EDB discusses sheet industry progress
By our correspondent
KARACHI: A meeting of Engineering Development Board (EDB) was held in Islamabad on Wednesday under the chairmanship of Imtiaz Rastgar, CEO, to discuss the availability, quality, price fluctuations, reduction of production cost and growth of sheet industry.
Representatives of Pakistan Steel Mills, People Steel Mills, auto assemblers, pipe & home appliance manufacturers, CBR, commerce ministry and Planning Commission attended it. The participants appreciated the role of EDB in providing tariff protection to the industry in the current budget and hoped that it will facilitate them in finding solutions of their problems.
Rastgar called upon the industry to improve its competitiveness in order to play its role in world market. The reduction of duties on raw material in the current budget was the first step in this direction, he added.
He underlined the importance of small scale industry in the progress of the country. He said that EDB had surveyed the potentials of the SMEs in engineering sector in various cities of the country, in order to facilitate their growth.
The people sitting in small towns like Daska, Sahiwal, Okara, Mian Chunno need government support at least in availability of raw material at low price, he said and criticised the steel policy of the country and said that many foreign investors had packed up, as it revolved around Pakistan Steel Mills.
The participants severely criticised the performance of Pakistan Steel Mills and raised many questions about its quality of production and delivery schedules. The representative of the Steel Mills admitted that they were meeting only 23 per cent demand of the industry and the rest was imported.
The industry demanded abolition of NOC requirement by Pakistan Steel Mills for import. They supported the ideas of transfer of the function to neutral organisation like EDB. The industry representative also suggested establishment of coil centres in big cities, material and steel banks. The industry also demanded availability of cheap land for establishing production units. They were of the view that their expansion plans were withheld on account of higher cost of land.
http://www.thenews.com.pk/daily_detail.asp?id=19990
Vendors face labour shortage as carmakers eye Pakistan
By Saad Hasan
KARACHI: Automotive parts’ suppliers in Pakistan are facing a dearth of skilled workforce at a time when opportunity to capture lucrative contracts from foreign car assemblers is just around the corner.
Japanese automakers are gearing up to outsource their parts manufacturing from Pakistan, which has recently come under the limelight of their European counterparts. Director of Japan External Trade Organization (JETRO) Shinichiro Ashizawa told The News that carmakers from his home country, other than those already having operations in Pakistan, were interested in expanding business, primarily attracted by increase in annual production of vehicles now nearing 200,000.
Also, recently their European counterparts announced to make roots into Pakistan, which Ashizawa conceded was one of the reasons for renewed Japanese interest in the country. But local vendors deplore that years of neglect on the part of successive governments has weakened the foundations of the vending industry, which is still dependent on old production techniques and has no experience in tools and dies making - the most essential component in vending business.
While Pakistan is facing a lack of trained workmen, Indian automobile industry has grown leaps and bounds over the years and now enjoys a position where the country provides end-to-end services from designing auto parts to production of made-in-India vehicles.
The story of Indian success can be traced back to early 1950s when it opened polytechnic institutes to upgrade labour skills. Four decades later, European auto giants are contracting Indian firms to design and manufacture auto parts.
But now the automobile industry is driven by cost competitiveness unlike previous years when Detroit served as a symbol of pride for United States’ cars, placing Pakistani vendors in a favourable position with their relatively cheap auto parts.
Domestic vending industry is catching up slowly. It has started to concentrate on skill development of workforce and is on its way to train people in making tools, dies and moulds indigenously.
Almas Haider, Chairman Technical Up-gradation and Skill Development Corporation (TUSDEC), Lahore, is optimistic about the future. “Currently, our auto parts are least value-added but as soon as we start producing more refined workforce, impact will start to emerge,” he said.
Local vending industry has expanded in numbers in recent years since the biggest carmaker, Pak Suzuki, established its production plant near Karachi in the 80s. It is using most of the localized products of these vendors and one such part manufacturer has even elevated himself to a higher rank with the launch of first Pakistani car - Revo. Almas, who has been in the vending business for the last 26 years, believes that the local vending industry is one step behind India.
“Such institutes are being set up throughout Pakistan now,” he said referring to Karachi Tools, Dies and Moulds Centre (KTDMC) - a project of the Ministry of Industries. “In two years, these training centres will start to bear fruit.”
He said only a few vendors could afford to import dies and moulds for shaping plastic-made bumpers to steel doors and almost every component of external and internal car structure. Some 30,000 parts make up a car, which can more economically be produced on a large scale with local dies and moulds, he added.
“I have latest machinery in my workshop but I couldn’t find anyone to use them,” Muneer Bana, a vendor who has been assigned the task to head KTDMC said. “A die is a basic foundation for any car part and it should be 100 per cent accurate.”
Most of the vendors in Pakistan use low quality dies, which they are only able to make after several attempts, he said, adding that acquiring a die from abroad is not financially feasible at all.
Local vendors use outdated methods for making dies with little use of computer-based system for designing and manufacture of these dies, which have become a necessity these days, Bana said.
“Government understood the need of training workforce and in the initial stage two such centres are being set up, one in Karachi and the other in Gujranwala,” he said, adding the availability of skilled workforce would encourage him to induct latest die-making machines into business.
Imtiaz Rastgar, CEO Engineering Development Board (EDB), said a lot of businessmen are putting efforts into this initiative aimed at filling the gap, which has emerged over the years between Pakistani vendors and their regional counterparts.
Though demand for cars has increased in Pakistan following the introduction of liberal auto financing schemes brightening the prospects for industry’s further expansion, the yellow-cab controversy of 1991-92 still haunts one car parts’ supplier.
“We need consistency of government policy,” Mehdi Ali Rizvi, Vice Chairman, Pakistan Association of Automotive Parts and Accessories Manufacturers said, dilating on the outcome of import of yellow-cabs that literally paralysed the auto assemblers and allied industry.
http://www.thenews.com.pk/daily_detail.asp?id=19981
Full Version: Engineering news
EDB wants to expand motorbikes exports
From Our correspondent
ISLAMABAD - Chief Executive Officer of Engineering Development Board (EDB) Imtiaz Rastgar has said that motorcycle industry should concentrate on increasing export by penetrating in African, South African, Bangladeshi and Nepalese markets.
He was addressing the management of a leading motorcycle-manufacturing company at their Sheikhupura plant on Wednesday. He also briefed them about restructuring of EDB, its performance and future plans, a Press statement issued here by EDB said.
A briefing about activities of the Group, especially motorcycles manufacturing, was also given to him. He was told that the company has introduced the concept of 5S in which sale, spare parts, service, re-sale, financing and leasing services are provided under one roof through the network of the dealers.
It was in export business for last seven years but the number was nominal, he was informed.
The CEO appreciated its vendor improvement program (VIP), in which services of more than 300 vendors are evaluated and technical services provided to remove weaknesses.
He also expressed satisfaction over the achieving of 92 percent deletions by the company.
Rastgar was told that its CEO was in Japan currently to study the possibility of using worldwide network of the main company for providing services to the African countries.
He was also informed that motorcycle industry has the capacity of manufacturing of 1.5 million units annually, out of which its share is 7 lakhs.
Only 50 percent capacity of the industry was being used currently. The company was manufacturing 2,000 motorcycles daily and it takes only 35 seconds to assemble one unit.
Later, Rastgar noted that almost the whole workforce was in their 20s and had technical education background. He also praised its Human Resource development policy.
From Our correspondent
ISLAMABAD - Chief Executive Officer of Engineering Development Board (EDB) Imtiaz Rastgar has said that motorcycle industry should concentrate on increasing export by penetrating in African, South African, Bangladeshi and Nepalese markets.
He was addressing the management of a leading motorcycle-manufacturing company at their Sheikhupura plant on Wednesday. He also briefed them about restructuring of EDB, its performance and future plans, a Press statement issued here by EDB said.
A briefing about activities of the Group, especially motorcycles manufacturing, was also given to him. He was told that the company has introduced the concept of 5S in which sale, spare parts, service, re-sale, financing and leasing services are provided under one roof through the network of the dealers.
It was in export business for last seven years but the number was nominal, he was informed.
The CEO appreciated its vendor improvement program (VIP), in which services of more than 300 vendors are evaluated and technical services provided to remove weaknesses.
He also expressed satisfaction over the achieving of 92 percent deletions by the company.
Rastgar was told that its CEO was in Japan currently to study the possibility of using worldwide network of the main company for providing services to the African countries.
He was also informed that motorcycle industry has the capacity of manufacturing of 1.5 million units annually, out of which its share is 7 lakhs.
Only 50 percent capacity of the industry was being used currently. The company was manufacturing 2,000 motorcycles daily and it takes only 35 seconds to assemble one unit.
Later, Rastgar noted that almost the whole workforce was in their 20s and had technical education background. He also praised its Human Resource development policy.
Bike production to hit 800,000 this year
Manufacturers increase to 50, more seeks licence
By Imran Ayub
KARACHI: The number of motorcycle manufacturers in the country has reached 50 as majority of the local producers have acquired Chinese technology and are expected to produce 800,000 bikes by December 2006.
A top official said that the government offered manufacturing licences in May 2006 but there were still several players, with both local and foreign investments, waiting to get a nod from the authority concerned.
“A meeting of our body was held before the federal budget 2006-07 in which licences were awarded to the interested parties, which increased the number of local motorcycle manufacturers to 50,” said Imtiaz Rastgar, Chief Executive Officer of Engineering Development Board (EDB).
“Since the announcement of budget we have not yet issued a single licence, but our policy is to expand the local market for both local and international players in a bid to increase competition and enhance quality.”
He said less than half a dozen motorcycle manufacturers were operating with Japanese technology as most of the new entrants preferred to adopt Chinese techniques of motorcycle production.
“Now those manufacturers with Japanese technology are planning to expand their production capacity to compete in the market,” said Rastgar.
The country’s motorcycle production industry started witnessing phenomenal growth some three years ago, when several local assemblers acquired Chinese technology with most of the production units set up in different industrial estates of Punjab.
By the end of 2005, some 35 assemblers were producing different categories of motorbikes in different industrial estates. Pak Hero Industries, Atlas Honda, Pakistan Cycle Industrial Co-operative Society Limited, Saigols Qingqi Motors Limited, Excel Industries, New Asia Automobiles, United Sales, Blue Star Automobile, Pacific Motor Company Limited, HKF Engineering (Pvt) Limited, Sazgar Engineering Works Limited, Star Asia and Zxmco Pakistan enjoyed the major market share by the end of last calendar year.
Similarly, Suzuki Motorcycle Pakistan Limited, Dawood Yamaha Limited, Dewan Motorcycles Limited, Ahmed Automobile Company, NJ Auto Industries, Sitara Auto Impex and AB Engineering also designed plans to produce different-styled motorbikes last year.
The EDB chief said there were several other players who were interested in investing in the country’s auto industry and they would enter the market by the end of current financial year.
He said increase in Chinese motorcycle brands had pushed the Japanese assemblers to increase their interests in Pakistan and plan fresh investment strategy for the country.
“It is our market expansion policy, which encouraged Honda Atlas to set up a new motorcycle assembly plant in Lahore to meet growing demand,” added Rastgar.
Like Honda, he said, other foreign manufactures of motorcycles in Pakistan would also increase their capacity in the days to come.
Honda a few months ago set up a new $39.13 million motorcycle production plant in Lahore. The new plant would increase company’s combined annual production to 500,000 motorcycles from the current 400,000 motorcycles.
In 2005-06 total seven foreign assemblers managed to sell 516,640 pieces of the product compared to 417,066 sold out in 2004-05. The assemblers produced total 520,124 motorcycles during 2005-06 compared to 416,189 manufactured in 2004-05.
http://www.thenews.com.pk/daily_detail.asp?id=21863
Manufacturers increase to 50, more seeks licence
By Imran Ayub
KARACHI: The number of motorcycle manufacturers in the country has reached 50 as majority of the local producers have acquired Chinese technology and are expected to produce 800,000 bikes by December 2006.
A top official said that the government offered manufacturing licences in May 2006 but there were still several players, with both local and foreign investments, waiting to get a nod from the authority concerned.
“A meeting of our body was held before the federal budget 2006-07 in which licences were awarded to the interested parties, which increased the number of local motorcycle manufacturers to 50,” said Imtiaz Rastgar, Chief Executive Officer of Engineering Development Board (EDB).
“Since the announcement of budget we have not yet issued a single licence, but our policy is to expand the local market for both local and international players in a bid to increase competition and enhance quality.”
He said less than half a dozen motorcycle manufacturers were operating with Japanese technology as most of the new entrants preferred to adopt Chinese techniques of motorcycle production.
“Now those manufacturers with Japanese technology are planning to expand their production capacity to compete in the market,” said Rastgar.
The country’s motorcycle production industry started witnessing phenomenal growth some three years ago, when several local assemblers acquired Chinese technology with most of the production units set up in different industrial estates of Punjab.
By the end of 2005, some 35 assemblers were producing different categories of motorbikes in different industrial estates. Pak Hero Industries, Atlas Honda, Pakistan Cycle Industrial Co-operative Society Limited, Saigols Qingqi Motors Limited, Excel Industries, New Asia Automobiles, United Sales, Blue Star Automobile, Pacific Motor Company Limited, HKF Engineering (Pvt) Limited, Sazgar Engineering Works Limited, Star Asia and Zxmco Pakistan enjoyed the major market share by the end of last calendar year.
Similarly, Suzuki Motorcycle Pakistan Limited, Dawood Yamaha Limited, Dewan Motorcycles Limited, Ahmed Automobile Company, NJ Auto Industries, Sitara Auto Impex and AB Engineering also designed plans to produce different-styled motorbikes last year.
The EDB chief said there were several other players who were interested in investing in the country’s auto industry and they would enter the market by the end of current financial year.
He said increase in Chinese motorcycle brands had pushed the Japanese assemblers to increase their interests in Pakistan and plan fresh investment strategy for the country.
“It is our market expansion policy, which encouraged Honda Atlas to set up a new motorcycle assembly plant in Lahore to meet growing demand,” added Rastgar.
Like Honda, he said, other foreign manufactures of motorcycles in Pakistan would also increase their capacity in the days to come.
Honda a few months ago set up a new $39.13 million motorcycle production plant in Lahore. The new plant would increase company’s combined annual production to 500,000 motorcycles from the current 400,000 motorcycles.
In 2005-06 total seven foreign assemblers managed to sell 516,640 pieces of the product compared to 417,066 sold out in 2004-05. The assemblers produced total 520,124 motorcycles during 2005-06 compared to 416,189 manufactured in 2004-05.
http://www.thenews.com.pk/daily_detail.asp?id=21863
Foundry industry aims to enhance quality
By our correspondent
LAHORE: Pakistan’s foundry and casting industry is poised to appear on international manufacturing map in a big way after putting extra focus on research and development and technology upgradation initiatives.
In a bid to attract buyers from west and other countries and increase interaction for enhancing quality of production, the Pakistan Foundry Association (PFA) is going to arrange the first ever symposium on foundry in Pakistan - “International Foundry Congress & Exhibition-(IFCE)”, from December 5-6, 2006 in Lahore.
The Congress will be attended by prominent speakers from different countries sharing their experiences and focusing on the most modern techniques adopted in the foundry industry worldwide.
This was informed in a press conference here on Monday at a local hotel which was addressed by Sikandar Mustafa Khan President Pakistan Foundry Association, Imtiaz A Rastgar CEO Pakistan Engineering Board, Aasim Qadri Secretary General PFA and leading industrialist Laeeq Uddin Ansari.
Speaking on the occasion, Sikandar Mustafa Khan said the Congress is set to attract delegates from automobile and engineering industry, Defence, Technology suppliers and seekers, trade delegations, R & D Institutions, consultants and many others.
He added that besides the Congress, an Exhibition will also be running side-by-side where exhibitors from engineering sector will be exhibiting their core competence in the foundry industry.
He maintained that IFCE-2006 has been supported by World Foundry Organization (WFO) and has invited participants from England, Iran, Turkey , India , China and Japan .
Jehangir Khan Tareen, Federal Minister for Industries, Production and Special Initiatives, would preside the inaugural session. Imtiaz A Rastgar said Foundry Congress & Exhibition is designed to act as a catalyst to research development and technology up gradation initiatives in Pakistan and will provide an opportunity for participants to interact with industry experts of the world.
He said strengthening of foundry industry was indispensable for promotion of whole engineering sector as it played a fundamental role for manufacturing sector. He expressed the hope that a quantum jump in exports of engineering products was on the card. He added that various incentives had been given to manufacturing sector in order to reduce input cost and increase productivity. He said ministry of industries would support domestic foundry and casting industry in getting international exposure in order to get export orders.
Aasim Qadri, Secretary General PFA, said this mega event will also include two-day technical session and provide opportunity to have one-on-one meetings besides a series of industrial tour.
The technical session will highlight latest developments in the castings industries worldwide, along with identification and resolution of the issues faced by foundry men looking to succeed as part of the global supply chain. It will also be an opportunity to showcase the benefits of casting process as manufacturing route to designers and engineers.
He said membership of Pakistan Foundry Association is also open for all foundries of the country. Laeeq Uddin Ansari of Bolan Casting said massive capacity enhancement was being done by local industry to enter into international market.
http://www.thenews.com.pk/daily_detail.asp?id=22652
By our correspondent
LAHORE: Pakistan’s foundry and casting industry is poised to appear on international manufacturing map in a big way after putting extra focus on research and development and technology upgradation initiatives.
In a bid to attract buyers from west and other countries and increase interaction for enhancing quality of production, the Pakistan Foundry Association (PFA) is going to arrange the first ever symposium on foundry in Pakistan - “International Foundry Congress & Exhibition-(IFCE)”, from December 5-6, 2006 in Lahore.
The Congress will be attended by prominent speakers from different countries sharing their experiences and focusing on the most modern techniques adopted in the foundry industry worldwide.
This was informed in a press conference here on Monday at a local hotel which was addressed by Sikandar Mustafa Khan President Pakistan Foundry Association, Imtiaz A Rastgar CEO Pakistan Engineering Board, Aasim Qadri Secretary General PFA and leading industrialist Laeeq Uddin Ansari.
Speaking on the occasion, Sikandar Mustafa Khan said the Congress is set to attract delegates from automobile and engineering industry, Defence, Technology suppliers and seekers, trade delegations, R & D Institutions, consultants and many others.
He added that besides the Congress, an Exhibition will also be running side-by-side where exhibitors from engineering sector will be exhibiting their core competence in the foundry industry.
He maintained that IFCE-2006 has been supported by World Foundry Organization (WFO) and has invited participants from England, Iran, Turkey , India , China and Japan .
Jehangir Khan Tareen, Federal Minister for Industries, Production and Special Initiatives, would preside the inaugural session. Imtiaz A Rastgar said Foundry Congress & Exhibition is designed to act as a catalyst to research development and technology up gradation initiatives in Pakistan and will provide an opportunity for participants to interact with industry experts of the world.
He said strengthening of foundry industry was indispensable for promotion of whole engineering sector as it played a fundamental role for manufacturing sector. He expressed the hope that a quantum jump in exports of engineering products was on the card. He added that various incentives had been given to manufacturing sector in order to reduce input cost and increase productivity. He said ministry of industries would support domestic foundry and casting industry in getting international exposure in order to get export orders.
Aasim Qadri, Secretary General PFA, said this mega event will also include two-day technical session and provide opportunity to have one-on-one meetings besides a series of industrial tour.
The technical session will highlight latest developments in the castings industries worldwide, along with identification and resolution of the issues faced by foundry men looking to succeed as part of the global supply chain. It will also be an opportunity to showcase the benefits of casting process as manufacturing route to designers and engineers.
He said membership of Pakistan Foundry Association is also open for all foundries of the country. Laeeq Uddin Ansari of Bolan Casting said massive capacity enhancement was being done by local industry to enter into international market.
http://www.thenews.com.pk/daily_detail.asp?id=22652
Japanese cos invested $100m in 3 years
Staff Report
LAHORE: Japanese Ambassador to Pakistan Seiji Kojima has said that Japanese companies have invested more than $100 million in Pakistan over the last three years.
"I hope that the volume of Japanese investment in Pakistan, particularly in the automobile sector, will increase further in the near future," he said while speaking at a seminar on "Global Challenges for Corporate Sector" at a local hotel on Tuesday.
Punjab Secretary Commerce and Investment Saeed Ahmad Alvi and Lahore Chamber of Commerce and Industry (LCCI) President Mian Shafqat Ali were also present on the occasion.
The Japanese ambassador hoped that with the expanding demand for automobiles in this part of the world Japanese vendors and suppliers would also invest here.
"This will improve the production quality of the local vendor industries that are still dependent upon old production techniques," he said. Mr Kojima said that Pakistan's automobile sector has a great potential for growth. Higher quality standards, he added, would help the Pakistani automobile sector to target the international market besides meeting the domestic demand. The Japanese ambassador said that both Japan and Pakistan need to work together to further promote their bilateral economic relations to survive the tide of globalization. He said that the volume of Japan's exports to Pakistan had increased from $500 million in the year 2001 to $1.5 billion in 2005. However, the volume of Pakistan's exports to Japan decreased from $600 million in 1995 to only $143 million in 2005, he regretted.
Enumerating the ways to rectify this situation, Mr Kojima said that the corporate sector must strive to improve its competitiveness and increase its economic value addition to move up the technological ladder and become more innovative.
He said that the Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO), AOTS and other Japanese organizations could assist Pakistani small and medium enterprises through human resource development and technology transfer. "In this connection the JICA has contributed to imparting technical skills on plastic mould to the Pakistan Industrial Technical Assistance Centre (PITAC), Lahore," the envoy said.
http://www.dailytimes.com.pk/default.asp?p..._6-9-2006_pg5_3
Staff Report
LAHORE: Japanese Ambassador to Pakistan Seiji Kojima has said that Japanese companies have invested more than $100 million in Pakistan over the last three years.
"I hope that the volume of Japanese investment in Pakistan, particularly in the automobile sector, will increase further in the near future," he said while speaking at a seminar on "Global Challenges for Corporate Sector" at a local hotel on Tuesday.
Punjab Secretary Commerce and Investment Saeed Ahmad Alvi and Lahore Chamber of Commerce and Industry (LCCI) President Mian Shafqat Ali were also present on the occasion.
The Japanese ambassador hoped that with the expanding demand for automobiles in this part of the world Japanese vendors and suppliers would also invest here.
"This will improve the production quality of the local vendor industries that are still dependent upon old production techniques," he said. Mr Kojima said that Pakistan's automobile sector has a great potential for growth. Higher quality standards, he added, would help the Pakistani automobile sector to target the international market besides meeting the domestic demand. The Japanese ambassador said that both Japan and Pakistan need to work together to further promote their bilateral economic relations to survive the tide of globalization. He said that the volume of Japan's exports to Pakistan had increased from $500 million in the year 2001 to $1.5 billion in 2005. However, the volume of Pakistan's exports to Japan decreased from $600 million in 1995 to only $143 million in 2005, he regretted.
Enumerating the ways to rectify this situation, Mr Kojima said that the corporate sector must strive to improve its competitiveness and increase its economic value addition to move up the technological ladder and become more innovative.
He said that the Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO), AOTS and other Japanese organizations could assist Pakistani small and medium enterprises through human resource development and technology transfer. "In this connection the JICA has contributed to imparting technical skills on plastic mould to the Pakistan Industrial Technical Assistance Centre (PITAC), Lahore," the envoy said.
http://www.dailytimes.com.pk/default.asp?p..._6-9-2006_pg5_3
Manufacturing units to get TUSDEC assistance
By our correspondent
LAHORE: The proposed Technology Up-gradation and Skill Development Fund (TUSDEF) with seed money of Rs1 billion will extend financial assistance to the manufacturing units for technology up-gradation and skill development.
This was informed in a meeting, which was held at TUSDEC head office to discuss the modalities of the proposed fund. Arif Kitchlew, Director Financial Services, TUSDEC, gave a presentation on the proposed fund and said that the basic idea behind the concept was to create the need of a fund that will provide financial assistance to the manufacturing industry of Pakistan.
It was told that TUSDEC Fund would enable entrepreneurs and industry to source funds with minimal security after ensuring its feasibility with the financial institutions. The R&D team at TUSDEC will identify sectors where fund could help enhance technology.
The participants of the meeting were of the view that sector analysis will form grounds for quantum of investment that will be required from the Fund. Furthermore, TUSDEC will devise different mechanisms/products in order to ensure equal benefit to all the firms. It was decided to carry out more focused research on the modalities of the fund in consultation with various potential stakeholders of this facility.
The meeting was attended among others by Avais Mazhar Hussain, Director, TUSDEC; Farooq Hassan Gillani, Advisor to Secretary Finance, nominated by the Ministry of Finance; Manzar Shamim, CEO, DDFC; Rana Shahzad Hafeez, CEO,NM Corporation; Dr Shahzad Alam and Javaid Iqbal nominated by the Ministry of Science & Technology; Waqar Ajmal, Corporate Head North, Standard Chartered Bank; Anwar Sheikh, Central Regional Head, Askari Commercial Bank; Tahir Ejaz, AVP Lahore Habib Bank Limited.
Suhael Ahmed, MD, Arif Kitchlew, Director Financial Services, and Ahsan Malik, Director Communications & Linkages, represented TUSDEC.
http://www.thenews.com.pk/daily_detail.asp?id=22779
Iron, steel institute to produce skilled manpower
By our correspondent
LAHORE: CEO Engineering Development Board Imtiaz Rastgar has said establishment of Pakistan Iron and Steel Institute will go a long way in meeting the demand of the industry and will especially ease the dearth of skilled manpower.
He was addressing a meeting of founder members of the Iron and Steel Institute here on Tuesday.
Imtiaz Rastgar, who is also chairman of the institute, underlined the importance of steel sector in the development of the country, adding the industry was facing severe shortage of skilled manpower and the institute would go a long way in meeting the demand of the industry.
He reiterated the support of the Engineering Development Board for the development of steel industry and its linkages with world supply chain.
The institute, the first of its kind in Pakistan, is being established under publicñprivate partnership and each founder member has contributed Rs1 million for this purpose.
The government had earlier announced a matching grant for the project.
The meeting decided to expedite the completion of formalities and directed the draft articles and memorandum of the institute should be finalised for discussion in the next meeting in the first week of October.
The Pakistan Iron and Steel Institute is being established in the wake of a proposal floated by Jahangir Khan Tareen, Minister for Industries, Production and Special Initiatives in August last year.
He advised the industry to have a world class steel research and development institute. Since then, the industry has been striving hard to set up the institute. The EDB is assisting the founder members in this regard.
http://www.thenews.com.pk/daily_detail.asp?id=22787
By our correspondent
LAHORE: The proposed Technology Up-gradation and Skill Development Fund (TUSDEF) with seed money of Rs1 billion will extend financial assistance to the manufacturing units for technology up-gradation and skill development.
This was informed in a meeting, which was held at TUSDEC head office to discuss the modalities of the proposed fund. Arif Kitchlew, Director Financial Services, TUSDEC, gave a presentation on the proposed fund and said that the basic idea behind the concept was to create the need of a fund that will provide financial assistance to the manufacturing industry of Pakistan.
It was told that TUSDEC Fund would enable entrepreneurs and industry to source funds with minimal security after ensuring its feasibility with the financial institutions. The R&D team at TUSDEC will identify sectors where fund could help enhance technology.
The participants of the meeting were of the view that sector analysis will form grounds for quantum of investment that will be required from the Fund. Furthermore, TUSDEC will devise different mechanisms/products in order to ensure equal benefit to all the firms. It was decided to carry out more focused research on the modalities of the fund in consultation with various potential stakeholders of this facility.
The meeting was attended among others by Avais Mazhar Hussain, Director, TUSDEC; Farooq Hassan Gillani, Advisor to Secretary Finance, nominated by the Ministry of Finance; Manzar Shamim, CEO, DDFC; Rana Shahzad Hafeez, CEO,NM Corporation; Dr Shahzad Alam and Javaid Iqbal nominated by the Ministry of Science & Technology; Waqar Ajmal, Corporate Head North, Standard Chartered Bank; Anwar Sheikh, Central Regional Head, Askari Commercial Bank; Tahir Ejaz, AVP Lahore Habib Bank Limited.
Suhael Ahmed, MD, Arif Kitchlew, Director Financial Services, and Ahsan Malik, Director Communications & Linkages, represented TUSDEC.
http://www.thenews.com.pk/daily_detail.asp?id=22779
Iron, steel institute to produce skilled manpower
By our correspondent
LAHORE: CEO Engineering Development Board Imtiaz Rastgar has said establishment of Pakistan Iron and Steel Institute will go a long way in meeting the demand of the industry and will especially ease the dearth of skilled manpower.
He was addressing a meeting of founder members of the Iron and Steel Institute here on Tuesday.
Imtiaz Rastgar, who is also chairman of the institute, underlined the importance of steel sector in the development of the country, adding the industry was facing severe shortage of skilled manpower and the institute would go a long way in meeting the demand of the industry.
He reiterated the support of the Engineering Development Board for the development of steel industry and its linkages with world supply chain.
The institute, the first of its kind in Pakistan, is being established under publicñprivate partnership and each founder member has contributed Rs1 million for this purpose.
The government had earlier announced a matching grant for the project.
The meeting decided to expedite the completion of formalities and directed the draft articles and memorandum of the institute should be finalised for discussion in the next meeting in the first week of October.
The Pakistan Iron and Steel Institute is being established in the wake of a proposal floated by Jahangir Khan Tareen, Minister for Industries, Production and Special Initiatives in August last year.
He advised the industry to have a world class steel research and development institute. Since then, the industry has been striving hard to set up the institute. The EDB is assisting the founder members in this regard.
http://www.thenews.com.pk/daily_detail.asp?id=22787
Motorbike makers to eject investment
MONEM FAROOQI
LAHORE-The motorcycle manufacturers are planning to roll back some of their investment following the obstacles created by the enforcement of Tariff Based System (TBS) that had also intensified competition and eroded profitability, industry sources told The Nation on Thursday.
The industry sources said that the anomaly and confusion persisted in TBS implementation, which had been drafted in utter haste despite the fact that the Engineering Development Board (EDB) had taken two years in finalising the system as the board had been facing internal management problems.
These sources said that the TBS should not be implemented as unified as there were size variations among the manufacturing units.
Sources quoting SRO 656 said that EDB had yet to define the missing link for 8 per cent of the parts in the TBS for the exempted components, which include sub-components, components, sub-assemblies and assemblies but exclude consumables, imported in any kit form, for assembly or manufacture of vehicles.
Sources said that around 20 small and medium motorcycle makers producing 400 per month had been facing added stiff competition in sales, marketing and reduction of products’ prices had been compelling these units to wind up their plants.
Inam ul Haq, senior vice president Federation of Pakistan Chamber of Commerce and Industry (FPCCI) standing committee for Auto Industry and former secretary PAAPAM said that the current conditions would throw the small units out of this industry by the end of this year.
He said that local players were lamenting over the unnecessary delay in implementation of TBS. He said that TBS contained lot of confusion, which in fact was the continuation of the so-called replacement of the deletion programme.
The aggregate investment in the motorcycle industry has now reached Rs 4 billion, which could shed to Rs 2.5 billion if these companies back off, sources said.
The motorcycle makers said that with the induction of local companies in the motorcycle industry, people who could only purchase second-hand bikes might able to get a brand new locally manufactured bike at affordable prices.
Industry sources said that a ‘price war’ among all manufacturers had been taking its turn as the Honda has slashed its 70cc motorcycle price to Rs 52,000 from Rs 70,000 in just two years. “The ex-factory price of locally manufactured motorcycle ranges from Rs 33,000 to Rs 37,000, which ranged from Rs 35,000 to Rs 40,000 six months back,” said a dealer at Mcleod Road.
The industry players said that the giant-size motorcycle companies had also announced different incentives, or discount packages, for their dealers as well as customers, which have badly hurt the small investors, who could not offer such incentives. “Our dealers are asking for discount packages these days, besides giving indications that they would contact our business rivals for marketing of their motorcycles,” said a small manufacturer.
Market players said that a small motorcycle plant costs Rs 50 million, and if 20 units shut down operations, it would cause an aggregate loss of Rs 1 billion. Market sources said that the demand for motorcycles in the country stands at 200,000 units annually, and if the government gives free hand to local manufacturers, they could export their units as well by establishing their Research and Development (R&D) Department.
“We could export our motorbikes to South Africa and other countries, like Bangladesh, Sri Lanka and Nepal,” said a leading manufacturer, adding that the locally manufactured 125cc bikes would be appreciated in the European countries and United States if they would be provided conducive environment by the government.
http://www.nation.com.pk/daily/sep-2006/8/bnews1.php
MONEM FAROOQI
LAHORE-The motorcycle manufacturers are planning to roll back some of their investment following the obstacles created by the enforcement of Tariff Based System (TBS) that had also intensified competition and eroded profitability, industry sources told The Nation on Thursday.
The industry sources said that the anomaly and confusion persisted in TBS implementation, which had been drafted in utter haste despite the fact that the Engineering Development Board (EDB) had taken two years in finalising the system as the board had been facing internal management problems.
These sources said that the TBS should not be implemented as unified as there were size variations among the manufacturing units.
Sources quoting SRO 656 said that EDB had yet to define the missing link for 8 per cent of the parts in the TBS for the exempted components, which include sub-components, components, sub-assemblies and assemblies but exclude consumables, imported in any kit form, for assembly or manufacture of vehicles.
Sources said that around 20 small and medium motorcycle makers producing 400 per month had been facing added stiff competition in sales, marketing and reduction of products’ prices had been compelling these units to wind up their plants.
Inam ul Haq, senior vice president Federation of Pakistan Chamber of Commerce and Industry (FPCCI) standing committee for Auto Industry and former secretary PAAPAM said that the current conditions would throw the small units out of this industry by the end of this year.
He said that local players were lamenting over the unnecessary delay in implementation of TBS. He said that TBS contained lot of confusion, which in fact was the continuation of the so-called replacement of the deletion programme.
The aggregate investment in the motorcycle industry has now reached Rs 4 billion, which could shed to Rs 2.5 billion if these companies back off, sources said.
The motorcycle makers said that with the induction of local companies in the motorcycle industry, people who could only purchase second-hand bikes might able to get a brand new locally manufactured bike at affordable prices.
Industry sources said that a ‘price war’ among all manufacturers had been taking its turn as the Honda has slashed its 70cc motorcycle price to Rs 52,000 from Rs 70,000 in just two years. “The ex-factory price of locally manufactured motorcycle ranges from Rs 33,000 to Rs 37,000, which ranged from Rs 35,000 to Rs 40,000 six months back,” said a dealer at Mcleod Road.
The industry players said that the giant-size motorcycle companies had also announced different incentives, or discount packages, for their dealers as well as customers, which have badly hurt the small investors, who could not offer such incentives. “Our dealers are asking for discount packages these days, besides giving indications that they would contact our business rivals for marketing of their motorcycles,” said a small manufacturer.
Market players said that a small motorcycle plant costs Rs 50 million, and if 20 units shut down operations, it would cause an aggregate loss of Rs 1 billion. Market sources said that the demand for motorcycles in the country stands at 200,000 units annually, and if the government gives free hand to local manufacturers, they could export their units as well by establishing their Research and Development (R&D) Department.
“We could export our motorbikes to South Africa and other countries, like Bangladesh, Sri Lanka and Nepal,” said a leading manufacturer, adding that the locally manufactured 125cc bikes would be appreciated in the European countries and United States if they would be provided conducive environment by the government.
http://www.nation.com.pk/daily/sep-2006/8/bnews1.php
Govt plan to renegotiate agreements: Automobile export
By Ihtasham ul Haque
ISLAMABAD, Sept 11: The government is considering a proposal to ‘renegotiate’ existing agreements with foreign partners to permit export of cars and tractors from Pakistan.
Similarly, official sources told Dawn on Monday the government was contemplating another proposal, submitted by a group of experts, to encourage tripartite partnership amongst foreign investors, technology partners and local industrialists with assured work load.
But they urged the government to improve the country’s image in terms of law and order situation, environment, security, trained labour force, and cost of doing business.
These proposals were contained in the draft of "Technology - Based Industrial Vision and Strategy for Pakistan’s Socio-Economic Development" which was presented to the government for approval jointly by Pakistan Institute of Development Economics (PIDE) and Higher Education Commission/COMSTECH for substantially enhancing the share of industrial and engineering sectors.
Talking about the globalisation, the draft, a copy of which was also made available to Dawn, said that there was a need for relocation of industries from industrial countries to Pakistan by attracting large multinational companies to invest in Pakistan and make the country a hub of the global supply chain.
The government was also urged to make Saarc and Economic Cooperation Organisation (ECO) effective trade blocs.
It was advised to bridge the widening technological gap with the developed countries through invigoration of engineering industry by providing conducive environment including the required technological, financial and physical infrastructures, and creating a seamless integration with emerging trends of global production systems.
About the policy framework, the government was advised to formulate a long-term industrial policy with the consultation of stakeholders to avoid sadden business shocks.
The draft believes there is need to reform taxation system to ensure effective implementation of research and development tax benefits and timely tax refunds and that there is need to remove discrepancies/anomalies of preferential treatment of duty-free imports of products, particularly for infrastructure projects.
In this regard, the government was also urged to implement intellectual property laws and enforcement system and further rationalisation of tax and tariff regimes.
The government was also urged to invest $10-12 billion for increasing the share of industrial sector in GDP to 25 per cent and the share of engineering goods to 30 per cent of manufacturing by 2010.
This will provide goods of international quality at competitive prices for domestic and international markets, support other sectors of economy, and will facilitate in exploiting the niche in global translocation of industrial production.
To meet the target an investment of $10-12 billion would be required up to 2010, another $20-25 billion up to 2020 and $30-40 billion by 2030. It will initially generate employment for two million people.
If these joint proposals were accepted and implemented, the government was told that this would help increase the exports of engineering sector to $2 billon, $5 billion and $12 billion by 2010 and 2030 if low scenario of exports is assumed.
However, this can only be achieved through a growth-led strategy of value-added quality production.
The allocation of additional resources from the technology development fund, common facilities centres, technology centres and technical manpower development, the draft said, could take Pakistan to the path of rapid industrial development.
With continued cooperation between Central Board of Revenue (CBR) and the ministry of industries and production for further rationalisation of taxes, tariffs and SROs can positively affect the overall output of the country.
"Given the political will, commitment and patronage, it is possible to achieve these targets with full participation of the private sector stakeholders".
http://www.dawn.com/2006/09/12/ebr1.htm
By Ihtasham ul Haque
ISLAMABAD, Sept 11: The government is considering a proposal to ‘renegotiate’ existing agreements with foreign partners to permit export of cars and tractors from Pakistan.
Similarly, official sources told Dawn on Monday the government was contemplating another proposal, submitted by a group of experts, to encourage tripartite partnership amongst foreign investors, technology partners and local industrialists with assured work load.
But they urged the government to improve the country’s image in terms of law and order situation, environment, security, trained labour force, and cost of doing business.
These proposals were contained in the draft of "Technology - Based Industrial Vision and Strategy for Pakistan’s Socio-Economic Development" which was presented to the government for approval jointly by Pakistan Institute of Development Economics (PIDE) and Higher Education Commission/COMSTECH for substantially enhancing the share of industrial and engineering sectors.
Talking about the globalisation, the draft, a copy of which was also made available to Dawn, said that there was a need for relocation of industries from industrial countries to Pakistan by attracting large multinational companies to invest in Pakistan and make the country a hub of the global supply chain.
The government was also urged to make Saarc and Economic Cooperation Organisation (ECO) effective trade blocs.
It was advised to bridge the widening technological gap with the developed countries through invigoration of engineering industry by providing conducive environment including the required technological, financial and physical infrastructures, and creating a seamless integration with emerging trends of global production systems.
About the policy framework, the government was advised to formulate a long-term industrial policy with the consultation of stakeholders to avoid sadden business shocks.
The draft believes there is need to reform taxation system to ensure effective implementation of research and development tax benefits and timely tax refunds and that there is need to remove discrepancies/anomalies of preferential treatment of duty-free imports of products, particularly for infrastructure projects.
In this regard, the government was also urged to implement intellectual property laws and enforcement system and further rationalisation of tax and tariff regimes.
The government was also urged to invest $10-12 billion for increasing the share of industrial sector in GDP to 25 per cent and the share of engineering goods to 30 per cent of manufacturing by 2010.
This will provide goods of international quality at competitive prices for domestic and international markets, support other sectors of economy, and will facilitate in exploiting the niche in global translocation of industrial production.
To meet the target an investment of $10-12 billion would be required up to 2010, another $20-25 billion up to 2020 and $30-40 billion by 2030. It will initially generate employment for two million people.
If these joint proposals were accepted and implemented, the government was told that this would help increase the exports of engineering sector to $2 billon, $5 billion and $12 billion by 2010 and 2030 if low scenario of exports is assumed.
However, this can only be achieved through a growth-led strategy of value-added quality production.
The allocation of additional resources from the technology development fund, common facilities centres, technology centres and technical manpower development, the draft said, could take Pakistan to the path of rapid industrial development.
With continued cooperation between Central Board of Revenue (CBR) and the ministry of industries and production for further rationalisation of taxes, tariffs and SROs can positively affect the overall output of the country.
"Given the political will, commitment and patronage, it is possible to achieve these targets with full participation of the private sector stakeholders".
http://www.dawn.com/2006/09/12/ebr1.htm
Foundry industry aims to enhance quality
By our correspondent
LAHORE: Pakistan’s foundry and casting industry is poised to appear on international manufacturing map in a big way after putting extra focus on research and development and technology upgradation initiatives.
In a bid to attract buyers from west and other countries and increase interaction for enhancing quality of production, the Pakistan Foundry Association (PFA) is going to arrange the first ever symposium on foundry in Pakistan - “International Foundry Congress & Exhibition-(IFCE)”, from December 5-6, 2006 in Lahore.
The Congress will be attended by prominent speakers from different countries sharing their experiences and focusing on the most modern techniques adopted in the foundry industry worldwide.
This was informed in a press conference here on Monday at a local hotel which was addressed by Sikandar Mustafa Khan President Pakistan Foundry Association, Imtiaz A Rastgar CEO Pakistan Engineering Board, Aasim Qadri Secretary General PFA and leading industrialist Laeeq Uddin Ansari.
Speaking on the occasion, Sikandar Mustafa Khan said the Congress is set to attract delegates from automobile and engineering industry, Defence, Technology suppliers and seekers, trade delegations, R & D Institutions, consultants and many others.
He added that besides the Congress, an Exhibition will also be running side-by-side where exhibitors from engineering sector will be exhibiting their core competence in the foundry industry.
He maintained that IFCE-2006 has been supported by World Foundry Organization (WFO) and has invited participants from England, Iran, Turkey , India , China and Japan .
Jehangir Khan Tareen, Federal Minister for Industries, Production and Special Initiatives, would preside the inaugural session. Imtiaz A Rastgar said Foundry Congress & Exhibition is designed to act as a catalyst to research development and technology up gradation initiatives in Pakistan and will provide an opportunity for participants to interact with industry experts of the world.
He said strengthening of foundry industry was indispensable for promotion of whole engineering sector as it played a fundamental role for manufacturing sector. He expressed the hope that a quantum jump in exports of engineering products was on the card. He added that various incentives had been given to manufacturing sector in order to reduce input cost and increase productivity. He said ministry of industries would support domestic foundry and casting industry in getting international exposure in order to get export orders.
Aasim Qadri, Secretary General PFA, said this mega event will also include two-day technical session and provide opportunity to have one-on-one meetings besides a series of industrial tour.
The technical session will highlight latest developments in the castings industries worldwide, along with identification and resolution of the issues faced by foundry men looking to succeed as part of the global supply chain. It will also be an opportunity to showcase the benefits of casting process as manufacturing route to designers and engineers.
He said membership of Pakistan Foundry Association is also open for all foundries of the country. Laeeq Uddin Ansari of Bolan Casting said massive capacity enhancement was being done by local industry to enter into international market.
http://www.thenews.com.pk/daily_detail.asp?id=22652
By our correspondent
LAHORE: Pakistan’s foundry and casting industry is poised to appear on international manufacturing map in a big way after putting extra focus on research and development and technology upgradation initiatives.
In a bid to attract buyers from west and other countries and increase interaction for enhancing quality of production, the Pakistan Foundry Association (PFA) is going to arrange the first ever symposium on foundry in Pakistan - “International Foundry Congress & Exhibition-(IFCE)”, from December 5-6, 2006 in Lahore.
The Congress will be attended by prominent speakers from different countries sharing their experiences and focusing on the most modern techniques adopted in the foundry industry worldwide.
This was informed in a press conference here on Monday at a local hotel which was addressed by Sikandar Mustafa Khan President Pakistan Foundry Association, Imtiaz A Rastgar CEO Pakistan Engineering Board, Aasim Qadri Secretary General PFA and leading industrialist Laeeq Uddin Ansari.
Speaking on the occasion, Sikandar Mustafa Khan said the Congress is set to attract delegates from automobile and engineering industry, Defence, Technology suppliers and seekers, trade delegations, R & D Institutions, consultants and many others.
He added that besides the Congress, an Exhibition will also be running side-by-side where exhibitors from engineering sector will be exhibiting their core competence in the foundry industry.
He maintained that IFCE-2006 has been supported by World Foundry Organization (WFO) and has invited participants from England, Iran, Turkey , India , China and Japan .
Jehangir Khan Tareen, Federal Minister for Industries, Production and Special Initiatives, would preside the inaugural session. Imtiaz A Rastgar said Foundry Congress & Exhibition is designed to act as a catalyst to research development and technology up gradation initiatives in Pakistan and will provide an opportunity for participants to interact with industry experts of the world.
He said strengthening of foundry industry was indispensable for promotion of whole engineering sector as it played a fundamental role for manufacturing sector. He expressed the hope that a quantum jump in exports of engineering products was on the card. He added that various incentives had been given to manufacturing sector in order to reduce input cost and increase productivity. He said ministry of industries would support domestic foundry and casting industry in getting international exposure in order to get export orders.
Aasim Qadri, Secretary General PFA, said this mega event will also include two-day technical session and provide opportunity to have one-on-one meetings besides a series of industrial tour.
The technical session will highlight latest developments in the castings industries worldwide, along with identification and resolution of the issues faced by foundry men looking to succeed as part of the global supply chain. It will also be an opportunity to showcase the benefits of casting process as manufacturing route to designers and engineers.
He said membership of Pakistan Foundry Association is also open for all foundries of the country. Laeeq Uddin Ansari of Bolan Casting said massive capacity enhancement was being done by local industry to enter into international market.
http://www.thenews.com.pk/daily_detail.asp?id=22652
TUSDEC setting up TDM Centre in Gujranwala
Staff Report
LAHORE: Technology Upgrada-tion and Skill Development Company (TUSDEC) is setting up Tools, Dies and Moulds (TDM) Centre in Gujranwala at a cost of Rs 900 million to provide technological support to the manufacturing sector of this Central Punjab industrial town.
According to a spokesman of TUSDEC here on Monday, a revised PC-1 for this project has been submitted with the Planning Commission for its inclusion in the upcoming CDWP meeting for necessary approval. This project will be yet another step for the uplift of the industry especially the manufacturing sector.
The TDM Centre will provide the local TDM and related industry with state-of-the-art design, training, consultancy and manufacturing facilities. This will be important in particular to the small and medium enterprises, which cannot make huge investment for the development of such facilities on their own. A major aim of this facility is to enable local industry to produce TDM products of international quality
http://www.dailytimes.com.pk/default.asp?p...0-10-2006_pg5_9
Staff Report
LAHORE: Technology Upgrada-tion and Skill Development Company (TUSDEC) is setting up Tools, Dies and Moulds (TDM) Centre in Gujranwala at a cost of Rs 900 million to provide technological support to the manufacturing sector of this Central Punjab industrial town.
According to a spokesman of TUSDEC here on Monday, a revised PC-1 for this project has been submitted with the Planning Commission for its inclusion in the upcoming CDWP meeting for necessary approval. This project will be yet another step for the uplift of the industry especially the manufacturing sector.
The TDM Centre will provide the local TDM and related industry with state-of-the-art design, training, consultancy and manufacturing facilities. This will be important in particular to the small and medium enterprises, which cannot make huge investment for the development of such facilities on their own. A major aim of this facility is to enable local industry to produce TDM products of international quality
http://www.dailytimes.com.pk/default.asp?p...0-10-2006_pg5_9
Japanese vendors coming to Pakistan
By Munawar Hasan
LAHORE: Japanese investors are eyeing expanding automobile sector of Pakistan and it is expected that technologically advanced foreign vendors and suppliers would invest here in near future.
“As the demand for automobiles is expanding in Pakistan, it is hoped that in the coming future, the Japanese vendors and suppliers would also invest here. This will certainly improve the production quality of local vendor industries that are still dependent on old production techniques,” said Seiji Kojima, Ambassador of Japan replying to e-mail queries of The News.
About direct investment, he said that Japanese companies have invested more than $100 million in Pakistan in the last three years and there is hope that the volume of Japanese investment, particularly in the automobile sector, would increase further in the near future.
Talking about Pak-Japan economic relations, he stressed that Pak corporate sector must enhance competitiveness to face stiff competition in world trade. Regarding globalisation, he observed that Japan and Pakistan needed well thought out strategies and to further promote bilateral economic relations.
Japanese envoy said although the volume of Japan’s exports to Pakistan has increased from $500 million in 2001 to $1.5 billion in 2005, the volume of Pakistan’s exports to Japan has decreased from $600 million in 1995 to a mere $143 million in 2005.
He suggested ways to rectify this worrisome situation. First and foremost, he opined, the corporate sector must strive towards improving its competitiveness and increase value addition, move up the technological ladder and stay innovative.
On the Japanese part, he informed, JICA, JETRO, AOTS and other Japanese organisations could assist Pakistani small and medium enterprises through human resources development and transfer of technology. In this connection, he maintained, JICA has contributed to imparting technical skills in plastic mould to Pakistan Industrial Technical Assistance Centre (PITAC) in Lahore.
Seiji Kojima said Japan and Pakistan have been enjoying friendly and cordial relations for more than five decades since the establishment of diplomatic relations between the two countries. “Japan has consistently played its role as a major trade partner, investor as well as a major donor in the social and economic development of Pakistan,” he said adding Japan has contributed $5.16 billion to Pakistan by the end of 2004.
About Japan role in the region, Japanese Ambassador said observer status of Japan in the South Asian Association for Regional Cooperation (SAARC) is a testimony to the deepening of relationship between Japan and the SAARC member states.
“Japan is of the view that the peace and development of South Asia is becoming increasingly important for the stability and prosperity of Asia and the international community,” he said.
In relation to this, he added, it must also be recognized that peace and stable development in Pakistan is inseparably linked to peace and stability in the whole of South Asia, including India.
Keeping the development aspects insight, Japan-SAARC Special Fund was established in 1993 and since then Japan has been supporting the cooperative activities among the South Asian countries through this fund ($4.2million, 1993-2002).
About future initiatives in the region, he said, Japan is looking forward to increasing greater ‘connectivity’ in the region through expansion of infrastructure facilities for goods and services as well as to foster communications across the border among business, academics, civil society groups, and media. Besides this, Japan will also cooperate in capacity building in the institutions of the SAARC countries. Japanese top diplomat in Pakistan said his country is making an outstanding effort for worldwide peace and security as well as the uplifting of the developing countries.
http://www.thenews.com.pk/daily_detail.asp?id=27608
By Munawar Hasan
LAHORE: Japanese investors are eyeing expanding automobile sector of Pakistan and it is expected that technologically advanced foreign vendors and suppliers would invest here in near future.
“As the demand for automobiles is expanding in Pakistan, it is hoped that in the coming future, the Japanese vendors and suppliers would also invest here. This will certainly improve the production quality of local vendor industries that are still dependent on old production techniques,” said Seiji Kojima, Ambassador of Japan replying to e-mail queries of The News.
About direct investment, he said that Japanese companies have invested more than $100 million in Pakistan in the last three years and there is hope that the volume of Japanese investment, particularly in the automobile sector, would increase further in the near future.
Talking about Pak-Japan economic relations, he stressed that Pak corporate sector must enhance competitiveness to face stiff competition in world trade. Regarding globalisation, he observed that Japan and Pakistan needed well thought out strategies and to further promote bilateral economic relations.
Japanese envoy said although the volume of Japan’s exports to Pakistan has increased from $500 million in 2001 to $1.5 billion in 2005, the volume of Pakistan’s exports to Japan has decreased from $600 million in 1995 to a mere $143 million in 2005.
He suggested ways to rectify this worrisome situation. First and foremost, he opined, the corporate sector must strive towards improving its competitiveness and increase value addition, move up the technological ladder and stay innovative.
On the Japanese part, he informed, JICA, JETRO, AOTS and other Japanese organisations could assist Pakistani small and medium enterprises through human resources development and transfer of technology. In this connection, he maintained, JICA has contributed to imparting technical skills in plastic mould to Pakistan Industrial Technical Assistance Centre (PITAC) in Lahore.
Seiji Kojima said Japan and Pakistan have been enjoying friendly and cordial relations for more than five decades since the establishment of diplomatic relations between the two countries. “Japan has consistently played its role as a major trade partner, investor as well as a major donor in the social and economic development of Pakistan,” he said adding Japan has contributed $5.16 billion to Pakistan by the end of 2004.
About Japan role in the region, Japanese Ambassador said observer status of Japan in the South Asian Association for Regional Cooperation (SAARC) is a testimony to the deepening of relationship between Japan and the SAARC member states.
“Japan is of the view that the peace and development of South Asia is becoming increasingly important for the stability and prosperity of Asia and the international community,” he said.
In relation to this, he added, it must also be recognized that peace and stable development in Pakistan is inseparably linked to peace and stability in the whole of South Asia, including India.
Keeping the development aspects insight, Japan-SAARC Special Fund was established in 1993 and since then Japan has been supporting the cooperative activities among the South Asian countries through this fund ($4.2million, 1993-2002).
About future initiatives in the region, he said, Japan is looking forward to increasing greater ‘connectivity’ in the region through expansion of infrastructure facilities for goods and services as well as to foster communications across the border among business, academics, civil society groups, and media. Besides this, Japan will also cooperate in capacity building in the institutions of the SAARC countries. Japanese top diplomat in Pakistan said his country is making an outstanding effort for worldwide peace and security as well as the uplifting of the developing countries.
http://www.thenews.com.pk/daily_detail.asp?id=27608
Jadoon for accelerating mineral exploration
ISLAMABAD: Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon has said that application of state-of-the-art technology was must for identifying and exploring new mineral deposits in the country.
He expressed these views while presiding over a high level meeting to review the mineral sector’s goals here Monday. Minister of State for Petroleum and Natural Resources Mir Mohammad Naseer Mengal and Secretary Petroleum Ahmad Waqar also attended the meeting.
The Minister underlined the need to accelerate the pace of mineral exploration activities aimed at increasing its share in the growth of national economy as the country was endowed with vast deposits of coal, copper, lead Zinc and other precious metallic and non-metallic potential.
He said the Geological Survey of Pakistan (GSP) should gear up its activities for updating geological mapping and seismic data as early as possible that could provide Geological Information about new mineral deposits and its quality.
DG, GSP Talib Hassan Mirza, in his detailed presentation, informed the meeting that 50 percent task of the geological mapping has been carried out and 48,000 sq km area for mapping and 18,000 sq km for geo-chemical exploration were to be covered under the accelerated geological mapping project.
He said that availability of geological maps and related data of mineral potential would attract foreign investment in the country. The DG said that evaluation of iron and associated base metals in Punjab and NWFP, exploration of massive sulphides in Uthal and Lasbella districts and tertiary coal in central salt range in Punjab were in progress.
http://www.thenews.com.pk/daily_detail.asp?id=27615
ISLAMABAD: Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon has said that application of state-of-the-art technology was must for identifying and exploring new mineral deposits in the country.
He expressed these views while presiding over a high level meeting to review the mineral sector’s goals here Monday. Minister of State for Petroleum and Natural Resources Mir Mohammad Naseer Mengal and Secretary Petroleum Ahmad Waqar also attended the meeting.
The Minister underlined the need to accelerate the pace of mineral exploration activities aimed at increasing its share in the growth of national economy as the country was endowed with vast deposits of coal, copper, lead Zinc and other precious metallic and non-metallic potential.
He said the Geological Survey of Pakistan (GSP) should gear up its activities for updating geological mapping and seismic data as early as possible that could provide Geological Information about new mineral deposits and its quality.
DG, GSP Talib Hassan Mirza, in his detailed presentation, informed the meeting that 50 percent task of the geological mapping has been carried out and 48,000 sq km area for mapping and 18,000 sq km for geo-chemical exploration were to be covered under the accelerated geological mapping project.
He said that availability of geological maps and related data of mineral potential would attract foreign investment in the country. The DG said that evaluation of iron and associated base metals in Punjab and NWFP, exploration of massive sulphides in Uthal and Lasbella districts and tertiary coal in central salt range in Punjab were in progress.
http://www.thenews.com.pk/daily_detail.asp?id=27615
Polyethylene maker eyes $100m exports
By our correspondent
KARACHI: Trans Polymar, UK, which is planning a 310,000 tonnes production facility of high-density polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Low Density Polyethylene (LDP) at Port Qasim, will be in a position to export their products worth 100 million dollars in first year of its operation.
Peter Leoyed Cooper, an official of the company, stated this while talking to chief executive officer of Engineering Development Board Imtiaz Rastgar in Islamabad on Wednesday. Both discussed the polyethylene (PE) project in detail.
The company has entered into agreements with various firms for procurement of plant and equipment, licensing for PE manufacturing process and supply of raw materials. The plant will produce about 248,000 tonnes initially, increasing capacity in the third year to 360,000 tonnes per annum.
This plant can meet the entire demand for polyethylene in Pakistan. The production capacity can be easily expanded further, depending upon the demand, by up to 100 percent.
Estimated cost of the project is 400 million Euros (about $480 millions) with debt/equity ratio of 70:30. The Naptha Cracker project and the Polypropylene projects, to be set up after the successful completion of the Polyethylene Project, will cost about Euro 900 million ($1.1 billion). The British company is demanding tariff protection for 10 years for all the items in the PE, Naphtha Cracker chain.
The CEO assured the company official of full cooperation of the Board. However, he expressed dissatisfaction on export performance of multi-nationals in Pakistan.
He said that these companies were enjoying tariff protection for the last so many years without entering into export market. Trans Polymar should give due importance to this aspect, he said.
http://www.thenews.com.pk/daily_detail.asp?id=28795
By our correspondent
KARACHI: Trans Polymar, UK, which is planning a 310,000 tonnes production facility of high-density polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Low Density Polyethylene (LDP) at Port Qasim, will be in a position to export their products worth 100 million dollars in first year of its operation.
Peter Leoyed Cooper, an official of the company, stated this while talking to chief executive officer of Engineering Development Board Imtiaz Rastgar in Islamabad on Wednesday. Both discussed the polyethylene (PE) project in detail.
The company has entered into agreements with various firms for procurement of plant and equipment, licensing for PE manufacturing process and supply of raw materials. The plant will produce about 248,000 tonnes initially, increasing capacity in the third year to 360,000 tonnes per annum.
This plant can meet the entire demand for polyethylene in Pakistan. The production capacity can be easily expanded further, depending upon the demand, by up to 100 percent.
Estimated cost of the project is 400 million Euros (about $480 millions) with debt/equity ratio of 70:30. The Naptha Cracker project and the Polypropylene projects, to be set up after the successful completion of the Polyethylene Project, will cost about Euro 900 million ($1.1 billion). The British company is demanding tariff protection for 10 years for all the items in the PE, Naphtha Cracker chain.
The CEO assured the company official of full cooperation of the Board. However, he expressed dissatisfaction on export performance of multi-nationals in Pakistan.
He said that these companies were enjoying tariff protection for the last so many years without entering into export market. Trans Polymar should give due importance to this aspect, he said.
http://www.thenews.com.pk/daily_detail.asp?id=28795
Renault seeks tariff concession in Pakistan
By our correspondent
KARACHI: Jerard Etourebet, a senior official of Renault Group, called on Imtiaz Rastgar, chief executive officer of Engineering Development Board in Islamabad on Thursday and exchanged views about starting assembly of cars and trucks in Pakistan.
He said that his company was discussing the project with the Pakistani authorities since November 2005 and “now is the time to finalise things.” He added that the facility would be mainly used for export purposes, so they need incentives in the shape of tariff concession and duty drawbacks.
When asked to give specific proposals, he said that South African scheme would suit them. He assured that maximum local component would be used in assembly of their products. In this regard, he referred to his earlier meeting with the officials of PAAPAM.
The CEO EDB informed him that South African proposal given by him during his last visit was considered seriously by the Engineering Development Board and a delegation was sent there to study the system in-depth.
On return of the delegation recommendations were submitted to the authorities, which could be looked at now. He also gave overview of export potential of the local auto sector and incentives given by the government. He specially mentioned two SROs of CBR having inbuilt incentives for exporters. However, he underlined the importance of sustainable long-term policy for development of the auto sector.
He said that the EDB was working on a duty drawback scheme for engineering sector including auto with the approval of the CBR, which will be ready by the end of next month, having inbuilt incentives for the sector.
It will also meet specific needs of the engineering sector, which are different from others. He assured that the scheme was totally business friendly and based on views expressed by all the stakeholders. The French Ambassador to Pakistan Pierre Charasse was also present in the meeting.
http://www.thenews.com.pk/daily_detail.asp?id=28950
By our correspondent
KARACHI: Jerard Etourebet, a senior official of Renault Group, called on Imtiaz Rastgar, chief executive officer of Engineering Development Board in Islamabad on Thursday and exchanged views about starting assembly of cars and trucks in Pakistan.
He said that his company was discussing the project with the Pakistani authorities since November 2005 and “now is the time to finalise things.” He added that the facility would be mainly used for export purposes, so they need incentives in the shape of tariff concession and duty drawbacks.
When asked to give specific proposals, he said that South African scheme would suit them. He assured that maximum local component would be used in assembly of their products. In this regard, he referred to his earlier meeting with the officials of PAAPAM.
The CEO EDB informed him that South African proposal given by him during his last visit was considered seriously by the Engineering Development Board and a delegation was sent there to study the system in-depth.
On return of the delegation recommendations were submitted to the authorities, which could be looked at now. He also gave overview of export potential of the local auto sector and incentives given by the government. He specially mentioned two SROs of CBR having inbuilt incentives for exporters. However, he underlined the importance of sustainable long-term policy for development of the auto sector.
He said that the EDB was working on a duty drawback scheme for engineering sector including auto with the approval of the CBR, which will be ready by the end of next month, having inbuilt incentives for the sector.
It will also meet specific needs of the engineering sector, which are different from others. He assured that the scheme was totally business friendly and based on views expressed by all the stakeholders. The French Ambassador to Pakistan Pierre Charasse was also present in the meeting.
http://www.thenews.com.pk/daily_detail.asp?id=28950
ECC likely to okay new auto policy today
* Also expected to grant sales tax exemption on CNG buses’ import
By Sajid Chaudhry
ISLAMABAD: The Economic Coordination Committee of the Cabinet is expected to approve on Tuesday the proposed auto policy, exemption from sales tax for the public transport sector and the development of New Gwadar International Airport on turnkey basis, a government official told the Daily Times on Monday.
The ECC that will meet under the chairmanship of Prime Minister Shaukat Aziz will take up a 14-point agenda. It will take important decisions relating to different economic sectors. The ECC will consider the proposed auto policy to facilitate the sector and enable it to meet the national requirements as well as exports from the country.
The Engineering Develop-ment Board (EDB) had asked the government to give a long-term tariff structure for at least seven years to the investors in the automobile sector and the Board had described it as the only way to encourage investment both in expansion in the existing industry and setting up new auto firms in the country. The new policy is to be finalized keeping in view of investment committed by three new auto-makers, especially Renault and Mercedeze Benz.
The proposed policy, prepared by the EDB, is backed by the ministry of industries, production and special Initiatives (MOIP&SI). The official, however, admitted that the tax authorities would place their point of view at the ECC meeting to the structure proposed by the EDB. It has been drafted on the demand of the industry to have a long-term policy to enable the industry to make future investment decisions. The draft policy is aimed to have a holistic view of the industry to seek solutions on investments, competitiveness and integration in the international supply chain.
The ECC is also expected to consider exemption of sales tax on the import CNG buses for the public transport sector. The government has been asked to offer CNG to CNG only buses at reduced prices to attract the private sector to invest heavily in the sector and help the government to control environmental problems.
The EDB, which strongly supports the environmentally-friendly CNG buses, is of the view that the government should study and follow the Korean model where nine CNG filling stations for buses with a capacity to fill 20 buses simultaneously have been installed in Seoul by the Korean government. New rules should be incorporated in the urban transport system for exclusive routes of CNG buses. Incentives are required to be offered by the government for attraction of transport operation for only fully dedicated CNG buses.
The ministry of petroleum and natural resources has proposed to the ECC utilization of Production Bonus Obligation of the exploration and production companies in the oil and gas sector like utilization of royalty. The ministry has proposed that this bonus may be deposited with the federal government which onwards be transferred to the relevant province and subsequently be transferred to the district concerned for development projects.
The ECC is to allocate gas from Mari Deep Zamzama to the power sector. The ECC will also fix the price of gas for the fertilizer plant being set up near Qadirpur. The meeting will also give go-ahead to the establishment of a coastal oil refinery at Khalifa Point by IPIC of Abu Dhabi.
The meeting is expected to convert a Rs 10 million loan into equity granted to the National Book Foundation.
The ECC will also review the economic performance, imports and exports, tax collection and foreign exchange reserves position and flows of foreign direct investment during the first quarter (July-September) period of the current fiscal year. The meeting will be informed about cement, edible oil, ghee, sugar and other essential commodities’ availability and prices in the country. The ECC will also review the prices of essential items in the countries of the region.
http://www.dailytimes.com.pk/default.asp?p...1-10-2006_pg5_1
POF to sign MoUs during 'IDEAS' Exhibition 2006
NAVEED SIDDIQUI
WAH CANTT - Pakistan Ordnance Factories (POF) Wah has announced that it will launch co-production of arms and ammunition with Germany and Korea from January 2007. Chairman POF Lt. Gen Syed Sabahat Hussain told journalists here on Tuesday after the opening session of the two-day seminar on public-private partnership.
He said that Memorandum of Understandings (MoUs) to this effect would be signed during the forthcoming International Defence Exhibition (IDEAS) 2006. To a query, the Chairman said that POF was devising a future strategy to launch more projects of co-production with the local private partners in the field of arms and ammunition.
Sabahat Hussain was of the view that technologies once branded as “hush hush” were now being offered to the POF as joint ventures for co-production and co-marketing by companies no less than international giants Diehl of Germany and Poongsan of Korea. He said similar offers have also been received from some other countries.
Earlier, speaking at the seminar, he said that the core technology and system integration would continue to be the centre of POF’s main activity. He said that the private sector would also benefit as down stream industry.
He observed that Pakistan had been blessed by Allah Almighty with extraordinary resources and skills combined with the flexibility for adaptation to the changing global environment.
He said that the POF was the lifeline to the Pakistan Armed Forces since its creation and had played a vital role in the development of both the present public as well as private sector industries.
He said over the years the industry had not only expanded in size and volume but had also excelled in the acquisition of new technologies and diversification of its product range. “This turn has given the country the essentially required self-reliance and helped boost trade and reduce imports,” he added.
Federal Minister for Defence Production Major (retd) Habibullah Warraich urged the public sector to enhance the capability of private sector and work in harmony for an effective utilisation of resources in both cultures.
He said that the POF was undoubtedly the major defence industry in Pakistan and with its vast resources and range of products and processes had presented itself as an ideal industrial complex for the other industries to seek guidance and help. He said in Pakistan, the rapidly expanding automobile and oil and gas sector and the ever-vibrant textile sector needed support from the public sector. He stressed that it was the time to take a step to bridge a gap for a sustainable cooperation.
Khawar Nawaz, a senior official of the POF in a presentation on “POF’s role in the development of engineering sector in Pakistan” said that the POF was the largest defence industrial complex under the ministry of defence production, producing conventional arms and ammunition of the international standards. He said an international name in quality and reliability, all manufacturing units of POF are ISO-9001 - ISO-14001 certified. Its metallurgical testing labs and ballistic proof ranges have the world class recognition of ISO 17025. He said with technologies and equipments acquired from USA, UK, France, Germany and China, these factories employ some of the latest state of the art processes, including computerised numerical controlled machines and flexible Manufacturing systems for the production of precision components.
The wide range of products include a variety of NATO caliber Infantry weapons and their ammo, Tank ammo, Air craft and anti air craft ammo, Artillery ammo, Rockets, Air craft bombs, Pyrotechnics, Mortar bombs and Hand grenade and a number of ordnance and commercial products.
The Chief Executive of Small and Medium Enterprises Development Authority (SMEDA) Shahab Khawaja said that the SMEDA was established in October 1998 to take on the challenge of developing Small and Medium Enterprises (SMEs) in Pakistan. He said with a futuristic approach and professional management structure it has focus on providing an enabling environment and business development services to small and medium enterprises. Mohsin Khalid, Chief Executive Ittehad Steel Islamabad also made presentation on “steel sector overview-the way forward”. He underlined the need to take advantage of the unending appetite of steel in the region.
http://www.nation.com.pk/daily/nov-2006/8/bnews2.php
NAVEED SIDDIQUI
WAH CANTT - Pakistan Ordnance Factories (POF) Wah has announced that it will launch co-production of arms and ammunition with Germany and Korea from January 2007. Chairman POF Lt. Gen Syed Sabahat Hussain told journalists here on Tuesday after the opening session of the two-day seminar on public-private partnership.
He said that Memorandum of Understandings (MoUs) to this effect would be signed during the forthcoming International Defence Exhibition (IDEAS) 2006. To a query, the Chairman said that POF was devising a future strategy to launch more projects of co-production with the local private partners in the field of arms and ammunition.
Sabahat Hussain was of the view that technologies once branded as “hush hush” were now being offered to the POF as joint ventures for co-production and co-marketing by companies no less than international giants Diehl of Germany and Poongsan of Korea. He said similar offers have also been received from some other countries.
Earlier, speaking at the seminar, he said that the core technology and system integration would continue to be the centre of POF’s main activity. He said that the private sector would also benefit as down stream industry.
He observed that Pakistan had been blessed by Allah Almighty with extraordinary resources and skills combined with the flexibility for adaptation to the changing global environment.
He said that the POF was the lifeline to the Pakistan Armed Forces since its creation and had played a vital role in the development of both the present public as well as private sector industries.
He said over the years the industry had not only expanded in size and volume but had also excelled in the acquisition of new technologies and diversification of its product range. “This turn has given the country the essentially required self-reliance and helped boost trade and reduce imports,” he added.
Federal Minister for Defence Production Major (retd) Habibullah Warraich urged the public sector to enhance the capability of private sector and work in harmony for an effective utilisation of resources in both cultures.
He said that the POF was undoubtedly the major defence industry in Pakistan and with its vast resources and range of products and processes had presented itself as an ideal industrial complex for the other industries to seek guidance and help. He said in Pakistan, the rapidly expanding automobile and oil and gas sector and the ever-vibrant textile sector needed support from the public sector. He stressed that it was the time to take a step to bridge a gap for a sustainable cooperation.
Khawar Nawaz, a senior official of the POF in a presentation on “POF’s role in the development of engineering sector in Pakistan” said that the POF was the largest defence industrial complex under the ministry of defence production, producing conventional arms and ammunition of the international standards. He said an international name in quality and reliability, all manufacturing units of POF are ISO-9001 - ISO-14001 certified. Its metallurgical testing labs and ballistic proof ranges have the world class recognition of ISO 17025. He said with technologies and equipments acquired from USA, UK, France, Germany and China, these factories employ some of the latest state of the art processes, including computerised numerical controlled machines and flexible Manufacturing systems for the production of precision components.
The wide range of products include a variety of NATO caliber Infantry weapons and their ammo, Tank ammo, Air craft and anti air craft ammo, Artillery ammo, Rockets, Air craft bombs, Pyrotechnics, Mortar bombs and Hand grenade and a number of ordnance and commercial products.
The Chief Executive of Small and Medium Enterprises Development Authority (SMEDA) Shahab Khawaja said that the SMEDA was established in October 1998 to take on the challenge of developing Small and Medium Enterprises (SMEs) in Pakistan. He said with a futuristic approach and professional management structure it has focus on providing an enabling environment and business development services to small and medium enterprises. Mohsin Khalid, Chief Executive Ittehad Steel Islamabad also made presentation on “steel sector overview-the way forward”. He underlined the need to take advantage of the unending appetite of steel in the region.
http://www.nation.com.pk/daily/nov-2006/8/bnews2.php
Abraaj Capital acquires stake in Pakistan’s largest steel forging house
[Sunday, November 26, 2006 3:30:00 pm]
Abraaj Capital has acquired a controlling interest in MS Forgings, Pakistan’s largest steel forging house, specializing in steel components for the automotive industry domestically and abroad. The acquisition of the 80% stake in MS Forgings marks the first investment by the Abraaj BMA Pakistan Buyout Fund L.P. which was announced earlier in the year and had its first closing on June 2006.
Founded in 1974, MS Forgings has evolved into the leading supplier of steel forged components for the domestic automotive industry. The automotive industry has seen tremendous growth over the past five years with the market for locally assembled vehicles growing at over 30% per annum. Analysts expect current growth levels to continue largely on the back of the macroeconomic growth in the Pakistan economy and the continued proliferation of automobile financing.
By identifying the global outsourcing trend in the automotive parts industry early on, MS Forgings has focused on high quality production in-line with international standards and has developed a unique export capability. Roughly 50% of revenues are from exports to major automotive markets such as the Europe and the US. Going forward, MS Forgings is looking to further leverage this trend and is considering strategic acquisitions within Pakistan as well as in established markets such as Europe and the US as a means to widen its customer base and to capture additional market share internationally.
“The automobile component industry in Pakistan represents one of the most attractive growth sectors in the economy” said Arif Naqvi, CEO and Vice Chairman at Abraaj Capital. “We believe that MS Forgings through its leadership position and existing export base is especially well-positioned to become one of the top players globally in this high-growth segment” added Naqvi.
“One of the key mandates of our Fund is to create globally competitive businesses through the numerous consolidation opportunities available in fragmented industries in Pakistan. MS Forgings is the ideal platform on which to help consolidate the automobile component industry” said Tom Speechly, Executive Director at Abraaj Capital.
“We are extremely excited about this partnership with Abraaj” said Shahid Khan, CEO at MS Forgings. “Their regional experience with businesses within Pakistan and the Middle East will add enormous value to the existing base at MS Forgings and help take us to the next level of growth”.
“The Abraaj BMA Pakistan Fund is the largest private equity fund ever to target investments in the country,” added Farrukh Khan, CEO of BMA, one of the leading investment firms in the country and along with Abraaj Capital, a shareholder in the domestic investment manager to the Fund. “While there are clearly multiple opportunities for consolidation across Pakistan, the fund is focused on quality transactions like MS Forgings where we can build on strong, existing assets, and add value for both partner companies and shareholders.” “Pakistan is one of the most attractive emerging markets for private equity investment, yet has largely been overlooked by all of the global private equity majors. The opportunities for private equity involvement in firm consolidation, expansion capital, and government privatizations are superb. We possess a robust deal pipeline currently and expect to close a number of high quality transactions such as MS Forgings over the coming months” added Moazzam Malik, Managing Director at BMA.
http://archive.gulfnews.com/articles/06/11/27/10085450.html
[Sunday, November 26, 2006 3:30:00 pm]
Abraaj Capital has acquired a controlling interest in MS Forgings, Pakistan’s largest steel forging house, specializing in steel components for the automotive industry domestically and abroad. The acquisition of the 80% stake in MS Forgings marks the first investment by the Abraaj BMA Pakistan Buyout Fund L.P. which was announced earlier in the year and had its first closing on June 2006.
Founded in 1974, MS Forgings has evolved into the leading supplier of steel forged components for the domestic automotive industry. The automotive industry has seen tremendous growth over the past five years with the market for locally assembled vehicles growing at over 30% per annum. Analysts expect current growth levels to continue largely on the back of the macroeconomic growth in the Pakistan economy and the continued proliferation of automobile financing.
By identifying the global outsourcing trend in the automotive parts industry early on, MS Forgings has focused on high quality production in-line with international standards and has developed a unique export capability. Roughly 50% of revenues are from exports to major automotive markets such as the Europe and the US. Going forward, MS Forgings is looking to further leverage this trend and is considering strategic acquisitions within Pakistan as well as in established markets such as Europe and the US as a means to widen its customer base and to capture additional market share internationally.
“The automobile component industry in Pakistan represents one of the most attractive growth sectors in the economy” said Arif Naqvi, CEO and Vice Chairman at Abraaj Capital. “We believe that MS Forgings through its leadership position and existing export base is especially well-positioned to become one of the top players globally in this high-growth segment” added Naqvi.
“One of the key mandates of our Fund is to create globally competitive businesses through the numerous consolidation opportunities available in fragmented industries in Pakistan. MS Forgings is the ideal platform on which to help consolidate the automobile component industry” said Tom Speechly, Executive Director at Abraaj Capital.
“We are extremely excited about this partnership with Abraaj” said Shahid Khan, CEO at MS Forgings. “Their regional experience with businesses within Pakistan and the Middle East will add enormous value to the existing base at MS Forgings and help take us to the next level of growth”.
“The Abraaj BMA Pakistan Fund is the largest private equity fund ever to target investments in the country,” added Farrukh Khan, CEO of BMA, one of the leading investment firms in the country and along with Abraaj Capital, a shareholder in the domestic investment manager to the Fund. “While there are clearly multiple opportunities for consolidation across Pakistan, the fund is focused on quality transactions like MS Forgings where we can build on strong, existing assets, and add value for both partner companies and shareholders.” “Pakistan is one of the most attractive emerging markets for private equity investment, yet has largely been overlooked by all of the global private equity majors. The opportunities for private equity involvement in firm consolidation, expansion capital, and government privatizations are superb. We possess a robust deal pipeline currently and expect to close a number of high quality transactions such as MS Forgings over the coming months” added Moazzam Malik, Managing Director at BMA.
http://archive.gulfnews.com/articles/06/11/27/10085450.html
Steel making from iron ore: MoU inked with China on transfer of technology
ISLAMABAD (November 28 2006): A memorandum of understanding (MoU) was signed here on Monday between Chinese Company MCC-Beris and Mughal Steel in the presence of Jahangir Khan Tareen, Minister for Industries, Production and Special Initiatives.
It covers transfer of technology for steel making from indigenous iron ore reserves. The match making between the two companies was done by Engineering Development Board. The Chinese Metallurgical Construction (Group) Corporation Baotou Engineering and Research Corporation of Iron and Steel Industry and Mughal Steel have agreed on a commercial project of Section Mill and 500m blast furnace.
It also envisages a visit of Pakistan Steel delegation consisting of prominent private sector key players to China.
With the completion of the project present production capacity of Mughal Steel will increase to one mtpy with modern equipment and automation and control system, widen products range and improve quality. Both sides have recognised the importance of optimum utilisation of the facilities and services available in Pakistan.
The Chinese firm will also arrange training for Pakistani engineers and technicians. The project is planned to be completed by end of March 2008. Addressing on the occasion the Minister highlighted the significance and salient features of the MoU and said that it was first agreement of its kind between two steel making organisations of China and Pakistan. Imtiaz Rastgar, CEO, EDB, senior officials of the Ministry and Board were also present on the occasion.
http://www.brecorder.com/index.php?id=5018...m=&supDate=
ISLAMABAD (November 28 2006): A memorandum of understanding (MoU) was signed here on Monday between Chinese Company MCC-Beris and Mughal Steel in the presence of Jahangir Khan Tareen, Minister for Industries, Production and Special Initiatives.
It covers transfer of technology for steel making from indigenous iron ore reserves. The match making between the two companies was done by Engineering Development Board. The Chinese Metallurgical Construction (Group) Corporation Baotou Engineering and Research Corporation of Iron and Steel Industry and Mughal Steel have agreed on a commercial project of Section Mill and 500m blast furnace.
It also envisages a visit of Pakistan Steel delegation consisting of prominent private sector key players to China.
With the completion of the project present production capacity of Mughal Steel will increase to one mtpy with modern equipment and automation and control system, widen products range and improve quality. Both sides have recognised the importance of optimum utilisation of the facilities and services available in Pakistan.
The Chinese firm will also arrange training for Pakistani engineers and technicians. The project is planned to be completed by end of March 2008. Addressing on the occasion the Minister highlighted the significance and salient features of the MoU and said that it was first agreement of its kind between two steel making organisations of China and Pakistan. Imtiaz Rastgar, CEO, EDB, senior officials of the Ministry and Board were also present on the occasion.
http://www.brecorder.com/index.php?id=5018...m=&supDate=
Auto output to be 0.5m units soon: Tareen
KARACHI: Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen said on Tuesday that the government would make all efforts to raise current automobile production from 200,000 to 500,000 under a long-term policy.
He was talking to reporters after presiding over a meeting of automobile assemblers in Pakistan at PIDC here Tuesday. He said that the auto policy would ensure that local industry should cater to the growing domestic demand for vehicles.
To a question, he said Pak-Suzuki Motors was acquiring more land for setting up a new plant for enhancing their capacity. Currently they are producing 100,000 units annually, he added.
He pointed out that the progress on cab manufacturing plant was slow but the plan was still intact. Replying to a question about the recently signed free trade agreement (FTA) with China, Jahangir Tareen said that this has opened venues for Pakistani industry in Chinese market. This will be a big boost to the local industry, as they will get duty free access in vast Chinese market, he noted.
To a question about setting up model industrial parks in northern and southern region, he said that National Industrial Parks and Management Company would set up these parks. Sindh and Balochistan will be covered by the south region while Lahore, Islamabad, NWFP and FATA will come under north region. He stated that Rs 175 million would be allocated for setting up model industrial parks in the country.
PIDC board approves setting up of hunting, sports arms co: The board of directors of PIDC on Tuesday approved setting up of Pakistan Hunting and Sporting Arms Development Company (PHSADC) at a cost of Rs 100 million at Peshawar to upgrade the arms manufacturing industries in Darra Adam Khel. The PHSADC will establish a common facility and training centre at Darra Adam Khel, a Gunsmith Skill Development Centre in Peshawar and an industrial estate with modern facilities at Darra Adam Khel.
The meeting was chaired by Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen.
http://www.dailytimes.com.pk/default.asp?p...9-11-2006_pg5_8
KARACHI: Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen said on Tuesday that the government would make all efforts to raise current automobile production from 200,000 to 500,000 under a long-term policy.
He was talking to reporters after presiding over a meeting of automobile assemblers in Pakistan at PIDC here Tuesday. He said that the auto policy would ensure that local industry should cater to the growing domestic demand for vehicles.
To a question, he said Pak-Suzuki Motors was acquiring more land for setting up a new plant for enhancing their capacity. Currently they are producing 100,000 units annually, he added.
He pointed out that the progress on cab manufacturing plant was slow but the plan was still intact. Replying to a question about the recently signed free trade agreement (FTA) with China, Jahangir Tareen said that this has opened venues for Pakistani industry in Chinese market. This will be a big boost to the local industry, as they will get duty free access in vast Chinese market, he noted.
To a question about setting up model industrial parks in northern and southern region, he said that National Industrial Parks and Management Company would set up these parks. Sindh and Balochistan will be covered by the south region while Lahore, Islamabad, NWFP and FATA will come under north region. He stated that Rs 175 million would be allocated for setting up model industrial parks in the country.
PIDC board approves setting up of hunting, sports arms co: The board of directors of PIDC on Tuesday approved setting up of Pakistan Hunting and Sporting Arms Development Company (PHSADC) at a cost of Rs 100 million at Peshawar to upgrade the arms manufacturing industries in Darra Adam Khel. The PHSADC will establish a common facility and training centre at Darra Adam Khel, a Gunsmith Skill Development Centre in Peshawar and an industrial estate with modern facilities at Darra Adam Khel.
The meeting was chaired by Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen.
http://www.dailytimes.com.pk/default.asp?p...9-11-2006_pg5_8
EIAL acquires 70pc stake in US firm
By our correspondent
KARACHI: Engro Innovative Automation Limited (EIAL), a subsidiary of Engro Chemical Pakistan has acquired 70 per cent stake in a US firm Advanced Automation Association (AAA) a company provides industrial automation based in Pennsylvania.
Chief Executive Officer (CEO) EIAL, Bakhtiar Wain while addressing a press conference here on Tuesday said that primary line of business of Advanced Automation Association (AAA) and EIAL was similar and added that the total investment by EIAL in this venture would be around Rs450 million.
“EIAL after developing a world standard skill set through extensive experience of Pakistan and Middle East’s industrial automation now has decided to venture into North American market by acquiring stakes in AAA.”
He said that strategic acquisition of the majority shares would allow company to raise the expertise of its team to the next level by implementing best engineering practices and synchronization of business process across the world.
“The outsourcing model that we envisage after seamless integration of two organizations would set the stage of future acquisitions in North America,” he said.
Bakhtiar said that automation services provided by EIAL is only for industries not for services and added that the project would generate employment for high end of value chain and around 80 to 100 were given high end jobs.
“Earlier company used to get 60 to 70 percent business from local industries and now it is getting 50 percent work from local while remaining from foreign companies,” he said and added that EIAL started as a business division of Innovative Automation in July 1995 to implement industrial automation, electric engineering & process control systems for local industry. However it was acquired by Engro Chemical Pakistan to form ECPL subsidiary.
By our correspondent
KARACHI: Engro Innovative Automation Limited (EIAL), a subsidiary of Engro Chemical Pakistan has acquired 70 per cent stake in a US firm Advanced Automation Association (AAA) a company provides industrial automation based in Pennsylvania.
Chief Executive Officer (CEO) EIAL, Bakhtiar Wain while addressing a press conference here on Tuesday said that primary line of business of Advanced Automation Association (AAA) and EIAL was similar and added that the total investment by EIAL in this venture would be around Rs450 million.
“EIAL after developing a world standard skill set through extensive experience of Pakistan and Middle East’s industrial automation now has decided to venture into North American market by acquiring stakes in AAA.”
He said that strategic acquisition of the majority shares would allow company to raise the expertise of its team to the next level by implementing best engineering practices and synchronization of business process across the world.
“The outsourcing model that we envisage after seamless integration of two organizations would set the stage of future acquisitions in North America,” he said.
Bakhtiar said that automation services provided by EIAL is only for industries not for services and added that the project would generate employment for high end of value chain and around 80 to 100 were given high end jobs.
“Earlier company used to get 60 to 70 percent business from local industries and now it is getting 50 percent work from local while remaining from foreign companies,” he said and added that EIAL started as a business division of Innovative Automation in July 1995 to implement industrial automation, electric engineering & process control systems for local industry. However it was acquired by Engro Chemical Pakistan to form ECPL subsidiary.
ECNEC approves Gujranwala TDM Centre
OUR STAFF REPORTER
LAHORE - The Executive Committee of the National Economic Council (ECNEC) has approved the Gujranwala Tools, Dies and Moulds Center (GTDMC), a Rs 878 million project of TUSDEC (Technology Up-gradation and Skill Development Company).
TUSDEC felicitates the Government move in this key direction, in line with the philosophy of quality under which a similar centre is being setup in Karachi. These centres are as per the vision of the Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen and have been made possible through the support and guidance of the MoIP&SI and the Deputy Chairman Planning Commission/Minister of State Dr. Muhammad Akram Sheikh.
The project will provide the local industry an exposure to state-of-the-art technologies for designing, training, consultancy and manufacturing facilities to produce products of international standards.
This institute will raise the skill level of 750 workers annually through its training activities, which will ultimately support the local industries, generate employment, increase pay rates and raise the standard of living.
This is also the manifestation of the Government’s philosophy of “Public-Private Partnership”. The centre would be funded by the Federal Government, land for the project is being donated by the Provincial Government (being progressed by DCO Gujranwala and Gujranwala Chamber of Commerce) and it would be implemented and managed by the Private sector under the overall guidance of TUSDEC.
http://www.nation.com.pk/daily/Dec-2006/5/bnews9.php
OUR STAFF REPORTER
LAHORE - The Executive Committee of the National Economic Council (ECNEC) has approved the Gujranwala Tools, Dies and Moulds Center (GTDMC), a Rs 878 million project of TUSDEC (Technology Up-gradation and Skill Development Company).
TUSDEC felicitates the Government move in this key direction, in line with the philosophy of quality under which a similar centre is being setup in Karachi. These centres are as per the vision of the Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen and have been made possible through the support and guidance of the MoIP&SI and the Deputy Chairman Planning Commission/Minister of State Dr. Muhammad Akram Sheikh.
The project will provide the local industry an exposure to state-of-the-art technologies for designing, training, consultancy and manufacturing facilities to produce products of international standards.
This institute will raise the skill level of 750 workers annually through its training activities, which will ultimately support the local industries, generate employment, increase pay rates and raise the standard of living.
This is also the manifestation of the Government’s philosophy of “Public-Private Partnership”. The centre would be funded by the Federal Government, land for the project is being donated by the Provincial Government (being progressed by DCO Gujranwala and Gujranwala Chamber of Commerce) and it would be implemented and managed by the Private sector under the overall guidance of TUSDEC.
http://www.nation.com.pk/daily/Dec-2006/5/bnews9.php
Korea to establish steel coil centre at Karachi
RECORDER REPORT
KARACHI (December 06 2006): A joint venture agreement was signed here between Najin Steel (Korea), Super Tech Auto Parts Limited, Karachi, and the consortium of Aftab Technologies (Pvt) Limited, Pakistan, and Cottage Foods Limited of UK to establish a steel coil centre in Karachi, which would be the first centre of its kind in Pakistan to produce steel coils.
The Consul General of South Korea, Sukehul Chang, witnessed the ceremony as chief guest of Najin Pakistan (Pvt) Ltd at a local hotel. The Consul-General in his address appreciated the painstaking efforts of the related companies to the launch of Najin Pakistan (Pvt) Ltd which would help meet the growing demand of steel products in Pakistan. He said that this joint venture between Pakistan and Korean companies was the second after Jin Kwang JAZ Ltd set up in 2004 to produce auto parts.
According to statistics, Korean steel products worth $89 million were exported in 2004, and this sharply decreased in 2005 to $54 million. He expressed confidence that this joint venture would pave the way for a tangible development in production of steel coils in Pakistan.
Aftab Group Chairman Aftab Ashraf Khan said that the basic concept of the agreement was to act as a premier institution focused on steel customers, recognised for superior and high standard of quality products with innovative approach and attractive return to all concerned.
http://www.brecorder.com/index.php?id=5047...m=&supDate=
RECORDER REPORT
KARACHI (December 06 2006): A joint venture agreement was signed here between Najin Steel (Korea), Super Tech Auto Parts Limited, Karachi, and the consortium of Aftab Technologies (Pvt) Limited, Pakistan, and Cottage Foods Limited of UK to establish a steel coil centre in Karachi, which would be the first centre of its kind in Pakistan to produce steel coils.
The Consul General of South Korea, Sukehul Chang, witnessed the ceremony as chief guest of Najin Pakistan (Pvt) Ltd at a local hotel. The Consul-General in his address appreciated the painstaking efforts of the related companies to the launch of Najin Pakistan (Pvt) Ltd which would help meet the growing demand of steel products in Pakistan. He said that this joint venture between Pakistan and Korean companies was the second after Jin Kwang JAZ Ltd set up in 2004 to produce auto parts.
According to statistics, Korean steel products worth $89 million were exported in 2004, and this sharply decreased in 2005 to $54 million. He expressed confidence that this joint venture would pave the way for a tangible development in production of steel coils in Pakistan.
Aftab Group Chairman Aftab Ashraf Khan said that the basic concept of the agreement was to act as a premier institution focused on steel customers, recognised for superior and high standard of quality products with innovative approach and attractive return to all concerned.
http://www.brecorder.com/index.php?id=5047...m=&supDate=
Govt formulating five-year plan for auto policy: Tareen
OUR STAFF REPORTER
LAHORE - Federal Minister for Industries, Production and Special Initiatives, Jehangir Khan Tareen has said that the government is in process of formulating a five-year plan for auto policy and the series of meeting with the stockholder are going to be started from December 12.
Talking to the newsmen at the inaugural ceremony of Pakistan’s first International Foundry Congress & Exhibition 2006 to be held on December 5-6, he said that the auto policy would provide the local car manufacturers an opportunity to plan for the next five years as the government wanted to encourage progressive manufacturers in the country.
Earlier speaking at the inaugural ceremony he encouraged the foundry industry to introduce new technology and trained manpower to spur growth and compete in the international markets. Over 400 delegates from the industrial sector of Pakistan, including some 50 delegates/exhibitors from abroad, are participating in the 2-day event.
The Minister directed the foundry industry to take progressive steps for the development of the sector as the latest technology and new business trends were now part and parcel of a successful industrial revolution. He said that the industry had to make sure that technology as well as quality human resource with the right technical skills.
He said that the foundry industry had to improve on basic infrastructure, build better facilities, introduce advanced technology in machinery and expertise, skills up-gradation in technical sectors, training of skilled and semi-skilled work force, and above all, be quality-conscious to compete with the developed world.
Chairman of Pakistan Foundry Association Sikander Mustafa Khan said that PFA had been delighted to take the initiative of organizing this Congress & Exhibition.
Expert speakers from the engineering sector both from local and abroad spoke to an audience of foundry-men and associated industries and deliberated on issues affecting the foundries in Pakistan and the scope of development and growth. A total of 56 exhibitors are taking part in the industrial exhibition.
http://www.nation.com.pk/daily/Dec-2006/6/bnews5.php
OUR STAFF REPORTER
LAHORE - Federal Minister for Industries, Production and Special Initiatives, Jehangir Khan Tareen has said that the government is in process of formulating a five-year plan for auto policy and the series of meeting with the stockholder are going to be started from December 12.
Talking to the newsmen at the inaugural ceremony of Pakistan’s first International Foundry Congress & Exhibition 2006 to be held on December 5-6, he said that the auto policy would provide the local car manufacturers an opportunity to plan for the next five years as the government wanted to encourage progressive manufacturers in the country.
Earlier speaking at the inaugural ceremony he encouraged the foundry industry to introduce new technology and trained manpower to spur growth and compete in the international markets. Over 400 delegates from the industrial sector of Pakistan, including some 50 delegates/exhibitors from abroad, are participating in the 2-day event.
The Minister directed the foundry industry to take progressive steps for the development of the sector as the latest technology and new business trends were now part and parcel of a successful industrial revolution. He said that the industry had to make sure that technology as well as quality human resource with the right technical skills.
He said that the foundry industry had to improve on basic infrastructure, build better facilities, introduce advanced technology in machinery and expertise, skills up-gradation in technical sectors, training of skilled and semi-skilled work force, and above all, be quality-conscious to compete with the developed world.
Chairman of Pakistan Foundry Association Sikander Mustafa Khan said that PFA had been delighted to take the initiative of organizing this Congress & Exhibition.
Expert speakers from the engineering sector both from local and abroad spoke to an audience of foundry-men and associated industries and deliberated on issues affecting the foundries in Pakistan and the scope of development and growth. A total of 56 exhibitors are taking part in the industrial exhibition.
http://www.nation.com.pk/daily/Dec-2006/6/bnews5.php
Shaukat to invite Mercedes maker for Sheikhupura plant
JAVED MAHMOOD
LAHORE - Prime Minister Shaukat Aziz is inviting Daimler Chrysler, the German manufacturer of Mercedes vehicles, to support the proposed plant of Mercedez at Sheikhupura.
“Next week Prime Minister would write a letter to the top brasses of the Daimler Chrysler to extend an invitation to them to visit Pakistan and set up Mercedes plant at Sheikhpura, in collaboration with the Coastal Group of the United Arab Emirates,” Minister of State for Investment Umer Ahmed Ghumman disclosed this to The Nation in a brief chat.
The high-level contact with the German manufacturer of the world’s renowned vehicles, Mercedes, is aimed at convincing the manufacturer to support the proposed plant in Pakistan and to ensure the complete support of the federal government, said the Minister of State.
He pointed out that the Daimler Chrysler had been showing reluctance in supporting the proposed plant in the wake of media trial of the project in the country.
Mr Ghumman also said that the Supreme Court of Pakistan recently took suo moto notice of the reports of this project appearing in the national press and has given a go-ahead after observing transparency in the project.
Minister of State for Privatisation said that after the apex court’s clearance, the federal government has decided to motivate the Daimler Chrysler, Coastal Group and Punjab Government for materialising the project.
It may be mentioned here that the proposed Mercedes project at Sheikhpura beacme a controversial issue a few months ago when some circles raised questions about transparency in the project. The UAE-based Coastal Group, having representation in Pakistan, has signed an agreement with the federal government for establishing the Mercedes plant in collaboration with the Daimler Chrysler to produce four wheelers (cars, jeeps) and trucks.
Under the agreement, the Punjab government is bound to provide 1200 acres of land to the said group near Sheikhupura city. About 500 acres are required for five assembly plants, 470 acres for testing track, multi-purposes and the rest for the construction of residences of the foreign professionals, to be engaged for the project. The project involves more than one billion dollars worth foreign investment.
http://www.nation.com.pk/daily/dec-2006/13/bnews1.php
Auto industry uplift vital to economic growth
OUR STAFF REPORTER
ISLAMABAD - Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen has underlined the importance of the auto industry as key to the economic development of the country.
He said that auto industry’s forward and backward linkages and economic multiplier effects would contribute to register a robust growth for a considerable period.
He was inaugurating a workshop on Auto Industry Development Programme (AIDP) here on Tuesday, organized by the Engineering Development Board.
The minister, however, took note of various challenges faced by auto assemblers and vendors, and said that the programme aims to address these.
Tareen added that the government wanted to encourage growth, promote domestic competition, enhance competitiveness and stimulate innovation through the programme.
He hoped that the policy framework of the government will double the contribution of Auto Industry to GDP to 5-6 per cent in 2011-12 from present 2.8 per cent, with turnover of Rs 600 billion and export to $350 million and $300 million for CBUs. Paying tributes to marketing sector, he described it as vibrant, major job provider and a potential necessary for the engineering skills, know how and integration of technologies in other sectors.
He assured that the government would support the auto industry with skill development Programme, technology up-gradation, auto cluster and R&D. He referred to up-gradation of Engineering Development Board to Authority and said that the Ministry was working on in its details and exercise will be completed by end January.
This will give more independence and powers to the organizations for serving the auto industry.
However, he expressed regrets on non-introduction of new products by the industry in last few years. The benefits of the policies of President Musharraf and Prime Minister Shaukat Aziz have gone to the auto industry, he added.
Earlier, Imtiaz Rastgar, Chief Executive Officer, EDB in his welcome address said that the Programme has been developed as the higher protection to the localized parts under the Tariff Base System (TBS) would not be for an indefinite period due to government’s external obligations and risk of potential un-competitiveness.
He added that the programme provides a complete road map to Auto Industry with clearly spelled targets.
Rastgar said that a pre-announced five-year tariff plan for both CBUs and components would help the industry to make long term investment and production decisions. It will also make business environment transparent and predictable, he added. He hoped that the incentives given in the Programme would give a direction to the industry to become competitive, innovative and sustainable.
The workshop is being attended by stakeholders including leading car assemblers, vendors and experts.
http://www.nation.com.pk/daily/dec-2006/13/bnews10.php
Sino-Pak FTA not to affect auto industry
HAQ NAWAZ
ISLAMABAD - The local automobile sector was included in the highly sensitive list, which would not be affected negatively from the recently inked Pak-China Free Trade Agreement (FTA), Chief Executive Officer of Engineering Development Board Imtiaz Rastgar said here on Tuesday.
Briefing reporters after the conclusion of the workshop on the draft Auto Industry Development Programme (AIDP), he said they allayed the reservations of the industry over the draft policy and the implications of Pak-China FTA. They were assured that the said FTA would not affect the local industry, given full protection.
“There were some differences over the tariff structure. However, the auto industry and auto parts manufacturers hailed the incentives being offered to the stakeholders in the draft AIDP,” he said.
He said that the EDB would be holding another meeting with stakeholders next week to discuss the policy further.
Zahid Yaqoob, an official of the EDB on the occasion told reporters that the automobile industry would continue to be protected in future.
Earlier, the automobile and auto parts manufacturers, participated in the workshop, here rejected most of tariff structure proposed in the draft AIDP, as they opined that the industry would collapse in case abrupt changes in tax ratios were introduced in each budget.
Representatives of tractor manufacturers in the workshop objected to the issue of capped prices of tractors and they demanded of the government to get the tractor industry rid of the “anomaly”.
“Let the market forces determine the prices of tractor unit,” they told a consultative workshop, which was held to hold further consultation on the AIDP, which is to be finalized by the EDB by the end of this month, some of the participants told a group of reporters.
A representative of the industry said that they had demanded of the government to give a tariff line for next nine years. Long-term tariff is essential, as the industry is not in a position to absorb abrupt shocks. The reduction in taxes on the import of vehicles should be done on three-year basis, he said.
In the press briefing, Imtiaz Rastgar said that the local assemblers had agreed that they would increase the local production of cars and other automobiles with special emphasis on local manufacturing of high value added components.
The EDB CEO was of the view that the local manufacturers lacked skill, resulting in shortcoming in terms of maintaining quality.
He claimed that the representatives of automobile industry were largely agreed with the customs duty proposed in the AIDP. He said that prices of automobiles were always an issue and the government and the automobile industry were always in consultation on the issue. He said that long-term policy was the need of the industry, after it switched over from highly protected deletion programme to Tariff Based System (TBS).
JAVED MAHMOOD
LAHORE - Prime Minister Shaukat Aziz is inviting Daimler Chrysler, the German manufacturer of Mercedes vehicles, to support the proposed plant of Mercedez at Sheikhupura.
“Next week Prime Minister would write a letter to the top brasses of the Daimler Chrysler to extend an invitation to them to visit Pakistan and set up Mercedes plant at Sheikhpura, in collaboration with the Coastal Group of the United Arab Emirates,” Minister of State for Investment Umer Ahmed Ghumman disclosed this to The Nation in a brief chat.
The high-level contact with the German manufacturer of the world’s renowned vehicles, Mercedes, is aimed at convincing the manufacturer to support the proposed plant in Pakistan and to ensure the complete support of the federal government, said the Minister of State.
He pointed out that the Daimler Chrysler had been showing reluctance in supporting the proposed plant in the wake of media trial of the project in the country.
Mr Ghumman also said that the Supreme Court of Pakistan recently took suo moto notice of the reports of this project appearing in the national press and has given a go-ahead after observing transparency in the project.
Minister of State for Privatisation said that after the apex court’s clearance, the federal government has decided to motivate the Daimler Chrysler, Coastal Group and Punjab Government for materialising the project.
It may be mentioned here that the proposed Mercedes project at Sheikhpura beacme a controversial issue a few months ago when some circles raised questions about transparency in the project. The UAE-based Coastal Group, having representation in Pakistan, has signed an agreement with the federal government for establishing the Mercedes plant in collaboration with the Daimler Chrysler to produce four wheelers (cars, jeeps) and trucks.
Under the agreement, the Punjab government is bound to provide 1200 acres of land to the said group near Sheikhupura city. About 500 acres are required for five assembly plants, 470 acres for testing track, multi-purposes and the rest for the construction of residences of the foreign professionals, to be engaged for the project. The project involves more than one billion dollars worth foreign investment.
http://www.nation.com.pk/daily/dec-2006/13/bnews1.php
Auto industry uplift vital to economic growth
OUR STAFF REPORTER
ISLAMABAD - Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen has underlined the importance of the auto industry as key to the economic development of the country.
He said that auto industry’s forward and backward linkages and economic multiplier effects would contribute to register a robust growth for a considerable period.
He was inaugurating a workshop on Auto Industry Development Programme (AIDP) here on Tuesday, organized by the Engineering Development Board.
The minister, however, took note of various challenges faced by auto assemblers and vendors, and said that the programme aims to address these.
Tareen added that the government wanted to encourage growth, promote domestic competition, enhance competitiveness and stimulate innovation through the programme.
He hoped that the policy framework of the government will double the contribution of Auto Industry to GDP to 5-6 per cent in 2011-12 from present 2.8 per cent, with turnover of Rs 600 billion and export to $350 million and $300 million for CBUs. Paying tributes to marketing sector, he described it as vibrant, major job provider and a potential necessary for the engineering skills, know how and integration of technologies in other sectors.
He assured that the government would support the auto industry with skill development Programme, technology up-gradation, auto cluster and R&D. He referred to up-gradation of Engineering Development Board to Authority and said that the Ministry was working on in its details and exercise will be completed by end January.
This will give more independence and powers to the organizations for serving the auto industry.
However, he expressed regrets on non-introduction of new products by the industry in last few years. The benefits of the policies of President Musharraf and Prime Minister Shaukat Aziz have gone to the auto industry, he added.
Earlier, Imtiaz Rastgar, Chief Executive Officer, EDB in his welcome address said that the Programme has been developed as the higher protection to the localized parts under the Tariff Base System (TBS) would not be for an indefinite period due to government’s external obligations and risk of potential un-competitiveness.
He added that the programme provides a complete road map to Auto Industry with clearly spelled targets.
Rastgar said that a pre-announced five-year tariff plan for both CBUs and components would help the industry to make long term investment and production decisions. It will also make business environment transparent and predictable, he added. He hoped that the incentives given in the Programme would give a direction to the industry to become competitive, innovative and sustainable.
The workshop is being attended by stakeholders including leading car assemblers, vendors and experts.
http://www.nation.com.pk/daily/dec-2006/13/bnews10.php
Sino-Pak FTA not to affect auto industry
HAQ NAWAZ
ISLAMABAD - The local automobile sector was included in the highly sensitive list, which would not be affected negatively from the recently inked Pak-China Free Trade Agreement (FTA), Chief Executive Officer of Engineering Development Board Imtiaz Rastgar said here on Tuesday.
Briefing reporters after the conclusion of the workshop on the draft Auto Industry Development Programme (AIDP), he said they allayed the reservations of the industry over the draft policy and the implications of Pak-China FTA. They were assured that the said FTA would not affect the local industry, given full protection.
“There were some differences over the tariff structure. However, the auto industry and auto parts manufacturers hailed the incentives being offered to the stakeholders in the draft AIDP,” he said.
He said that the EDB would be holding another meeting with stakeholders next week to discuss the policy further.
Zahid Yaqoob, an official of the EDB on the occasion told reporters that the automobile industry would continue to be protected in future.
Earlier, the automobile and auto parts manufacturers, participated in the workshop, here rejected most of tariff structure proposed in the draft AIDP, as they opined that the industry would collapse in case abrupt changes in tax ratios were introduced in each budget.
Representatives of tractor manufacturers in the workshop objected to the issue of capped prices of tractors and they demanded of the government to get the tractor industry rid of the “anomaly”.
“Let the market forces determine the prices of tractor unit,” they told a consultative workshop, which was held to hold further consultation on the AIDP, which is to be finalized by the EDB by the end of this month, some of the participants told a group of reporters.
A representative of the industry said that they had demanded of the government to give a tariff line for next nine years. Long-term tariff is essential, as the industry is not in a position to absorb abrupt shocks. The reduction in taxes on the import of vehicles should be done on three-year basis, he said.
In the press briefing, Imtiaz Rastgar said that the local assemblers had agreed that they would increase the local production of cars and other automobiles with special emphasis on local manufacturing of high value added components.
The EDB CEO was of the view that the local manufacturers lacked skill, resulting in shortcoming in terms of maintaining quality.
He claimed that the representatives of automobile industry were largely agreed with the customs duty proposed in the AIDP. He said that prices of automobiles were always an issue and the government and the automobile industry were always in consultation on the issue. He said that long-term policy was the need of the industry, after it switched over from highly protected deletion programme to Tariff Based System (TBS).
Chinese firm offers help to build second steel mill
RECORDER REPORT
ISLAMABAD (December 20 2006): Beris Engineering and Research Corporation of China has said it was ready to help Pakistan build its second steel mill. The company's president, Sun Xian Min said this during a meeting with the Engineering Development Board, CEO, Imtiaz Rastgar on Monday.
A 5-member Chinese delegation is currently visiting Pakistan. Xian said that the corporation had also shown interest in revamping the Karachi Steel Mill, but difficulties at the government level hampered such progress, said an EDB statement.
Briefing the delegation about Kalabagh project, Rastgar said the government was keen to restart it in view of the growth in steel market and shortage of its products.
He said that the Kalabagh project started in 1964 with the collaboration of a German company. The German company completed the necessary spade work and even started construction of blast furnace but the government shifted the project to Karachi.
He said although the iron available there is low in quantity yet all other ingredients, required for a steel mill, are there. The Chinese company can save a lot of time after going through the earlier findings of the German company, he added.
The Chinese delegation underlined the importance of steel in development of heavy industries in any country. The Chinese technology was most suitable for Pakistan as it was cheap compared to other countries, the delegation added.
The Chinese company had recently signed an MoU with a private steel manufacturing unit for expansion of their plant with indigenous input of Kalabagh iron ore.
The Chinese team also consists of blast furnace specialists and will visit Kalabagh mines soon. They are also going through the report of the German company to judge the feasibility of the project.
http://www.brecorder.com/index.php?id=5095...m=&supDate=
RECORDER REPORT
ISLAMABAD (December 20 2006): Beris Engineering and Research Corporation of China has said it was ready to help Pakistan build its second steel mill. The company's president, Sun Xian Min said this during a meeting with the Engineering Development Board, CEO, Imtiaz Rastgar on Monday.
A 5-member Chinese delegation is currently visiting Pakistan. Xian said that the corporation had also shown interest in revamping the Karachi Steel Mill, but difficulties at the government level hampered such progress, said an EDB statement.
Briefing the delegation about Kalabagh project, Rastgar said the government was keen to restart it in view of the growth in steel market and shortage of its products.
He said that the Kalabagh project started in 1964 with the collaboration of a German company. The German company completed the necessary spade work and even started construction of blast furnace but the government shifted the project to Karachi.
He said although the iron available there is low in quantity yet all other ingredients, required for a steel mill, are there. The Chinese company can save a lot of time after going through the earlier findings of the German company, he added.
The Chinese delegation underlined the importance of steel in development of heavy industries in any country. The Chinese technology was most suitable for Pakistan as it was cheap compared to other countries, the delegation added.
The Chinese company had recently signed an MoU with a private steel manufacturing unit for expansion of their plant with indigenous input of Kalabagh iron ore.
The Chinese team also consists of blast furnace specialists and will visit Kalabagh mines soon. They are also going through the report of the German company to judge the feasibility of the project.
http://www.brecorder.com/index.php?id=5095...m=&supDate=
Pak auto vendors should prepare to face competition’
By Hamid Waleed
LAHORE: The findings of a Japan International Cooperation Agency (JICA) consultant about the auto-vending sector of Pakistan have warned of a critical threat from the regional competitors in case the auto vendors fail to bring a change in the production concepts.
The study has pointed out that the old concepts of production would lead Pakistan’s auto-vending sector to nowhere, which size is already reducing sharply amid heavy import of re-conditioned vehicles and production cuts by local Original Equipment Manufacturers (OEMs).
The findings of Mr Sadaya Hamasaki, the JICA consultant presently working with the local auto-vending sector in collaboration with SMEDA, have revealed that the auto-vendors in Pakistan are following the old production concepts including piling up of high inventories of unfinished and finished goods and large lots of production with more stress on the import of new machinery and seldom visits of CEOs to the shop floor.
It has further mentioned that the employers were not using their workers properly that was increasing volume of re-work as well as production cost.
It is warned that both the Chinese and Indian auto goods would replace local auto goods soon in case the auto vendors remained stuck to the old approach. It has stressed on fast production, low inventories in terms of raw and finished goods and shift to just in production and delivery options.
It is worth mentioning that the auto sector in Pakistan has started feeling the heat with the reduction in import duty on reconditioned vehicles. Sources in the industry told that the one leading auto manufacturer is shutting down its production for next 15 days due to diminishing bookings from the market. The same manufacturer had also closed operations for a month about a month back, added the sources.
The domino impact of the situation has hurt the growth of the auto vendors, who have bombarded their sheds with newly imported machinery and reports regarding suspension of operations are brewing up. The sector sources revealed that some 25 percent of 450 registered auto vendors have replaced their old machines with new ones, when they were encouraged by the OEMs in pre-import of reconditions vehicles scenario.
Besides, 450 registered members of Pakistan Auto-parts Manufacturers Association (PAMA), another 225 auto vendors are registered with the Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM). The original size of the sector is estimated at 1600 auto vendors across the country, which means that more than 50 percent are not yet registered with any of the two associations.
The SMEDA has collaborated with JICA for engaging sectoral consultants to upgrade production levels. Earlier, they had worked on the textile sector.
Under the present arrangement, one JICA consultant is providing consultancy to the auto vendors over the last one year and it has visited some 12 units across the country, with six each in Punjab and Sindh.
He is expected to visit six others up to next April when his one-year contract would expire. Since the expert spends nine months a unit therefore his coverage is not as extensive as the situation demands.
http://www.dailytimes.com.pk/default.asp?p...-12-2006_pg5_15
By Hamid Waleed
LAHORE: The findings of a Japan International Cooperation Agency (JICA) consultant about the auto-vending sector of Pakistan have warned of a critical threat from the regional competitors in case the auto vendors fail to bring a change in the production concepts.
The study has pointed out that the old concepts of production would lead Pakistan’s auto-vending sector to nowhere, which size is already reducing sharply amid heavy import of re-conditioned vehicles and production cuts by local Original Equipment Manufacturers (OEMs).
The findings of Mr Sadaya Hamasaki, the JICA consultant presently working with the local auto-vending sector in collaboration with SMEDA, have revealed that the auto-vendors in Pakistan are following the old production concepts including piling up of high inventories of unfinished and finished goods and large lots of production with more stress on the import of new machinery and seldom visits of CEOs to the shop floor.
It has further mentioned that the employers were not using their workers properly that was increasing volume of re-work as well as production cost.
It is warned that both the Chinese and Indian auto goods would replace local auto goods soon in case the auto vendors remained stuck to the old approach. It has stressed on fast production, low inventories in terms of raw and finished goods and shift to just in production and delivery options.
It is worth mentioning that the auto sector in Pakistan has started feeling the heat with the reduction in import duty on reconditioned vehicles. Sources in the industry told that the one leading auto manufacturer is shutting down its production for next 15 days due to diminishing bookings from the market. The same manufacturer had also closed operations for a month about a month back, added the sources.
The domino impact of the situation has hurt the growth of the auto vendors, who have bombarded their sheds with newly imported machinery and reports regarding suspension of operations are brewing up. The sector sources revealed that some 25 percent of 450 registered auto vendors have replaced their old machines with new ones, when they were encouraged by the OEMs in pre-import of reconditions vehicles scenario.
Besides, 450 registered members of Pakistan Auto-parts Manufacturers Association (PAMA), another 225 auto vendors are registered with the Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM). The original size of the sector is estimated at 1600 auto vendors across the country, which means that more than 50 percent are not yet registered with any of the two associations.
The SMEDA has collaborated with JICA for engaging sectoral consultants to upgrade production levels. Earlier, they had worked on the textile sector.
Under the present arrangement, one JICA consultant is providing consultancy to the auto vendors over the last one year and it has visited some 12 units across the country, with six each in Punjab and Sindh.
He is expected to visit six others up to next April when his one-year contract would expire. Since the expert spends nine months a unit therefore his coverage is not as extensive as the situation demands.
http://www.dailytimes.com.pk/default.asp?p...-12-2006_pg5_15
Iron ore production goes up in Punjab
RECORDER REPORT
LAHORE (January 23 2007): The annual production of iron ore has been increased up to 60,000 tonnes in Punjab, and will be further increased next year with the discovery of new reserves. Punjab Mines and Minerals (M&M) Minister Sibtain Khan stated this, while presiding over a department meeting, here on Monday.
Sibtain said work to explore new areas for iron ore has been speeded up and the services of private sector are also being utilised for this purpose. He said the demand for iron ore is increasing day by day across the country. During one year over 30 licenses had been issued for exploration in various areas, while 15 leases had been given to thee concerned parties, he added.
http://www.brecorder.com/index.php?id=5202...m=&supDate=
RECORDER REPORT
LAHORE (January 23 2007): The annual production of iron ore has been increased up to 60,000 tonnes in Punjab, and will be further increased next year with the discovery of new reserves. Punjab Mines and Minerals (M&M) Minister Sibtain Khan stated this, while presiding over a department meeting, here on Monday.
Sibtain said work to explore new areas for iron ore has been speeded up and the services of private sector are also being utilised for this purpose. He said the demand for iron ore is increasing day by day across the country. During one year over 30 licenses had been issued for exploration in various areas, while 15 leases had been given to thee concerned parties, he added.
http://www.brecorder.com/index.php?id=5202...m=&supDate=
Auto makers plan to invest Rs225bn
By Our Reporter
ISLAMABAD, Jan 25: The auto industry will invest Rs225 billion in the next few years to achieve a new target of 500,000 cars a year, generating more than 30,000 jobs. At the current rate, Pakistan by 2010 would make 500,000 cars a year and pay Rs100 billion in taxes, provided the government ensures a long-term and consistent policy to protect the interests of local industry and to attract fresh investment.
Briefing newsmen here on Thursday, director, corporate planning and customer relations, Indus Motor Company (IMC), Shah M Saad Hussain, said that the auto industry had shown an average growth of about 25pc per annum over the last three years.
During the fiscal year 2006-07, the growth is expected to be between 10 and 15 per cent.
The import of used cars, he said, was hurting both local car manufacturers and vendors, and it would also bring down revenue collection.
To a question, he said import of used cars was not a threat to local production. In countries, like India and Thailand, customs duty on import of used cars was much higher than Pakistan.
Sharp demand for automobiles in the last five years has been spurred by a positive economic outlook and political stability, he said.
Mr Hussain said the proposed policy should be framed in a way it protects the national interests.
He elaborated that encouragement of local production would help generate more employment.
The government had already worked out tariff structure under the new auto policy, which would be presented for approval at the next meeting of Economic Coordination Committee (ECC) of the Cabinet.
To a question, he replied that the price of cars depends on the localisation of the maximum parts of the cars. He said 35 per cent parts are still being imported for assembling local cars. Replying to a question, he said that the auto manufacturers are of the view that we do not have any law to control prices of cars.
He said there is an understanding to increase the local production in the next few years for its subsequent exports.
Until 2000 Pakistan had been producing around 40,000 vehicles annually, but production has grown four times to around 160,000.
He said after 9/11, purchase of cars had increased tremendously because of financing by banks and growth in economy.
http://www.dawn.com/2007/01/26/ebr4.htm
By Our Reporter
ISLAMABAD, Jan 25: The auto industry will invest Rs225 billion in the next few years to achieve a new target of 500,000 cars a year, generating more than 30,000 jobs. At the current rate, Pakistan by 2010 would make 500,000 cars a year and pay Rs100 billion in taxes, provided the government ensures a long-term and consistent policy to protect the interests of local industry and to attract fresh investment.
Briefing newsmen here on Thursday, director, corporate planning and customer relations, Indus Motor Company (IMC), Shah M Saad Hussain, said that the auto industry had shown an average growth of about 25pc per annum over the last three years.
During the fiscal year 2006-07, the growth is expected to be between 10 and 15 per cent.
The import of used cars, he said, was hurting both local car manufacturers and vendors, and it would also bring down revenue collection.
To a question, he said import of used cars was not a threat to local production. In countries, like India and Thailand, customs duty on import of used cars was much higher than Pakistan.
Sharp demand for automobiles in the last five years has been spurred by a positive economic outlook and political stability, he said.
Mr Hussain said the proposed policy should be framed in a way it protects the national interests.
He elaborated that encouragement of local production would help generate more employment.
The government had already worked out tariff structure under the new auto policy, which would be presented for approval at the next meeting of Economic Coordination Committee (ECC) of the Cabinet.
To a question, he replied that the price of cars depends on the localisation of the maximum parts of the cars. He said 35 per cent parts are still being imported for assembling local cars. Replying to a question, he said that the auto manufacturers are of the view that we do not have any law to control prices of cars.
He said there is an understanding to increase the local production in the next few years for its subsequent exports.
Until 2000 Pakistan had been producing around 40,000 vehicles annually, but production has grown four times to around 160,000.
He said after 9/11, purchase of cars had increased tremendously because of financing by banks and growth in economy.
http://www.dawn.com/2007/01/26/ebr4.htm
China offers $ 83.33 mln investment in transport sector
KARACHI, Feb 11 (APP): China has offered to make an investment of $83.33 million in transport sector in the province including Karachi. A Chinese delegation led by Madam Sheng met with the Provincial Minister for Transport and Industry, Muhammad Adil Siddiqui here at his office and expressed their interest in bringing environment- friendly and comfortable CNG busses besides establishing CNG fuel stations and fleet operators in the province, according to a statement on Saturday.
Provincial Secretary Transport, Nasir Hayat, Head of Provincial Committee on Investment Cell, Muslim Abbasi were present on the occasion.
During the meeting the delegation comprising Director, Haer Bus Company, Mr. Tong, Su Zhou Meisheng and its President Madam Sheng described the environment of investment in the province as conducive.
They said that they had surveyed the inter city and intra-city routes in the province where better facilities of transport could be provided to the citizens by running large environment-friendly CNG buses.
They expressed their desire of entering into a public-private venture by collaborating with Home Land Transporter of Karachi. Under this venture CNG buses will be plied across the province while bus terminals will also be set up for managing inter city and intra city fleets.
http://www.app.com.pk/en/index.php?option=...81&Itemid=2
KARACHI, Feb 11 (APP): China has offered to make an investment of $83.33 million in transport sector in the province including Karachi. A Chinese delegation led by Madam Sheng met with the Provincial Minister for Transport and Industry, Muhammad Adil Siddiqui here at his office and expressed their interest in bringing environment- friendly and comfortable CNG busses besides establishing CNG fuel stations and fleet operators in the province, according to a statement on Saturday.
Provincial Secretary Transport, Nasir Hayat, Head of Provincial Committee on Investment Cell, Muslim Abbasi were present on the occasion.
During the meeting the delegation comprising Director, Haer Bus Company, Mr. Tong, Su Zhou Meisheng and its President Madam Sheng described the environment of investment in the province as conducive.
They said that they had surveyed the inter city and intra-city routes in the province where better facilities of transport could be provided to the citizens by running large environment-friendly CNG buses.
They expressed their desire of entering into a public-private venture by collaborating with Home Land Transporter of Karachi. Under this venture CNG buses will be plied across the province while bus terminals will also be set up for managing inter city and intra city fleets.
http://www.app.com.pk/en/index.php?option=...81&Itemid=2
Chinese group interested in setting up trailers plant
KARACHI: A Chinese group is interested in setting up a plant for manufacturing of trailers initially, according to a statement issued here on Wednesday.
It said that a delegation of Chinese auto manufacturer-Zhengzhou Hongda Automobile, visited Auto Corporation of Pakistan (ACP) Pakistan Engineering Works (PEW) and Master Motors, along with their local partner- Globuiss Technologies and Trading, to assess the facilities and standard of work of these organizations.
The statement pointed out that the Chinese group is interested in setting-up a plant for manufacturing of trailers initially and later specialized vehicles.
In the third phase they plan to start manufacturing light trucks, it was further pointed out.
app
KARACHI: A Chinese group is interested in setting up a plant for manufacturing of trailers initially, according to a statement issued here on Wednesday.
It said that a delegation of Chinese auto manufacturer-Zhengzhou Hongda Automobile, visited Auto Corporation of Pakistan (ACP) Pakistan Engineering Works (PEW) and Master Motors, along with their local partner- Globuiss Technologies and Trading, to assess the facilities and standard of work of these organizations.
The statement pointed out that the Chinese group is interested in setting-up a plant for manufacturing of trailers initially and later specialized vehicles.
In the third phase they plan to start manufacturing light trucks, it was further pointed out.
app
Work on Textile City may start next week
KTC board to enhance authorised capital to Rs2.2bn
By Shahzad Anwar
KARACHI: Finally the Karachi Textile City project is set to emerge from files, maps, and memorandums with groundbreaking ceremony expected on March 21 next week.
The long awaited project would see the daylight with the start of development work. The formal ceremony to mark commencement of work was scheduled on March 17. However, the ceremony was delayed due to pre-occupation of Prime Minister Shaukat Aziz, the event’s a chief guest, a senior official of the textile ministry told The News.
A few days delay is nothing compared to years taken to conceive the idea, get it on paper, through the legislations, completion of formalities and after becoming a living corporate person, the KTC has been waiting for three years for the work to start.
The textile city was planned over an area of 1,250 acres near Port Qasim in 2004, but federal Ministry of Ports and Shipping provided 700 acres and was reluctant to give possession of remaining 550 acres. This rift between the textile city management and the Ministry of Ports has consumed almost three years, ultimately delaying the project.
The ministry was seeking 3,000-acre alternative land for PQA from Sindh Government regarding expansion of port installations in future and Sindh Government had agreed to provide alternative land but the price issue took long time in settlement between stakeholders.
“The issue of remaining 550 acres land has been settled now and Port Qasim Authority has been paid full amount for 1,250 acres,” a senior official of textile ministry told The News. However he did not disclose how much amount was paid to PQA for transfer of leftover land, but an official of KTC said that amount was same as was paid for the 700 acres.
The 11-member Board which runs Karachi Textile City has also decided in its meeting on Thursday to enhance equity capital of KTC to Rs2.2 billion from current Rs1.2 billion besides of increasing Authorized Capital from Rs1.7 billion to Rs2.2 billion, a sources privy to meeting said.
Textile City project is termed first of its kind in Pakistan, which would have a desalination plant, a self-power generation plant and all the other modern facilities required for industrial production and it expected to generate 80,000 new jobs in the country.
Under initial land-utilisation plan of project around 807 acres or 65 per cent of the total area to be earmarked for industries, 47 acres or 4 per cent for amenities, 70 acres or 5 per cent for utilities, and 326 acres or 26 per cent for roads.
Upon completion of project around 279 industrial plots of different sizes would be sold to establish textile related industries.
Karachi Water & Sewerage Board would provide 20 million gallons a day of water to Textile City from K-III project via 23 km 48-inch diameter pipeline from Fore-Bay.
A public-private joint stock company was set up with an initial capital of Rs1.10 billion in which share of federal government was Rs500 million, PQA Rs100 million, Government of Sindh Rs100 million, NBP Rs50 million, Pak-Kuwait Investment Company Rs50 million, Pak-Oman Investment Company Rs50 million, Saudi-Pak Investment Company Rs50 million, PICIC Rs50 million, Pak-Libya Holding Company Rs50 million besides of PIDC Rs100 million, and EPZA Rs100 million.
KTC board to enhance authorised capital to Rs2.2bn
By Shahzad Anwar
KARACHI: Finally the Karachi Textile City project is set to emerge from files, maps, and memorandums with groundbreaking ceremony expected on March 21 next week.
The long awaited project would see the daylight with the start of development work. The formal ceremony to mark commencement of work was scheduled on March 17. However, the ceremony was delayed due to pre-occupation of Prime Minister Shaukat Aziz, the event’s a chief guest, a senior official of the textile ministry told The News.
A few days delay is nothing compared to years taken to conceive the idea, get it on paper, through the legislations, completion of formalities and after becoming a living corporate person, the KTC has been waiting for three years for the work to start.
The textile city was planned over an area of 1,250 acres near Port Qasim in 2004, but federal Ministry of Ports and Shipping provided 700 acres and was reluctant to give possession of remaining 550 acres. This rift between the textile city management and the Ministry of Ports has consumed almost three years, ultimately delaying the project.
The ministry was seeking 3,000-acre alternative land for PQA from Sindh Government regarding expansion of port installations in future and Sindh Government had agreed to provide alternative land but the price issue took long time in settlement between stakeholders.
“The issue of remaining 550 acres land has been settled now and Port Qasim Authority has been paid full amount for 1,250 acres,” a senior official of textile ministry told The News. However he did not disclose how much amount was paid to PQA for transfer of leftover land, but an official of KTC said that amount was same as was paid for the 700 acres.
The 11-member Board which runs Karachi Textile City has also decided in its meeting on Thursday to enhance equity capital of KTC to Rs2.2 billion from current Rs1.2 billion besides of increasing Authorized Capital from Rs1.7 billion to Rs2.2 billion, a sources privy to meeting said.
Textile City project is termed first of its kind in Pakistan, which would have a desalination plant, a self-power generation plant and all the other modern facilities required for industrial production and it expected to generate 80,000 new jobs in the country.
Under initial land-utilisation plan of project around 807 acres or 65 per cent of the total area to be earmarked for industries, 47 acres or 4 per cent for amenities, 70 acres or 5 per cent for utilities, and 326 acres or 26 per cent for roads.
Upon completion of project around 279 industrial plots of different sizes would be sold to establish textile related industries.
Karachi Water & Sewerage Board would provide 20 million gallons a day of water to Textile City from K-III project via 23 km 48-inch diameter pipeline from Fore-Bay.
A public-private joint stock company was set up with an initial capital of Rs1.10 billion in which share of federal government was Rs500 million, PQA Rs100 million, Government of Sindh Rs100 million, NBP Rs50 million, Pak-Kuwait Investment Company Rs50 million, Pak-Oman Investment Company Rs50 million, Saudi-Pak Investment Company Rs50 million, PICIC Rs50 million, Pak-Libya Holding Company Rs50 million besides of PIDC Rs100 million, and EPZA Rs100 million.
Hybrid varieties to enhance higher productivity
ISLAMABAD, Mar 29 (APP): The recent progress in varietal development has taken a turn for hybrid varieties of different crops which have been accepted world over because of higher productivity, uniform maturity and ease in harvesting.
Accordingly hybrids of maize, vegetables, sunflower and certain pulses have already been introduced/developed and accepted by farmers.
Recently hybrid Rice production has been taken up with the collaboration of China and is getting importance day by day.
It is expected that this would get popularity in near future. Further with the advances in Bio-technological sciences efforts are being made to change the genetic make up and produce transgenic crops.
This technology is still in its initial stages but lot of reservations are being shown and thus need to be evaluated before adoption. Improved crop varieties play a significant role in increasing the production.
At the time of independence, the country was using the traditional local crop varieties which although possessed some better quality parameters but had very low yield potential and thus the annual growth rate was quite low.
Realizing this fact major emphasis was given to varietal improvement which resulted in the development of semi-dwarf varieties of wheat and rice.
These varieties completely changed the scenario during the decade of sixties and was correctly termed as Green Revolution.
The annual growth rate jumped from 0.6% in 1960 to a record peak of about 18% in 1970-71.
Similarly, another rapid growth came during 1978-92 where improved varieties of wheat and cotton alongwith improved package of technology was introduced. Such examples for other crops have also been observed which include maize, pulses, sugarcane, oilseed, fruits and vegetables.
This situation has greatly helped the country to meet the demands of ever increasing population. Pakistan has remained the main exporter of Rice, Cotton and some fruits and vegetables but having a bumper crop of wheat during 1999-2000, it has also entered in the list of wheat exporting countries.
It is expected that with the technological advances, the country would maintain this pace in future.
ISLAMABAD, Mar 29 (APP): The recent progress in varietal development has taken a turn for hybrid varieties of different crops which have been accepted world over because of higher productivity, uniform maturity and ease in harvesting.
Accordingly hybrids of maize, vegetables, sunflower and certain pulses have already been introduced/developed and accepted by farmers.
Recently hybrid Rice production has been taken up with the collaboration of China and is getting importance day by day.
It is expected that this would get popularity in near future. Further with the advances in Bio-technological sciences efforts are being made to change the genetic make up and produce transgenic crops.
This technology is still in its initial stages but lot of reservations are being shown and thus need to be evaluated before adoption. Improved crop varieties play a significant role in increasing the production.
At the time of independence, the country was using the traditional local crop varieties which although possessed some better quality parameters but had very low yield potential and thus the annual growth rate was quite low.
Realizing this fact major emphasis was given to varietal improvement which resulted in the development of semi-dwarf varieties of wheat and rice.
These varieties completely changed the scenario during the decade of sixties and was correctly termed as Green Revolution.
The annual growth rate jumped from 0.6% in 1960 to a record peak of about 18% in 1970-71.
Similarly, another rapid growth came during 1978-92 where improved varieties of wheat and cotton alongwith improved package of technology was introduced. Such examples for other crops have also been observed which include maize, pulses, sugarcane, oilseed, fruits and vegetables.
This situation has greatly helped the country to meet the demands of ever increasing population. Pakistan has remained the main exporter of Rice, Cotton and some fruits and vegetables but having a bumper crop of wheat during 1999-2000, it has also entered in the list of wheat exporting countries.
It is expected that with the technological advances, the country would maintain this pace in future.
Awais Leghari pledges ‘bright’ future to 231 NIP internees
ISLAMABAD: Minister for Information Technology Awais Ahmad Khan Leghari Tuesday ushered into his ministry over 200 internees selected under the National Internship Programme (NIP) with a promise the training they would get at the ministry would serve as a launching pad to boost their professional careers.
He said the most important factor which often acts as a springboard for the professional careers of the educated youth, was “giving them the right opportunity at the right time”.
“I am positively sure our youth have the ability to prove their worth provided they get an enabling atmosphere and opportunity to perform up to their potential,” he said.
The minister was delivering a keynote address to the concluding session of a three-day orientation workshop organised here for a batch of 231 internees put at the disposal of the Ministry of Information Technology and its attached departments for a period of one year to help them gain on-job training and experience. IT Secretary Farrakh Qayyum and other senior officials were also present.
Awais said the Ministry of Information Technology had the capacity and the potential to spearhead the National Internship Programme and help the country’s youth gain valuable work experience to get themselves absorbed in the flourishing IT and telecom sectors.
He said the ministry had already successfully completed an internship programme on its own for about 2500 internees and 80 per cent of them were able to get themselves absorbed in the industry after the completion of six-month internship in the IT industry.
The minister said the ongoing internship programme was of a much higher scale and he was confident the youth would not betray the confidence placed in them by the president and the prime minister who were the moving spirit behind the national internship programme.
He said the government was reaching out to the youth living in far-flung areas and his ministry had made a pioneering effort in this regard by offering 200 scholarships to FSc students from the remote rural fold. These students were offered a training programme of six weeks by the FAST University which made them appear in its regular admission tests where these youths beat their city peers outright to earn their rightful place on different MSc programmes in the IT and telecom disciplines, he added.
Awais Leghari urged the NIP internees, all of them master degrees holders in various disciplines of information technology and telecommunications, to use their time in the ministry and its subsidiaries productively as the industry needed top-class workforce and even the government departments which were not at the top of their efficiency level could ultimately benefit from their input and expertise.
He promised the selected internees his ministry would provide them with a competitive work environment conclusive to learning and he himself would watch over the quality of training imparted to them. He also made senior joint secretary of the ministry the focal point for internees to reach out to explain any problem or concern they had to share with regard to their training. The minister also promised to hold meetings with the internees after every three months to learn about their experiences and take their feedback in person.
http://onlinenews.com.pk/details.php?id=110546
ISLAMABAD: Minister for Information Technology Awais Ahmad Khan Leghari Tuesday ushered into his ministry over 200 internees selected under the National Internship Programme (NIP) with a promise the training they would get at the ministry would serve as a launching pad to boost their professional careers.
He said the most important factor which often acts as a springboard for the professional careers of the educated youth, was “giving them the right opportunity at the right time”.
“I am positively sure our youth have the ability to prove their worth provided they get an enabling atmosphere and opportunity to perform up to their potential,” he said.
The minister was delivering a keynote address to the concluding session of a three-day orientation workshop organised here for a batch of 231 internees put at the disposal of the Ministry of Information Technology and its attached departments for a period of one year to help them gain on-job training and experience. IT Secretary Farrakh Qayyum and other senior officials were also present.
Awais said the Ministry of Information Technology had the capacity and the potential to spearhead the National Internship Programme and help the country’s youth gain valuable work experience to get themselves absorbed in the flourishing IT and telecom sectors.
He said the ministry had already successfully completed an internship programme on its own for about 2500 internees and 80 per cent of them were able to get themselves absorbed in the industry after the completion of six-month internship in the IT industry.
The minister said the ongoing internship programme was of a much higher scale and he was confident the youth would not betray the confidence placed in them by the president and the prime minister who were the moving spirit behind the national internship programme.
He said the government was reaching out to the youth living in far-flung areas and his ministry had made a pioneering effort in this regard by offering 200 scholarships to FSc students from the remote rural fold. These students were offered a training programme of six weeks by the FAST University which made them appear in its regular admission tests where these youths beat their city peers outright to earn their rightful place on different MSc programmes in the IT and telecom disciplines, he added.
Awais Leghari urged the NIP internees, all of them master degrees holders in various disciplines of information technology and telecommunications, to use their time in the ministry and its subsidiaries productively as the industry needed top-class workforce and even the government departments which were not at the top of their efficiency level could ultimately benefit from their input and expertise.
He promised the selected internees his ministry would provide them with a competitive work environment conclusive to learning and he himself would watch over the quality of training imparted to them. He also made senior joint secretary of the ministry the focal point for internees to reach out to explain any problem or concern they had to share with regard to their training. The minister also promised to hold meetings with the internees after every three months to learn about their experiences and take their feedback in person.
http://onlinenews.com.pk/details.php?id=110546
Awais Leghari pledges ‘bright’ future to 231 NIP internees
ISLAMABAD: Minister for Information Technology Awais Ahmad Khan Leghari Tuesday ushered into his ministry over 200 internees selected under the National Internship Programme (NIP) with a promise the training they would get at the ministry would serve as a launching pad to boost their professional careers.
He said the most important factor which often acts as a springboard for the professional careers of the educated youth, was “giving them the right opportunity at the right time”.
“I am positively sure our youth have the ability to prove their worth provided they get an enabling atmosphere and opportunity to perform up to their potential,” he said.
The minister was delivering a keynote address to the concluding session of a three-day orientation workshop organised here for a batch of 231 internees put at the disposal of the Ministry of Information Technology and its attached departments for a period of one year to help them gain on-job training and experience. IT Secretary Farrakh Qayyum and other senior officials were also present.
Awais said the Ministry of Information Technology had the capacity and the potential to spearhead the National Internship Programme and help the country’s youth gain valuable work experience to get themselves absorbed in the flourishing IT and telecom sectors.
He said the ministry had already successfully completed an internship programme on its own for about 2500 internees and 80 per cent of them were able to get themselves absorbed in the industry after the completion of six-month internship in the IT industry.
The minister said the ongoing internship programme was of a much higher scale and he was confident the youth would not betray the confidence placed in them by the president and the prime minister who were the moving spirit behind the national internship programme.
He said the government was reaching out to the youth living in far-flung areas and his ministry had made a pioneering effort in this regard by offering 200 scholarships to FSc students from the remote rural fold. These students were offered a training programme of six weeks by the FAST University which made them appear in its regular admission tests where these youths beat their city peers outright to earn their rightful place on different MSc programmes in the IT and telecom disciplines, he added.
Awais Leghari urged the NIP internees, all of them master degrees holders in various disciplines of information technology and telecommunications, to use their time in the ministry and its subsidiaries productively as the industry needed top-class workforce and even the government departments which were not at the top of their efficiency level could ultimately benefit from their input and expertise.
He promised the selected internees his ministry would provide them with a competitive work environment conclusive to learning and he himself would watch over the quality of training imparted to them. He also made senior joint secretary of the ministry the focal point for internees to reach out to explain any problem or concern they had to share with regard to their training. The minister also promised to hold meetings with the internees after every three months to learn about their experiences and take their feedback in person.
http://onlinenews.com.pk/details.php?id=110546
ISLAMABAD: Minister for Information Technology Awais Ahmad Khan Leghari Tuesday ushered into his ministry over 200 internees selected under the National Internship Programme (NIP) with a promise the training they would get at the ministry would serve as a launching pad to boost their professional careers.
He said the most important factor which often acts as a springboard for the professional careers of the educated youth, was “giving them the right opportunity at the right time”.
“I am positively sure our youth have the ability to prove their worth provided they get an enabling atmosphere and opportunity to perform up to their potential,” he said.
The minister was delivering a keynote address to the concluding session of a three-day orientation workshop organised here for a batch of 231 internees put at the disposal of the Ministry of Information Technology and its attached departments for a period of one year to help them gain on-job training and experience. IT Secretary Farrakh Qayyum and other senior officials were also present.
Awais said the Ministry of Information Technology had the capacity and the potential to spearhead the National Internship Programme and help the country’s youth gain valuable work experience to get themselves absorbed in the flourishing IT and telecom sectors.
He said the ministry had already successfully completed an internship programme on its own for about 2500 internees and 80 per cent of them were able to get themselves absorbed in the industry after the completion of six-month internship in the IT industry.
The minister said the ongoing internship programme was of a much higher scale and he was confident the youth would not betray the confidence placed in them by the president and the prime minister who were the moving spirit behind the national internship programme.
He said the government was reaching out to the youth living in far-flung areas and his ministry had made a pioneering effort in this regard by offering 200 scholarships to FSc students from the remote rural fold. These students were offered a training programme of six weeks by the FAST University which made them appear in its regular admission tests where these youths beat their city peers outright to earn their rightful place on different MSc programmes in the IT and telecom disciplines, he added.
Awais Leghari urged the NIP internees, all of them master degrees holders in various disciplines of information technology and telecommunications, to use their time in the ministry and its subsidiaries productively as the industry needed top-class workforce and even the government departments which were not at the top of their efficiency level could ultimately benefit from their input and expertise.
He promised the selected internees his ministry would provide them with a competitive work environment conclusive to learning and he himself would watch over the quality of training imparted to them. He also made senior joint secretary of the ministry the focal point for internees to reach out to explain any problem or concern they had to share with regard to their training. The minister also promised to hold meetings with the internees after every three months to learn about their experiences and take their feedback in person.
http://onlinenews.com.pk/details.php?id=110546
Suzuki becomes largest assembler
ERUM ZAIDI
KARACHI - Pak Suzuki Motor Company (PSMC) has become the largest assembler in the country having production capacity of 150,000 units at the beginning of calendar year 2007, which is three times more than that of other major competitors, The Nation learnt on Thursday.
Moreover, on the basis of its sound financial variables, market experts are predicting that Pak Suzuki will be able to show growth of approximately 16 percent in profitability to Rs 3,887 million in the same calendar year. The constant growth in capacity has led to a momentous increase in market share of the company from 51 percent at the start of CY03 to 59 percent currently.
According to the company management, a new production unit will be constructed soon that will roll out additional 100,000 units per annum. The new plant will be erected on 120 acres of land, which was recently acquired from Pakistan Steel Mills.
Market analyst from Atlas Capital Research told The Nation that ever since the government reiterated its stance on tightening the monetary policy, the interest rate had risen to record highs.
KIBOR rate (6-Months) that at the start of CY04 was 2.31per cent surged to 5.56 per cent in CY05 and is currently hovering around 10.14 percent. This resulted in a much attractive position for Pak Suzuki whose returns on cash deposits rose from 2.4 percent in CY04 to 5.7 percent in CY05 and 12.6 percent in CY06 resulting in a sizable growth in other income.
The PSMC posted an exceptional performance in CY06, whereby it recorded a double-digit growth in all operational and financial variables. During CY06, the company completed second phase of capacity expansion to 120,000 units per annum and production of more than 100,000 vehicles in a year. Apart from that the company started local production of Suzuki Liana car.
During the year, the company sold 110,090 locally assembled units and 2,083 imported units as per which the company earned revenue of Rs 44.8 billion and Rs 2.4 billion, up by 32 per cent and 61per cent respectively. 57 percent increase in depreciation expense and accounting of Rs 174 million as provisions for custom duties and sales tax raised the cost of sales by 31 per cent to Rs 41.6 billion.
Marketing for the newly introduced Liana pushed the advertising and sales promotion account by 204 per cent that led to a surge in distribution expense by 165 per cent to Rs 503 million. Financial charges of the company rose by 89pc to Rs 221m mainly because of 92pc increase in mark-up on delivery of vehicles.
Market experts were of the views that the company will perform well in the coming year. Apart from Liana, all other models of the company have a strong demand as evident from the fact that delivery periods on these models are as high as 3 months. The company has Rs 560 million on its books in terms of provisions for custom duties and tax, which will eventually result in better margins.
PSMC will also benefit considerably under Auto Industry Development Plan as the duty spread (CBU duty - CKD duty) of vehicles up to 1300cc will gradually improve (post FY09) by 5 per cent, which will allow the company to reduce its prices to attract more customers and hence more revenues.
http://www.nation.com.pk/daily/apr-2007/6/bnews1.php
ERUM ZAIDI
KARACHI - Pak Suzuki Motor Company (PSMC) has become the largest assembler in the country having production capacity of 150,000 units at the beginning of calendar year 2007, which is three times more than that of other major competitors, The Nation learnt on Thursday.
Moreover, on the basis of its sound financial variables, market experts are predicting that Pak Suzuki will be able to show growth of approximately 16 percent in profitability to Rs 3,887 million in the same calendar year. The constant growth in capacity has led to a momentous increase in market share of the company from 51 percent at the start of CY03 to 59 percent currently.
According to the company management, a new production unit will be constructed soon that will roll out additional 100,000 units per annum. The new plant will be erected on 120 acres of land, which was recently acquired from Pakistan Steel Mills.
Market analyst from Atlas Capital Research told The Nation that ever since the government reiterated its stance on tightening the monetary policy, the interest rate had risen to record highs.
KIBOR rate (6-Months) that at the start of CY04 was 2.31per cent surged to 5.56 per cent in CY05 and is currently hovering around 10.14 percent. This resulted in a much attractive position for Pak Suzuki whose returns on cash deposits rose from 2.4 percent in CY04 to 5.7 percent in CY05 and 12.6 percent in CY06 resulting in a sizable growth in other income.
The PSMC posted an exceptional performance in CY06, whereby it recorded a double-digit growth in all operational and financial variables. During CY06, the company completed second phase of capacity expansion to 120,000 units per annum and production of more than 100,000 vehicles in a year. Apart from that the company started local production of Suzuki Liana car.
During the year, the company sold 110,090 locally assembled units and 2,083 imported units as per which the company earned revenue of Rs 44.8 billion and Rs 2.4 billion, up by 32 per cent and 61per cent respectively. 57 percent increase in depreciation expense and accounting of Rs 174 million as provisions for custom duties and sales tax raised the cost of sales by 31 per cent to Rs 41.6 billion.
Marketing for the newly introduced Liana pushed the advertising and sales promotion account by 204 per cent that led to a surge in distribution expense by 165 per cent to Rs 503 million. Financial charges of the company rose by 89pc to Rs 221m mainly because of 92pc increase in mark-up on delivery of vehicles.
Market experts were of the views that the company will perform well in the coming year. Apart from Liana, all other models of the company have a strong demand as evident from the fact that delivery periods on these models are as high as 3 months. The company has Rs 560 million on its books in terms of provisions for custom duties and tax, which will eventually result in better margins.
PSMC will also benefit considerably under Auto Industry Development Plan as the duty spread (CBU duty - CKD duty) of vehicles up to 1300cc will gradually improve (post FY09) by 5 per cent, which will allow the company to reduce its prices to attract more customers and hence more revenues.
http://www.nation.com.pk/daily/apr-2007/6/bnews1.php
Great news.
Chinese firm to set up truck manufacturing plant in Pakistan
ISLAMABAD (April 09 2007): A Chinese firm would invest $100 million for setting up of first-ever heavy-duty truck, dumper and carrier manufacturing plant in Pakistan, said Ma Xiaoyan, representative of China National Heavy-Duty Truck Group Company (CNHDTGC).
"Seeing the market demand, our company is considering to invest $100 million for manufacturing of heavy-duty vehicular transport in Pakistan," he said while briefing newsmen at the launch of warehouse of the company here on Sunday.
He said Sino Pak Truck Private Limited had been established in Pakistan for the introduction of wide range of heavy-duty vehicles manufactured by CNHDTGC, meeting demand in oil, construction, food (cold storage), logistics, sundries, and military sectors.
"Our company manufactures 100 types of heavy-duty transport vehicles sufficing needs of almost every sector," he said.
The company, which has been manufacturing heavy-duty transport vehicles for the last five and a half decades, holds a number of international certifications like, ISO-9001 (Quality Assurance), American Bureau of Shipping Marine Container Certificate, Germany TVU Certificate and Chinese State Class High Technology Enterprise Certificate.
Xiaoyan said only during the last year the company had exported 10,000 trucks to Iran, and 30,000 containers to APL USA while a number of supply orders were in-hand with CNHDTGC, which he said manufactures highly cost effective dumpers, carriers and prime movers.
He said Pakistan had a vast scope for the use of such heavy transport vehicles as the country was showing progress by leaps and bounds in every sector. Due to this reason, he said, the company had been planning to make such a huge investment in the field of transport manufacturing.
He said the company was initially in the process of setting up of mechanism for supply of spares and certain consumable besides provision of after sales services.
In reply to a question, he said a number of deals for the supply of heavy-duty vehicles were being negotiated with certain firms and departments in Pakistan. He said the supplier had already won orders for provision of a considerable number of trucks and dumpers from various organisations working in logistics sector.
http://www.brecorder.com/index.php?id=5485...m=&supDate=
ISLAMABAD (April 09 2007): A Chinese firm would invest $100 million for setting up of first-ever heavy-duty truck, dumper and carrier manufacturing plant in Pakistan, said Ma Xiaoyan, representative of China National Heavy-Duty Truck Group Company (CNHDTGC).
"Seeing the market demand, our company is considering to invest $100 million for manufacturing of heavy-duty vehicular transport in Pakistan," he said while briefing newsmen at the launch of warehouse of the company here on Sunday.
He said Sino Pak Truck Private Limited had been established in Pakistan for the introduction of wide range of heavy-duty vehicles manufactured by CNHDTGC, meeting demand in oil, construction, food (cold storage), logistics, sundries, and military sectors.
"Our company manufactures 100 types of heavy-duty transport vehicles sufficing needs of almost every sector," he said.
The company, which has been manufacturing heavy-duty transport vehicles for the last five and a half decades, holds a number of international certifications like, ISO-9001 (Quality Assurance), American Bureau of Shipping Marine Container Certificate, Germany TVU Certificate and Chinese State Class High Technology Enterprise Certificate.
Xiaoyan said only during the last year the company had exported 10,000 trucks to Iran, and 30,000 containers to APL USA while a number of supply orders were in-hand with CNHDTGC, which he said manufactures highly cost effective dumpers, carriers and prime movers.
He said Pakistan had a vast scope for the use of such heavy transport vehicles as the country was showing progress by leaps and bounds in every sector. Due to this reason, he said, the company had been planning to make such a huge investment in the field of transport manufacturing.
He said the company was initially in the process of setting up of mechanism for supply of spares and certain consumable besides provision of after sales services.
In reply to a question, he said a number of deals for the supply of heavy-duty vehicles were being negotiated with certain firms and departments in Pakistan. He said the supplier had already won orders for provision of a considerable number of trucks and dumpers from various organisations working in logistics sector.
http://www.brecorder.com/index.php?id=5485...m=&supDate=
Agreement to set up steel mill
By The News correspondent
KARACHI: A joint venture agreement was signed last week between Japanese companies and Arif Habib Securities Ltd to set up Aisha Steel Mill Ltd, which will be the largest steel plant of its kind in Pakistan and produce value-added cold rolled coils/sheets at around 220,000 metric tonne for engineering and automobile sectors. The total investment in the project is expected to be $100 million.
The project will be set up using state-of-the-art process equipment procured from renowned Japanese and European manufacturers: Push Pull Pickling Line & Cold Reversing and Skin Pass Mill will be supplied by JP Steel Plantech Co Japan, batch annealing furnace by Ebner Austria and Recoiling Line and Electrolytic Cleaning Line by Tanisaka Iron Works Ltd & Hotani Japan. The facilities set up under the project will be deployed for processing hot rolled coils into cold rolled coils (CRC) for thin gauges (0.15-1.50mm and maximum width of 1219mm) for use in the automobile and engineering sectors. Other uses of the product are electric appliances, motorcycle, bicycle and industrial applications.
The primary objective of the project is to reduce dependence by automobile and engineering and other ancillary industry on imported cold rolled coils thereby promoting industrialisation of the Pakistani economy. The availability of locally manufactured CRC will boost usage of steel and make the industry competitive. The investment will generate direct employment for around 450 for managing the project. Moreover, it will create indirect employment for 1,200 in the services and trade related sectors.
The Japanese parties to the agreement are Universal Metal Corporation, a steel processor and exporter of metals, Metal One Corporation, the largest metals trader of the world and a subsidiary of Mitsubishi Corporation, and Sojitz Corporation of Japan.
link http://www.thenews.com.pk/daily_detail.asp?id=51691
By The News correspondent
KARACHI: A joint venture agreement was signed last week between Japanese companies and Arif Habib Securities Ltd to set up Aisha Steel Mill Ltd, which will be the largest steel plant of its kind in Pakistan and produce value-added cold rolled coils/sheets at around 220,000 metric tonne for engineering and automobile sectors. The total investment in the project is expected to be $100 million.
The project will be set up using state-of-the-art process equipment procured from renowned Japanese and European manufacturers: Push Pull Pickling Line & Cold Reversing and Skin Pass Mill will be supplied by JP Steel Plantech Co Japan, batch annealing furnace by Ebner Austria and Recoiling Line and Electrolytic Cleaning Line by Tanisaka Iron Works Ltd & Hotani Japan. The facilities set up under the project will be deployed for processing hot rolled coils into cold rolled coils (CRC) for thin gauges (0.15-1.50mm and maximum width of 1219mm) for use in the automobile and engineering sectors. Other uses of the product are electric appliances, motorcycle, bicycle and industrial applications.
The primary objective of the project is to reduce dependence by automobile and engineering and other ancillary industry on imported cold rolled coils thereby promoting industrialisation of the Pakistani economy. The availability of locally manufactured CRC will boost usage of steel and make the industry competitive. The investment will generate direct employment for around 450 for managing the project. Moreover, it will create indirect employment for 1,200 in the services and trade related sectors.
The Japanese parties to the agreement are Universal Metal Corporation, a steel processor and exporter of metals, Metal One Corporation, the largest metals trader of the world and a subsidiary of Mitsubishi Corporation, and Sojitz Corporation of Japan.
link http://www.thenews.com.pk/daily_detail.asp?id=51691
Move to establish wind farms along Sindh’s coast
http://www.dawn.com/2007/04/20/nat19.htm
By Amin Ahmed
RAWALPINDI, April 19: The Alternative Energy Development Board (AEDB) has issued Letters of Intent to 81 local and foreign enterprises to set up wind farms in the coastal areas of Sindh for harvesting wind energy, official sources disclosed on Wednesday.
A corridor between Gharo and Keti Bandar, one of the sites where the wind data have been studied by the meteorological department, has been found feasible for setting up wind farms. According to measurements at Gharo, carried out over 24 months, the annual mean wind speed is estimated to be 6.86m/s at 50m above ground level.
The annual power density of the area is 408.6W/square metre, which brings the site into category III of power potential, making it suitable for large economically viable wind farm, says the feasibility study.
Sources told Dawn that about 15 enterprises had already acquired land in the project area. A grid station is located in the area, through which the power generated in wind farms will be channeled.
The sources said the capacity of each turbine would be 50 megawatts but the power generation would be around 35 per cent of the installed capacity based on the wind record.
The sources said the wind farms would be operational by the end of 2008.
The tariff of power generated by the wind farms would be approved by the National Electric Power Regulatory Authority, they said.
Under the Renewable Energy Policy announced by the government in December, 700MW of wind energy would be harnessed by 2010 under the short-term plan. Under the policy, wind energy would have a five per cent share of the total hydroelectric and thermal energy resources of the country.
In view of the wind data, the gross annual energy production by an 18MW wind farm consisting of 30 600kW turbines will be 45 million kWh. The net annual production is estimated at 31 million kWh.
According to the findings of the ‘Wind power potential survey of coastal areas of Pakistan,’ funded by the ministry of science and technology, Sindh’s coastal areas were found to have greater wind power potential than those of Balochistan. Potential areas cover 9,700 square kilometres in Sindh.
The gross wind power potential of the area has been calculated to be 43,000MW. Keeping in view the area utilisation constraints, the exploitable electric power generation potential is about 11,000MW.
Pakistan Meteorological Department Director-General Dr Qamaruz Zaman Chaudhry said a project had also been initiated for mapping wind power in the Northern Areas. Six stations had already started functioning, he said.
At present, oil accounts for approximately 45 per cent of total commercial energy supply, the share of natural gas is 34 per cent, while that of hydel power remains roughly at 15 per cent, says the study.
Wind power provides an opportunity to reduce dependence on imported fossil fuel and expand the power supply capacity to remote locations where grid expansion is not practical, it says.
A typical wind farm of 30 turbines might extend over an area of one square kilometre but only one per cent of the land would be taken in use, the remainder can be used for purposes such as farming, it says.
Wind energy is an ideal renewable energy because it is pollution-free, infinitely sustainable, doesn’t require any fuel, doesn’t create greenhouse gasses and doesn’t produce toxic or radioactive waste, the study says.
http://www.dawn.com/2007/04/20/nat19.htm
By Amin Ahmed
RAWALPINDI, April 19: The Alternative Energy Development Board (AEDB) has issued Letters of Intent to 81 local and foreign enterprises to set up wind farms in the coastal areas of Sindh for harvesting wind energy, official sources disclosed on Wednesday.
A corridor between Gharo and Keti Bandar, one of the sites where the wind data have been studied by the meteorological department, has been found feasible for setting up wind farms. According to measurements at Gharo, carried out over 24 months, the annual mean wind speed is estimated to be 6.86m/s at 50m above ground level.
The annual power density of the area is 408.6W/square metre, which brings the site into category III of power potential, making it suitable for large economically viable wind farm, says the feasibility study.
Sources told Dawn that about 15 enterprises had already acquired land in the project area. A grid station is located in the area, through which the power generated in wind farms will be channeled.
The sources said the capacity of each turbine would be 50 megawatts but the power generation would be around 35 per cent of the installed capacity based on the wind record.
The sources said the wind farms would be operational by the end of 2008.
The tariff of power generated by the wind farms would be approved by the National Electric Power Regulatory Authority, they said.
Under the Renewable Energy Policy announced by the government in December, 700MW of wind energy would be harnessed by 2010 under the short-term plan. Under the policy, wind energy would have a five per cent share of the total hydroelectric and thermal energy resources of the country.
In view of the wind data, the gross annual energy production by an 18MW wind farm consisting of 30 600kW turbines will be 45 million kWh. The net annual production is estimated at 31 million kWh.
According to the findings of the ‘Wind power potential survey of coastal areas of Pakistan,’ funded by the ministry of science and technology, Sindh’s coastal areas were found to have greater wind power potential than those of Balochistan. Potential areas cover 9,700 square kilometres in Sindh.
The gross wind power potential of the area has been calculated to be 43,000MW. Keeping in view the area utilisation constraints, the exploitable electric power generation potential is about 11,000MW.
Pakistan Meteorological Department Director-General Dr Qamaruz Zaman Chaudhry said a project had also been initiated for mapping wind power in the Northern Areas. Six stations had already started functioning, he said.
At present, oil accounts for approximately 45 per cent of total commercial energy supply, the share of natural gas is 34 per cent, while that of hydel power remains roughly at 15 per cent, says the study.
Wind power provides an opportunity to reduce dependence on imported fossil fuel and expand the power supply capacity to remote locations where grid expansion is not practical, it says.
A typical wind farm of 30 turbines might extend over an area of one square kilometre but only one per cent of the land would be taken in use, the remainder can be used for purposes such as farming, it says.
Wind energy is an ideal renewable energy because it is pollution-free, infinitely sustainable, doesn’t require any fuel, doesn’t create greenhouse gasses and doesn’t produce toxic or radioactive waste, the study says.
Thuraya to launch two more satellites in January 2008
10,000 Satellite phone subscribers in Pakistan
ISLAMABAD (APP): A telecommunication company - Thuraya would launch its two more satellites in January 2008 to expand the coverage area and meet the growing demands of satellite phones worldwide. "The company, already having two satellites will launch its third and fourth ones next year to enhance its coverage to Australia, New Zealand and parts of Middle East," said Corporate Sales and Marketing Manager of the Company, Mahar Ezzeddine at the launching ceremony of world's smallest satellite phone in Pakistan. At a press conference here Thursday, he said the fourth satellite of the company would be utilized as a back up of its other three satellites. The coverage area of Thuraya spans over to 120 countries in Europe, North and Central Africa, large parts of Southern Africa, Middle East, Central and South Asia which is inhibited by around 2.3 billion people, he added. Mahar Ezzeddine said Thuraya has around 0.3 million satellite phone subscribers worldwide and this number is increasing with the each passing day. In Pakistan, he said the company has around 10,000 subscribers base, out of which 7500 are pre-paid while remaining are the post-paid customers. Other senior officials of the Company including Senior Country Manager Tariq Al Suwaidi and Sheriar Hassan said after successful launch of the world's smallest satellite phone, Thuraya has released the most advanced handset in the mobile satellite services industry, the Smartest Satellite phone in the world. This world's smartest and lightest dual-mode satellite mobile phone weighing 170 g is now available in Pakistani market. This phone set offers dynamic performance, inimitable style and innovative features including satellite service along with the full range of advanced features such as GSM tri-band, enhanced GPS service, GmPRS (Internet access at speeds 60/15 kbps) a 1.3-mega pixel camera, MMS and Bluetooth. This shows Company's commitment to provide its customers the best handsets, using the latest technology combined with superior services.
10,000 Satellite phone subscribers in Pakistan
ISLAMABAD (APP): A telecommunication company - Thuraya would launch its two more satellites in January 2008 to expand the coverage area and meet the growing demands of satellite phones worldwide. "The company, already having two satellites will launch its third and fourth ones next year to enhance its coverage to Australia, New Zealand and parts of Middle East," said Corporate Sales and Marketing Manager of the Company, Mahar Ezzeddine at the launching ceremony of world's smallest satellite phone in Pakistan. At a press conference here Thursday, he said the fourth satellite of the company would be utilized as a back up of its other three satellites. The coverage area of Thuraya spans over to 120 countries in Europe, North and Central Africa, large parts of Southern Africa, Middle East, Central and South Asia which is inhibited by around 2.3 billion people, he added. Mahar Ezzeddine said Thuraya has around 0.3 million satellite phone subscribers worldwide and this number is increasing with the each passing day. In Pakistan, he said the company has around 10,000 subscribers base, out of which 7500 are pre-paid while remaining are the post-paid customers. Other senior officials of the Company including Senior Country Manager Tariq Al Suwaidi and Sheriar Hassan said after successful launch of the world's smallest satellite phone, Thuraya has released the most advanced handset in the mobile satellite services industry, the Smartest Satellite phone in the world. This world's smartest and lightest dual-mode satellite mobile phone weighing 170 g is now available in Pakistani market. This phone set offers dynamic performance, inimitable style and innovative features including satellite service along with the full range of advanced features such as GSM tri-band, enhanced GPS service, GmPRS (Internet access at speeds 60/15 kbps) a 1.3-mega pixel camera, MMS and Bluetooth. This shows Company's commitment to provide its customers the best handsets, using the latest technology combined with superior services.