at the event.
CEO, EDB presenting a souvenir to participant of
the event.
CEO, EDB interacting with others and exchanged
viewpoints at the event.
GM (BDG), EDB presenting souvenir to a
representative of Pakistani Engineering Industry
Pakistani foot balls in the hands of visiting youngsters
representing soft image of the country internationally
CEO, EDB while interacting with people at the event.
Souvenir being presented to participant of the
trade fair at EDB stall.
A group photo of representatives of the Pakistani
Engineering Industry at Hannover Messe, Germany
9
Hannover Messe, Germany at a Glance
held from April 25th to 29th, 2016
Pakistani Engineering Industry’s exhibitors and trade visitors at stalls.........
Pakistani foot balls placed at EDB’s stall
for visitors attraction and distribution among them
10
INDUSTRIAL BULLETIN
ENGINEERING DEVELOPMENT BOARD
11
Engineering Industry
Japanese welcome to invest in
auto sector, says Finance Minister
Pakistan offers the most lucrative investment opportunities
and an enabling economic environment to foreign investors,
especially in the auto sector, Finance Minister, Mohammad
Ishaq Dar said on May 9, 2016. During a meeting with newly
appointed Japanese Ambassador Takashi Kurai, the Finance
Minister said Japanese companies could also avail
themselves of Pakistan's liberal investment regime.
The envoy visited Mr. Ishaq Dar to discuss investment plans
of the Japanese companies in the wake of auto policy
announced by the Government of Pakistan. The re-launching
of Yamaha last year reflected that Japanese companies'
interest in Pakistan had revived, Finance Minister said.
Finance Minister, Senator Mohammad Ishaq Dar meeting with Japanese
Ambassador Takashi Kurai in Islamabad on May 9, 2016.
Industry hails reduction in sales tax
on tractors
Tractor Industry has hailed the government's decision to
reduce sales tax to 5% on tractors, saying that it was a longoutstanding demand of the industry and farmers. According to
the industry representatives, the revisions of GST rates had
been a major issue for the tractor industry in the past. They
claimed that since the imposition of GST, the country had
witnessed negative growth in terms of sales of tractors during
the last five years.
They said that this reduction would go a long way in
reviving the tractor industry thus helping the farmers through
increase in farm mechanisation. They further said that the
industry was hopeful for its revival following the government's
said decision as the same would not only put a positive impact
on the growth but also stabilise the ailing industry.
Meanwhile, Mohammad Shahid Hussain, CEO Al-Ghazi
Tractors, said that the industry had also given some further
suggestions on some other related issues which needed to be
addressed to improve overall situation of the industry. He said
that the industry's major suggestion is the anomaly between
the adjustment of input tax and output tax and added that
agricultural tractors would now be subjected of sales tax at the
rate of 5% while against it, imported and locally produced
components required for manufacturing of tractors are
subjected to sales tax at the rate of 17%.
Moreover, he said that even CBU imports of tractors were now
allowed at 5% import duty which was against the norms of
industrialization in any country while raw material import for
local tractor production was subjected to 17 percent GST and
10 percent import duty.
He said that since input tax was obviously and visibly levied
at a much higher rate as against the output tax, considerable
refunds from the government were consistently accruing and
increasing on a regular basis. 'Now CBUs can be imported at
5% while the raw material for local manufacturing in the country
is imported at 17%,' he said. 'The industry was already
suffering from that GST blow and blockage of its huge refunds,
and the GST revision only on tractor sales makes it further
difficult for the industry as even more refunds will be accrued,
affecting the smooth operations due to cash crunch,' he added.
To solve the above outstanding issue, CEO Al-Ghazi
Tractors added that in its budget proposal the local tractor
industry had suggested reduction in the rate of input tax on
purchase of components (local and imported) by tractor
manufacturers to match the output rate. 'The proposal if
implemented would help the ailing cash-starved industry to
reduce yearly refunds up to Rs 700 million which would enable
the manufacturers to innovate further and provide more useful
and cost-efficient options to Pakistani farmers,' he added.
Shahid urged the government that raw material should be
taxed at zero rate or maximum at 5% in line with CBU import.
12
Article
Rethinking Marketability and Market
Stagnation of Automobiles in Pakistan
Kimio Takanaka, Ph.D.
Automotive Policy Former Advisor
Engineering Development Board
Pakistan has a population of about 180 million people.
More than 70% of population is under 35 years old and the
average age is 20’s in Pakistan. According to the report of
the International Monetary Fund, the Pakistani GDP per
capita will be over 1,500 USD. The economic success of
BRICs is the center of public attention, but Pakistani
economy is also worthy to note. Pakistan develops also one
of the typical economic growth Asian countries. Government
of Pakistan announced 'Vision 2025,'as the policy aiming at
growing of the industrial structure and the heavy chemical
industrialization. Pakistan government in the Vision, is to
establish the economic and industrial structure to enable
sustainable, spontaneous and comprehensive growth
through improving productivity and promoting investment in
private sectors.
The manufacturing sector, especially the automotive
industry which has the very wide component and partssupply industries and very high level of added value, is
regarded as the center of the growth policy.
impacts to national economy in Pakistan. Economic growth
rate from the end of 1990s to the beginning of 2000s raised to
more than 5%, and automobile sales increased more than
200,000 units. However, so called Lehman Shock,
bankruptcy of Lehman Brothers caused international
financial crisis in 2008, and Pakistan economy was dropped
drastically. Automobile sales are also drastically decreased
to almost half of the previous market volume.
Automotive industry is highly volume driven industry due
to heavy fixed cost for research and development,
production equipment and network for distribution and after
sales services. The problem facing by the local industry are
mostly attributable to insufficient volume. It is said that
production capacity of an efficient car assembling line is
about 1,000 units per day running at 1 minute takt time and 2
shift per day, or an efficient sales for one engine is 100
thousands per year. However, total monthly production of 3
main automobile manufactures in Pakistan is about 3,230
cars in 9 models in 2013.
Vehicle Sales Trends, Automotive Policy and
Governance
Monthly Production of Vehicles in Pakistan
Monthly production
More than 2,000 units
1,000 – 2,000 units
Less than 1,000 units
1,077 units/model
Number of models
2
3
4
Average
OEM
Suzuki
Toyota
Honda
Monthly production
5,308
2,344
1,967
3,230 units / OEM
Source: Pakistan Automobile Manufacturers Association, Automotive
Production and Sales in Pakistan 2013/14.
About Automotive policy in Pakistan, nationalization
policy was introduced by civilian government in 1970s, and
automobile sales grew up 50,000 units in 1980s. After
decade of military government, the government was sifted to
parliamentary democracy, and new government changed
the automotive policies from nationalization to privatization.
Pakistan government introduced Import substitution
industrialization policies to manufacturing industries, and
automotive industry was also privatized and domestic
production was enhanced in the end of 1980s. In 2001, US
economic assistance was resumed, and it gave good
The vehicle sales 2014/ 2015 reached 151,134 cars, and
exceeded previous year's sale of 118,102 cars. Last year,
Indus Motor introduced fully model changed new Corolla.
The good sales resulted from the model change of Corolla.
New Corolla has a good influence on the vehicle sales in
Pakistan.
In addition, last year had another good impact from
Panjab Provincial government. Panjab government
purchased Pak Suzuki's Bolan and Ravi for the youth
employment scheme. The good sales was also supported
by the drop of interest rate to 7%. The drop of interest rate
gave a boost to the consumers to buy cars with a bank loan.
The vehicle market has roughly four segments, such as less
than 1,000cc class, 1,300cc class, 1,800cc class and sports
utility vehicle (SUV)/ 4 wheel drive (4x4) models. Using the
segments, we can explain the market scale of less than
1,000cc is 67 billion rupees, 1,300cc is 43 billion rupees,
1,800cc is 55 billion rupees and SUV/4x4 is 18 billion rupees.
13
Article
Source: Pakistan Automobile Manufacturers Association, Automotive
Production and Sales in Pakistan 2013/14.
Note: Unit in this figure is car(s).
As mentioned above, Pakistan has about 180 million
people. Scale of population is almost same as Indonesia
and Brazil, but the vehicle holding per 1,000 persons of
Pakistan is only 12 cars against 77 cars of Indonesia and 198
cars of Brazil.
Vehicle Holding and Population in 2010
new vehicles per year, excluding motorcycles, could be sold
in a country of the scale of Pakistan economy. However, the
vehicle sales market is still around 150,000 new vehicles
annually. The Automobile market in Pakistan is clearly
stagnating.
Growth in durable consumer goods market, such as
automobile market needs support of income factors, like
stable growth in employment and increase in disposable
income. It is important that there isn't institutional barrier,
such as limitations on the holding of vehicles. There is surely
no such kind of barrier in Pakistan, but the used car policy
and high tax rate including sales tax may become an
institutional barrier for market growth.
Used car importing policy has repeatedly between
regulation and relaxation. Using actual data, relations
between new car sales and importing used car is indicated a
below figure. Used car importing policy was relaxation
between 2000 and 2008, and the policy was changed to
regulation in 2008. From 2008, used car import was
drastically dripped, but imports increased again from 2012
after policy change in 2011.
Source: World Bank, World Development Indicators.
JAMA, World Vehicle Statistics.
According to economic scale, such as population and
GDP per capita, annual sales in Pakistan is too small to
maintain (feed and clothe) the industry on annual sales.
Using the population, GDP per capita and annual vehicle
sales of 174 countries, we estimated the correlation between
GDP and vehicle population.
Correlation between GDP and Vehicle Population
Vehicles per 1,000 persons
Used Car Import
Permission
10 years
5 years
3years
5 years
3 years
Relaxation Regulation
Relaxation
Source: Pakistan Automobile Manufacturers Association, Automotive Production and Sales in
Pakistan 2013/14.
In fact, the case of the lowest price level model, like
Mehran, tax volume occupies one third of retail price, and
50% deduct of tax volume for these models increases
roughly 40,000 vehicles from current market scale. On the
other hand market mechanism, as the change in price
directly affects market scale may not work in automobile
market. In general when people wants to prepare for an
unforeseen and emergency for security reason market
mechanism may sometimes not work in these countries.
Then we try to analyze the automobile market in Pakistan,
using the actual data. Since January 2008 through June
2014, retail price of vehicles in Pakistan were lowered three
times, March – October 2009, June – October 2011 and
March – June 2014.
Price Elasticity of Demand for Vehicles
10/09
125.5
11,958
Less 1,000cc 11.06
Price Elasticity
All cars
2.66
Price
Sales
GDP per capita (in US$)
Source: World Bank, World Development Indicators.
JAMA, World Vehicle Statistics.
01/08
100
13,492
03/09
135.9
6,754
01/11
147.4
6,850
10/11
147.0
14,826
28.29
12.25
03/14
185.6
11,362
06/14
181.6
11,957
32.38
7.46
Source: Pakistan Automobile Manufacturers Association, Automotive Production and Sales in
Pakistan 2013/14.
When approximated with the above estimation, 480,000
14
Article
This table proves that sound market mechanism is
working, and incentives by the government action such as
tax reduction and subsidies will have the same effect. Then,
price reduction, including cost reduction in production side
and tax reduction in sales side does work for market growth
in Pakistan. For the cost reduction in production,
manufacturers try to create the scale economy. The scale
economy increases volume benefits. Volume increase will
enable automobile manufacturers to rationalize or
modernize their production operations, bring the new
models and expand the localization. For auto-parts
suppliers, they will be able to invest in new technologies and
equipment for quality and productivity improvement and
further localization. Therefore, vehicle prices will be lowered
due to reduced burden of fixed costs. Ripple effects on the
national economy to generate additional employments and
revenue for national exchequer, for example, multiplier effect
of automotive industry is 2.82 in Japan.
In Pakistan, tax reduction is difficult choice for the
government, because the government must make up the
deficit in fiscal balance. As the public sector must control the
fiscal deficit, the public sector takes liquidity from national
economy. Then the government could not introduce tax
reduction in Pakistan. However, there are possible policies
to adopt, such as progressive tax system instead of flat tax
system. Tax incentives based on fuel efficiency, emission
and safety should be considered to encourage model
changes that Pakistan government strongly requests for
automobile manufacturers and competition for the better.
Creation of new taxes on ownership of vehicle are also
regarded policy options. There are a lot of special taxes for
particular application such as compensation for wear and
tear roads and bridges caused by vehicles and air pollution
caused by vehicles not comply with emission control laws,
like EURO II. The revenue from the new taxes can be used
to fund incentives for stimulating policies, thus flexibility in
policy-making will be enhanced.
‘Reaching out to all
industrial customers’
(15th year of continued publication)
Editor, Industrial Bulletin, Engineering Board,
IFC/SEDC Building (STP), 5-A Constitution Avenue,
Islamabad, Tel: 051-9204143, 9205595-98, Fax: 051-9206161
www.engineeringpakistan.com
15
Provisional Figures of Exports/Imports &
Balance of Trade for April, 2016
* April, 2016
Series
* March, 2016
% Change in
April, 2016 over
March, 2016
Rs.
$
Rs.
$
Rs.
$
Exports
180,203
1,722
182,287
1,742
-1.14
-1.15
Imports
402,625
3,846
373,493
3,569
7.80
7.76
-222,422
-2,124
-191,206
-1,827
16.33
16.26
Balance of Trade
* April, 2016
Series
April, 2015
% Change in
April, 2016 over
April, 2015
Rs.
$
Rs.
$
Rs.
$
Exports
180,203
1,722
202,251
1,989
-10.90
-13.42
Imports
402,625
3,846
385,076
3,786
4.56
1.58
-222,422
-2,124
-182,825
-1,797
21.66
18.20
Balance of Trade
* July– April
2015 - 2016
Series
% Change in
July-April 2015-16
Over
July-April 2014-15
July– April
2014 - 2015
Rs.
$
Rs.
$
Rs.
$
Exports
1,804,426
17,323
2,015,054
19,910
-10.45
-12.99
Imports
3,782,817
36,313
3,820,518
37,734
-0.99
-3.77
-1,978,391
-18,990
-1,805,464
-17,824
9.58
6.54
Balance of Trade
* Provisional figures based on figures provided by the Director (R&S) FBR, Islamabad.
NOTE:1.
2.
3.
4.
5.
Rupee Value converted intoUS Dollar on average monthly exchange rate provided by S.B.P.
April, 2016 (1$ = Rs. 104.673794), March 2016 (1$=Rs. 104.647001) and April 2015 (1$=Rs
101.700434)
Due to rounding effects some totals and percentages may not tally
After the finalization of Exports/Imports of February, 2016 the cumulative figures for July-April, 20152016 have been revised.
Final figure of February, 2016 Export Rs. 186,869 million & US $ 1,786 in million.
Final figure of February, 2016 Import Rs. 343,206 million & US $ 3,280 in million.
16
(Based on Cumulative Figures Jul-Feb 2015-16)
EXPORTS
COUNTRY
Jul-Feb
2014-15
Jul-Feb
2015-16
U.S.America
98.52
96.76
Afghanistan
125.75
64.58
United Arab Emirates
36.55
44.01
Germany
43.18
39.97
United Kingdom
38.69
36.51
China
34.15
22.78
Saudi Arabia
24.28
20.34
India
37.09
18.00
France
14.36
14.65
Bangladesh
15.57
13.72
Netherlands
15.52
12.45
Japan
10.75
11.54
South Africa
16.01
11.51
Sri Lanka
11.53
10.93
Korea, Republic of
17.59
9.60
Year : 2015-16 1 USD = 104.62 PKR
Year : 2014-15 1 USD = 101.36 PKR
17
(Based on Cumulative Figures July-Feb 2015-16)
EXPORTS
ITEMS
Jul-Feb
2014-15
Jul-Feb
2015-16
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, MEDICAL
OR SURGICAL INSTRUMENTS AND APPARATUS, PARTS AND
ACCESSORIES
225.07
234.18
ARTICLES OF IRON AND STEEL
126.45
67.46
TOOLS, IMPLEMENTS, CUTLERY, PARTS THEREOF
60.58
56.29
MACHINERY/ COMPONENTS
68.74
52.90
COPPER AND ARTICLES THEREOF
94.88
48.18
ELECTRICAL MACHINERY, EQUIP, PARTS
46.81
44.98
VEHICLES OTHER THAN RAILWAY, ROLLING STOCK
36.02
22.45
ALUMINIUM AND ARTICLE THEREOF
21.65
17.34
IRON AND STEEL
29.24
16.35
MUSICAL INSTRUMENTS, PARTS AND ACCESSORIES
1.99
5.67
ARMS & AMMUNITION, PARTS AND ACCESSORIES
1.23
2.76
FURNITURE, BEDDING, MATTRESSES, LAMPS AND LIGHT FITTINGS,
ILLUMINATED NAME-PLATES, PREFABRICATED BUILDINGS
2.40
2.48
MISC. ARTICLES OF BASE METALS
1.47
1.24
SHIP, BOATS & FLOATING STRUCTURES
0.89
0.87
LEAD AND ARTICLES THEREOF
0.81
0.70
Year : 2015-16 1 USD = 104.62 PKR
Year : 2014-15 1 USD = 101.36 PKR
18
REGION
AFRICA
Jul-Feb
2014-15
VALUE
Jul-Feb
2015-16
VALUE
54
32
AMERICA (Continent)
131
128
ASIA
355
249
ASIA-PACIFIC ECONOMIC COOPERATION (APEC)
204
181
ASIA-PACIFIC TRADE AGREEMENT (APTA)
116
75
15
14
CENTRAL ASIAN REPUBLICS
0
1
COMMONWEALTH OF INDEPENDENT STATES (CIS)
6
5
DEVELOPED MARKET ECONOMIES
273
255
DEVELOPING MARKET ECONOMIES
425
297
ECONOMIC COOPERATION ORGANIZATION (ECO)
133
71
EUROPE
162
143
EUROPEAN UNION (EU 25)
153
135
G7 (Group of Seven Countries)
223
214
85
81
110
108
79
76
260
177
64
43
ASSOCIATION OF SOUTH-EAST ASIAN NATIONS (ASEAN)
MIDDLE EAST
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC)
ORGANIZATION OF THE ISLAMIC CONFERENCE (OIC)
SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
Year : 2015-16 1 USD = 104.62 PKR
Year : 2014-15 1 USD = 101.36 PKR
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Car Prices of various brands in Pakistan
Product Description
Prices
Standard
Model
Fully
A/C
Model
Product Description
Loaded
Model
Prices
Standard
Model
Fully
A/C
Model
Loaded
Model
SUZUKI
_______________________________________________________________
Non-Metallic
Metallic
______________________________________________________________________________
Suzuki Mehran 796cc Car
______________________________________________________________________________
SUZUKI MEHRAN VX MC
630,000/-* - 635,000/-*
SUZUKI MEHRAN VXR MC
683,000/-* - 688,000/-*
Colours: S. Smoky Green, Graphite Grey, Silky Silver, Red Pearl, White.
_________________________________________________________________________________
CUORE
CX (847cc)
847,200/CX-CNG (847cc)
897,200/CX-A/T (847cc)
868,200/ECOMATIC (847cc)
938,200/_____________________________________________________________
HILUX 4x2 S/C
SUZUKI SWIFT 1328cc CAR-2013 (FEEL YOUNG, DRIVE YOUNG!)
_________________________________________________________________________________
SUZUKI SWIFT RS DX 1.3L
1,297,000/-*
N/A
SUZUKI SWIFT RS DLX 1.3L
1,433,000/-*With Nav 1,345,000/-*
SUZUKI SWIFT RS DLX with Navigator
1,330,000/-*With Nav 1,481,000/-*
Hilux 4 x2 Single Cabin STD
1,913,000/Hilux 4x2 Single Cabin Upspec
1,943,000/Hilux 4x2 Single Cabin Deckless
1,768,000/2500cc Turbo
N/A
_____________________________________________________________
Colours: White, S. Peart Black, Phoenix Red, Sand Beige, Red Pearl, Graphite Grey, Silky Silver
_________________________________________________________________________________
HILUX 4x4 S/C
SUZUKI LIANA CAR VURV (LIFE IN A NEW AGE)-2013
Suzuki Liana RXI (Petrol)
1,365,000/SUZUKI LIANA RXI (CNG)
1,444,000/Colours: White, Graphite Grey,Silky Silver, Red Pearl
_________________________________________________________________________________
SUZUKI BOLAN 796cc HIGH ROOF VAN
SUZUKI CARGO VAN
671,000/-*
N/A
SUZUKI BOLAN VX-MC
700,000/-*
705,000/-*
Colours: Red Pearl, Silky Silver, White.
_________________________________________________________________________________
SUZUKI RAVI PICKUP 796cc
SUZUKI RAVI PICKUP VX
642,000/-*
647,000/-*
Colours: Red Pearl, Silky Silver, White.
_________________________________________________________________________________
SUZUKI CULTUS 993cc CAR
SUZUKI CULTUS VXR
1,044,000/-*
1,049,000/-*
Colours: Smoky Green, S. Blue Pearl, Graphite Grey, Silky Silver, Red Pearl, White.
____________________________________________________________________________________
SUZUKI WAGON R 998cc (Be Practical)
SUZUKI WAGON R VX
SUZUKI WAGON R VXR
SUZUKI WAGON R VXL
859,000/-*
969,000/-*
1, 009,000/-*
864,000/-*
974,000/-*
1,014,000/-*
Colours: White, S Pearl Black, Phonix Red, Sand Beige, Dark Blue, S. Smoke Green, Red Pearl,
Graphite Grey, Silky Silver.
____________________________________________________________________________________
IMPORTED VEHICLES
SUZUKI Jimny 4x4 1300 cc Jeep
SUZUKI JIMNY JLSX MT
SUZUKI JIMNY JLDX MT
2,142,000/-*
2,293,000/-*
-
Colours: White.
____________________________________________________________________________________
SUZUKI APV 1500 cc
SUZUKI APV 1.5 L GLX M/T
2,418,000/-*
Colours: Silver, White.
_____________________________________________________________________
TOYOTA COROLLA
Corolla 1.3L M/T STD
1,642,500/Corolla 1.3L M/T
1,767,500/Corolla 1.3L A/T
1,842,500/Corolla MT 1.8L
2,047,500/Corolla Altis CVT-i 1.8L
2,172,500/Corolla Grande MT 1.8L
2,172,500/Corolla Grande CVT-i 8L
2,322,500/-
Hilux 4x4 D/C A/T STD (E)
3,174,500/Hilux 4x4 D/C A/T VIGO Champ (V)
3,448,500/Hilux 4x4 D/C A/T VIGO Champ (G)
3,648,500/Hilux 4x4 D/C A/T U/S VIGO Champ (GX)
3,774,300/_____________________________________________________________
TOYOTA FORTUNER
Fortuner 2.7 L AT V VTI A/T 4x4
4,885,500/Fortuner TRD SPORTS 2.7 L A/T
5,135,500/_____________________________________________________________
HONDA CITY 1300 cc
Honda City Manual Transmission 1300 cc
- 1,537,000/Honda City Prosmatec Transmission 1300 cc
- 1,678,000/Honda City Aspire Manual Transmission 1300 cc
- 1,667,000/Honda City Aspire Prosmatec Transmission 1300 cc - 1,809,000/Navigation/Entertainment System
50,500/_________________________________________________________
HONDA CITY ASPIRI 1500 cc
Honda City Aspire Manual Transmission 1500 cc
- 1,687,000/Honda City Aspire Prosmatec Transmission 1500cc - 1,829,000/Utility Package
17,100/Extended Warranty for 4 years
9,000/_____________________________________________________________
HONDA ACCORD & CR-V
ACCORD
- 5,966,000/CR-V
- 5,566,000/_____________________________________________________________
HONDA Civic 1800 cc
_____________________________________________________________
Honda Civic VTEC Manual Transmission 1800 cc 2,053,000/Honda Civic VTEC Prosmatec Transmission1800cc 2,174,000/Honda Civic VTEC Manual Transmission with sunroof 1800cc 2,285,000/Honda Civic VTEC Prosmatec Transmission with Sunroof 1800cc 2,406,000/Navigation/Entertainment System
69,000/Leather interior
55,500/Utility Package
17,100/Extended Warranty upto 3 years
9,000/Extended Warranty upto 4 years
14,100/____________________________________________________________
Source: Business Recorder as on 15-05-2016
20