AUTOMARK MAGAZINE
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AUTOMARK MAGAZINE
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Editorial
MONTHLY
Pakistan’s Premier Magazine for Industry
June 2011 Vol 4, Issue 06 Editor :
M. Hanif Memon
Budget 2011-12 Seen Lackluster
Pakistan unveiled its budget for the year beginning July 1 but failed to take drastic steps to raise taxes Sub Editor : Dr. Raja Irfan Sabir on the country's elite, a move that the U.S., the Asst. Editor : Sumaiya Rizvi International Monetary Fund and other donors say Contribute Writers : Syed Mansoor Ali is needed to slash an unsustainable budget deficit. Asif Masood Finance Minister Abdul Hafeez Shaikh forecast a Ali Hassan Mohammad Owais Khan budget deficit of 4%, down from 6% in the current Omar Rashdi fiscal year, with economic growth rising to 4.2% Muneeb Jawed versus 2.5%. In the most noteworthy new measure, Advisor : Imtiaz Rastgar Mr. Shaikh said the government was ending salesCEO, Rastgar Group & tax exemptions on about 500 items, which will bring CBI External Expert in fresh revenues of about 200 billion Pakistani Islamabad rupees. Abdul Majeed Sheikh But Mr. Sheikh at the same time reduced the general President, sales tax to 16% from 17% and failed to bring in AOTS-ABK Dosokai, bold new measures to increase the state's haul of Karachi Regional Center & income tax from the country's wealthiest citizens. Consultant (MME), Pakistan's elite pay some of the lowest taxes NED University - Karachi anywhere in the world, with the country's tax receipts amounting to only 9% of gross domestic Syed Mansoor Ali Business Manager product, while it continues to depend on loans from Case NewHolland the U.S. and multilateral donors to plug its large Pakistan fiscal deficit. Mr. Shaikh failed to announce announce any new J. Pereira measures to tax agricultural income, which remains General Manager Product Support Division exempt. The government says the issue falls under Al-Haj FAW Motors (Pvt) Ltd. the purview of provincial governments. Many of Karachi Pakistan's richest people are feudal landlords who made their fortunes from agriculture. Engr. IHT Farooqui By borrowing so heavily from its own banking General Manager Plant Karakoram Motors (Pvt) Ltd., system, the government has choked off the supply Karachi of credit to private businesses. Foreign investors— already nervous because of the precarious security situation in Pakistan—have largely shunned the Circulation Manager : Abdul Khaliq country. Graphic Designer : Mustafa Hanif For now, Pakistan is unlikely to plunge back into a balance-of-payments crisis of the kind that forced it to call in the IMF in November 2008. That's because exports are doing well, fueled by high global Postal Address agriculture prices for crops like cotton. The country Active Communications is running a small current-account surplus, compared D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk to its usual deficit. The currency, the Pakistani E-mail: magazine@automark.pk rupee, has been stable for the past few months and automarkpk@gmail.com Pakistan's foreign-exchange reserves are about $14 Tel/Fax : 021-32218526 Mobile: 0321-2203815 billion, or enough to cover four months of imports.
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CONTENTS The Mo nthly Magazine for Pakistan Automotive Sector
e-magazine Issue at our website
visit: www.automark.pk
June - 2011 edition Your trust is our success
EDB aims to make 2/3 wheeler production data authentic Exclusive Article on Motorcycle Sector by Ali Hassan
09-10
Review of the all new Corolla by Shahzad Tabish from NED University
11-12
Enhance the capacity of agricultural land development by adding Crawler Bulldozers into the provincial fleets Exclusive Article by Syed Mansoor Ali
13-15
Conversion of Cell Phone Towers on solar Energy Exclusive Article by Asif Masood
16-17
Budget 2011-2012 - Update
18-19
Fuel cell Technology Exclusive Article by Khurram Sohail from IMC
21
Budgetary measures to reduce car, bike prices Exclusive Article by M. Owais Khan
24-25
A Few Outstanding Tips for Buying Used Cars by Muneeb Jawed from NED University
26
Young Engineers at GIKI Institute manufactures Pakistan’s first formula One Car By Salman Khan from GIKI
27
Al-Haj FAW Motors launches the FAW Heavy Duty Prime Mover by J. Pereira
36-37
Safety on the road of Pakistan Exclusive Article by Omar Rashdi
43
Pakistan's biggest conference on Entrepreneurship TiECON Pakistan 2011 by Rastgar & Company (Pvt) Ltd.
44-45
An Exclusive interview with Peter van, Senior Consultant for CBI by M. Hanif Memon
46-47
The only ONLINE automotive magazine in Pakistan
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Automotive Sector - Exclusive Article
by Ali Hassan
EDB aims to make 2/3 wheeler production data authentic Seeks company and brand wise data of the last two years from provincial taxation authorities Automotive sector explore export market. Bike, rickshaw exports on the rise While always crying for government’s help, the auto sector of Pakistan con ti nue s to ex pl or e b us iness opportunities either local or abroad under any circumstances and even in depressed sales. By selling the locally produced cars at higher rates despite go vernment’s repeated request to lower prices, the assemblers also got involved in trading business by importing completely built up units of higher engine capacity (not produced in Pakistan) to feed the requirement of upper class who hardly bother to enquire about the prices of various items. Assemblers were trying to test the market potential of SUVs, APVs and over 2,000cc vehicles for future assembly of these vehicles in Pakistan which looks absurd. However, it is hard to say about the plans to assemble costly cars but the assemblers have been doing the trading of big vehicles after reaping good profits and on the amount they have been collecting in advance from custo mers an d making delivery of veh icles in one to two month s. Besides, Chinese and Japanese bike assemblers have also ventured in export business by cashing Afghanistan market an d other As ian co untrie s. Some rickshaw makers also found potential in different countries by exporting three wheelers. According to Economic Survey 20102011, the automotive sector has explored
the export market, such as 7,563 motorcycles and 64 auto rickshaws were exported in the last financial year. However, 9,022 motorcycles and 72 auto rickshaws have been exported up to (July- March) 2010-11. The Car/LCV sector has also exported 359 vehicles and parts worth US $ 1.58 million in the last financial year and 397 vehicles and parts worth US $1.66 million in the current year up to (July-March) 201011. According to the Survey, the growth in automobile industry across the world depends heavily on economic growth
Automark Magazine | June-2011 09
and availability of financing from the financial institutions at favorable terms. In Pakistan, the situation is quite reverse. Economic growth has been facing turbulence while the share car financing by the banks has been on the decline due to high interest rates which used to be 70 per cent few years back owing to low interest rates. Now only 15-20 per cent cars are sold through bank financing while rest of the sale is on cash basis thanks to 30-40 per cent share of rural buying after rising farm income. A bike assembler said that two wheelers are mainly being exported to Bangladesh and Afghanistan while three wheelers are being exported to Bangladesh, Sri Lanka and some African countries in little quantities. On condition of anonymity, he said illegal exports of bikes are thriving and its number is more than the actual export figures. This is being done due to hurdles in legal exports and problems in getting export rebate. Only few assemblers are getting rebate. The government has already withdrawn the facility of $50 per bike under Research and Development last year. Some auto parts makers have been trying to increase their exports. Auto parts and accessories exports rose by 51.6 per cent to $15.5 million in JulyApril 2010-2011 as compared to $10.2 million in the same period of last fiscal year.
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Automotive Sector - Exclusive Article
An official in the EDB told Automark Magazine in Islamabad that the assemblers are producing more motorcycles and rickshaws than what they are reporting to the EDB. They produce more than one bike and rickshaw with same engine number and chasis number, then they sale these double number vehicles to four different provinces and pay the sales tax at only one bike or rickshaw. Auto parts makers are exporting casting, forging, machine and plastic parts to various countries. Flaws in production data The Engineering Development Board (EDB) is not happy especially with the local/Chinese motorcycle assemblers who are not providing the correct production figures. An official in the EDB told Automark Magazine in Islamabad that th e assemblers are p rodu cing m or e motorcycles and rickshaws than what they are reporting to the EDB. They pro duce more than one bik e and rickshaw with same engine number and chasis number, then they sale these double number vehicles to four different provinces and pay the sales tax at only one bike or rickshaw. When the Automark correspondent asked the EDB official to collect the data from all provinces and compare the sales and production, he said that local provincial tax authorities are not giving them the registration data. This is very strange that the EDB, a strong arm of the Ministry of Industries, is running from pillar to post to get the data regarding registration of vehicles from the provincial aut horities. It is re al ly understandable th e federal government department does not have the power to get the data from local authority. However, the EDB has never initiated any enquiry as to how Japanese assembled bike having 90 per cent deletion level and over 80 per cent deletion level in its engine carries a price tag of over Rs 60,000 per unit. The EDB has also never checked about the quality of Honda bikes which has deteriorated over the passage of time. The EDB has asked the excise and taxation departments of four provinces in April 2011 to provide the company’s and its brand name concerning the 2/3 wheelers registered during the year 2009-2010 and 2010-2011 (up to March 31, 2011). According to a print media report the EDB is trying to centralize all production data of two and thr ee w heelers.
The EDB in a letter, had informed all four excise and taxation department of the four provinces that certain two to three wheeler assemblers are procuring components from illegal sources and misreport production/sales of two to three wheelers. The EDB said that it has been noted that certain unscrupulous assemblers have been found involved in getting their products registered with provincial authorities against invalid /bogus manufacturing certificates, purportedly issued by the EDB. This malpractice is not only affect ing th e genu ine as sembl ers but also defeating the regulatory regime and depriving national exchequer of its legitimate sh are. In order to put an end to the illegal assembly of bikes and consequent loss to the national kitty, the EDB has established a data base to maintain and reconcile the data of production and sales of bikes to ensure proper payments of taxes and duties. The assemblers are allocated a quota of completely knocked down (CKD) kits for imports under concessionary regime for the assembly of vehicles during a year based on the production of previous year and at the end of each fiscal year, the assemblers are required to submit the records of inputs used for the assembly of bikes and rickshaws during the preceding year. However, the EDB has not specifically mentioned abo ut any Chinese or Japanese bike makers involved in this malpractice. Meanwhile, a leading Chinese bike make r, who asked not to be named, welcomed the EDB’s effort fo r initiating enquiry ag ainst certain assemblers besides aiming to centralize two/three wheelers production data. He asked the EDB to take the task to the end without de layi ng o r s us pendi ng t he e nqu ir y f o r s o me re a so ns . However, he said his company is not involved in such practice but strict action should be taken against those assemblers who are involved in this game and causing revenue losses to the national kitty. The EDB official was also not happy with
Automark Magazine | June-2011 10
the Automark Magazine because of printing articles against the EDB and not highlighting the good work and efforts of the Board. The EDB also accused th e Magaz ine for al ways favoring Chinese bike makers and their point of view.
On four wheelers, All media especially the Automark had never published any articles against the old imported cars and always behind the new cars assemblers or EDB that the price of the cars are higher, while EDB is working hard to protect the local assembler and work for local engineering sector. The EDB feels that due its hard work the price of local assembled cars are very reasonable in Pakistan as compared to India. The EDB official is very much against of used imported cars and urged the Magazine to write about the junk being arrived from Japan and other country. He asked the Automark to write about this junk and give a clear picture to your readers.
Automark Magazine has always supported the policies and efforts of the Engineering Development Board (EDB). The magazine has published reports on car and bike based on official documents or based on the market surveys. The Magazine has no intentiion to hurt the feelings of any body either public or private sector. It has published many articles on the efforts of the EDB. Perhaps the EDB official was ignorant the Ministry of Industries is behind in forcing the government to liberalize used car imports in order to punish the assemblers for not reducing the prices.....
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Exclusive Review on Toyota Corolla-2011
by Shahzad Tabish from NED University
In the spot light
Review of the all new Corolla
“Look around; there is a new Corolla in the Town”
For the Altis, two transmission sets are available i.e. the 4 speed Automatic & a 6 speed manual configuration. The noticeable change has occurred in the manual gearbox which is the introduction of a sixth gear, for the first time in a locally manufactured sedan. Most of the car owners locally are unfamiliar to a sixth gear; usually the fifth is the penultimate gear for most of us.
What more could one expect from a local le ad er in s e dan category? The launch of a newer variant was surely the very last thing most of us had expected. However, things go in synchronization to a proper plan as in accordance to Japanese policies of “Kaizen”. The proposed plans were not delayed & the launch of the all new Corolla was on schedule.
Driving through the streets of Karachi, I saw some hoardings which announced the arrival of all new Corolla in the town. The first impression that bypassed my mind was that even if there was a new Corolla to be seen, sooner than later it would be visible on the roads as Corolla is a brand name that doesn’t needs any advertising campaign to attract the consumers. Last years production stats are a witness to what has been said as the brand name Corolla has sold a record beating 43000+ units in the last year only, making our country the largest consumer of the brand in the sub continent. What more could one expect from a local leader in sedan category? The launch of
that include a style refined front lamp, crystal caressed tail lights, rear bumpers wi th bea u tifu l m ou ld car vi ngs containing the reflectors, a new looking front grill as always & a grey-beige color contrast interior. The prime variant i.e. Altis features an elegant looking backlit Optitron that is basically a lightening system to light up th e s p ee d om et e r so t h a t t h e speedometer visibility is optimized even during daylight. Secondly, an eco meter is now attach ed w ith t he main speedometer dial that indicates the driver about the economy mode of driving to optimize fuel economy. The tacho meter is also available with colored background to indicate the driver about
a newer variant was surely the very last thing most of us had expected. However, things go in synchronization to a proper plan as in accordance to Japanese policies of “Kaizen”. Although Japan faced a natural disaster that shook it pretty badly lowering the production of Toyota only a record breaking 79% within two months only however, the proposed plans were not delayed & the launch of the all new Corolla was on schedule. The first noticeable aspect of any car is the aesth etics as an ind ividu al approaches it. The 10th generation Corolla has a distinctive exterior shape which is still there as 11th generation isn’t out yet. However minute changes
Automark Magazine | June-2011 11
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Exclusive Review on Toyota Corolla-2011
For the Altis, two transmission sets are available i.e. the 4 speed Automatic & a 6 speed manual configuration. The noticeable change has occurred in the manual gearbox which is the introduction of a sixth gear, for the first time in a locally manufactured sedan. the economy zone of driving. Basically the range below 2000 rpm is the economy zone; anything above it sacrifices this economy. After showcasing the aesthetics & design aspects; let’s turn our attention towards the performance parameters of the vehicle. The 1.3l variant has the same engine & transmission configuration as the previous make; it is the Altis that has received the changes in both engine & transmission. The previous Altis featured a 1.8l ZZ engine; it has now been replaced by a 1.6l ZR-FE engine equipped with dual VVT-i. The 200cc compromise in size compromises the power up to 9 bhp which is now reduced from 130 bhp to only 121 bhp. However this reduction in engine volume is to enhance the overall fuel economy. The new ZR-FE engines from Toyota belong from a newer generation of engines developed by Toyota to enhance the fuel economy while compromising the least amount of power. Previous ZZ engines were equipped with a singular cam-phasing variable valve timing mech anism at the intak e camshaft. The concept of Dual VVT-i is basically to equip both intake & exhaust valves with cam-phasing variable valve timing mechanism, which works in parallel with refined EFi system to optimize fuel consumption in all the driving conditions. For the Altis, two transmission sets are available i.e. the 4 speed Automatic & a 6 speed manual configuration. The noticeable change has occurred in the m an u al g ear b ox w h i ch i s t h e introduction of a sixth gear, for the first time in a locally manufactured sedan. Most of the car owners locally are unfamiliar to a sixth gear; usually the fifth is the penultimate gear for most of us. The concept of introduction of a sixth gear is basically to refine the gear ratios to extract the best possible acceleration & torque out of the 121bhp engine under variable driving conditions. Refined gear ratios basically enable the driver to enjoy a smooth acceleration remaining within the economy zone below 2000 rpm. Safety is a concern that still remains
unnoticed despite of major technological changes. For the basic 1.3l variant ABS & crumple zone inclusive body remain an option while SRS Airbags aren’t available at all. The Altis features ABS as a permanent feature but a singular airbags & body inclusive of crumple zone is still an option. Sometimes it is unbelievable to see that human life depending upon safety parameters is kept as an option over the price to afford it, for the consumer. The technical advan cements are avail able as a standard & the safety is still an option, this defines the value of human life itself.
Wrapping up the entire package let us now review the price tag. The basic 1.3l XLi cost starts from Rs. 1,357,000 topping up with the 1.3l Gli that costs Rs. 1,482,000 pkr. The Altis prices range in between Rs. 1,719,000-1,899,000 pkr. The sole competitor of Corolla is the Civic, whose basic variant costs even more than the prime variant of the Altis. To be very precise there is a compromise of output power of 19 bhp for the price difference; however the running cost of
Automark Magazine | June-2011 12
Corolla is lesser, offering similar luxury & comfort at a cheaper price. The entire car is a much mor e accomplished package for the consumer. Technically it has to be said that it is the best sedan currently available locally. Economy gizmos have been installed to facilitate the consumer to drive economically lets hope that it works out fine with the below par literacy of the vast market of co nsumer to help conserve fuel & protect environment simultaneously. Toyota has kept its promise to look ahead, develop & innovate, let us make the best use of their latest innovations in Corolla; while expecting the best from fu tur e innovations. Cheers!
THINK SAFETY STARTS WITH YOU
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Exclusive Article on Agriculture Sector
by Syed Mansoor Ali
Enhance the capacity of agricultural land development by adding Crawler Bulldozers into the provincial fleets Pakistan ranks fourth after China, India, and USA. There ar e nu mer ous contributing factors towards low yields like sub-standard seed, improper use of fertilizer, scarcity of irrigation water, over or under irrigation, adulterated pesticides, introductio n of new er technologies, credit, and providing incentives to farmers as well as improper use of machinery for seedbed and preand post- harvest .
Syed Mansoor Ali
Government infra-stru cture (agricultural engineering workshops) offering bulldozer rental services are also suffering due to budget constraints. It is interesting to note that the budget allocations that were made 10 years back to purchase diesel (gallons) to operate these bulldozers are still the same. As a result, these workshops can barely meet the demand of farmers to rent the bulldozer because the department can buy only 30% of the total quantity of diesel (gallons) that were bought in the past when the price of the diesel was 37Rs/liter as compared to 100Rs/liter in the present day.
T
he total estimated population (173.51 million) of Pakistan and its annual growth rate of 2.5% calls for regular increase in food and fiber production. In an agricultural country there are two ways to ensure regular increase in agricultural production.
1. To Increase Cropping Intensity. The rate of agricultural productivity in
Pakistan is comparatively lower than those of the other major countries of the world. In some cases, it is one -fourth, while in some it is one-third of the major growing countries. Wheat production (in terms of yield per hectare) Pakistan ranks sixth after France, Mexico, China, USA, India, and Canada. In rice (paddy) productio n, Pakistan ranks eighth among major rice growing countries after Egypt, USA , Japan, China, Philippines, Burma, Bangladesh, and India. While in cotton production,
2. To bring culturable waste- land under cultivation and/or expansion of cultivation area through reclamation/improvem ent of land resources with the use of bulldozers. Pakistan has 9.14 million hectares of land that is considered as culturable waste meaning it can be cultivated th rou gh t he u se of bu lldozer s. Fur therm ore, even th e existing cultivated areas (22.04 million hectare) are always in need of some sort of bulldozer work for the purposes of soil co nservation, land- leveling, land reclamation, construction of canals and rural works programs. Areas where canal-irrigated fields exist, especially in Punjab, the excessive use of tine cultivator a hard pan under 50-600 mm below the top soil have been developed, which is adversely affecting the precipitation and root growth resulting in the deterioration of crop yield. Experiments have shown that the breaking of this hard pan leads to an increase in crop yields by 15-25%. The hard pan in the subsoil can be broken with the help of bulldozers, equipped with rippers. Large areas in Punjab plains are affected by sodicity. Research has shown that if such soils are ripped
Automark Magazine | June-2011 13
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Exclusive Article on Agriculture Sector
This was examined closely during a recent visit to one of the agricultural engineering workshops wherein the total booking, in the month of March, was 3678 hours but due to diesel shortage the department was able to accommodate only 2520 hours. The farmer are generally happy with the amount of subsidy compared to private sector but the non-availability of diesel causes delays and lengthens the time required to do the job. deep down and left open for some time, the soil gets healed to produce better crops / yields. The issue of increasing the cropping in tensity is a common subject of discussion in Pakistan. There are many governm ent and pr ivat e sec tor organiz ation working to better the situation with seed, fertilizers, pesticides, and use of machinery etc. The expansion of cultivation area is a matter of concern as due to an increasing demand for new crawler tractors (bulldozers) from provinces the government has become negligent towards the issue. G ove r nm ent i nfr a - s tr u c t u re (agricultural engineering workshops) offering bulldozer rental services are also suffering due to budget constraints. It is interesting to note that the budget allocations that were made 10 years back to purchase diesel (gallons) to operate these bulldozers are still the same. As a result, these workshops can barely meet the demand of farmers to rent the bulldozer because the department can buy only 30% of the total quantity of diesel (gallons) that were bought in the past when the price of the diesel was 37Rs/liter as compared to 100Rs/liter in the present day. The policy did not allow farmers, in Punjab, to put diesel in the rental bulldozers out of their own pocket. This was examined closely during a recent visit to one of the agricultural engineering workshops wherein the total booking, in the month of March, was 3678 hours but due to diesel shortage t h e d e p a r t m e nt w a s a b l e to accommodate only 2520 hours. The farmer are generally happy with the amount of subsidy compared to private sector but the non-availability of diesel causes delays and lengthens the time required to do the job. The government and private sector rates in Punjab are as follows:
and potential of bulldozers:
* for agricultural use only ** within the district
The subsidy amount is quite attractive considering the expenses incurred on the machine cost per hour. * This includes R &M ,salary of operator and other expenses Other aspects causing motivational issues in these workshops are low salaries of the non-executives (skilled, non-skilled, and manual labor) that include mechanics , operato rs and foremen which is about 60 to 70% less than the salaries of same level and experienced person in private sector. The dilapidated state of these workshops is yet another problem as they are responsible for carrying out in-house minor and major repair jobs on their
fleet of bulldozers to keep them in top running conditions. The machinery available in these workshops is totally obsolete and some of the machines have completed their life and become nonfunctional.
Background, contribution
Crawler tractor or bulldozer is an expensive machine. Its current average price is 0.15 million USD. Knowing that our farmers (aver age size of an agricultural farm in Pakistan is 3.8 hectares) could not afford this machine the government of Pakistan h as arranged custom hiring services through agricultural engineering workshops operated by provincial governments. The land utilization statistics reveals that as a consequence of the land development efforts, complemented with increased availability of irrigation water, the cultivated area in the country has increased from 20.36 million hectares in 1982-83 to 22.04 million hectares in 1997-98, an increase of 1.68 million hectares in just 14 years. However, the capacity of agricultural land development has been steadily declining in the country because no new crawler tractors have been purchased since 1994. Gover nment of J apan has been continuously assisting Pakistan in this field by providing crawler tractors against non-refundable grants. 1580 crawler tractors were provided by Japan between the periods of 1980 to 1994 exclu sively for develop ment of agricultural land. The province wise distribution of these 1580 crawler tractors were as such:
These agricultural engineering workshops did a good job in renting out the bulldozers to the farmers but due to a lack of government su pport their existing fleet of bulldozers is rapidly diminishing. The working life of a bulldozer is 10,000 hours, which most of the
Automark 14 Magazine | June-2011
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Agriculture Sector - Update
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Energy crisis badly hitting agriculture, industrial sectors: CM Punjab
Punjab Chief Minister, Muhammad Shahbaz Sharif has said that Pakistan is facing serious energy crisis, which is badly affecting agriculture, industrial, and other sectors. He said that power shortage brought the industrial sector to a halt while the workers are loosing their livelihood. He was with industrialists and traders over this issue and always raised the voice for their righ ts at every for um. He said that Punjab government is working on various projects for generation of power from alternative resources and the projects of production of 120 MW hydel power from Taunsa Barrage with the help of China would also be started shortly. He said that Punjab had vast coal reserves and the government would set
up power plants to utilis e these resources and such power plants would be set up in industrial areas. He said that encroachments, profiteering and adulteration are social evils and traders' community should help the government in dealing with them. He was addressing a meeting of the Presidents Chambers of Commerce & Industrie s and representatives of traders' organisations from all over the province at Chief Minister's Secretariat. Provincial Law Minister, Rana Sanaullah Khan, Members National Assembly Pervaiz Malik, Mian Marghoob Ahmed, Members Provincial Assembly Hafiz Mian Nauman and secretaries of various departments were present. The Chief Minister said that industrial and traders' community had extended c om m e nd a b l e su p p or t t o t h e government for rehabilitation of the victims of the worst ever flood in the country's history. He said that traders and businessmen had contributed major share to the huge amount of 1.5 billion rupees deposited in the flood relief fund. He said that 22 model villages were being constructed in the flood-hit areas
of South Punjab due to which a new culture would be introduced in these areas and these villages would be the best in the 63 years history of the country. He said that the operation against encroachments was aimed at widening of the bazaars, which had been choked for the last number of years. He said that beside common man, the problems of the businessmen had also reduced du e to an ti-encroach ment drive. He said that the government would make no comprise over this operation. He said that energy crisis had destroyed industrial sector of the country and his proposal given in the meeting of the cou ncil of common in terests for devolving power to the provinces to start energy projects had been accepted by federal and provincial governments due to which th e provin ce s had be en empowered to launch power projects. He said that the traders' community is the backbone of the national economy and a meeting would soon be convened and gaining information about their p robl em s for th eir solut ion.....
bulldozers have surpassed. The government did not have sufficient funds and resources to undertake massive rehabi litation job for these Bulldozers.
Governments of Punjab and Sindh intimated a project for rehabilitation of old unserviceable crawler tractors. 105 and 94 Bulldozers were repaired in Punjab and Sindh respectively. As a result of these efforts the present land leveling capacity stands at about 30,000
inducted as per the below estimates made by Ministry of Food, Agriculture & Livestock Islamabad, Government of Pakistan.
These old machines have high operating cost which is four to five times more than the normal machine. In view of the decreasing number of functional Bulldozers and declining pace of land development the Provincial
ha per year in Punjab, 10,270 hectare p er a nnu m i n S in d h , 30 0 0 hectares/year in NWFP, and about 18,0 00 h ecta res per a nnu m i n Balochistan. This will rapidly fall in coming years if new machines are not
Automark Magazine | June-2011 15
Capacity Wise Crawler Trac to r/ Bulldo zers Requirement Currently the government officials of all the four p rovinc es and Federal government are looking for a suitable product to fill the gap of bulldozers in the country. They are visiting China and Russia to appris e the bulldozer’s manufacturing facilities and technical evaluation of bulldozers manufacturer in their countries, however, it should be emphasized that the matter of quality, durability, and performance should not be overlooked during the selection of the machinery for Pakistan.
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Exclusive Article on Alternative Energy
By Asif Masood
Conversion of Cell Phone Towers on solar Energy Special Feature on World Environment Day 2011 Technical & Financial Analysis ENERCON as National effort has taken the initiative to promote Renewable Energy use and Energy Conservation to switch over all telecom towers to solar power and expect requisite adaptation under corporate social responsibility (CSR) by Cellular Mobile Operators (‘CMOs). Pakistan is facing acute energy shortages.
With a demand and supply gap of almost 2,500 to 4000 MW and ever increasing prices of energy due to high fuel prices, demand of clean, cheap and sustainable energy is impe rative for re ducing d ependence on imported energy resources. Developed countries and neighboring developing countries India a nd Ch ina h ave a consid er able contribution of Renewable Energy in their Energy mix. Hence, promotion of Renewable Energy Technologies is inevitable to sustain an economic growth of the economy. Solar energy is the most readily available renewable source of energy. We are using the sun’s energy for billions of years. Pre-historic men magnified its strength to set a fire. Today, solar panels absorb energy from the sun to produce heat for cooking and heating, as well as, for generating electrical power. This heat absorption is stored for later use and is an indirect conversion of energy. Currently, electric companies are trying photovoltaic technologies to convert solar energy into electricity. Most areas of Pakistan receive ample amount of sunshine, averaging about 300 sunny days in a year. Solar energy applications therefore are particularly feasible in the country. Although, small scales photovoltaic (PV) system exists for small scale level application, yet large scale adoption of solar energy has not taken place as yet in Pakistan. This is mainly because of the high cost of PV and thermal panels. However, a design improvement has resulted in dramatic reduction in manufacturing cost over the last decade. Solar energy’s use is also
Automark Magazine | June-2011 16
limited because of a h ost of prac tical i s su e s, su ch a s energy convers ion and storage, mismatched supply and load profiles and Asif Masood maintenance costs. Chief Technical officer Moreover, an ENERCON / ECF absence of a clear cut policy an d lack of fiscal support mechanisms for promoting the local manufacture of low cost dispersed systems have also contributed to its limited use. Presently, PV technology on small scal e is be ing used for emergency telephones on highways. Solar water pumps for drinking water, refrigeratio n systems for coolin g buildings and for hot water for domestic use are the other applications of energy from sun. The efforts of the government have not met with success mainly due to a lack o f i n t e g r a t ed p l a n n i n g a nd i m pl e m e nta t ion me ch a nis m. Unfocussed efforts with duplication of activities by various agencies which is uncoordinated combined with limited resources and constraints leads to confusion and attainment of targets is not possible. There is a proliferation of Government agencies often duplicating functions. These agencies under various M ini str ies a re not e mp ow ered sufficientl y to develop Renewable Energy resources, and are working with limited resources and constraints. Lack of coordination and cohesion among the agencies responsible for developing the Renewable Energy sector is preventing
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Exclusive Article on Alternative Energy
Cellular Mobile Operators (‘CMOs) has strongly reacted on this and deliberated that all discussions were of a strictly academic in nature and unless the technology offering and proposed subsidy cover provides a natural commercial benefit to the Cellular Mobile Operators (CMOs) till they have no intention of mass conversion to solar or any other alternative energy sources fr om ach ieving a cr itic al mass concentration of these technologies. Scant, peripheral and parallel activities by various agencies also cause confusion among the Donor Agencies. T ec hnic al & Fi na nc ial Analysis ENERCON as National effort has taken the initiative to promote Renewable Energy use and Energy Conservation to switch over all telecom towers to solar power and expect requisite adaptation under corporate social responsibility (CSR) by Cellular Mobile Operators (‘CMOs). A cell phone tower’s running load is varied from 1 KWH to 1.8 KWH (1.5KWH on average approx.). Capacity of Generator installed at each cell phone tower site is 30KVA to 50 KVA. If airconditioning is installed at tower site an additional load of 1.5KWH to 2.5 KWh will be consumed.
Financial Analysis for Solar System Total Wattage to be installed is 9000W Cost of Solar Panels at Rs. 225 per watt (USD 2.60 per watt approx) Panels, cost (9000x225) Rs. 2,025,000 Frames for solar Panels (approx) Rs. 100,000 Charge Controller and cabling Rs. 125, 00 Total cost per site Rs. 2,250,000 Financials for Gr id Installation Initial cost of installation of 25KVA transformer Rs. 300,000.00 Running Cost per hour of 50KVA Generator Rs. 2,000.00 Maintenance cost per month (average) Rs. 10,000.00
Pay Back Period Comparison For Solar based Cell Phone Tower
a.Grid Electricity = 2 .25 0 ,00 0=7.5 Y ear s / 12,5 0 0 b. 6 hours usage per day of Generator =1 Year Saving On Electricity On Basis Of 20,000 Cell Phone Towers Grid Saving is 21.6MW *36Million liters of diesel / fuel per month saving 31.00 million USD foreign ex ch a nge b esid es env ir onm ent fr iend li nes s (Ba sed on 10 ,00 0 generators operating for 6 hours daily, 20 liters per hour consumption of diesel /fuel).
Cellular Mobile Operators (CMOs) Reaction Cellular Mobile Operators (‘CMOs) has strongly reacted on this and deliberated that all discussions were of a strictly academic in nature and unless the technology offering and proposed subs id y cover provides a natural commercial benefit to the Cellular Mobile Operators (CMOs) till they have no intention of mass conversion to solar or any other alternative energy sources. They were of the view that, ENERCON can propose Energy Conservation solutions but can not force consumers to implement the same. Secondly, under clasue 7(6) of the Regulation of G ene ra ti on, Tr a nsm iss ion and Distribution of electric Power act, 1997 (NEPRA), it is the function of the Authority to protect the interest of
Automark Magazine | June-2011 17
consumers. Nonetheless, under clause 18 of the act it is the responsibility of the National Grid Company to operate and provide safe, reliable transmission and inter-connection services on a nondiscretionary basis. Thirdly, pursuant to article 25 A (1) of the Constitution of Islamic Republic of Pakistan, all citizens are equal before law and are entitled to equal protection of law. Hence any discriminatory and prejudiced act of a ny Au th ority w ill amou nt t he contrav ention of the Constitution. ENERCON taking cognizance of the matter has embarked upon a campaign to play its due role in reaping the rich harvest opportunity in the promotion of renewable energy technologies and has suggested for constitution an independent body whose composition may usefully incorporate representatives from Renewable Energy Association of Pakistan and local manufacturers of solar panels. In this way it could correctly help the industry and the Government of Pakistan to arrive at viable and agreed schedule of conversion for promotion of renewable energy in this sector.
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Budget 2011-12 - Update
Budget 2011-2012
An ambitious Budget in profound times Total revenue (tax revenue and non-tax revenue) is targeted at 2.732 trillion rupees, out of which the Federal Board of Revenue aims to collect 1.952 trillion rupees, compared with 1.588 trillion in 2010/11 fiscal year. - Defence spending will increase to 495 billion rupees for 2011/12, compared with 442 billion rupees in the year ending June 30.
Finance Minister Dr. Hafeez Sheikh on June 5, projected a budget deficit of 4 perce nt of GDP in line w ith the recommendations made by the IMF during meetings held in Dubai (May 1117). Hafeez unveiled a Rs2.767 trillion outlay in Parliament for next fiscal year - 12.3 percent higher than current year's outlay (budget documents consistently referred to Rs 2.767 trillion outlay - 14.2 percent higher than current year's outlay) with total net federal revenues projected at Rs.1529 billion. This translates into a projected federal fiscal deficit of Rs.975 billion. Owing to higher revenue transfer to provinces through 7th NFC Award, a fiscal surplus of Rs.125 billion is expected from provinces. Overall fiscal deficit would be Rs.850 billion ie 4 percent of GDP. Hafeez was barely audible amid deafening protest by the opposition. He had earplugs on throughout the speech
like most of the PPP members but still appeared visibly unnerved as he delivered the budget speech. Gross federal revenues (tax and nontax) have been projected at Rs.2732 billion. The FBR collection is projected at Rs.1952 billion (FBR tax to GDP ratio would remain appallingly low at 9.3 percent). A sum of Rs.1203 billion will be transferred to the provinces under the 7th NFC Award compared to Rs.998 billion (revised) during the current financial year. Pledging to pursue tight fiscal policy to br ing d own infla tion, redu ci ng untargeted subsidies, providing relief to the poor through more allocation of funds to Utility Stores Corporation (though the budget documents revealed that allocation to USC will be slashed from 4.5 billion in the 2010-11 revised estimates to 2 billion next year) and to reducing borrowing from the State Bank
Automark Magazine | June-2011 18
of Pakistan, Hafeez Sheikh promised to bring 0.7 million rich people identified by Nadra into tax net in the coming three months to broaden the tax base and generate Rs 3 billion additional revenue. The minister said that after the 7th National Finance Commission Award (NFC), tax mobilization is also the responsibili ty of t he p rovincia l governments who need to take effective meas ures in this regard. Hafeez announced a reduction in the rate of general sales tax by 1 per cent - from existing 17 percent to 16 percent for 2011-12 - and proposed abolishment of Sp ec ial Excise Dut y (S ED) and Regulatory Duty on 392 items out of 397 items and announced exclusion of 15 items out of total 46 items from the ambit of Federal Excise Duty (FED). The regulatory duty would be limited to luxury vehicles, cigar ettes, arms ammunitions, betel nuts and sanitary ware/tiles.
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Budget 2011-12 - Update
The minister said the meeting of the Federal Cabinet ahead of the announcement of the budget in the National Assembly also decided to increase salaries of government employees by 15 percent and raise pensions by 15 percent to 20 percent. The government al so proposed a reduction of FED on per metric ton cement from Rs 700 to Rs 500 in the first ph as e and an nounce d equal reduction of the balance of Rs500/MT in the next two budgets ; FED on beverages was reduced from existing 12 percent to 6 percent. The minister said that the revenue loss on account of the above measures would be compensated by removal of selected exemptions and zero rating under GST, revision of federal excise structure on cigarettes, improving tax compliance and revision in the rate of tax in lieu of value added tax on commercial importers from 2 percent to 3 percent. The minister also announced 1 percent reduction in the rate of withholding tax on cash withdrawal from existing 3 perce nt to 2 percent. He said the
government has also decided to raise the income tax-free limit from Rs 300,000 to Rs 350,000 but incomes above Rs 300,000 would continue to be subjected to fil ing of returns. The minister said he was happy to announce that there would be no extension in the duration of the one-off flood tax levied due to floods namely the 15 percent flood surcharge and 1.5 percent increase in SED. The minister said the meeting of the F ed era l Cab in et ah ea d of th e announcement of the budget in the National Assembly also decided to increase salaries of gover nment employees by 15 percent and raise pensions by 15 percent to 20 percent. In addition, he said the government has also decided to increase the conveyance allowance of all government employees, civilian and armed forces - grades 1 to 15 by 12 percent. Moreover, he said all ad hoc allowances of the government employees would be merged with the basic scales of 2008 and new scales would be introduced. The minister praising the role of the Parliament and democracy said the
percent. - Pakistan will aim to contain inflation at 12 percent.
HIGHLIGHTS-Pakistan releases 2011/12 budget, economic forecasts Following are the highlights of the budget in a document seen by Reuters:
TAXATION AND DUTIES
PROJECTIONS - The 2011/12 budget outlay is 2.767 trillion rupees ($32 billion), up 14.2 percent from the 2010/11 fiscal year. But Hafeez Shaikh quoted the outlay at 2.504 trillion rupees in the budget speech. - Total revenue (tax revenue and nontax revenue) is targeted at 2.732 trillion rupees, out of which the Federal Board of Revenue aims to collect 1.952 trillion rupees, compared with 1.588 trillion in 2010/11 fiscal year. - Defence spending will increase to 495 billion rupees for 2011/12, compared with 442 billion rupees in the year ending June 30.
government inherited fragile economy in 2008 and process of stabilization initiated subsequently was adversely impacted by rising oil prices, devastating floods and prevailing security situation all of them contributed in addin g pressure on the fiscal side and led to a slowdown in growth. The government was forced to take austerity measures by slashing current and development expenditure to meet the needs of millions of flood victims. The minister also complained about p oli tical disagreement which he said has not allowed implementation of Reformed General Sales Tax (RGST) to broaden the tax base for mobiliz ation of resources. He also mentioned sustained challenges on fiscal side from the last 25 years and invited the political parties to forge unity to steer the country out of the crisis to achieve economic stability. Hafeez said performance on external side was encouraging with exports and remittances showing highest growth in the history of the country by reaching the mark of $24 billion and $12 billion, respectively for the current fiscal year.
- External receipts are estimated at 414 billion rupees, an increase of 7.1 percent over budget estimates for 2010/11. - The size of the public sector development programme (PSDP) is alloc ated at 730 billion rup ees.
MACROECONOMIC TARGETS - The budget targets a fiscal deficit of 4 percent of gross domestic product (GDP) for 2011/12. - GDP growth is targeted at 4.2 Automark Magazine | June-2011 19
- Ending special exemptions and zero ratings. - Reduction of the general sales tax to 16 percent from 17 percent. - Tax rate for commercial importers on value addition rises to 3 percent from 2 percent.
SALARIES - There will be an increase of 15 percent in salaries of government employees.
SUBSIDIES - Pakistan will cut its subsidies to 166.5 billion rupees for 2011/12, compared with 395.8 billion rupees in the 2010/11 fiscal year. ($1 = 86.020 Pakistani Rupees)
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Automotive Sector - Update
EDB’s new policy aimed to encourage foreign investors in the auto sector by Sumaiya Rizvi
An investor-friendly policy for attracting l ea d i n g a u t o a ss em b l er s a nd manufacturers to Pakistan has been under development by the Engineering Development Board (EDB). T he Economic Co-ordination Committee (ECC) required that the EDB consult both stakeholders and existing original equipment manufacturers (OEMs) in this process. This policy, which will be submitted to the Economic Co-ordination Committee (ECC) in June, will allow new entrants into the indu str y to enjoy d uty concessions on their imports of 100 percent Completely Knocked Down (CKD) kits. These manufacturers will pay a duty of 5 percent in their first year of operations followed by 10 and 20 percent in their second and third year. This new policy will comply with the main objectives of the Tariff Based System (TBS) which has been in place for the automotive sector since July 2006. The Auto Industry Development Programme (AIDP) requires that the n ew en tr a n t b e a p r o m in en t manufacturer/assembler of automobiles o n t h e g l ob a l p la t f or m . T h e manufacturer should at least have an annual production in nations other than Pakistan of 500,000 units, 25,000 units of trucks and busses, 40,000 LCVs, and a minimum of 50,000 tractors. They are al so to comply with environmental standards set by EDB and Ministry of Industries and Production (MoI&P). The most crucial aspect of this new policy will be to require these new investors to develop parts locally in-
house or in collaboration with other OEMs. This new policy is bein g stro ngly opposed by OEMs in the country. Abdul W ah eed Kh a n of D G Pa kist an Automotive Manufacturers Association st ates t h at a p resenc e of new assemblers/ man ufacturers in the country – who will have incentives working in their favor – will prove challenging for existing manufacturers who are already working at half capacity. Furqan Punjani of Topline Research supports Mr. Khan’s claim that such a policy will be harmful for existing OEMs as they will be giv en pre ferential treatment. Punjani further stated that relaxing customs tarrifs will alter the market mechanism as lowered taxes for new players in the market will result in cheaper products. Local OEMs are urging the government to take this into consideration as this will harm the existing manufacturers significantly. Those in favor of this new policy, such as Tariq Naz ir, former Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), believe that doing so will help the consumers as it will provide them with more choices and it will demonopolize the industry by weakening the grasp of Japanese manufacturers. Although supportive of the policy, Mr. Nazir stated that it should be mandatory for the new entrants to follow the deletion program and that 100 percent CKD import clause should also be revised....
Automark Magazine | June-2011 20
Indus Motor reveals new Corolla Altis and GLi Indus Motor Company unveiled the new 2011 Corolla Altis and GLi. The Altis is being introduced with a Dual VVTI engine which starts and stops the car w ith minimum co mpression and r edu ces h yd r ocar bon em ission. The drive-train is equipped with a new six-speed manua l tr ansm ission. Automatic variants are equipped with a four-speed automatic transmission. The new Altis boasts an elegant look with its redesigned fascia. An IMC press release said new price of Altis MT & Altis MT (Sun roof) will be Rs 1,719,000 & 1,809,000. Altis AT & Altis AT (Sun roof) will be Rs 1,809,000 & Rs 1,899,000 respectively. IMC also introduced GLi with an AT transmission keeping in view longstanding demand from its customers. GLI AT is priced at Rs. 1,679,000....
Honda Atlas curtails losses Losses of Honda Atlas Cars decreased 65 per cent to Rs298 million for the year ended March 31, 2011 against Rs852 million posted in the same period last year. The third largest automobile maker’s net sales increased 39 per cent to Rs22 billion against Rs15.9 billion last year. Moreover, finance cost of the company decreased sharply to Rs152 million from the preceding year’s Rs455 million. Atlas Honda Cars (Pakistan) Limited is a joint venture between Honda Motor Company Limited, Japan and Atlas Gr ou p of Compa ni es, P akistan.
Tata Nano is coming to Pakistan The world’s cheapest car w il l be assembled and sold in Pakistan. International Multi Group of Companies (IMGC Global) has been engaged in talks with their Indian counter parts to introduce the car down here. IMGC Global’s Chairman, Shaikh Amjad has told that an initial investment of $ 10 million will be made and an existing plant will be used to assemble the car in coordinatio n with Tata group.
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Automotive Technology - Article
by Khurram Sohail
Fuel cell technology
Japan planned to start first phase of the commercializing fuel cell vehicle from 2015 for this they have built some Hydrogen filling station across Japan.
Fuel cell technology has potential to change the world. Why? Because it’s an environmental friendly and has better h ea t & p ow er effi c ien cy t h en conventional internal co mbustion engine and other power generation sources. Fuel cell technology is not new to the world; it was first invented by William Gro ve 1839 base on the principle that was discovered by German scientist Christian Friedrich Schönbein in 1838. After this step by step certain improvements and changes are made to it and in 1959 it was for the first time
use by NASA in its Gemini and Apollo space programs. After this extensive Research and development is carried out on it and today we have some commercial fuel cell vehicle. Today when energy and environment is the main concern of the world this technology lead the world to new path. Now the question is what’s fuel cell and how its work? Fuel cell system is a device in which Hydrogen gas and Oxygen reacts in the presence of Platinum (Catalyst) to give current and water. So, current will be our output with which we can operate different equipment and water will be the exhaust that can be use for drinking purpose. This simple system has many complications behind its smooth working such as its control system which is responsible for its high efficiency and low fuel consumption, and design with which we are able to get such power. Currently USA, South Korea, Japan, and Europe invested huge sums on R&D of this technology to lower its cost and increase its efficiency. So far Fuel Cell system is effectively use in urban transport buses in South Korea (like we have CNG buses), USA is also working on the same concept, Japan and Germany has launch some of the Vehicle Featuring Fuel Cell System. Japan planned to start first phase of the commercializing fuel cell vehicle from 2015 for this they have buil t some Hydrogen filling station across Japan. Three Mercedes BClass F-Cell cars circling
the globe in 125 days. The purpose of this 4 continent tour (Europe, America, Australia and Asia) was to show off the capabilities of the Mercedes B-Class FCe ll a u to mo bi l e Durin g trip Mercedes found 200 hydrogen filling stations across the globe and travels 9000KM each. Some of the plus point for the use of fuel cell in automobiles is its part load and full load efficiency and its working life which is 5000hrs without deteriorating its efficiency and for gasoline its 2000hrs. But there are some limitations on which Engineers and Scientist are working. Currently the cost of fuel cell system is US 3000$/KW. This cost is mainly because of Platinum which is only used just to fasten the reaction between hydrogen and oxygen. For this different substitute are under consideration. Second Issue is the availability of hydrogen gas. In US California has set up hydrogen gas filling station to show up its practical application. Also similar stations were set up in Tokyo Japan. Different methods for the extraction of hydrogen gas are: Suzuki Motor Corporation announce that the Suzuki Burgman Fuel Cell Scooter has become the world's first fuel cell vehicle to earn Whole Vehicle Type Approval in the European Union also Honda CX is the famous Fuel Cell Class vehicle...
Example of a FCV system
Automark Magazine | June-2011 21
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Automotive Sector - Exclusive Article
by Mohammad Owais Khan
Budgetary measures to reduce car, bike prices An official, on condition of anonymity, in the EDB said that many decisions on auto sector like announcement of a policy for new entrants has been deferred but it does not mean that the government has sidelined many decisions on the auto sector Perh aps the only ch arm for th e consumers in the new 2011-2012 Budget is the possible reduction in prices of cars, motorcycles and d om estic appliances like deep freezers and air conditioners. Though the car assemblers see the budgetary measures as non productive in terms of non acceptance of their proposals but they cannot deny the positive impact of one per cent cut in general sales tax to 16 from 17 per cent and removal of 2.5 per cent federal excise duty (FED) that will definitely make a positive impact on their sales. At least the government has provided some relief to the car and motorcycle buyers which the assemblers had been denying on the basis of rising cost of parts on account of costlier imports due to losing value of rupee against the yen and other factors. Similarly the combine impact of FED and GST will reduce the price of Chinese and Japanese assembled bikes by Rs 1,000 -3,000 from July 1, 2011. For example the budgetary measures will reduce the price of a car costing Rs one million by Rs 35,000. Prior to budget, the car and bike assemblers had already done their homework by pushing up the rate phenomenally from the start of the current year but the government did not take any action against the powerful car and bike makers. A car assembler said the impact of FED removal and cut in GST will be visible from July onwards but he said that in view of possible price cut from July 1, 2011 the buyers’ have slowed down the booking of new cars besides affecting the cash sales as they are waiting for the price cut. He said not only in cars the GST and FED cut has also slowed down the sales of other items like domestic appliances, motorcycles etc.
The government collects sizable revenue from these manufacturing units but it seems that the cash-starved government will definitely miss the revenue target in June which is the last month of the current fiscal year owing to buyers’ reluctance in purchasing new items. “The government should implement the new GST and FED rates immediately so that the prices could come down immediately and it will definitely lure the buyers to make new purchases after price cut,” he said adding that this will nullify the impact of revenue shortfall from th e manufactu ring sec tor . He said the new budget was a non event for the assemblers and government had not pro vided any incentive to the assemblers despite holding meetings with the stakeholders and reviewing their pre budget proposals. The government has also not announced any new entrant policy for the new investors in the Japanese dominated Pakistani car market. An official, on condition of anonymity, in the Engineering Development Board (EDB) said that many decisions on auto sector like announcement of a policy for new entrants has been deferred but it does not mean that the government has sidelined many decisions on the auto sector. He added the Finance Minister Abdul Hafeez Shaikh was of the view that decisions on car industry in the light of government’s efforts and budgetary proposals of the car makers would be taken after the budget. The government has also not touched th e pr opo sals of t he Pla nning Commission (PC) for rationalization of tariff in the auto sector. The PC has proposed cut in motorcycle tariff to 15 or 20 per cent to be followed by further cut to a maximum of 10 per cent, the Ministry of Industries has opposed the move. In cars, the PC has suggested immediate
cuts (to maximum and uniform rate of say 25 per cent) in all motor car tariffs and pre-announcement of further tariff cuts and other basic changes to auto sector policies. On the two above cases of duty cut, the Federal Board of Revenue (FBR) believes that a five year tariff plan for auto sector is already in place since 2006 but its implementation is frozen for the last two years. FRB said whether or not there is a requirement for an altogether new tariff structure for auto sector at this time a decision is to be made in consultation w i t h r e le va n t m i n i st r i es an d stakeholders. The Ministry of Industry and FBR had given their feedback on the PC report on Pakistan Trade Policies: Future Directions. On motorcycle, the Ministry does not support tariff reduction in tariff on motorcycle in completely built up (CBU) condition so as to ensure growth in local industry besides availability of bikes at affordable price to the lower income strata of the society. The Ministry feels the local bike industry is performing extremely well. Production has gone up followed by substantial cut in bike prices besides finding export market. Further reduction in tariff rates would seize this opportunity from the local industry besides the chance of earning foreign exchange. The PC report has suggested that better performance and reduction in prices
Automark Magazine | June-2011 24
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Automotive Sector - Exclusive Article have denied the benefit of pricing in accordance with tariff i.e. some where near landed cost of imported equivalent. The Ministry said th is mak es no justif ication rath er supp orts the government policy on tariff i.e. tariff protection to induce indigenization and growth of local industry. Lower prices as co mpared to import tariffs are indicative of the fact that the local industry uses this production for growth and not profiteering. Currently a 70cc bike is chargeable to customs duty at 65 per cent while the consumer price is Rs 55,000 as opposed to Rs 40,000 against which a locally made bike is available in the market. In case tariff on CBU bike is reduced to 15 per cent as suggested in the PC’s report the imported Chinese bike will be available at Rs 36,000 which would effectively mean a severe blow to the flourishing local industry which is the process of exporting bike to third world countries. The Ministry is of the view that there is no issue of demand, supply and prices and the industry is on the growth path. India which manufactures about 8.5 million bikes has a duty of 100 per cent plus 16 per cent central excise duty. China is a big bike producer but had a duty of 45 per cent. In cars, the Industry Ministry said that Japan, India, Thail and, Mal ay sia, Euro pe etc had resorted to tariff protection for their local auto industry and it is necessary to continue support to the local auto vendor industry. All the developing countries including Pakistan had adopted a similar Tariff Based System aimed at protecting the local auto vendors. India has a uniform rate of customs duty at 100 per cent irrespective of engine capacity besides 24 per cent central excise duty on cars with a capacity not exceeding 1,500cc while CED for cars exceeding engine capacity of 1,500cc is 24 per cent plus Rs 20,000 per unit. An Auto Industry Development Program laid down a five year tariff program to provide a predictable and stable tariff environment and consistency in policies. The tariff was to be reduced by five per cent on all cars above 1,000cc starting from 2009-2010 in addition to achieving i nd i g en i za t io n of e ng i ne a nd transmission parts. This was deffered by th e governme nt for one year. However this was not implemented by
the FBR in 2010-2011 although Industry Mi nistry h ad r ec omm end ed i ts implementation and again through a summary for ECC r ecomm end ed reduction in duties by 10 per cent was deferred by the ECC. Industry Ministry accordingly supports tariff reduction on CBU by 10 per cent across the board in the first phase followed by gradual reduction up to maximum of 20 per cent across the board reduction in the existing tariff for cars of different capacities. The Ministry also supports upward revision of tariff on the parts and components that were required to be indigenized by the year 2010-2011 in accordance with the AIDP. Uniform tariff for all cars irrespective of engine capacity as suggested by the Planning Commission may not have a notable impact on smaller cars as the price gap between local and imported cars is quite substantial. However the price of 1,500cc and more cars would come down to benefit to affluent class only. Despite many challenges expected to come to assemblers’ way the recent bu dget announcem ent remained positive for the sector. Furqan Punjani of Top Line Securities said reduction in SED and reduction of one per cent in GST would provide the assemblers some breathing space. No announcement on further relaxation to imported CBUs in terms of cut in RD and new entrant policy would al so keep additional competition at bay.
Heavy Vehicle Sector The government has removed the zero rated exemption on commercial vehicles (trucks, buses and CNG buses) which is bound to make highly costlier due to imposition of 16 per cent general sales tax. Truck chasis prices hover between Rs 1.6 million to Rs 1.9 million on which the price enhance comes to Rs 300,000 t o Rs 1. 1 m i l l io n a f t er G S T implementation. Similarly, the price of complete buses hover between Rs 4.8 to Rs 7.5 million on which the price hike comes to Rs 600,000 to Rs 1.2 million. In only one category the government was charging 17 per cent sales tax and 2.5 per cent federal excise duty on buses of less than 40 persons’ seating capacity. From July 1, 2011, the rate of GST will
Automark Magazine | June-2011 25
be 16 per cent but there will be no FED on this segment, thus bringing some relief in price reduction. In the last one year the overall price increase in commercial vehicles segment was 10-14 per cent due to Pak Rs to Japanese yen parity, hike in steel prices, rising material cost and high general inflation that resulted high cost of production. Shahab Anwar, deputy general manager sales and business d evelopment Hinopak Motors Limited (HML) said the imposition of GST on commercial vehicles will completely devastate the commercial automobile industry which is already in declining phase. The zero rating facility was extended to the commercial automobile sector in 2006 was of strategic importance as modernization of trucking industry to c op e w it h t h e tr a n sp or t a t io n requirement of the country. He said this policy in the past has witnessed a drastic chan ge in the transportation trends as new and heavy prime movers are now seen on the Pakistani roads, this also helped to red uce th e ad ver se overload ing ph enomenon. With this new tax meas ures it w il l directly hit the automobile industry, unemployment will rise in the principals as well as the vendors’ areas. The decision will also have a directly inflationary affect as high transportation cost which means high cost of any goods and consumers will be directly affected from this new GST. The commuters will also suffer with new high fares of buses transportation. He said it looks very strange that the government is trying to meet its revenue target from the heavy vehicle industry whose yearly sales hover between 4,0005,000 units. Shahab said prior to new budget the government also allowed import of second hand vehicles which would complicate the already under capacity commercial vehicles industry operating at 50 per cent capacity utilization. It will have a negative impact on overall industry as new investment may not be encouraged. More trading will be preferred instead of local assembling, technology of transfer will slow down and unemployment rate will be on the rise which is contrary to the need of the hour……
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Automotive Sector - Article
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A Few Outstanding Tips for Buying Used Cars Pre-owned vehicles get financed just like brand new cars. Be sure any vehicle you like can fit into your budget each month, figuring in any down payment and cost of insurance. A few days before I was finding a car for my friend and I have noticed certain things or you can say tips for buying a used car. Purchasing a used vehicle rather than a new one can be a good choice. Lots of new vehicles experience a sudden depreciation the second they leave the lot. This isn't a problem with a pre-owned vehicle, and an automobile that is just a year old can be twenty-five percent less expensive than its shiny new counterpart. Furthermore, the cost of insurance is quite often much lower every month. The first step in shopping for a used automobile is research. Most people know what kind of vehicle they want, but they may not know very much about it. There are many web sites out there offering tons of information about every make and model available. For a small fee, some of them will run a vehicular background check on the car you're thinking of buying and will provide you with a detailed report. This can include things like accident history, date of any repairs made on the vehicle and how many owners it has had. Check to see if a warranty is available. It may not be an option when purchasing from a private party, but a lot of new automobiles come with their own three year, 36,000 mile warranty. Should the used car you want to buy have fewer
than 36,000 miles on it and be younger than three years old, it could be still covered under the original warranty. If the car has some miles on it, see if it is a used car that has been certified. Certified vehicl es have pas sed the inspection process and will be covered by another warranty. Conduct a full inspection of the vehicle's exterior and interior. Check underneath the hood, looking for stripped nuts and bolts. Look out for rust. On the inside, check to see everything is in good shape and read the odometer. If the odometer indicates low miles but the upholstery indicates high miles, something could be up. Pre-owned vehicles get financed just like brand new cars. Be sure any vehicle you like can fit into your budget each month, figuring in any down payment and cost of insurance. Because of the skyrocketing cost of gas, it could be smart to think about gas mileage while cal culating the car's overall cost. Then you have the test drive, which is usually the most enjoyable part of checking out new wheels. Try a cold start. Cold can be a challenge for some vehicles and starting them in that state might help you discover h idden
Automark Magazine | June-2011 26
problems. While y ou ar e o ut driving, keep the radio off and pay attention to the sounds made by the engine. During turn s, are there any weird sounds? Drive normally, doing whatever you regularly do on the freeway and on streets. If you can, drive up a hill to see if the engine has sufficient power for a climb. Finally, check out the brakes, because stopping properly is the most important part of operating a vehicle. Finally, there is the negotiation. For certain people, this can be more fun than the test drive. However, not everybody enjoys haggling over a vehicle price. It can be intimidating but it doesn't have to be adversarial. You want to buy a car and they want to sell a car. Aim for a comfortable middle ground and be prepared to walk away if the two of you can't come to an agreement. There are a lot of pre-owned vehicles out there, and armed with the right tips for buying used cars, you'll find the one you were meant to drive.
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Automotive Sector - Article
By Salman Khan from GIKI
Young Engineers at GIKI Institute manufactures Pakistan’s first formula One Car A team of 10 students from Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI), are manufacturing Pakistan’s First Formula One Car to participate in International Formula Student Competition, Japan 2011. Formula Student is an international competition for university students to design, build and market a small singleseat racing car which they then compete against each other in set of rigorous tests. It provides the students with a real-life exercise in design, manufacture a nd th e bu si ness elem ents of engineering. The Formula Student Competion is held each year across the globe in USA, Italy, Germany, UK, Brazil, Austria and Japan. GIK Institute is a center of academic excellence and cutting edge research in the field of science and engineering with faculty of outstanding talent and ability grooming the next generation of young and ingenious Pakistani scientists and engineers. 10 junior engineers from GIK have formed a team called Junoon which is currently registered to take part in Int erna ti onal For mu la S tu d ent Competition to be held in Shizouka, Japan in September 2011. Th e team is working under the
Team Junoon, GIK Institute. Photo Courtesy: Salman Khan supervision of Prof Dr. Fazal Ahmed Khalid (SI) (Pro Rector, GIKI) and Dr Aneel Salman (Professor, Faculty of Humanities, GIKI) and Team Manager Muhammad Imran. The teams which comprises of students from Faculty of material science, mechanical and engineering sciences are working day and night to make an ultimate, cost-effective, road-savvy, made-in-Pakistan Formula style racing car. The designing, manufacturing and fabrication of this car are done using all the local resources available in Pakistan.
Technical Specifications
Steering:
General:
7.5:1 Custom Rack
Wheel Base : 1560mm Track Width (Front): 1250mm (REAR) : 1200mm
Limited Slip Differential
Suspension:
Space Frame Type Built of SAE 4130 Steel
Double Wishbone with Custom Shocks and Springs
Breaks: 4 Custom Disk Brakes
Tires and Wheels: 185/60 R13 Semi slick tires, Alloy wheels
This project will create new avenues for young engineers to enhance their engineering approach and practical knowledge and will initiate technology pollination throughout the country. This project requires large support in t e r m s of m on e t a r y fu n d i n g . Government, industry and the private sector should support this initiative and help these young students to become Pakis tan’s first formu la one car manufacturers....
Transmission: Chassis:
Engine: The SUZUKI GSX-R600 Engine Cylinder Line up: 4 Cylinder Inline Transmission: 6 Speed Sequential Max Power 88.3Kw @13000 RPM Bore X Stroke 67X 42.5 MM Power: Weight 1.61 kW/KG
Automark Magazine | June-2011 27
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Automotive Sector - Corporate Event
by J. Pereira
Al-Haj FAW Motors launches the FAW J5P-420HP (6x4) Heavy Duty Prime Mover – JUMBO In the year 2010, FAW has been the second highest truck seller in Pakistan FAW has the unique distinction of being rated as No. 1 in Pakistan by large Logistic and Transport companies AL-Haj FAW Motors (Pvt) Ltd., recently launched its top of the line FAW, J5P420HP (6x4) Heavy Duty Prime Mover, JUMBO. The launching ceremony was held at the Al-Haj FAW Motors, Head Office located on the main National Highway at Zulfiqarabad in Karachi. The ceremony was attended by a large number of both comme rcial and institutional customers from all over Karachi and other parts of the city. Al-Haj FAW Motors had imported 40 units of the FAW, J5P-420HP (6x4) Heavy Duty Prime Movers - JUMBO which were instantly sold to Haji Taj Muhammad Khan Afridi of RASCH (Private) Limited who are the largest fuel transportation contractors of Shell Pakistan Limited. Shell International has globally standardised the FAW, J5P-420HP (6x4) Heavy Duty Prime Movers for its 48,000 liters long haulage carriers. FAW Prime Movers, Rigid Trucks and Dump Trucks have gained wide spread popularity in the commercial vehicle sector of Pakistan and their sales are increasing rapidly. During the last four years the company has sold over one and a half thousand units, while last year i. e. in 2010 the company achieved the second position in the overall sales of comme rcial veh icles in the Pakistan market surpassing two of its major Japanese competitors. Some of the large logistics and transport companies who have inducted FAW trucks into their fleet claim the following. 1. The FAW trucks are economical in
Photo caption: Seen in the photograph from (left to right) is Mr. Hilal Khan Afridi, Chief Executive; Mr. Z. A. Rehani, Director Marketing and Sales; Haji Taj Muhammad Kh an Afridi, Chairman of the Al-Haj Groups of Companies; Sheikh Tariq, Managing Director of Al-Amin Automobiles, Sadiqabad; Haji Shah Jee Gul, Chairman; Mr. Bilal Khan Afridi, Managing Director and Mr. Nadeem Ah med Salmi, Director Operations (Assembly Plant) of Al-Haj FAW Motors (Pvt) Ltd.
price as compared to their Japanese and Korean counterparts. 2. The FAW trucks are more powerful than their competitors due to the most superior and world renowned “DEUTZ” engines of German technology being used in these truck. 3. Overloaded operation of FAW trucks have proven to be an over wheeling
FAW The money making machine Automark Magazine | June-2011 36
success in the mountainous region of Pakistan having steep gradients. 4. The fuel consumption of FAW trucks is far superior as compare d to its competitors of the sam e range. 5. The drive line of the FAW trucks uses the world renowned EATON Clutches and Transmissions. The FAW, J5P420HP (6x4) Heavy Duty Prime MoverJumbo uses a clutch size of 17 inches (4 3 0 m m ) in d i a m et e r a nd a transmission of 10 forward and 2 reverse speeds. The crawler gear Ratio alone is 13.89:1. 6. The FAW, J5P-420HP (6x4) Heavy Duty Prime Mover uses the most powerful world renowned WABCO Full Air Brakes with ABS (Anti Lock Brake
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Automotive Sector - Update
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Ministry of Commerce Allows the Import of Five-year-old C ommercial Vehicles As of May 16 five-year-old commercial vehicl es can be imported into the country under the personal baggage and gift scheme. This change, implemented by the Ministry of Commerce, is a direct violation of the Trucking Policy 2007. Abdul Waheed Khan, Director General Pakistan Automotive Manufacturers Association (PAMA), pointed out that this new change by the Ministry of Commerce is a violation of the Trucking Policy (2007). He also pointed out that th e Au to Indu str y Development Programme (AIDP) is not being implemente d properly. The AIDP required that import of used vehicles does not impact production and sales of local vehicles; increasing the age of vehicles being imported from three to five years and changing the depreciation limit from 50 to 60 percent for five-yearold passenger cars violate these terms. Shahab Anwar, Head of Sales and
Marketing Hinopak, stated that this policy will impact local manufacturers as they have invested billions of rupees in further technology. This is a step backwards because relaxing import policies on old vehicles will prove to be an obstacle in further development. Khan showed concerned about the lack of regulations in place for these imports. There are no regulatory measures being set in place for their use, no Euro II compliance requirements, road safety
System). These are some of the features which have been appreciated by the operators of large logistic and transport companies who have today rated the FAW trucks as No. 1 in the Pakistan.
tests or vehicle fitness requirements. Mr. Khan also expressed that relaxing the import policy for previously used vehicles will change Pakistan into a ‘junkyard’. Although H. M. shahzad, Chairman All Pakistan Motor Dealers Association (APMDA), stated that the government will most likely be imposing fixed duties on these imports, he also stated that the import procedures will be simplified. Th is fu rt her indi cates t hat th e government officials are failing to diligently consider the repercussions this new policy will have for the auto industry (namely local manufacturers), environment, and the country overall as aged vehicles are bound to become a problem especially if the import policies and use regulations are not strict and sound.
Some of the top companies who have entrusted their Logistics and Transportation to FAW trucks are: 1. RASCH (Private) Limited 2. Bilal Associates 3. Mega & Forbes 4. Ammiza Transport 5. Unique Enterprises 6. Shaheen Freight Services 7. Crescent Syndicate 8. Waterlink 9. Agility Logistics 10. e2e Supply Chain Management Automark Magazine | June-2011 37
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Used Imported Vehicle data
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Alternate Energy Sector - Update
POGEE Conference 2011
Alternate energy policy draft to be launched in June
The draft of new alternate energy policy, which included other renewable resources, is ready and will be launched in June this year. This was stated by the CEO Alternate Energy Development Board (AEDB) Arif Alauddin while talking to media persons on the 3rd and co ncl uding day of POGEE Conference 2011 on "Energy Solutions" at Karachi Expo Centre. He said the new expanded alternate energy policy also accommodates other renewable resources like baggass, hydel, off-grid and net metering technology to give a bigger canvas for investors. All the imports relating to renewable energy have been made duty free, he added. He said that AEDB has cancelled all the allotments of land of those wind energy projects, which failed to meet deadlines and these lands have been re-allotted to 13 potential investors w ho have deposited guarantees. About 17, out of 20 allotments were cancelled for not meeting deadlines and 13 of them were restored upon the payment of $250,000 for a new deadline of August 31, 2011, he added. He pointed out that 7 to 8 wind projects will be having a financial close this year and about 20 more wind energy projects are in the pipeline. Alauddin said that the financial close of Fauji Foundations wind energy project will be achieved next week as they have signed most of the necessary agreements including purchase power agreement (PPA), bank guarantee. Tapal and Beacon are also in the process of financial close, he noted. Similarly, China Wind Electric (CWE) has signed production contract and they will start manufacturing of turbines in Pakistan. To a question, he said that India had started renewable energy project in 1982 and they had developed a full-fledged manufacturing facility for wind and solar
technology long ago. He said that the implementation of upcoming win d projects could be delayed, if land was not provided to them by Sindh government, in time. Earlier, speaking at the conference, Alauddin said that political support and public support was vital for the take off of renewable energy in the country. S e n i or V i c e -P r e s i d e n t , D e lt a Engineering San Diego USA Zahoor Abbasi, while speaking on Thar coal as an alternative energy resource, said that about 38 trillion cubic feet of coalbed methane can be extracted from Thar coal field. Quoting a report prepared by a Canadian firm, the said that this means that about 900 million cubic feet of natural gas per day can be injected to the existing piped gas network, he added. He said that USA was getting 7.1 billion cubic feet of gas per day from two coal fields in Colorado and Wyoming states. The USA is driving 10 percent of natural gas from coal, he opined. Citing data, he said the cost of energy
Automark Magazine | June-2011 39
from Thar coal will be about $1.8 mmBTU. This is lower than the cost of natural gas, which is $ 3.5 per mmBTU. The production cost of coalbed methane is $ 3 per mmBT U, he add ed . He said the water from Thar coalfield can be desalinated for drinking and irrigation purposes. About 10,000 acres of land can be cultivated from this desalinated w ater, he ob served. A wind energy consultant Furqan Habib said that Pak istan can start local production of wind turbine with foreign collaboration under technology transfer or licensed production. Director AEDB Imran Ahmed talked about the investment opportunities and policy support in the renewable sector and said that lucrative incentives are offered under renewable energy policy. Natio nal network coordinator of ENERGIA Pakistan, Sherin Fayyaz said that mostly women are victims to indoor pollution caused by the use of inferior mode of energy in the country.-APP...
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Energy Sector - Update
Pakistan largest CNG user
2.50mm Vehicles using CNG as fuel in Pakistan
In consultation with provincial governments, the Environment Ministry has worked out a model for vehicle examination/emission testing to be established in the country to follow a uniform procedure for motor vehicle inspection for both public and private vehicles. Pakistan tops the list of 10 countries using a maximum number of vehicles on compressed natural gas (CNG), says the Eco nomic Survey 2010-2011. Presently, there are 2.50 million (21.6 perce nt) CNG-run vehicles acro ss Pakistan. The Survey has noted that the use of CNG as fuel in the transport sector
has shown a quantum leap, replacing traditional fuels. Presently, there are as many as 3,329 CNG filling stations operating across Pakistan and the government has also offered incentives to investors to introduce CNG buses in major cities. Iran is number two on the list with 1.95
Govt to spare oil refineries mulls 10pc levy on LPG producers The government, in a discriminative move by givin g exemption to oil refineries engaged in producing LPG, is gearing up efforts to jack up LPG prices by imposing 10 percent petroleum levy (PL) on selective local LPG producers, it has been learnt. The proposal to impose PL will affect LPG pri ces of the Oil and Gas Develop ment Comp any Limit ed (OGDCL), Pakistan Oilfields Limited (POL), Ocean Pakistan Limited, British Petroleum (BP), Pakistan Petroleum Limited (PPL), and Jamshoro Joint Venture Limited (JJVL). There is no plan in hand so far to impose PL on refinery-produced LPG, which accounts for 42 percent of local production. PakArab Refinery Limited (PARCO) is a major producer of LPG in refining sector, market sources said. “Government is mulling imposition of 10 percent PL, a kind of tax, on selective local LPG producers in upcoming budget 2011-12, which will definitely hit the LPG industry, sources said, adding, “However, oil refineries engaged in producing LPG may be recommended to be exempted from PL that may invite strong criticism due to discriminative treatment”. Finan ce Ministry was considering a proposal to impose 10 per cent PL on LPG to generate revenue
ranging between Rs3 to Rs4 billion per annum, sources added. Sources in LPG sector said that LPG demand had already declined due to h igh c eili ng pr ices and fu rth er imposition of PL in coming budget would further cause a collapse of LPG industry. “After imposition of PL, price of LPG would increase and product would be beyond the reach of the lowincome co nsumers , they al l said, adding,” Demand of LPG fuel in the country would resultantly also decline. It is not out of place to mention here that state-owned OGDCL produces 132 metric tons per day LPG from five gas fields. Because of low demand and the inability of consumers to afford LPG, its price has been revised five times during the ongoing month. OGDCL increased its LPG base-stock price from Rs. 75,570 per metric tons in April 2011 to Rs. 82,646 per metric ton with effect from May 3 this year. The sharp 10.29 percent hike in the Saudi CP has been witnessed from $884 per metric ton in April to $975 per metric ton for May 2011. Facing low demand, OGDCL reduced its price to Rs. 80,000 per metric tons on May 6 that was further cut down to Rs. 73,000 per metric ton on May 16. OGDCL slashed again its price to Rs. 68,000 per metric ton on May 20, 2011...
Automark Magazine | June-2011 40
million vehicles on its roads. Argentina is third with 1.90 million vehicles, Brazil fourth with 1.66 million vehicles, followed by India with 1.08 million, Italy with 0.730 million vehicles, China with 0.450 million, Colombia with 0.340 million, Thailand with 0.214 million and Ukraine with 0.200 million vehicles. T h e d ocu m ent not ed th a t t h e International Association of Natural Gas Vehicles had compiled the statistics. The document also revealed that Motor Vehicle Examiners (MVEs) had no facilities to scientifically check fitness or emissions of vehicles. At present, only commercial vehicles were checked by MVE, and even vehicles that passed the standards tests couldn’t give assurance of complian ce. No private vehicl e un d er go es an y man dat or y inspection/emission check. In consultat ion wit h provincia l governments, the Environment Ministry has worked out a model for vehicle examination/emission testing to be established in the country to follow a uniform procedure for motor vehicle inspection for both public and private vehicles. The first pilot project in this regard has been approved at the cost of Rs294 million. It is expected that motor vehicle centres will be established with the help of public-private partnerships throughout the country...
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International Automotive - Update
Japan auto sales worst since 1968 South Korean rivals, on the other hand, continued to gain traction with Hyundai Motor and affiliate Kia Motors posting double-digit growth in sales driven by solid demand for new models. Japanese auto sales fell by a third in May, the lowest total for the month since 1968, as car makers struggled to restart production after the earthquake and tsunami that roil ed the country in March. South Korean rivals, on the other hand, continued to gain traction with Hyundai Motor and affiliate Kia Motors posting double-digit growth in sales driven by soli d d emand for new mod el s. Despite the ninth consecutive drop in monthly new vehicle sales, Japanese car makers are recovering faster than expected with market leader Toyota Motor expecting its output to return to 90 percent of its pre-quake levels by this month. Still, overall production in 2012 could be almost a million vehicles less than Toyota had planned to build at the start of the year. Lost output by the end of May was 900,000 cars. Nissan Motor Co and Honda Motor Co have also said they are working to bring production back to pre-quake levels as soon as possible, most likely during the financial third quarter from OctoberDecember. Sales of vehicl es, excluding 660cc minicars in Japan, fell 37.8 percent from the year before to 142,154 units last month. Toyota, the world's biggest automaker, led the drop with a 56.6 percent fall. Combined with 660cc vehicles, tallied separately, new vehicles sales in the world's third-biggest auto market declined 33.4 percent to 237,364 vehicles, data showed on Wednesday. Meanwhile in Europe, auto sales in France fell 8.3 percent in May on an adjusted basis, a decline attributed to the ending of government incentives to
replace older models. South Korea's Hyundai and sibling Kia, which rank fifth in global car sales, saw robust sales growth in May. Hyundai's sales climbed 13.6 percent, while Kia's sales soared 22 percent as a jump in its overseas sales offset a dip in sales at home. But their May sales inched down from the preceding month and weighed on high-flying shares in both companies. "The monthly sales decline came as a good reason to sell, particularly following the shares' rally and current uncertain global economic backdrop," said Choi Dae-shik, an analyst at HI Investment & Securities Hyundai Motor shares fell 3.6 percent and Kia shares fell 3.7 percent in a flat market. Both stocks have surged by nearly 50 percent this year. The combined market share of Hyundai and Kia is expected to hit a record high for May in the US market
Automark Magazine | May-2011 41
after reaching 9.4 percent for April, thanks to brisk sales of Hyundai's Sonata sedan, Elantra compact and Kia's Optima sedan, analysts say. Their combined May sales may surpass Toyota Motor for the first time in the United States, media reports said, citing a forecast by TrueCar.Com. India's largest automaker, Maruti Suzuki , posted its slowest growth rate in more than two years, with a 1.9 percent rise in total sales to 104,073 units. Indian automakers overall sold 162,825 units in April, up 13 percent from a year ago, the slowest pace in nearly two years. India's third largest two-wheeler maker, TVS Motor Co, posted an 18 percent jump in May sales to 185,930 units, a record for the company. -Reute rs
Kia to Expand Its Global Share Car maker credits strong demand to design hanges, quality ratings Kia Motors Corp. is banking on a larger slice of the global auto market and fatter margins this year, boosted by a major design overhaul and an improving reputation for quality that have enabled it to raise prices and cut incentives. South Korea's No. 2 car maker, which was forced into bankruptcy in 1997 during the Asian financial crisis but recovered under the wing of Hyundai Motor Co., expects to raise its global market share to 3.4% from 2.9% last year, Kia Chief Operating Officer Oh Ta e-h yu n said in an i nter view . The improving global economy, high g asoli ne p ri ces and sh or ta ges.
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Car / Light Vehicle Price List
SUZUKI
HONDA
Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L PETROL CULTUS Efi VXRI CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LE MT PETROL LIANA 1.3L LE (CNG) RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol BOLAN VAN VX CNG BOLAN VAN VTR PETROL BOLAN VAN VTR CNG SUZUKI VAN CARGO APV 1.5L JL SX MT (CBU) APV 1.5L JL DX MT (CBU)
Price Rs. 481,000 Rs. 533,000 Rs. 534,000 Rs. 584,000 Discontinued Discontinued Rs. 693,000 Rs. 748,000 Rs. 1,113,000 Rs. 891,000 Rs. 938,000 Rs. 1,205,000 Rs. 1,276,000 Rs. 1,175,000 Rs. 1,246,000 Rs. 508,000 Rs. 564,000 Rs. 562,000 Rs. 604,000 Rs. 620,000 Rs. 682,000 Rs. 537,000 Rs. 1,805,500 Rs. 1,956,000
Price Rs. 569,000 Rs. 539,000
NISSAN CARS Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG
Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000
NISSAN DIESEL TRUCKS Diesel Truck PKB 211 Diesel Truck PKD 411H Diesel Truck PKD 411E Diesel Truck PKD CD 411 Diesel Prime Mover CWM 454
Model CRV Automatic 2400cc Japan Accord Automatic 2400cc Japan City Manual HYUNDAI City Automatic Civic VTEC Manual Civic Oriel Manual Civic VTEC Prosmatec Civic Oriel Prosmatec
Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000
Price Rs. 5,566,000 Rs. 5,966,000 Rs. 1,379,000 Rs. 1,515,000 Rs. 1,735,000 Rs. 1,920,000 Rs. 1,860,000 Rs. 2,000,000
TOYOTA COROLLA Model XLi 1.3 VVT-i GLI 1.3 VVT-i GLI 1.3 VVT-i AT 2.OD STD 2000cc 2.OD SALOON MT 2.OD SAL SUNROOF ALTIS 1.3 Dual VVTi MT ALTIS 1.3 Dual VVTi MT SUNROOF ALTIS 1.3 Dual VVTi AT ALTIS 1.3 Dual VVTi AT SUNROOF
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price 1,357,000 1,482,000 1,679,000 1,459,000 1,794,000 1,884,000 1,719,000 1,809,000 1,809,000 1,899,000
Hilux Pickup 4x2 Model
Price
Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled) Standard Model
CHEVROLET Model CHEVROLET JOY CNG CHEVROLET JOY Petrol
Honda Honda Honda Honda Honda Honda Honda Honda
Rs. 1,519,000
Hilux Pickup 4x4 D/C Model
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin
Rs. 2,404,000
CHERY QQ Model CHERY QQ Petrol CHERY QQ CNG
DAIHATSU Model CUORE CX CX ECO (CNG) CX AUTOMATIC
Price Rs. 588,000 Rs. 628,000
LAND ROVER
Model Price DEFENDER Rs. 7,59,000 (90 S/WJEEP STD) Rs. 8,09,000 (110 S/W A/C) Rs. 8,70,000 (90 Soft Top) Price updated June- 2011
Price Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260
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Exclusive Article on Safety
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Safety on the road of Pakistan “Drive carefully; it’s not only cars that can be recalled by their makers”
Pakistan’s roads and driving conditions are a point of discussion and surprise to almost all those who have ever wanted to drive in safer conditions. We are trying to recover it still we have many areas of cities which are undeveloped. Even after developin g, our main problem is that we don’t care at all of our properties; actually we destroy it by our hands. We never understand that it has been building of our money and efforts. We park vehicles at no parking board, or on the middle on the streets,
we don’t care about others because we are suffering from lack of humanity. We have to understand that nobody will take care of us until or unless we started first to take care of others. It has been very true said that “Respect, you will be respected”. We have to think about the importance of others life then others will think about ours. As observed everyday a lot of people get injured and killed because of a lot of road accidents. These accidents occur mainly due to two reasons firstly because of the weird road conditio ns an d secondly because of freedom of traffic rules. In Pakistan specially, we might see a number of boys riding their vehicles at a tender age of 15- 16 years itself. Apart from that, due to lack of strict traffic rules in Pakis tan, people take the disadvantage of it by rash driving, not following the traffic rules and above all not respecting others who are following traffic rules. To avoid the instances of road accidents or sometimes troubling others while driving abruptly it is advisable to impart the knowledge about the importance of traffic rules and Traffic signs in Pakistan. In fact it is highly necessary to pass on the driving license test before you start driv ing a vehicle. That is not just mandatory for your own safety but for the safety of others as well who might get injured because of somebody's ignorant driving.
For that a number of driving schools have b ee n op en ed in different cities in P akistan so th at people might not get deprived of the best p rac tice s w hil e dri vi ng . These driving schools give you the training about how to drive a vehicle following the set traffic rules and traffic signs. People might say that the traffic in their cities is not ordered but then before blaming others one should try and u nd e r s ta n d o ne ' s ow n m o r a l responsibility of being a responsible person while driving a vehicle. Specially while driving on highways or highly packed routes it is recommended to follow the traffic signs and traffic rules in order to save any unwanted incident. A lot of other measures can be taken in order to have safer driving conditions such as driving in your own lane, not overtaking from a wrong side, driving the vehicle in a set speed according to the route wherein you are driving, taking care of proper servicing of your vehicle and of course following all the basic rules of traffic while driving. Remember driving a vehicle is very easy but driving a vehicle with safety and skills is very difficult. So try and achieve the target of accomplishing the difficult part of it as the easier part doesn't prove you mature enough......
Automark Magazine | June-2011 43
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Ticon Pakistan 2011 - Event Report
Pakistan's biggest conference on Entrepreneurship
TiECON Pakistan 2011
Founding Charter Member of TiE Mr. Imtiaz Rastgar Advised Students “Make a business plan without reading newspapers or watching news channels, This is how multinationals do!” Further he said that “Believe me: Pakistan is a gold mine “and “Multinationals know this and export billions in profits from here! “ Seasoned in ternational and local entrepreneurs addressed TiECON 2011, small enterprises are the backbone of country’s fragile economy, TiECON demanded youth to ste p up an d Encouraged youth to create small businesses by utilizing their abilities instead of job-hunting, Pak istan's biggest co nference on
Founding Charter Member of TiE Mr. Imtiaz Rastgar giving Key note Speech at TiECON2011
Entrepreneurship, Bou nce Back! TiECON Pakistan 2011 was one historic event spearheaded by all three Pakistani TiE Chapters; Islamabad, Lahore and Karachi, the event was hosted in the Capital City of Pakistan, Islamabad on 30th April, 2011 for the 1st time ever. This year’s theme ‘Bounce Back!’ declares the resolve of a nation ready to yank itself out of its doldrums and redefine its destiny. The event was anchored by seasoned international and local entrepreneurs, and invited iconic businessmen and investors to share with the attendees heuristics of their rise to success despite all odds. As many as 1,200 delegates consisting of major business tycoons from across the country and abroad, students, budding entrepreneurs, academia, and social and financial sector experts along wi th a larg e nu mber of m ed ia professionals attended the conference. The seasoned entrepreneurs wh o participated in the event highlighted the stories of iconic businessmen and investors and their rise to success despite all odds. TiECON Pakistan 2011 has provided the platform for visionaries and leaders to give direction to this resilient nation. With the help of shared id eas , segm ents of int era ct iv e discussions and activities conducted by cluster of entrepreneurial gurus, TiECON Pakistan 2011 served as the pivot to the entrepreneurial verve which will help Pakis tan Bounce Back.
The world has bowed to “The Bravest Nation in the World” for its incredible internal social support structu re grounded in the unshakable foundation of hope, braced by the determination of its unrelenting youth and held up by the
strong will of the people of Pakistan. Despite the onslaught of crippling natural disasters, and innumerable strains of huge proportions, Pakistan stays gallantly resilient. TiECON Pakistan 2011 provided the platform for visionaries and leaders to give direction to this resilient nation. With the help of shared ideas, segments of interactive discussions and activities c on d u c t ed b y o u r c l u s te r o f entrepreneurial gurus, TiECON Pakistan 2011 has served as the pivot to the
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Organizing Committee of TiECON 2011
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Ticon Pakistan 2011 - Event Report
Rastgar & Co being socially responsible always came with new ideas to involve youth of Pakistan in business activities not only for the betterment of student but also for the betterment of whole nation. This socially responsible attitude excited top management of R & Co to come up with a new business Idea “START A BUSINESS with CASE Backhoe” at TiECON 2011: Bounce Back to engage young entrepreneurs in Construction Industry with tremendous business opportunities because of various reasons. Rastgar & Co displayed its multipurpose Case Backhoe at TiECON which attracted students and delegates a lot. All of them praised Backhoe and found it an interesting machine to grab opportunity in construction and start their own business. entrepreneurial verve which will help Pakistan Bounce Back!" Small enterprises are the backbone of c ount ry ’s fr ag ile ec onomy and policymakers should utilise their all out efforts to stable economy so that youngster s can star t th eir ow n businesses without any fear of loss. These views were expressed by speakers a t t h e c ou nt ry ’s fi r st b i gg es t Entrepreneurs’ Conference organized by TiECON. “The youth avoid hard work and generating fresh ideas on the pretext of lack of opportunities for them due to the country’s economic mess. But this attitude hampers their growth,” said Rastgar Group Chairman Imtiaz Rastgar while addressing the participants on the occasion. Lauding the efforts of TiECON for bringing the youth on one platform, Rastgar stated th at TiE CON was providing youngsters an opportunity to s e ek h el p f r o m t h e l ea d i n g entrepreneurs present in the conference. “The youngsters should lose the fear of loss in business and should implement their ideas by starting their own businesses. We will have to remove egos from our society to encourage everyone to do something as false beliefs are the main cause of unemployment in our country. I am the son of a landlord and how can I open a utility store? We should get rid of this mentality. But at the same time, no one can ignore the reality of lack of opportunities in our country,” he said.
Man y Top companie s of Pakistan exhibited their stall at TiECON to attract budding entrepreneurs in their field of b usi ness. J ang Gr ou p, Hash oo Foundatio n, Channel-7, WiTribe , Rastgar & Co etc. Rastgar & Co being socially responsible always came with new ideas to involve youth of Pakistan in business activities not only for the betterment of student but also for the betterment of whole nation. This socially responsible attitude excited top management of R & Co to come up with a new business Idea “START A BUSINESS with CASE Backhoe” at TiECON 2011: Bounce Back to engage young entrepre neurs in Construction Industry with tremendous busin ess opportunities because of various reasons. Rastgar & Co displayed its multipurpose Case Backh oe at T iE CON which attracted students and delegates a lot. All of them praised Backhoe and found it an inte resting machine to grab opportunity in construction and start their own business. The Indus Entrepreneurs (TiE) is a global nonprofit organization focused on p rom oting entrepreneu rsh ip. Established in 1992 by executives from Silicon Valley, TiE has grown into a vibrant and professional voluntary or g an iz at io n d ed i ca t ed t o t h e advancement of entrepreneurship. There are currently more than 13,000
Automark Magazine | June-2011 45
members and over 2,5 00 charter members in 56 chapters across 13 countrie s. TiE’s Pakistan chapters comprise of over sixty of the country's pre-eminent business leaders and CEO’s as Charter Members. www.tie.org TiE Islamabad is one of the newer c hap ters of Ti E fam ily. It w as inaugurated in June, 2008 by The Honorable Prime Minister of Pakistan, Mr. Syed Yousaf Raza Gillani. It was nom in ated a s ‘Th i nk Ta nk on Entrepreneurship’ for Government of Pakistan. TiE Islamabad is equipped with an extraordinary team of successful entrepreneurs and professionals that are determined to harness and promote budding and current entrepreneurs hailing from the Federal Capital. Ms. Sarah Hashwani is president of TiE Islamabad addressed audience on Telephone The message emanating from TiCON can be summed up as follows: If Pakistan has to come out of its economic difficulties, the citizens have to act as engines of growth; and the road to successful business lies in honest, upright, state forward ethical business and not in under-the-table deal s. In short, through mentoring, networking and educatin g, TiE CON hopes to highlight the importance of promoting and encouraging entrepreneurship, and the crucial role that it can play in putting Pakistan on the path of prosperity.
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Face to Face - Interview
Seen in the photograph from (right to left) is Mr. Imtiaz Rastgar, CEO Rastgar Group & CBI External expert, Mr. Mr. Peter van der Sman, Senior Consultant for CBI, Mr. Maqsood Zulfqar, Director Rastgar & Company (Pvt.) Ltd.,and Mr. Shahid Ahmed, Director FD&C (Pvt) Ltd.
An Exclusive Interview with Mr. Peter van der Sman, Senior Consultant for CBI by M. Hanif Memon This year we are celebrating our 40 years anniversary, and ever since our foundation has been done with a document by the Dutch government that is to follow the decision from the United Nations where the industrial countries must allocate 7.5% of their national income for the development corporation or what we call development aid, but what we see nowadays that very few countries kept on their promise. Most of the sophisticated countries in Europe like Germany, Italy, UK but also Canada and Japan are the part of this campaign. Countries like Holland are spending 4 to 5 billion euro every year for this program. CBI is an agency of the Ministry of Foreig n Affairs and part of the development cooperation effort of the Netherlands.
The organization has four
departments dealing with: Market information and training; Export coaching; Institutional develo pm ent o f business support organizations; General affairs and accounting. CBI closely monitors developments in more than 30 European markets. Below is a list of all markets monitored by CBI. There never will be a CBI policy to transfer funds, as we are a technical assistance organization only. We also spend this money in the case of emergency line earthquake or flood relief work, preferably we perform services. CBI is among one of the organizations that take money from the government. There are other several organizations that are working for developme nt countries and they take the money from t h e g o ve r n m en t. O ne of t h e organizations is making water wells in
Indonesia. CBI contributes to sustainable economic development in developing countries through the expansion of exports from these countries. CBI is the expert in export development and export promotion from developing countries. We have a solid network of international stakeholders. Our contribution consists of sustainable strengthening of the competitiv e ca pacit y of SME ex porters a nd producers in developing countries, focusing primarily on Eur op ean markets. We achieve this by offering an integrated approach, which is applicable to c o m p a n i e s, b u si n e ss s u p p o r t organizations and governm ental authorities. Our core competence is three fold:
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Face to Face - Interview
The Centre for the Promotion of Imports from developing countries (CBI) was established in 1971. 1- Prepare 2- Research 3- Strategize 4- Promote 5- Trade 6- Consolidate 7- expand advice, counseling and knowledge management. CBI is able to provide technical assistance in improving products and production processes that contribute to the competitiveness on the EU markets. Quality is of main concern to the consu me rs and end users in the European Union. There are multiple rules, regulations and standards on quality (originating from) stipulated by t h e Eu r op ean U nion, nat iona l governments, trade & industry, nongovernmental organizations, etc. CBI is able to coach exporters and business support organizations in meeting the requirements in this regard. CBI is able to provide technical assistance and training on improving export marketing and management knowledge and skills within companies and business support organizations. CBI has tasks to support companies in development countries to prepare them to export to Europe Union, still we don’t find in Europe we don’t find similar organization like CBI. CBI is a unique organization in Europe, now what we h ave done over th e year s, our organization is not innovative but they have adjusted the way of workin g o p e r a t i o n a nd c h a n g i n g t h e circumstance over the time and certain way they are innovative. Now we have export coaching programs of a number of product gro ups like for textile, furniture, electronic components, Cut flowers and foliage,fishery products and food ingredients, for technical programs, we have five or six different programs one is for foundry workshop, pipe and process equipment there are al so automotive parts, we have covered every technical aspect except machine tools.
Upon a question that CBI is helping countries to export to Europe only. He said no CBI objective is not setup, it’s to stimulating the economy and of the Europe, this is development aid money, so the objective is to stimulate the economy here in Pakistan and other development countries. The next is export coaching program what we call integrate program it starts for a particular country and we identify those companies in the development countries who can export or almost ready. The CBI supports the most export-ready participants and then we ask lot of question when they qualify then we send one of the consultant of the CBI, when I say consultant of the CBI all those consultants are not employee of the organization, we have very small group who co-ordinate the administration. Most of the works done by outside consultants are those who have their own companies or individual but they are specialist in their particular field. We have 150 consultants working for CBI in Europe, and nowadays we also have local consultants in host countries, like Mr. Imtiaz Rastgar is our consultant in Pakistan. So the companies which we select are assigned to one of the European consultant and we start that program, then we do the auditing, we make an improvement plan. We give the time to them, when we come back and we look at the improvements. These all services are free and CBI is spending money on this project, we don’t ask them to return the money.
What are the requirements for companies to participate in CBI program? They should have work force of less than
500 people, they should not be part of multin ational , we only Stimulate program for local companies, it may be a government organization and they have to be motivated.
With CBI, I am proud to be working with this organization since the last 24 years. We are employees of CBI and we charge them, we are not retired people. Which countries are taking more benefits from these programs? India is the one of the country which takes maximum benefits from those programs, you can say, Developments are very fast, since the last 15 years, and that time the only thing is missing is a sense of qu al ity, Import duties were very high so the consumers had to buy whatever was available, they didn’t have any choice and they had to accept the product whether they were of good quality or not.
In my personal opinion, Pakistan can take huge benefits from this service, there are ample opportunities for Pakistan as they are many small scale industries over here, and the market is huge, the companies here have access to resources but they lack in standards and quality control which is the utmost requirement for EU. By taking advantage of the CBI program like India we can increase our export tenfold, reduce unemployment and sure contribute to the failing economy.
Centre for the Promotion of Imports from developing countries
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Automotive Sector - Exclusive Article
by Rashid Raza From Pakistan Rubber & Tyre Co. (Bridgestone - Pakistan)
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Automotive Sector - Exclusive Article
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MADE MADEIN INPAKISTAN PAKISTANMOTORCYCLES MOTORCYCLES PRICE LIST LIST RETAIL PRICE
70cc Motorcycle
Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.
Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Challenger BA-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70
Retail Price Rs. 42,500/= Rs. 41,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 40,000/= Rs. 49,000/= Rs. 39,000/= Rs. 45,000/= Rs. 41,000/= Rs. 41,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 65,500/= Rs. 42,000/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 44,800/= Rs. 40,000/=
Sr./ No. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.
Product & Model Name Pak Hero PH-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Star DL-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70
Automark Magazine | June-2011
Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 41,000/= Rs. 41,000/= Rs. 42,500/= Rs. 41,500/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 40,500/= Rs. 40,500/= Rs. 45,000/= Rs. 41,000/= Rs. 40,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 42,000/=
Price updated June-2011 50
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MADE IN PAKISTAN MOTORCYCLES PRICE LIST
125cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand & Model Name Habib HB-125 Sitara ST-125 Super Star SS-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II
Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 75,000/= Rs. 89,500/= Rs. 111,000/= Rs. 77,000/= Rs. 78,000/=
Yamaha Motorcycle Sr./ Product & Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale
Retail Price Rs. 75,900/= Rs. 72,000/= Rs. 72,900/=
100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7.
Brand &Model Name Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100
Retail Price Rs. 55,500/= Rs. 55,000/= Rs. 73,900/= Rs. 55,000/= Rs. 55,000/= Rs. 55,000/= Rs. 60,000/=
Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5.
Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-125 Suzuki GS-150 Suzuki Shogan
Automark Magazine | June-2011 51
Retail Price Rs. 69,000/= Rs. 72,000/= Rs. 82,900/= Rs. 89,100/= Rs. 79,500/=
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