Just visited karachi and saw Revo 1000 CC car which someone own near my parents house. From outside it looks reallly nice, I think it will grab a big part to Alto market soon. Also saw their showroom opposite Taj mahal hotel, a nice big showroom

Renault mulling car-making plants in Pakistan

ISLAMABAD: The government is following investor-friendly policies and special incentives are being offered to attract entrepreneurs to invest in different sectors of economy.

Like other sectors, the new entrants in the auto sector are also being offered a special package spanning three years. Under this package, the deletion requirements will not come into play, said Federal Minister of Industries, Production and Special Initiatives Jahangir Khan Tareen at a meeting with French Ambassador Regis De Belenet on Tuesday. According to an official statement, the meeting was also attended by Secretary Industries Kamran Rasool and Head of French Economic Missions for Islamabad and Kabul Jean-Phillippe Quercy.

The minister elaborated that we are working for a more comprehensive auto policy. The South African model is being studied for the purpose, said Mr Tareen, adding that a workshop is being organized on March 8 to elicit views from all the stakeholders for formulating an auto policy.

The French ambassador said foreign investment was booming in Pakistan, but the French share of this investment was very low. “So we are keen to increase our investment in Pakistan.” A French car manufacturing company, Renault, was considering setting up plants in Pakistan, informed the ambassador. He said Renault was among the world’s top 10 car manufacturers. Renault-Logan Model was making 450,000 cars a year and was expanding its worldwide operations to manufacture 1.2 million cars by 2012.

Long-term policy for auto sector demanded

Staff Report

ISLAMABAD: Automobile manufacturers warned on Wednesday that their investment could be at risk if the government failed to outline a long-term policy for the sector, which had been growing at a tremendous rate for the past five years.

At a workshop, entitled Future of the Auto Industry in Pakistan organized by the Engineering Development Board (EDB), they criticized the permission granted by the government for the import of used cars by overseas Pakistanis and said: “The facility is being misused by commercial importers of vehicles.”

They called for rationalization of the tariff regime so that the present and future investment in the auto sector could be protected and promoted at the one and the same time. They called for a policy that stood unchanged for a reasonable long period, at least three to six years. The workshop was attended by a large number of experts from the auto industry, vendors and other stakeholders’ representatives. Experts from the automobile sector presented their research papers at the day-long workshop, which was divided into three sessions.

Saquib H Shirazi of the Atlas Honda Group said the exporting countries of the region were enjoying export subsidies. Further, their utilities cost, fixed infrastructure and financial costs were lower than those in Pakistan.

He called for allowing duty-free import of any exporter of motorcycles/auto parts of their CKD parts, plant and machinery, dies and equipments equal to 25 percent of wholesale value of their annual production. He also proposed the export complementation scheme, allowance for new investment and vendor export complementation

The low image of the country, absence of infrastructure support, slow modernization, no investment from Pakistanis and the culture of rules and regulations were the key concerns of the automobile industry, Mr Shirazi said.

Kenichi Ayukawa, MD Pak Suzuki Motors, also called for continuity of policy for at least six years so that investors could take concrete steps to consolidate their position. He feared that the road infrastructure could no afford the burden of vehicles as the Pak Suzuki was providing around 50,000 cars a year.

Mohsin Syed, managing director of Hybrid Technics (Pvt) Limited, said the automobile industry was facing a situation like television manufacturers who had faced a similar situation when TV sets being imported through the Afghan Transit Trade were smuggled back to Pakistan.

Pakistan was to increase its share in global engineering, and it had 63 percent share in the global trade. He said the actual investment in the auto industry was Rs 120 billion. The new policy should address the tax structure with a view to providing incentives to the investors for exports, he said.

Sikandar Mustafa Khan, chairman of Millat Tractors, said tractor manufacturing was largely a unorganized sector and it faced the problems of lack of proper design, sub-standard engineering and production facilities, low technical skills, non-availability of specified material and components at the retail level and the lack of testing facilities.

Chairman of the Central Board of Revenue Abdullah Yusuf said there was consistency in the policies of the present government. The private sector should come forward and take benefit of the potentials in the market as a level playing field had been provided.

He rejected the assumption of the car manufacturers that the facility being granted under the transfer of residence and baggage schemes to the overseas Pakistanis for import of used cars was being misused. Waseem Haqqie, EDB Chairman, and Imtiaz Rastgar, CEO EDB, said the economic policies of the government were intact. However, they assured that every possible effort would be made to support the automobile industry in Pakistan.

Left-hand drive cars exported

KARACHI, March 9: Transmission Motor Company has exported two first left-hand drive vehicles to Qatar. The keys of two of its vehicle variants, Alif Cars and Bay Pickup Truck, were handed over to Jassim M. Sharshani for onward delivery to Ahmad Bin Sultan Al Assiri of Qatar.

The manufacturer of these vehicles is fully geared to meet the needs of left- and right-hand drive vehicles to cater to the local as well as export market. This diversification capability will enable the company to tap the export market and earn valuable foreign exchange for the country.

The trial export orders are expected to result in more orders from the emirate of Qatar, as the company has significant orders from Africa and South America, says a press release.

Production of Boeing parts at PEC, PIA

Staff Report

KARACHI: A ceremony was held at Precision Engineering Complex (PEC) of Pakistan International Airlines to inaugurate the production of Boeing 777 parts at PEC.

According to a press release on Monday, chairman and chief executive officer PIA Tariq Kirmani congratulated Air Vice Marshal Muhammad Rafi, senior vice president PEC and his team of engineers for attaining a global recognition of manufacturing aviation parts for the Boeing Commercial Airplanes Company.

He stressed on the PIA workforce to strive for expanding the customer base in the international market.

Supply of parts to Boeing would improve Pakistan’s ability to produce aviation parts with a modest beginning of $1.2 million. The volume of sales would increase to $15 million and beyond.

Precision Engineering Complex of PIA is a department that has been engaged in producing state of the art aviation products for international customers like the Air Bus Industries and General Electric of United States.

This is besides Fischer Advanced Composites Company (FACC) of Austria and the Boeing Commercial Airplanes. PEC was established in 1978 and has ever since contributed in establishing state of the art technologies including CNC machining, electronics fabrication and design, production of optical elements, manufacturing of printed circuit boards, investment casting and related technologies.

According to Aaj Television news during the Expo 2006 the visiting delegation of Magna International has shown interest to invest in a automotive parts manufacturing plant in Pakistan. Magna is among the biggest automotive parts producer employing 82,000 persons.

www.magnaint.com

Two new car plants are coming up in Rahwali(other confirms it at Dhabeji), one is Mercedes Benz company in collaboration with Coastal Group of UAE and another is CCOE(some Chinese company) inauguration takes place next month, this was revealed by Aaj TV, the reports are confirmed by CM Sindh Arbab Ghulam Rahim and also by Minister Umer Asghar Ghumman while addressing the financial closure of Dost Steel Re-Rolling Mills a 50 million dollars plant in Qasur BhaiPheru.

http://www.pakobserver.net/200603/30/news/...allocated:%20CM

1600 acres land allocated: CM

Sindh industrialization plan chalked out

John Thakur Das


Karachi—The Sindh Chief Minister Dr. Arbab Ghulam Rahim announced Wednesday that Sindh government has allocated 1200 acres of land to Mercedes Company and 400 acres to Prime Transport Company in Dhabeji on the instructions of Board of Investment.

Presiding over a high profile investment meeting at the Chief Minister House he said the government plans to facilitate more industrial organization companies to invest in the province and comprehensive program of arrangements has been chalked out in that regard.

The Chief Minister revealed that President Musharraf has issued special directives to offer best incentives for foreigners to set up industrial and mechanized units that should enable the government to create more employment opportunities for the people. To speed up industrialization of the province the Chief Minister said he has directed the authorities to cut down procedural formalities to the minimum to save time in documentation.

He instructed the Department of Industries to establish industrial parks in Sindh after consultations with experts who could render their advice for the purpose. He also directed the department to arrange for better facilities for setting up industrial units in Nooriabad on urgent basis. The facilities included supply of water from Kinjhar Lake and gas from Sui.

Talking about Kotri Industrial area Dr. Arbab said the government is planning stern action against land grabbers and encroachments. He issued orders that if allotees of plots do not utilize them within six months, their allotments should be cancelled.

He revealed that in Nooriabad 1700 acres of land has been allocated for setting industries and ordered investigations into its use whether the land is being used for the purpose it was allotted. He promised that an additional 1300 acres of land will be allocated in Nooriabad to accommodate growing demand of industrial plots after relaxing some rules for allotment.

The Chief Minister announced that industrial plots will be sold at 25 percent of the market price as law and order situation improves in the province and businesses are diverted to investment. A number of foreign companies have also shown interest in investing in Karachi while the Sindh government has invited Mansha Group to set up industrial units in the province.

The Minister of State Umer Ghumman told the Chief Minister that the Federal government plans to set up textile city in Sindh as foreign investment of USD 12 billion awaits implementation programs in the province. Others who attended the meeting were provincial minister for Industries Adil Siddiqui, minister for Mines and Mineral Development Irfanullah Khan Marwat, Sardar nadir Akmal Khan Leghari, Federal Commerce Minister Humayun Akhtar, Advisor to Chief Minister Sindh on Finance M. A. Jalil and secretaries of the concerned departments.

http://www.ptl.com.pk/news5.htm

http://www.ptl.com.pk/news2.htm


Transport company unveils plan to manufacture taxis

Prime Transport Limited (PTL), Karachi, plans to manufacture 6000 purpose-built taxis annually that would have UK technology installed. The plan was unveiled and presented to Sindh Governor Dr Ishrat-ul-Ibad by PTL Chief Executive Muhammad Dawood Khan at the Governor House on Wednesday.

Dawood Khan explained the salient features of the project and requested the governor to help his company in acquiring 450 acres of land to start the proposed venture without delay.

The PTL CEO informed the Governor that out of the 6000 taxis, 3000 would be used in the country while the remaining 3000 would be exported. The cost of the project would be about $200 million and would employ at least 2500 workforce of various skills and trades. It is expected that a parallel ancillary and vendor industry would complement this novel project.






It may be recalled that the Board of Revenue has earmarked 17000 acres of land at Dhabeji that would ensure a convenient movement of goods to and from Dhabeji Industrial Area. PTL has already submitted expression of interest to install its manufacturing unit at this site as it realises that the area is ideal for such a venture.

Khan said that the taxi service would be satellite-controlled, which would be provided with call centres for controlling dispatch of vehicles accompanied by a technical and operational staff. A residential colony is also on the anvil to house the workforce and avoid commuting from long distances. A new power generation plant and water supply facility would be erected before the project is commissioned.

Dr Ibad listened to the proposal with interest and promised the PTL CEO that he (Governor) would visit Dhabeji to personally see the area that is destined to be an industrial city.

The governor asked Khalid Mahmood Soomro, Member Board of Revenue Land Utilization, to expedite the process of land allotment to facilitate the prospective investors, industrialists and businessmen start their business ventures. He firmly believed that the new industrial city would be a great success.

Others present at the meeting were PTL Director Mahreen D Khan, company Secretary Nasim Ahmed, Co-ordinator Ismat Abbas, Chief Minister's Investment Cell's Chairman Muslim Abbasi, Additional Secretary, LTI&C Department Kaleem Makki and acting Director General of Board of Investment, Karachi, Nasreen Ali.

Prime Transport Limited (PTL) TO BRING ICON OF LONDON ‘BLACK CAB’ TO PAKISTAN

Prime Transport Ltd., (PTL) was for quite some time working on a plan of operating Satellite Controlled Taxi Service in all major cities of Pakistan. In this connection a meeting was recently held between Mr. Abdul Sami Khan, Chairman, Mr. M. Dawood Khan, Chief Executive, Prime Transport Limited and the Directors of LTI Vehicles Ltd., United Kingdom who are the Largest British owned Vehicle manufacturers. It was mutually resolved that LTI Vehicles will join Prime Transport as its join venture partner to set up a Car Assembly Plant in Pakistan, preferably in close vicinity of Karachi, wherein the famous ‘Black Cab’ operating as a purpose built Taxi in London will be assembled from the CKD kits to be supplied by LTI Vehicles, U.K. PTL will also act as sole distributor for export of these Taxis to Middle East, other Asian Countries & Africa. PTL intends to operate Satellite Controlled Taxi Service through out Pakistan to provide safe, efficient, personalized, reliable and economical transport service to the commuters at their door steps. With this objective in mind the proposed taxi will be fitted with instruments of latest technology such as Satellite Controlled Tracking System, Seat & Door Sensors, Electronic Meters, Camera, Corporate and Credit Card Readers. The Taxi Service will be available at the door steps of the commuters against a telephone call or SMS.

PTL is itself sponsored by non-resident Pakistanis who have substantial business interests abroad. By joining hands with LTI Vehicles, U.K., a sizeable foreign investment will be brought to Pakistan.

The project as envisaged in likely to create a large number of direct and indirect employment opportunities, besides contributing towards the Government of Pakistan’s objective to provide dependable and economical public transport facilities to the people of Pakistan.

Couldn't people make other cars that are being built in the country to taxis with all teh gadgets that they would offer. Then why so much investment in this project. This car is only going to be sold as a taxi so how much would it cost?

Maybe members from UK can shed some light on it.???

i seem to remember reading something about this months ago but then nothing. Hope this happens.

Got no idea whatsoever, this seems to me to be a real waste of money!. Having travelled to many nations, and living in the UK, it is much easier to convert a "normal" road worthy car into a Taxi. Even the black cabs in London are disliked by Londoners!.

Body set up for mechanism to allow new car makers
RECORDER REPORT
ISLAMABAD (April 15 2006): The Economic Co-ordination Committee (ECC) of the Cabinet has constituted a committee, under the chairmanship of Prime Minister Shaukat Aziz, to formulate a mechanism to allow new entrant car manufacturers in the auto sector.

The Ministers for Commerce and Industries, Deputy Chairman Planning Commission, Minister of State for Investment and CBR Chairman will be members of the committee.

Sources said that the country's auto sector had approached the Prime Minister and asked him not to approve the policy prepared by the Ministry of Industries as it is.

The Ministry had recommended that new car manufacturers, like Renault and Volkswagen, which intend to produce cars at cheap rates in Pakistan, should be allowed to import 100 percent CKD kits at 35 percent customs duty.

"The Industries Ministry had proposed that new car manufacturers should be allowed to import 100 percent CKD kits at 35 percent customs duty, as many parts produced at local level will not suit them," official sources told Business Recorder.

However, in the new automotive policy, which they called 'incentivisation regime', it would be made necessary for the new entrants to purchase certain components manufactured locally on commercial considerations.

The Ministry observed that the local auto industry, dominated by Japanese companies, has developed a monopolistic culture, which is not only against the spirit of fair competition but is an attempt to bar new players wishing to enter the market, despite a huge demand-supply gap in the country.

"If the existing assemblers invest in new products (vehicles and assemblies) not currently manufactured locally, they could also qualify for the same concessions being offered to new entrants," they added.

To enjoy concessions at par with new entrants, the existing manufacturers would have to increase their equity substantially in the paid up capital of company in production of a totally different vehicle or production of a new assembly, currently not locally manufactured.

The Ministry is of the view that the major hurdle in the way of aspiring new entrants was the compulsory minimum local content requirement, which is also known as the 'deletion programme'.

With the government's decision to switch over to 'Trade Related Investment Measures' (TRIMs) compliant (tariff based system), the condition for new entrants to start assembly at 75 percent of existing deletion levels in terms of ISDP remains a stumbling block in investment from European manufacturers, the ministry further advocated in its proposal.

"Renault has expressed commitment to start producing cars, if it is allowed to import 100 percent CKD kits at 35 percent customs duty as it is not willing to pay 50 percent duty on the indigenised parts," sources said.

The proposed qualifying criteria for the new entrants to avail concessions are as follows:

(i) The new entrants should bring into Pakistan a substantial investment in the form of FDI and incorporate a company in Pakistan for the purpose.

ii. The company should be producing at least 1,000,000 cars per annum in countries other than Pakistan.

iii. The manufacturing capacity to be created in Pakistan should exceed 15,000 units per year; and

(iv) The new entrants must establish their assembly plants, or should have access to a recognised assembly plant having complete paint shop in Pakistan.

The Ministry of Industries and Production had started negotiations with Renault some time ago, which produces about 2.2 million cars in 12 countries around the world. The company now plans to produce an economy model--1499 cc family car--in eight countries including Brazil, India, Iran, Morocco and Thailand.

The company also intends to start production in Pakistan, provided a new entrant policy is formulated by the end of March 2006, which has already passed.

"If we formulate a policy acceptable to them, they plan to start working in Pakistan right away with the objective of producing the 1499 cc family car to be called 'Logan' and to market it in Pakistan at a price of Rs 640,000," sources quoted the Ministry as suggesting to the government.

Since the same model will be produced in seven other countries, parts and components developed by local vendors would be eligible for use in all countries producing the same model. Renault plans to use 25 percent-30 percent local content and bring Pakistan's vending industry in line with its global supply chain.

An additional dimension in this proposal is that Renault produces Nissan cars also on a shared platform. Component manufacturers would therefore have the opportunity to sell chassis components to both Nissan and Renault which would lead to broadening of vending base through more investment, technology acquisition, integration in the international value chain and job opportunities.

"All parts which have been indigenised and are imported by any assembler will be subject to 50 percent duty for a period of three years, starting from 2006-07," the Ministry said, adding that under the new tariff based system after three years, customs duty on indigenised parts will be 35 percent for the existing assemblers as well as new entrants," the Ministry assured the government, sources said.

http://www.brecorder.com/index.php?id=4104...&term=&supDate=

According to Jang Newspaper, YKK has acquired land for erection of its 20 million dollars plant at Karachi Exports Processing Zone. Honda is investing 100 million dollars in Motor Cycle segment mainly for exports orientation, Komatsu is negotiating with Pakistani companies for investment into manufacturing of heavy parts for its products in Pakistan, all these developments are results of Shaukat Aziz visit to Japan.

Shaukat Aziz had laid down foundation of 500 million US dollar fertilizer plant at Rahim Yar Khan, Fatima fertilizer named company is owned by Arif Habib company, Chinese company will be building the plant. The plant capacity is 1.3 million tonnes. A very good addition to Pakistan Fertilizer Industry.

do we import fertelizers also? also, do we export them?

I think that import is the case.

the shortfall of fertilizer is around 1 million tons per year, many companies are in planning stage to plug the gap. the very basic ingredient is natural gas and all these plants are subjected to the approval of gas quota for the plants.

fertelization without some knowledge of science is very harmful.

here in germany they farmers have to learn how to use fertelizers. how much in which crop and land etc. Coz over doing fertelization may prove catastrophioc to envoirment.

we should look at a lot more use of natural fertiliser too.

That should be done in Pakistan to educate farmers, the field staff in Pakistan, those who are suppose to give advise to farmers at the spot are the laziest people.Those guys are to be fixed to get green revolution in real term ... and hard work on part of farmers.

farming folk are always interested in learning, because thier crop to them is everything.

We live in a small farming village back home and when i was theier on holiday someones buffalo died and people went to pay thier condolences to the owners.... I was in shock!

This is the extent of the love of farmiong for farming folsk, so if they know about proper use of fertilizer etc, they will understand and use it wisely.

Hannover Fair proves big success for Pakistani exhibitors
HANNOVER (April 29 2006): The Hannover Fair 2006 came to a resounding close on Friday, April 28, 2006, with Pakistani exhibitors expressing complete satisfaction over their participation. Numerous companies bagged business orders, and availed opportunities from European markets. Total 60 Pakistani exhibitors took part in the fair held here from April 24-28, 2006.

Being better prepared to do business in the international market this year, Pakistan's exhibitors displayed maturity and professional acumen, which resulted in the companies securing business orders and opportunities from Germany and other European countries.

Imtiaz A Rastgar, Vice-Chairman and CEO, Engineering Development Board (EDB), commenting on the success of Pakistan's exhibitors, said, "The engineering sector in Pakistan has proven that, given the opportunity, Pakistani companies can compete in the international markets and become part of the global supply chain.

We met Presidents of various world famous companies in the European Union, including the President of the Federation of German Industries, and have signed MOUs for technical agreements, joint ventures and technical collaborations."

Rumi Moiz, Managing Director, Research & Development Engineering Company, manufacturer of precision engineering parts in Pakistan, said the company was overwhelmed with the response it received this year. "It has been a dream come true. The company that we have been benchmarking since last tear to emulate came to us to do business with our company! We are also moving on to Holland to continue negotiations with three others companies and sign an MOU with one of them."

Farhan Junejo, Pakistan's Commercial Counsellor in Germany, said that the Pakistan delegation made a positive impact at the Hannover Messe 2006. "With this rate of success, there should be no looking back. We have to sustain our presence here and continue to take part progressively so that Pakistan's industry gets its deserved recognition in the engineering sector. I was happy to be part of the team that did an excellent job with the arrangements at the Pakistan pavilion."

Pakistan's leading manufacturers of CNG dispensing machines, Tesla Industries' Aamir Hussain said, "We, too, have received very good response from international companies.

It is quite visible that international organisations and European companies are beginning to recognise the potential for outsourcing engineering manufactured components, parts and equipment to Pakistani companies."

Nabeel Hashmi, Chairman of Business Development Group (BDG), in his closing remarks to the exhibitors at the final debriefing, said, "I would like to congratulate each and every exhibitor, as well as delegates, for projecting an excellent image of Pakistan here in Germany. We made a positive impact in the international business community and were able to secure substantial business orders and enquiries.

"Hannover is not a one-time attempt; we have to be here for years to make a difference; we have made a start and, Insha 'Allah, we will be one of the leading industrialised nations of the world in the near future. I would also like to thank all members of the organising committee for their hard work and sincere efforts."

The main Pakistan Pavilion made an overwhelming impact in the 'Subcontracting Hall'. Pakistani exhibitors were also present in the Power Generation and Factory Automation halls. Visitors poured in large numbers and conducted business in a professional environment.

They appreciated the hospitality of the Pakistani team at the pavilion.

Pakistan participated at the Hannover Messe 2006 with a delegation of 220 people from the engineering sector, including some members of academia and media. Led by Jahangir Khan Tareen, Minister for Industries, Production & Special Initiatives, Imtiaz Rastgar, Vice Chairman and CEO, Engineering Development Board (EDB), and Nabeel Hashmi, Chairman of the Business Development Group (BDG-EDB), the Pakistan delegation had several bilateral and joint venture partnership meetings with counterparts in Germany and from various international companies.-

It is difficult to distinguish between the Indian and Pakistani pavilions in adjacent halls at the Hannover Messe.

If India had SMEs showcasing products ranging from auto components to forgings, Pakistan too had similar stuff on offer.

However, for India, display of ISRO's prowess, Bhel's heavy engineering might, TVS bikes and investment options in states made the difference.

India had an edge partly because of being a partner country as also due to the longstanding relationship that firms had with the organisers of the fair.

The name of the game is the same — be it tax waivers in Pakistan's special economic zones or export parks or turning Lahore, Karachi and Faisalabad into textile cities with units ranging from weaving and spinning to large processing units.

It all sounds familiar. Pakistan is amongst the fastest growing economies, with 6.7% growth expected in '06-'07, Karachi Stock Exchange is booming and government will have a consistent economic policy.

But the officials selling Pakistan as an investment destination are facing one hurdle — law and order situation.

"There have been a lot of queries and our industry is also preparing to become a sourcing hub but law and order is one concern which we have to address,"a senior Pakistan government official said.

There are also questions over the stability of government and continuity in its policies. But all this has not deterred Pakistan from wooing international investors. Officials claim that Porche is on its way to set up a manufacturing facility and BMW may follow soon.

Why are investors flocking Pakistan? "We are doing well and they want to reap the benefits of our growth,"quips the official.

EDB’s auto policy draft reviewed



LAHORE: The Auto Industry Development Programme (AIDP) draft, prepared by Engineering Development Board (EDB) was reviewed by a 13-member committee appointed by the auto industry at a meeting held here the other day.

The meeting presided over by Zahid J Yaqub, General Manager (Policy Development), EDB, was attended by CEOs and directors of car assemblers and office-bearers of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).

According to a spokesman for EDB on Wednesday, the AIDP aims at expanding the auto industry capacity, achieving competitiveness, encouraging localisation and integration with global markets. It also provides for a safe and relatively risk free transition of the industry from deletion programmes to an open Tariff Based System (TBS).

The programme has recommended import duty at the rate of 35 per cent for CKD kits i.e. un-indigenised, 50 per cent for indigenised components for three years and import duties at the rate of 35 per cent for spare parts.

It contained yearly phase down of tariffs on indigenised parts with certain percentage points. But, the committee recommended that the same rate should be protected for five years in order to facilitate long-term investment by the industry.

The Programme contains ‘Productive Asset Investment Incentive’ (PAII) to create more capacity, upgrade and modernise the existing facilities and to introduce advanced technologies through investment in the productive assets both in the assembly and component manufacturing sector. It includes die & molds, jigs & fixtures, designing and styling, in-house manufacturing, logistics and software and research & development.

On used car imports, the Programme suggested ‘corrections’ by the industry and tightening of rules and procedure by the govt.

In order to modernise and to make auto industry globally competitive and to enable it to cope with the targeted production of 1/2 million cars by 2010, the Programme recommends sizeable investment by the industry in forgings and castings, cutting and grinding tools, sintered products, heat treatment, machining centers, engineering plastic, electronic connectors, sheet metal etc.

New CRC plant for Pakistan’s Aisha Steel

Aisha Steel Mills ASM is planning to build a new cold rolling mill in Karachi. The Pakistani mill announced that they have plans to invest $100 million to set up the new 350,000 tons per year mill. ASM plans to supply the new mill's output to the local automobile and engineering industries. ASM is owned by a Japanese metal trading company, Universal Metal Corp. UMC. Bank loans will account for 70 percent of the financing for the project. The other 30 percent will be through equity by Japanese companies. The current possible Japanese equity may from Marubeni-Itochu Steel and Mitsubishi Corp. The mill equipment may from Japan, South Korea, the US, Italy or Austria. ASM will decide that at the end of the year. However, another main point will be the cost of the land. Pakistan government is finalizing the price of the land to ASM which is owned by Pakistan Steel. Although ASM has asked the Pakistan government for a cheaper price, the land cost will definitely be ASM's main concern

Some good engineering companies links who participated in Hannover Messe 2006 fair:

www.bolancastings.com
www.sbgears.com
www.amtcpdc.com
www.silverfalconeng.com
www.tesla-tech.com
www.fasengineering.com
http://www.pakspring.com/
www.powerwheels-pakistan.com
http://www.kadkamparts.com/
http://www.ultima-technologies.com/
http://www.supertech.com.pk/
http://www.secopak.com/
http://www.apep.com.pk/
http://www.alcovalves.com.pk/
http://www.loads.com.pk/
http://www.mecas.com.pk/
http://www.metwork.com.pk/
http://www.allwin.com.pk/
http://www.infinityengg.com/
http://www.msforgings.com/
http://www.metalinegroup.com/

1.28 million tpy of new HDRI-capacity to be located in Karachi, Pakistan
May 15, 2006


Al-Tuwairqi Group, Dammam, Kingdom of Saudi Arabia, has announced that it has signed a contract with Midrex Technologies Inc. to build a new Midrex Megamod Hot Direct Reduced Iron (HDRI)/Hot Briquetted Iron (HBI)/Cold Direct Reduced Iron (CDRI) Plant in Karachi, Pakistan.

The new DR plant capacity will be rated at 1.28 million tonnes per year and initial production will be 100% CDRI. The plant will be configured to allow the possible addition of briquette machines in the future to produce Hot Briquetted Iron (HBI). The facility will employ many of Midrex’s latest innovations to minimize energy consumption and control product quality.

The new plant will be operated by Tuwairqi Steel Mill, a member of the Al-Tuwairqi Group.

Al-Tuwairqi acquired two Midrex DR Plants in Mobile, Alabama from Corus Group Plc. in December 2004. The two plants each have a production capacity of 400,000 metric tons per year.

Last year Al-Tuwairqi signed a licensing agreement to operate one of these Midrex modules. That plant will be known as Direct Reduction Iron Factory and is currently being renovated and rebuilt adjacent to Al-Tuwairqi’s Al-Ittefaq Steel Factory in Dammam.

No plans have been announced for the 2nd module at this time. The 400,000 Modules will have a new rated capacity of 500,000 each through equipment replacement and new process engineering advancements.

Al-Tuwairqi's steel plant produces steel bar from billets produced in their new melt shop which began operations in 2004. The new DR plants will enable the Al-Tuwairqi Group to better manage raw material costs and ensure a supply of iron units for their existing facilities in Dammam as well as planned future operations.

http://www.steel-grips.com/newsdesk/publis...cle_00400.shtml

Saudis invest in two major steel projects in Pakistan
Analysis by M. Aftab

9 April 2006



ISLAMABAD - Saudi Arabia has come up prominently in Pakistani steel sector. Saudis have invested in two major projects — a state of the art new steel plant, and purchase of Pakistan’s biggest steel mill.


The $ 130 million Tuwairqi Steel Mill (TSM), being built by Saudi Arabia’s biggest steel producer, Dr. Hilal Hussain Al-Tuwairiqi, Chairman of Al-Tuwairqi Group of Companies (ATG), plans to start production within 18 months.

Saudi ATG, and its 3-member consortium has also purchased 75 per cent shares of the country’s biggest industrial project— Pakistan Steel Karachi (PS) for $ 362 million in an auction this week. The two other members of the consortium are: Russia’s M. Magnitogorsk Iron & Steel Works Open JSC and Arif Habib Securities of Pakistan. It outbid the second Consortium that included Noor Financial of Kuwait, the Government of Ras Al Khaimah, Al-Jomaih Holdings of Saudi Arabia, and Industrial Union of Donbass of Ukraine.

Awais Ahmad Leghari, Minister for Privatisation, is highly upbeat over the sale of PS, and said Saudi Arabian, Gulf and Middle East interest "is very high in making new investment and purchase of big ticket state-owned enterprises that are being privatised."

President Pervez Musharraf, this week, performed the Foundation Laying ceremony of Saudi TSM at Karachi, and its construction started. It will annually produce one million tons of steel. The capacity can be expanded to 1.5 tons, and later to three million tons.

President Musharraf applauded Dr. Hilal’s decision to invest in steel in Pakistan, and provide excellent training to its personnel and engineers.

Dr. Hilal said "It is our first venture in Pakistan, but surely not the last. It has now been for more than 25 years of success of ATG Companies. It has been two and a half decades of Commitment and dedication to serve our people. Today, the Group by virtues of its immense diversification stands tall in the field of manufacturing and progressively going beyond the boundaries of the Kingdom of Saudi Arabia. We have always looked at business opportunities that may support and contribute towards the economic development of the countries that we work in, through our corporate goals and responsibilities. The same is our vision for Pakistan," where the Group’s first steel mill is being established at Karachi.

Dr. Hilal said, " We believe, Pakistan is land of extraordinary talent and leadership qualities. The professionals in Pakistan, trained at our state of art steel complex at Karachi will evidently become an asset for the Group and accomplish our mission of expansion worldwide. Our focus remain on the fact track completion of the project." He said, ATG has "selected Pakistan for the modern steel mill for its investment-friendly rules, regulations and policies," he said.

ATG Vice Chairman M. Tariq Barlas said, " the plant, using the directly reduced iron (DRI) technology and will produce one million tons of steel a year in the first phase. It will, later, go up to three million tons a year." It will directly employ 3,500 engineers and technicians and create "massive job opportunities in the services sector."

President Musharraf, speaking at the foundation laying ceremony said, " Pakistani economy will gradually shift its focus from agriculture and textiles to heavy industry and engineering to achieve a quantum jump in the country’s exports." He appreciated ATG’s proposed plan to train Pakistani engineers and technicians. He said, "Pakistan and Saudi Arabia enjoy brotherly relations for years. Trade is improving, but more investment is to be encouraged. Dr. Hilal is exactly doing this to further enhance bilateral relations. The two countries will cement their business and economic relations in the 21st century," he said.

As construction of the new TSM plant started, the highlight of the same week was purchase of the Pakistan Steel Karachi by ATG-Consortium. The Russian-built, state-owned Pakistan Steel went on stream in 1984, with a 1.1 million tons a year capacity. It is the country’s only integrated steel plant. It includes coke oven batteries, a sintering plant, blast furnaces, steel converters, bloom & slab casters, billet mill, hot & cold rolling mills, galvanizing unit, supporting units, and a 165 mw of its own power generation capacity. It has 4,457 acres of land.

Among the three member consortium that has purchased 75 per cent shares of Pakistan Steel, Al-Tuwairiqi Group (ATG) has a 40 per cent share, M. Magnitogorsk Iron & Steel 40 per cent, and Arif Habib 20 per cent. The price of Rs16.80 per share for 1.29 billion shares comes to Rs 21.672 billion, equivalent to $ 362 million. The winning consortium will pay 25 per cent of the total bid money in 20 days, and complete the entire payment in 60 days. The total price of 100 per cent shares was $ 482 million at the rate of the successful bid. The second consortium, that lost the bid, had offered Rs16.50 a share, or Rs21.285 billion.

Recent months have seen considerable Saudi and Gulf FDI inflows into Pakistan. The investment were into telecom, financial, infrastructure, utilities, energy, ports, and real estate sectors, besides steel.

Some of these include purchase of 26 per cent shares, with management control, in March, of the state-owned telecom giant, Pakistan Telecommunication Company Ltd (PTCL), by Abu Dhabi’s Etisalat. Etisalat has purchased the shares for $ 2.6 billion. UAE also has launched its Al-Warid cellular phone company which is growing fast inspite of the fact that there are five more mobile companies in the field. The Abdu Dhabi Group (ADG) that purchased part of the shares with management control, of the big, state-owned United bank Ltd. two years ago, is growing fast. Its profit after tax was 62 per cent in 2005.

"United Arab Emirates will invest in all sectors in Pakistan, including energy, Muhammad bin Dha’en Al-Hameili, the UAE Minister for Energy, had announced during his February visit to Islamabad. A number of UAE investors have also started real estate projects in Karachi, Lahore and Islamabad. Saudi Arabia’s Al-Jomaih Group, joined hands with Hassan Associates-Premium Mercantile of Pakistan Consortium that purchased 73 per cent shares and management control of the big state-owned power monopoly— Karachi Electricity Supply Company Ltd. (KESC) for $ 340 million, in November last. It generates 1,750 megawatt electricity and feeds the big industrial hub of Karachi and the southern part of Sindh province. Germany’s Siemens is the technological partner in the Consortium. The Consortium has announced to invest an additional $ 500 million over five years to expand and upgrade KESC.

Custodian of Two Holy Mosques King Abdullah bin Abdul Aziz, during his recent visit to Islamabad announced that Saudi Arabia is planning to significantly expand its assistance, investment, trade and cooperation in the energy field in Pakistan. Oman this week announced it will invest $ 80 million to develop Gwadar port and infrastructure — a facility that has come up just across from the Straits of Hurmoz, at the western tip of Pakistan’s Mekran Coastline. Omanese Foreign Minister Yousaf bin Alawi bin Abdullah announced said this week during his meeting with President Pervez Musharraf, that his country has already invested $ 20 million in Gwadar infrastructure, including its new international airport. Besides the sea port and airport, Gwadar will be a huge industrial, business, commercial, telecom and transshipment hub to serve Gulf-Saudi Arabia, South East Asia, the Central Asian Republics, most of which are landlocked quickly need a shipping outlet to trade with the Gulf, Middle East and South Asia, and rest of the world.

http://www.khaleejtimes.com/DisplayArticle...n=business&col=

abbasia,

would u like me to pin this topic for u?

Thanks Hellraiser,

Yeah I will definitely like this post to be pinned, the prime reason is that I want to record all the activity going on in engineering sector in Pakistan. Because we are now moving into second generation of industries, moving away single focus on textile industry to engineering sector which constitute 63 pc of world trade and was neglected in our past policies. There is huge explosive growth going on this sector and needs to be focused and discussed. Pinning this topic will help me to keep tracking the topic easily.

Thanks for your input.

Regards

It is Fixed

Thanks Psycho bhai!

Abbassia you can get a good nights sleep now bro.

Thanks Psycho, thanks Hellraiser for taking note and fixing the problem.

30 bike making units on verge of collapse
AZHAR ALI KHAN
KARACHI (May 31 2006): As many as 30 small and medium-sized motorcycle manufacturing units across the country are nearing closure and the manufacturers feared that their small-sized units would be in jeopardy by July this year, sources told Business Recorder on Tuesday.

Sources said that some 30 out of 38 units have been compelled to shrink their business volumes in the wake of rising competition, non-implementation of Tariff Based System (TBS) and largely provided credit facility by the big manufacturers to the dealers. They said that these bike makers across the country had formally come into the market two or three years back, are now facing adverse conditions in running their business.

"Whatever the circumstances we will face, we will not shut down our business," said a local bike manufacturer with a hope that the ultimate beneficiary would be those who would pass these sweltering days.

Nevertheless, industry sources said that most of the companies have cut down the size of their employees and have fired 70 percent of the staff members as these units are small in size and could not spend too much on employees salaries.

"In fact, we are now producing few units, sell those to our dealers and halt production process until we get new orders," said a manufacturer and added that in this way most of the motor bike assemblers and manufacturers avoid making unnecessary expenditures.

When asked, a manufacturer replied, "We could not afford permanent staff, therefore, for the past few months we have been hiring staff on daily wages for a specific time period." Another bike manufacturer informed that to run any factory properly, the manufacturer has to make 300 units on a monthly basis, while around 30 manufacturers stand below this graph.

"Giant-sized companies manufacture their motor bikes in bulk quantity and engage in offloading their stocks aggressively into the markets besides offering special and attractive packages to their dealers, which we could not," said a Karachi-based bike maker.

"How could we offer attractive packages to our dealers or customers in such a condition where we are striving hard to maintain our break-even level," he added.

"Large companies are throwing their units into the market and have conveyed to their dealers to sell their products either on full cash or through leasing," said an assembler on the condition of anonymity.

The small-sized motorcycle manufacturers are perplexed over the situation in which big companies are launching new models and designs, while, they (small-sized manufacturers) are fighting for their source of revenue. "On the one hand, we are competing with big companies by improving our product's quality and design, while on the other hand, the prices of our products have also declined significantly by some Rs6,000 per unit during the past six to eight months due to stiff competition," said an assembler.

"In these circumstances TBS is coming and we fear that the big companies would slash their products prices more significantly this time, consequently we could be deprived of our current market share," manufacturers said while commenting on TBS implementation. It may be mentioned here that the aggregate investment in the motorcycle industry of the country has reached to Rs5 billion, while the units which are nearing closure at this point in time, got the licenses and had invested approximately Rs50 million each some three years back.

http://www.brecorder.com/index.php?id=4320...&term=&supDate=

Steel production in a country is an indication of a country's industrial prowess.
In 2005, China produces 349,400,000 metric tons of steel, equal to the combined total of US, Japan, Russia, and South Korea.
But on a per capita basis, it is not too much to crow about.

888888888888888888888888888888888888888888888

World Steel in Figures - 2006 edition now available online
19 May 2006
Brussels, 19 May 2006 - The 2006 edition of IISI's World Steel in Figures is now available online. World Steel in Figures contains essential facts about the world steel industry including steel production, consumption, trade, employment and basic statistics on scrap, iron ore, ###### iron and crude steel production.

As in previous years, World Steel in Figures lists the top steel producing countries and companies around the world.

In 2005 the five major steel producing countries were:

China (349.4 million metric tons mmt)
Japan (112.5 mmt)
United States (94.9 mmt)
Russia (66.1 mmt)
South Korea (47.8 mmt)
Total world production reached 1,131.8 mmt in 2005, up from 1,067.0 mmt in 2004.

The largest five steel producing companies in 2005 were:

Mittal Steel (63.0 mmt)
Arcelor (46.7 mmt)
Nippon Steel (32.0 mmt)
POSCO (30.5 mmt)
JFE (29.9 mmt)
A PDF version of World Steel in Figures can be downloaded for free from IISI's website. A hard copy version will be available from June and can be ordered through our Bookshop on the IISI website.

World Steel in Figures has been published by the International Iron and Steel Institute every year since 1971.



Related link: http://www.worldsteel.org/?action=newsdetail&id=159

600 MW electricity to be generated through wind
ISLAMABAD, June 6 (APP): Chairman Alternative Energy Development Board (AEDB) Air Marshall ® Shahid Hamid has said 600 megawatts of electricity costing 9.5 paisas per unit would be generated through wind turbines by the end of 2007.
He told a private tv channel that tariff for alternative energy generation was settled with two companies. He said negotiations were continuing with various other companies for tariff fixing.The wind turbines would be set up along the coastal areas, he added.
Besides, a plant was being installed in Landhi, Karachi with the collaboration of New Zealand for producing 25 megawatts electricity from cattle dung and trash.
He said a plan for providing agricultural tools run by solar energy to the poor people in rural areas of Sindh and Balochistan was underway
http://www.app.com.pk/National.htm

Dutch dredger arrives at Karachi Port
KARACHI: The Karachi Port Trust (KPT) has procured the state-of-the-art Backhoe Dredger, which arrived at the Karachi Port from the Netherlands on Tuesday.

The KPT singed an agreement to procure this dredger with Shipyard De-Donge, a Netherlands company, on Feb 1 at a cost of 12.073 million euros, a statement of the KPT said.After the induction of this dredger having an average dredging capacity of 400 cubic meters per hour, it will be used for dredging sand, clay, soft and hard rocks from the Karachi Port channel. This facility will also be available to the two other port authorities.

The dredger's bucket capacity is 8.5 cubic meters and has an excavator penetration force of 100 tonnes with 180-degree range and can accommodate eight members on board. The dredger is classified by Bureau Veritas and complies with all class rules and regulations as well as convention for safety. It has self-propulsion of two hydro propellers of 350kws each.

It can work at a stretch for 14 days without any break, providing optimum efficiency and cutting time for deepening the channel and would permit large ships at the port in future.
http://www.dailytimes.com.pk/default.asp?p..._8-6-2006_pg5_3

heh good job man...
so what u do with them....
is northern areas included in thier list....

Daimler-Chrysler to invest $5.8bn


By Sher Baz Khan

ISLAMABAD, June 15: Daimler-Chrysler and Coastal Group has decided to invest $5.85 billion in Pakistan by starting production of Mercedes-Benz trucks, both commercial and military, buses and Mercedes cars of various types to create a vendor industry.

The group would set up their plant on 1,200 acres of land near Shaikhupura provided by the government. The investment would create 5,000 jobs directly and indirectly, said Umar Ahmed Ghumman, minister of state for Privatisation and Investment and chairman Board of Investment (BoI) at a news conference at the Parliament House here on Thursday.

Coastal Group would make all the financial investment in the project, while Daimler-Chrysler would provide technology transfer.

It is to mention here that on May 7, 1998 two of the world's leading car manufactures, the German Daimler-Benz AG and the USA-based Chrysler Corporation, announced the largest industrial merger in history. The new company, called Daimler-Chrysler, became the world's fifth largest car maker with combined revenues of around $130 billion, a combined operating profit of around $7 billion, and a combined workforce of more than 420,000 employees.

The minister said the group would export products to neighbouring countries as well as to the Gulf region, which would earn billions of dollars in foreign exchange for Pakistan. A training institute conforming to the international standards would also be established in Pakistan to update the technical knowledge in the country.

An industrial estate for vendor industry would also be set up to locally produce spare parts as per European standards for local and export purposes, Mr Ghumman said.

Black cabs: Responding to a question about the reported violation of rules in import of black cabs from the United Kingdom, Mr Ghumman said: "We are importing duty-free 300 black cabs for testing purposes. The government had to give this facility in order to invite $1 billion investment from Prime Transport Limited to assemble, manufacture and operate London taxis in Pakistan under joint venture partnership with LTI of UK and ST Electronics of Singapore."

The minister said 150 of the black cabs would be tested in Karachi, 100 in Lahore and 50 in Islamabad so that to keep in mind the local conditions while manufacturing the cabs locally. He said no rules of the Public Procurement Regulatory Authority (PPRA) had been violated as the matter did not involve any investment by the government and the investment did not create any scam.

"I have no personal connection with the person who has invested the money. He is a Pakistani and his name is Dawood Khan. He belongs to Karachi. He wanted to introduce a secure and safe taxi system in Pakistan after a 15-year-old girl from his family was raped and killed by a taxi driver," he said.

The minister said no one was ready to provide such an investment for the purpose-built black cabs, but still, “we invited the tenders through various newspapers to ensure transparency," he added.

The minister said that as per the agreement, the London taxis would charge Rs11 per km which was reasonable. To a question, he said the manufacturing plant of black cabs was being set up in Gharo, near Karachi on 300 acres. The plant had to be shifted to Pakistan because the manufacturing of a single black cab required 43,000 sterling pounds in the UK compared to the 22,000 sterling pounds in Pakistan.

He said the government wanted to change the culture of taxis in Pakistan by revolutionising, introducing and implementing the most economical, dependable, comfortable and safe satellite-controlled taxi service in the country.

Vast scope for Dutch companies in Pakistan

KARACHI (APP) - The President of the Netherlands-Pakistan Business Council, Martin J Leushuis, has spoken of immense opportunities for collaboration between the two countries in the realms of business and industry.
He is currently on a visit to Pakistan at the head of a three- member delegation.
In an interview with this agency here, Martin pointed out that there are tremendous possibilities for the Dutch companies here.
He said that in the Netherlands and Pakistan most of the people speak English and with the collaboration in the business and industry there can be a win-win situation for both the sides.
Martin informed that there are a lot of products, which cannot be produced in Holland because of the labour cost in comparatively much high there.
However, he further stated, these can be produced in Pakistan pretty well.
Martin was of the view that both the sides could build a suitable, long-term network. “ That is what we are looking for”.
He stated that we are looking for collaboration between the Netherlands and Pakistan and the companies of the two countries.
Martin was of the opinion that the situation was conducive in Pakistan for doing business here and that is why he is here along with a delegation to explore the possibilities in this respect.
The other members of the delegation were Harold Vreeman and Erik Jansen of the Menzing Industries of the Netherlands.
Meanwhile, a Dutch firm Menzing Industries will sign a Memorandum of Understanding with a Karachi based firm- Research and Development Engineering Company.
The MoU will be inked in Islamabad today (Wednesday), says the leader of a three-member business delegation from the Netherlands, Martin J Leushuis, while talking to this news agency here.
He said that the two countries would be working together. The initial test has already been performed.
Martin was of the view that the first step has been taken and after making some progress.
“We will look into the possibilities of investment and see what new products may come out as a result of such a collaboration”, he added.
Martin, who is also the President of the Netherlands-Pakistan Business Council, is looking for the Dutch companies and those from Pakistan to work together.
He said that the NPBC plans to use Pakistan as a hub for other countries in the region. There would be an ideal situation of export and re-export to other countries from Pakistan.
Martin was of the view that there are tremendous possibilities for the Dutch companies here.
Romy Moiz, Managing Director of Research and Development Engineering Company, located in Korangi Industrial Area here, said that Menzing has already sent material here for trial production.
He said that his firm and Menzing will sign an agreement in Islamabad on Wednesday (today) under the sponsorship of Pakistan’s Ministry of Industries and the Engineering Development Board.
Moiz said “we are signing this agreement with Menzing for cooperation and joint projects to be done in Pakistan in future. This is a first step which would lead to further investment here from Holland in a collaborative manner”, he remarked. Moiz further said that Menzing was also offering technology and inviting their personnel for training so that the same standard of manufacturing could be achieved in Pakistan.
Omar Zaman, Technical Director of research and Development Engineering Company, praised the initiatives the government of Pakistan was taking in the engineering industry.

http://www.nation.com.pk/daily/june-2006/28/bnews4.php

APMA delegation calls on EDB chief



By our correspondent

LAHORE: The motorcycle industry in the country is progressing so well as manufacturing of motorcycles has touched the 0.7 million mark in financial year 2005-06.

This was revealed in a meeting between a delegation of Association of Pakistan Motorcycle Assemblers (APMA) with the CEO of Engineering Development Board (EDB), Imtiaz Rastgar here on Tuesday.

The meeting was informed that the volume of motorcycles, manufactured, was going to cross one million mark by the year 2010. The increasing volume has compelled the vendor industry to increase the production of parts accordingly.

The members of delegation pointed out that crank case, crankshaft, transmission, shaft rocker arm, spindle, complete kick starter, spindle gear and spindle cam chain, guide sprocket were in short supply as the production capacities of vendors for these parts are very low, as a result the gap between supply and demand is met by import. The situation can be judged from the fact that crankcase is manufactured mainly by only two companies but their production capacity is approx 6,000 sets per month.

It is pertinent to mention here that Honda is manufacturing the parts for 70cc motorcycles only.

The CEO advised the APMA delegation that they should not only encourage the existing vendors to increase their production but also provide impetus to investors to invest in this industry for rich dividends in short period. The scale of volumes involved was now enough for new entrants to come forward and start producing these parts to fill the gap between the supply and demand, he added.

As evident from the existing scenario, the gap between the supply and demand of the motorcycle parts is going to widen with the increase in production of motorcycles. This gap is an open invitation to the progressive businessmen for availing this opportunity and venturing in the manufacturing of main parts.


http://www.thenews.com.pk/daily_detail.asp?id=12954

pakistan and Holand joint machinery engineering venture

Govt plans to export 250,000 motorcycles

By Fida Hussain

ISLAMABAD: The government plans to export 250,000 motorcycles in the current financial year and the Engineering Development Board (EDB) has asked the government to finalize the duty drawback facility for motorbikes’ export and incorporate it in the Trade Policy 2006-07, EDB CEO Imtiaz Rasgar told the Daily Times on Wednesday.

If the recommendation of the EDB was approved, large-scale export of motorcycles would begin from this fiscal.

The proposed export would earn foreign exchange of 150 million US dollars for the country, said the EDB vice chairman.

He said that the EDB is demanding nothing extraordinary in the coming Trade Policy. We simply want the government to grant the sector duty drawback facility, which is actually the right of any sector playing a role in the country’s exports.

Mr Rastgar said that the proposed export of motorcycles would be the first step towards the opening up of engineering sector for exports. This will also help the government to diversify exports, which are dominated by textiles having a share of around 70 percent in the total exports.

“The government has been striving for diversification of exports. In this regard, the EDB has sent its recommendation for taking steps on behalf of the government to encourage motorbikes’ export in the current fiscal,” he said.

The motorbikes’ export will encourage other industry in the engineering sector to play their role in increasing the exports of the country. We need to enhance our exports. For this the government must encourage the engineering sector, he added.

In the recommendation, the EDB has asked the Central Board of Revenue to return customs duties to the tune of 5-10 percent to the manufacturers on motorbikes’ export. They pay the customs duty on the import of raw material. This is a just demand of the manufacturers, an official said.

The government has the facility of duty drawback for exporters in various sectors. The government has been providing compensatory duty drawback facility on textile exports. Under the compensatory facility, the textile sector is paid more than they pay in customs duty on the import of raw material, the official said. “In other words, the government subsidizes the export of cotton goods,” the official said.

Pakistan produced more than 650,000 motorbikes in the last fiscal. In 2006-07, the motorcycle manufacturers are expected to manufacture over one million units as a result of expansion of the existing plants. According to a study of the EDB, Bangladesh, Afghanistan and the East African region could be potential markets for Pakistan-made motorbikes, the official said.

Motorcycles’ manufacturing is a success story in the country. The industry is fully capable of meeting the domestic requirements. It is also capable of competing in the international market as Pakistan-made 70CC motobikes are famous in the international market. This company has been in the export of motorcycles since long, the official said.

http://www.dailytimes.com.pk/default.asp?p..._6-7-2006_pg5_1

Auto industry growth: Prime Minister forms panel to prepare 10-year plan
ZAHEER ABBASI
ISLAMABAD (July 06 2006): Prime Minister Shaukat Aziz has constituted a committee comprising Planning Commission Deputy Chairman Dr Akram Sheikh, Secretary Ministry of Industries and Production, Kamran Rasool, and Chairman Central Board of Revenue, Abdullah Yousaf, to prepare a 10-year plan for the growth of local auto sector, Business Recorder learnt on Wednesday.

Sources said that the primary thrust of Pakistan Automobile Industry Development Plan (PAIDP) would be to encourage local manufacturers to increase investment by 100 percent to meet local demand and grab international market share through enhancing capacity.

A meeting recently, held in Prime Minister Secretariat, and attended by top brass of Ministry of Industries and Planning Commission, discussed in detail the PAIDP prepared and submitted by the Engineering Development Board (EDB) that led to formation of the committee to further look into its viability.

Under the plan, manufacturers will be given a target of 0.5 million cars and one million motorcycles production by the end of 2010-11. The plan will also address issues like delay in delivery of cars and bikes and suggests abolishment of illegal premium, which is an abhorred practice in the sector. The government has ensured the industry all-out support and return on investment but it would be required to enhance its capacity.

Meanwhile, representatives of the industry were of the view during the meeting with the EDB that import of used cars scheme and new entrants policy was a major concern for the local industry.

Sources said that the government wanted the industry to enhance its capacity and competitiveness as huge imports of vehicles has been disturbing the country's balance of payment. The production and sale details since 1995 show that local production of automobile was not enough to fill the demand-supply gap in the local market and the trend continues to widen during recent years.

Total local production till May 2006 of local industry in cars stood at 143,921 against sale of 140,071, whereas production of motorcycles, according to the officials of EDB, was around 600,000.

Revo maker to expand production



By our correspondent

KARACHI: The maker of Pakistan’s first car - Revo - believes his indigenous development will start to attract people once enough of these vehicles are on road to catch their attention.

Deriving its name from the word - revolution - the car introduced seven months ago is made up of 68 per cent components manufactured locally excluding the most important part - engine.

But, Feroz Khan, CEO of Adam Motor Company Ltd, is closely observing international trends vis-a-vis development of car engines. Moreover, he intends to improve the quality of existing production before moving ahead. “Our cars will start to grab market once there are 4,000-5,000 vehicles on roads,” he said in an interaction with newsmen at AMC plant near Port Qasim on Tuesday.

Currently rolling out seven to eight cars a day, he is planning to increase the number to 20 by January 2007. Besides the 800-1,000cc cars, the company is also manufacturing heavy-duty jeeps and trucks.

“We are also planning to introduce a family van in future,” Feroz said and underlined the challenge in maintaining a balance between reliability of a vehicle and its cost.

The small number of 495 vehicles delivered up until now is not holding back Feroz, who, after enlisting Pakistan among the 16 countries designing and producing cars, has decided to set up an assembling plant in Bangladesh.

About the very low resale value of his cars, he said people still had doubts in their minds about the reliability of these vehicles but hoped the perception will change.


http://www.thenews.com.pk/daily_detail.asp?id=15138

Daimler-Chrysler project by year-end



By Imran Ayub

KARACHI: The world auto giant Daimler-Chrysler is likely to kick off $5.85 billion project by the end of 2006 for starting production of Mercedes-Benz trucks, both commercial and military, buses and Mercedes cars to create a vendor industry in Pakistan.

According to a senior official, two groups - Daimler-Chrysler and Coastal Group - had been working closely with the institutions concerned with an aim to start the project within next few months.

“We can’t speak anything on behalf of investors,” said Muhammad Jehangir Bashar, Secretary, Board of Investment (BoI). “But we all are sure that it’s a very serious plan of investors and is likely to be initiated by the end of this year (2006).”

He said that both the groups were continuously working on the proposed investment plan with the local institutions including the BoI and authorities concerned. However, he said, it was a little bit early to give the exact month for the start of the project.

The government last month announced the plan of Daimler-Chrysler and Coastal Group to invest $5.85 billion in Pakistan by starting production of Mercedes-Benz trucks, both commercial and military, buses and Mercedes cars of various types to create a vendor industry.

As per the announced plan, Coastal Group would make all the financial investment in the project, while Daimler-Chrysler would transfer technology. A 1,200-acre land near Sheikhupura has been offered by the government for the production plant, which would create 5,000 jobs directly and indirectly.

Industry players and analysts see the foreign investment in the particular area as a fresh windfall for the growing local auto industry, which may inspire others to mark Pakistan to expand their business.

“Daimler-Chrysler seems eyeing Central Asian and Afghan market to export its products after manufacturing in Pakistan,” said Farhan Aziz Khan, an analyst at Noman Abid and Company Limited, a local brokerage house.

He said after the revised tariff structure announced by the Engineering Development Board, Pakistan offered the most lucrative business for the auto manufacturing companies across the world.

The EDB announcement last week rationalised the duty structure on off high-way dumpers and other trucks of five tonnes and above capacity.

The fresh structure reduces the duty rate of trucks of five tonnes and above capacity to 40 per cent and that on their CKD kits to 10 per cent.

Similarly, dump trucks and trailers for prime movers have also been placed in the same duty slab while customs duty on the import of prime movers has been reduced to 15 per cent and it has been exempted on their CKD kits to the extent of non-indigenised parts.

Farhan sees the foreign project as the huge investment plan by Daimler-Chrysler, which he says would more work as assembling shop for its export-focussed production.

“Daimler-Chrysler is likely to attract military-based production coupled with good potential market offered by Pakistan where local capacity is as low as 3,000 a year,” he said.

The German auto giant Daimler-Benz AG in 1998 announced the largest industrial merger in the history with the Chrysler Corporation of the United States. The new company, called Daimler-Chrysler, is the world’s fifth largest carmaker with combined revenues of around $130 billion and a combined operating profit of around $7 billion with a combined workforce of more than 420,000 employees.


http://www.thenews.com.pk/daily_detail.asp?id=15143

EDB asks govt to encourage engineering industry

* Says domestic manufacturers of consumer goods facing stiff competition from foreign-made goods

By Fida Hussain

ISLAMABAD: The government has been warned that the local engineering industry will quickly lose market to cheaper China-made goods if the industry is not encouraged to export goods and carve a niche in the international market, a senior government official told the Daily Times on Thursday.

“This is the right time that the government encouraged the engineering industry. There must be an encouragement to the industry in Trade Policy 2006-07, otherwise the industry will not be able to keep its hold on consumers in the local market in the next few years as Chinese goods are quite competitive in terms of low prices,” CEO Engineering Development Board (EDB) Imtiaz Rastgar said.

He claimed that the engineering sector industry is well poised to take part in the country’s export from this fiscal.

The EDB has sent its proposals to the ministry of commerce for the upcoming trade policy in which we have identified household items such as refrigerators, deep freezers and washing machine as engineering goods to be exported.

Apart from 250,000 motorcycles, our plan also includes the export of more than 150,000 refrigerators in the current financial year.

The number of deep freezers and washing machines to be exported has not yet been decided, he said.

Consumer electronics and electrical sectors, which had seen a rapid growth in the previous two years, grew by a healthy 77 percent for electric motors, 20 percent for air conditioners, 12 percent for television sets, and 11 percent for refrigerators in the last fiscal.

Among automobiles, cars, trucks, light commercial vehicles (LCVs) jeeps and tractors exhibited healthy growths of 29, 58, 33 and 16 percent, respectively. Even the Planning Commission in the annual development plan 2006-07 said that automobile was distorted by the import of used cars and buses, especially the latter, whose production showed a decline of 62 percent.

Mr Rastgar said the production of steel items declined considerably in the last fiscal and there is a need that obsolete machinery, particularly coke ovens and the byproduct plant in the Pakistan Steel be repaired.

However, he said the government has allowed some considerable concessions for the import of raw materials used for manufacturing in the engineering sector. Pakistan is home to companies in the engineering sector, which are well known in some foreign countries. The need is to send their goods in the international market.

“The government has been striving for diversification of the country’s exports. In this regard, the EDB has sent its recommendation for taking steps on behalf of the government to encourage the engineering goods’ export in the current fiscal,” he said.

About the impression that there is saturation of capacity in some key sub-sectors, Mr Rastgar said the sector would expand once their goods got good response from consumers in the international market.

http://www.dailytimes.com.pk/default.asp?p...14-7-2006_pg5_3

Plan to steer engineering exports upto $ 10bln by 2010: EDB

ISLAMABAD, July 21 (APP): An ambitious plan has been evolved to enhance the exports of engineering products to $10 billion from $540 million within next four years, Chairman Engineering Development Board (EDB) Waseem Haqqi said Friday. Talking to private tv channel (Geo), he said exports target of this year has been fixed at $750 million. It will be enhanced to $ 01 billion within next two years.

The major chunk of engineering products were exported to Afghanistan, USA, Dubai, UK and Germany. Exports to UAE and Saudi Arabia has also been initiated recently. Around 8,000 to 10,000 motorcycles have also been exported to Bangladesh, Nigeria and Sri Lanka. 2,500 Tractors have been exported to Afghanistan, South Africa and Nigeria.

He said the country attracted around $ 3.520 billion as foreign direct investment (FDI) during this year including $1.6 billion through privatisation of PTCL, Habib Bank and KESC.The net FDI remained at $1.9 billion during the last year. Production of cars have been enhanced upto 200,000 to 320,000 units.
While motorcycle production has been increased to 800,000 from 150,000 within three to four years. Television production has been enhanced up to one million from 125,000, he said.

Around 500,000 cars would be produced in the country by 2009-10.Next year the capacity of car manufacturing would be at 250,000 units.The production of trucks, car and light vehicle remained 198,038 units during 2005-06 including 106,642 cars. Likewise around 46,000 used cars have also been imported.

Refrigerators production have been increased upto one million from 200,000. Air conditioner production have been enhanced upto 750,000.While 55,000 Tractors were manufactured during the last financial year.
http://www.app.com.pk/business.htm

Car firm announces export of first batch of locally assembled 4-WD

KARACHI, July 21 (APP)- The sole distributor and assembler of Land Rover vehicles in Pakistan, Sigma Motors (Pvt) Limited has announced the export of first batch of Pakistan Assembled Land Rover Defenders to Democratic Socialist Republic of Sri Lanka.

High Commissioner of Sri Lanka General C.S. Weerasooriya, received the vehicles on behalf of his Government at a ceremony organised at Karachi Golf Club, Karsaz here on Friday.

Secretary, Ministry of Defence Production, Lt. Gen ® Shahid Siddiq Tirmezi, handed over the vehicles.

Sigma Motors hold a unique distinction of being the assembler, which has entered the export market. Since May 2002, when it started the assembly operation it has assembled more than 3000 Land Rover Defenders which are used all over Pakistan.

The company is geared to assemble 2000 Land Rover Defenders per year and is also aggressively pursuing other export opportunities besides looking after the needs of fleet customers in Pakistan.

It may be noted that Land Rover Defenders is icon of automobile industry and presently used in more than 150 countries around the world.

Energy meter exports hit $2m



By our correspondent

KARACHI: The export of energy meter from Pakistan increased to $2 million in 2005 as compared to $0.133 million in 2004.

The chairman of the committee on energy meter sector, Shamim Ahmed said this in a presentation on growth strategy for energy meter sector in Islamabad on Monday. Shamim said that world trade of energy meter was $1 billion and Hungary was the top exporter with total exports of $132 million in 2004. He added that the strength of the industry was 50 years of experience of local energy meter production and complete know-how in metering technologies, systems, testing and certifications, depth of indigenization and vendor base, and possibility of involving local engineering institutions for product developments.

He said that the local meter manufacturing industry had been operating for the past 50 years and has been nurtured through tariff protection. Its existing capacity of single phase meter was 2.5 million units per annum and 1.5 lakh three-phase meters.

Technology and business is purely centred around WAPDA regulations and its metering system and major manufacturers are producing only for one customer - WAPDA. The industry has no export orientation for sustainable growth, he added.

Minister of industries, production and special initiatives Jahangir Khan Tareen directed that a meeting of all manufacturers should be called in order to evolve a roadmap for realising export potential of the industry.

He added that the ministry was ready to facilitate the industry in order to enhance its competitiveness in the world market. The committee was constituted by Engineering Development Board to define a framework for growth of energy meter sector in Pakistan.

Energy meter exports hit $2m
good news

Pakistani Motorcycle Exports Likely to Start This Fiscal Year
KARACHI, Aug 8 Asia Pulse - After consuming enormous imported and locally manufactured motorbikes for a long time, the auto market is geared up to export 'made in Pakistan' two-wheelers in 2006-07.

A senior official said the government has extended duty drawback facility for motorcycle export incorporating it in the Trade Policy 2006-07 announced last month.

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"After such facilitation, we expect that by the end of this fiscal, we would be able to export 100,000 motorbikes," Imtiaz Rastgar, Chief Executive Officer Engineering Development Board said.

"In the first phase, we will target the regional market in a bid to explore new areas for our engineering goods, as the EDB tries to bring more options for the local industry, which has potential to meet global demand for engineering goods."

He said the motorbike manufacturers were keen to enter into export venture but it depended purely on their production capacity, as the domestic market itself offered lucrative business opportunities to the local auto industry.

"One of our total seven manufacturers has prepared itself and hopefully it would mark the motorbike export from Pakistan with 100,000 pieces by the end of 2006-07," added Rastgar.

http://sg.biz.yahoo.com/060808/16/42n34.html

northern areas like gilgit,para chinar etc also parts of kashmir was included in the list,although im not in that project anymore i used to supervise installation of telecom equipment,then commissioning them as integrated system and then integrating them with other sites for link up and finally bringing site on-air so u guys get the signals:)