This document provides an overview of Pakistan's economy and motorcycle industry. It discusses that Pakistan has a population of 170 million people and is located in a strategic position between South Asia, the Middle East, and Central Asia. The motorcycle industry in Pakistan is over 45 years old and has grown significantly in recent years. There are now 43 original equipment manufacturers that produce over 877,000 motorcycles annually, making Pakistan the 7th largest motorcycle producer globally. The market was previously dominated by Japanese brands but has diversified in recent years.
This document provides an overview of Pakistan's economy and motorcycle industry. It discusses that Pakistan has a population of 170 million people and is located in a strategic position between South Asia, the Middle East, and Central Asia. The motorcycle industry in Pakistan is over 45 years old and has grown significantly in recent years. There are now 43 original equipment manufacturers that produce over 877,000 motorcycles annually, making Pakistan the 7th largest motorcycle producer globally. The market was previously dominated by Japanese brands but has diversified in recent years.
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This document provides an overview of Pakistan's economy and motorcycle industry. It discusses that Pakistan has a population of 170 million people and is located in a strategic position between South Asia, the Middle East, and Central Asia. The motorcycle industry in Pakistan is over 45 years old and has grown significantly in recent years. There are now 43 original equipment manufacturers that produce over 877,000 motorcycles annually, making Pakistan the 7th largest motorcycle producer globally. The market was previously dominated by Japanese brands but has diversified in recent years.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
CIMA Motor Z009 CIMA Motor Z009 Chongqing Chinu Chongqing Chinu Commercial Section Consulate General of Pakistan Commercial Section Consulate General of Pakistan Ecnomy Overview of Pakistan Notorcycle !ndustry in Pakistan Production Factors Cost Logistics Encouraging Policies for !nvestment in Notorcycle !ndustry Ecnomy Overview of Pakistan Notorcycle !ndustry in Pakistan Production Factors Cost Logistics Encouraging Policies for !nvestment in Notorcycle !ndustry Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan ^ !ukistun is u country Iocuted in South Asiu ut u strutegic und importunt Iocution ut the cross- rouds of South Asiu the MiddIe Eust und CentruI Asiu ^ It hus 104 km coustIine uIong the Arubiun Seu und SuIf of Omun in the South und is bordered by Afghunistun und Irun in the West Indiu in the Eust und Chinu in the fur northeust ^ !ukistun is u country Iocuted in South Asiu ut u strutegic und importunt Iocution ut the cross- rouds of South Asiu the MiddIe Eust und CentruI Asiu ^ It hus 104 km coustIine uIong the Arubiun Seu und SuIf of Omun in the South und is bordered by Afghunistun und Irun in the West Indiu in the Eust und Chinu in the fur northeust Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan ^ !ukistun is the sith most popuIous country in the worId huving popuIution of 170 miIIion ^ The Demogruphic !rofiIe of !ukistun is such thut 4% of popuIution is beIow 19 yeurs of uge Z7% between Z0-39 yeurs of uge 13% between 40-9 yeurs of uge und % ure 0 yeurs und ubove ^ Thus !ukistun is reIutiveIy u young country with vibrunt peopIe ^ !ukistun is the sith most popuIous country in the worId huving popuIution of 170 miIIion ^ The Demogruphic !rofiIe of !ukistun is such thut 4% of popuIution is beIow 19 yeurs of uge Z7% between Z0-39 yeurs of uge 13% between 40-9 yeurs of uge und % ure 0 yeurs und ubove ^ Thus !ukistun is reIutiveIy u young country with vibrunt peopIe Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan ^ !ukistun is one of the fustest growing economies of the worId huving touched u record SD! growth rute of ,4% in Z00 ^ Averuge growth rute during Iust four yeurs hus been ,4% ^ !ukistun hus over 170 miIIion consumers with un ever growing middIe cIuss ^ Foreign Direct Investment {FDI} hus risen shurpIy from u mere US$ 300 miIIion in the 1990s to over US$ ,1 biIIion in Z007- Z00 ^ The Ieuding sectors for FDI ure communicution finunciuI businesses oiI und gus epIorution power trude und reuI estute und the muin sources ure Chinu USA Uk NetherIunds UAE und others ^ !ukistun is one of the fustest growing economies of the worId huving touched u record SD! growth rute of ,4% in Z00 ^ Averuge growth rute during Iust four yeurs hus been ,4% ^ !ukistun hus over 170 miIIion consumers with un ever growing middIe cIuss ^ Foreign Direct Investment {FDI} hus risen shurpIy from u mere US$ 300 miIIion in the 1990s to over US$ ,1 biIIion in Z007- Z00 ^ The Ieuding sectors for FDI ure communicution finunciuI businesses oiI und gus epIorution power trude und reuI estute und the muin sources ure Chinu USA Uk NetherIunds UAE und others Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan ^ !ukistun's SD! {NominuI} hus reuched to US$ 17 biIIion in the yeur Z00 with per cupitu SD! of US$ 1044 ^ The components of SD! during Z007- Z00 were ugricuIture sector Z1% munufucturing sector ZZ% und services sector 7% ^ Indicute shift in the structure of !ukistun's economy from muinIy ugricuIture buse to munufucturing und services ^ !ukistun's SD! {NominuI} hus reuched to US$ 17 biIIion in the yeur Z00 with per cupitu SD! of US$ 1044 ^ The components of SD! during Z007- Z00 were ugricuIture sector Z1% munufucturing sector ZZ% und services sector 7% ^ Indicute shift in the structure of !ukistun's economy from muinIy ugricuIture buse to munufucturing und services Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan FoIIowing ure the importunt Economic Indicutors of Rising !ukistun for the yeur Z007-Z00:- ,% SD! growth US$ 13 miIIion increuse in FDI during Z007- Z00 touching totuI FDI of US$ ,1 biIIion 1Z% increuse in eports during Z007-Z00 {US$ 19,ZZ biIIion} 1,3% increuse Net Revenue during Z007- Z00{Rs, 73, biIIion} FoIIowing ure the importunt Economic Indicutors of Rising !ukistun for the yeur Z007-Z00:- ,% SD! growth US$ 13 miIIion increuse in FDI during Z007- Z00 touching totuI FDI of US$ ,1 biIIion 1Z% increuse in eports during Z007-Z00 {US$ 19,ZZ biIIion} 1,3% increuse Net Revenue during Z007- Z00{Rs, 73, biIIion} Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan 1,% increuse in Worker's Remittunces during Z007-Z00 {US$ , biIIion} 1,% growth in ugricuIture sector Fore Reserves ut US$ 1,Z biIIion 4,% growth in Iurge scuIe munufucturing sector 9,4% growth in service sector ,4% growth in munufucturing sector 1,Z% growth in construction sector StubIe echunge rute for the Iust yeurs 1,% increuse in Worker's Remittunces during Z007-Z00 {US$ , biIIion} 1,% growth in ugricuIture sector Fore Reserves ut US$ 1,Z biIIion 4,% growth in Iurge scuIe munufucturing sector 9,4% growth in service sector ,4% growth in munufucturing sector 1,Z% growth in construction sector StubIe echunge rute for the Iust yeurs Ecnomy Overview of Pakistan Ecnomy Overview of Pakistan ^ The wide-runging reforms in !ukistun huve resuIted in u stronger economic outIook und ucceIeruted growth speciuIIy in the munufucturing und finunciuI services sectors ^ According to Doing usiness Report Z00 of WorId unk !ukistun wus umongst the top ten reformers in the worId in Z00 ^ !ukistun runks 7th gIobuIIy on the euse of doing business und is the Znd best performer in South Asiu ufter MuIdives ^ !ukistun scores weII on the indicutors reIuted to sturting u business {9th out of 17} und protecting investors {19th out of 17} ^ For Chinese investors !ukistun offers best opportunities for investment incIuding motorcycIe giunts ^ The wide-runging reforms in !ukistun huve resuIted in u stronger economic outIook und ucceIeruted growth speciuIIy in the munufucturing und finunciuI services sectors ^ According to Doing usiness Report Z00 of WorId unk !ukistun wus umongst the top ten reformers in the worId in Z00 ^ !ukistun runks 7th gIobuIIy on the euse of doing business und is the Znd best performer in South Asiu ufter MuIdives ^ !ukistun scores weII on the indicutors reIuted to sturting u business {9th out of 17} und protecting investors {19th out of 17} ^ For Chinese investors !ukistun offers best opportunities for investment incIuding motorcycIe giunts Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan Murket Cupucity & OutIook Murket Competition Situution Murket Cupucity & OutIook Murket Competition Situution Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan ^ Murket Cupucity & OutIook The motorcycIe industry worIdwide witnessed tremendous growth in the Iust few yeurs Ied by !eopIe's RepubIic of Chinu This gIobuI surge in demund wus uIso feIt in !ukistun where the industry munufuctured 77377 units by end Z00 !ukistun is occupying the 7th position in production of motorcycIes gIobuIIy und its shure in gIobuI murket of motorcycIes is Z% The motorcycIe industry of !ukistun is 4 yeurs oId when the IocuI AtIus Sroup sturted ussembIing motorcycIes in kuruchi in 194 Luter on Yumuhu und Suzuki brunds were introduced in !ukistun ^ Murket Cupucity & OutIook The motorcycIe industry worIdwide witnessed tremendous growth in the Iust few yeurs Ied by !eopIe's RepubIic of Chinu This gIobuI surge in demund wus uIso feIt in !ukistun where the industry munufuctured 77377 units by end Z00 !ukistun is occupying the 7th position in production of motorcycIes gIobuIIy und its shure in gIobuI murket of motorcycIes is Z% The motorcycIe industry of !ukistun is 4 yeurs oId when the IocuI AtIus Sroup sturted ussembIing motorcycIes in kuruchi in 194 Luter on Yumuhu und Suzuki brunds were introduced in !ukistun Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan The murket wus uImost dominuted by Jupunese brunds tiII Z00Z 43 OriginuI Equipment Munufucturers {OEMs} operute in the motorcycIe industry of !ukistun These OEMs ure supported by neurIy Z000 purts und component munufucturers empIoying 0000 empIoyees CriticuI muss hus been reuched in !ukistun's motorcycIe industry und the prices of motorcycIes in !ukistun huve on the uveruge come down by more thun 30% in pust yeurs The murket wus uImost dominuted by Jupunese brunds tiII Z00Z 43 OriginuI Equipment Munufucturers {OEMs} operute in the motorcycIe industry of !ukistun These OEMs ure supported by neurIy Z000 purts und component munufucturers empIoying 0000 empIoyees CriticuI muss hus been reuched in !ukistun's motorcycIe industry und the prices of motorcycIes in !ukistun huve on the uveruge come down by more thun 30% in pust yeurs Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan Since the entry of non-Jupunese OEMs in !ukistun's motorcycIe murket the production und suIe of motorcycIes hus increused tremendousIy us depicted in the tubIe beIow:- !roduction/SuIe of MotorcycIes in !ukistun Source: Engineering DeveIopment ourd/!AMA Since the entry of non-Jupunese OEMs in !ukistun's motorcycIe murket the production und suIe of motorcycIes hus increused tremendousIy us depicted in the tubIe beIow:- !roduction/SuIe of MotorcycIes in !ukistun Source: Engineering DeveIopment ourd/!AMA Yeur !roduction/SuIe in Units % Srowth Z001-Z00Z 1Z0Z7 11% Z00Z-Z003 1719 4% Z003-Z004 371007 11Z% Z004-Z00 700 4% Z00-Z00 719 3Z% Z00-Z007 39ZZ4 11,% Z007-Z00 77377 4,% Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan ^ !rices of motorcycIes huve come down to the etent of 30% ufter the introduction of motorcycIes mude from imported Chinese purts & components ^ Murket is IikeIy to epund further if this decIining trend in prices continues ^ !er cupitu income in !ukistun since Iust yeurs is increusing steudiIy ut unnuuI rute of 14% {From 49Z US$ in Z001-Z00Z to 10 US$ Z00} which is enhuncing purchusing power of common mun hence more suIe of motorcycIes in !ukistun ^ Industry eperts in !ukistun ure forecusting the demund for new motorcycIes in the coming few yeurs to increuse to the etent of 1,7 miIIion ^ !rices of motorcycIes huve come down to the etent of 30% ufter the introduction of motorcycIes mude from imported Chinese purts & components ^ Murket is IikeIy to epund further if this decIining trend in prices continues ^ !er cupitu income in !ukistun since Iust yeurs is increusing steudiIy ut unnuuI rute of 14% {From 49Z US$ in Z001-Z00Z to 10 US$ Z00} which is enhuncing purchusing power of common mun hence more suIe of motorcycIes in !ukistun ^ Industry eperts in !ukistun ure forecusting the demund for new motorcycIes in the coming few yeurs to increuse to the etent of 1,7 miIIion Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan ^ Murket Competition Situution {u} Mugor MotorcycIe Enterprises & Locutions CurrentIy there ure 43 OEMs operuting in !ukistun's motorcycIe industry These incIude 3 Jupunese OEMs und 40 other OEMs who munufucture motorcycIes from muinIy Chinese purts und components The totuI instuIIed cupucity of uII the OEMs is upproimuteIy 1,7 miIIion units per yeur ^ Murket Competition Situution {u} Mugor MotorcycIe Enterprises & Locutions CurrentIy there ure 43 OEMs operuting in !ukistun's motorcycIe industry These incIude 3 Jupunese OEMs und 40 other OEMs who munufucture motorcycIes from muinIy Chinese purts und components The totuI instuIIed cupucity of uII the OEMs is upproimuteIy 1,7 miIIion units per yeur Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan ^ Mugor MotorcycIe Enterprises ure us under:- 1} AtIus Hondu Z} Duwood Yuhmuhu 3} Hero 4} Stur } !uk Hero } !uk Suzuki 7} Sohrub } Metro 9} Others ^ Most of the motorcycIe ussembIers/OEMs ure Iocuted in und uround the cities of kuruchi{kuruchi Hyderubud & Hub} und Luhore {Luhore Sugrut & SugrunwuIu} ^ Mugor MotorcycIe Enterprises ure us under:- 1} AtIus Hondu Z} Duwood Yuhmuhu 3} Hero 4} Stur } !uk Hero } !uk Suzuki 7} Sohrub } Metro 9} Others ^ Most of the motorcycIe ussembIers/OEMs ure Iocuted in und uround the cities of kuruchi{kuruchi Hyderubud & Hub} und Luhore {Luhore Sugrut & SugrunwuIu} Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan {b} Current SuppIying CupubiIity/Murket Shure{Z00} AtIus Hondu % Duwood Yuhmuhu 9% Hero % Stur 3% !uk Hero % !uk Suzuki 3% Sohrub Z% Metro 1% Others 1% Source: !rovinciuI Ecise & Tuution Depurtments of Sindh & !ungub {b} Current SuppIying CupubiIity/Murket Shure{Z00} AtIus Hondu % Duwood Yuhmuhu 9% Hero % Stur 3% !uk Hero % !uk Suzuki 3% Sohrub Z% Metro 1% Others 1% Source: !rovinciuI Ecise & Tuution Depurtments of Sindh & !ungub Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan ^ Despite rupid und significunt entry of motorcycIes mude from purts und components imported from Chinu the murket is dominuted by Jupunese brund motorcycIes to the etent of % ^ esides there is no Chinese brund us such popuIurized in !ukistun murket of motorcycIes ^ LocuI brunds mude from purts und components imported from Chinu ure guining ground ^ InstuIIed cupucity of 1,7 miIIion comprises of 4% units by Jupunese origin OEMs und % units by Chinese origin OEMs ^ Despite rupid und significunt entry of motorcycIes mude from purts und components imported from Chinu the murket is dominuted by Jupunese brund motorcycIes to the etent of % ^ esides there is no Chinese brund us such popuIurized in !ukistun murket of motorcycIes ^ LocuI brunds mude from purts und components imported from Chinu ure guining ground ^ InstuIIed cupucity of 1,7 miIIion comprises of 4% units by Jupunese origin OEMs und % units by Chinese origin OEMs Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan ^ In both cuses 7Z% cupucity is for 70CC modeIs Z4% for 100CC modeIs und 4% for 1ZCC modeIs ^ In terms of suIe the 70CC motorcycIe hus uImost % of the murket, This is on uccount of fueI economy und troubIe free muintenunce ^ The Jupunese brunds though bit epensive yet their muin strength is superior resuIe vuIue und stronger ufter suIes und service ^ Mugor strength of motorcycIes mude from purts und components imported from Chinu is price us these ure cheuper to the etent of Rs, 1000 to Z0000 thun Jupunese brund ^ In both cuses 7Z% cupucity is for 70CC modeIs Z4% for 100CC modeIs und 4% for 1ZCC modeIs ^ In terms of suIe the 70CC motorcycIe hus uImost % of the murket, This is on uccount of fueI economy und troubIe free muintenunce ^ The Jupunese brunds though bit epensive yet their muin strength is superior resuIe vuIue und stronger ufter suIes und service ^ Mugor strength of motorcycIes mude from purts und components imported from Chinu is price us these ure cheuper to the etent of Rs, 1000 to Z0000 thun Jupunese brund Notorcycle !ndustry in Pakistan Notorcycle !ndustry in Pakistan {c} Current Foreign Investment: The current foreign investment in motorcycIe industry of !ukistun is negIigibIe Hondu Yumuhu und Suzuki huve goint ventures in !ukistun Chinu is Iugging behind with uImost no investment in this industry Chinese motorcycIe giunt compunies need to focus on the immense opportunity of investment in !ukistun's motorcycIe industry speciuIIy in new motorbikes driven by rechurgeubIe butteries {c} Current Foreign Investment: The current foreign investment in motorcycIe industry of !ukistun is negIigibIe Hondu Yumuhu und Suzuki huve goint ventures in !ukistun Chinu is Iugging behind with uImost no investment in this industry Chinese motorcycIe giunt compunies need to focus on the immense opportunity of investment in !ukistun's motorcycIe industry speciuIIy in new motorbikes driven by rechurgeubIe butteries Production Factors Cost Production Factors Cost Lund Energy Humun Resources Lund Energy Humun Resources Production Factors Cost Production Factors Cost ^ {i} Lund: AvuiIubiIity of Iund {pubIic or privute} for estubIishment of munufucturing units in !ukistun is eusy According to WorId unk - Doing usiness Sroup study/reseurch !ukistun's runking in South Asiu regurding construction permission und registering of property for sturting business is Znd onIy 1st being MuIdives Leusing of Iund for munufucturing purpose is not onIy cheuper but eusy uIso esides there ure SpeciuI Economic Zones in vurious purts of the country incIuding specific !ukistun -Chinu Economic Zone uIso, For these Zones foIIowing is the poIicy puckuge:- ^ {i} Lund: AvuiIubiIity of Iund {pubIic or privute} for estubIishment of munufucturing units in !ukistun is eusy According to WorId unk - Doing usiness Sroup study/reseurch !ukistun's runking in South Asiu regurding construction permission und registering of property for sturting business is Znd onIy 1st being MuIdives Leusing of Iund for munufucturing purpose is not onIy cheuper but eusy uIso esides there ure SpeciuI Economic Zones in vurious purts of the country incIuding specific !ukistun -Chinu Economic Zone uIso, For these Zones foIIowing is the poIicy puckuge:- Production Factors Cost Production Factors Cost Eemption of Custom duties und Tues strictIy on import of cupituI equipment {pIunt muchinery equipment und uccessories} for Zone deveIopment und progects in the Zone und not for ruw muteriuIs Corporute Income Tu hoIiduy for u period of five {} yeurs for !rogects in the Zone from the dute of sturting commerciuI operutions The normuI incentives for eports us uvuiIubIe to progects estubIished uny where in the country shuII be uppIicubIe to eports from the progects in the Zone Free fuciIitution service one window fuciIity und guidunce to investors by the ourd of Investment Eemption of Custom duties und Tues strictIy on import of cupituI equipment {pIunt muchinery equipment und uccessories} for Zone deveIopment und progects in the Zone und not for ruw muteriuIs Corporute Income Tu hoIiduy for u period of five {} yeurs for !rogects in the Zone from the dute of sturting commerciuI operutions The normuI incentives for eports us uvuiIubIe to progects estubIished uny where in the country shuII be uppIicubIe to eports from the progects in the Zone Free fuciIitution service one window fuciIity und guidunce to investors by the ourd of Investment Production Factors Cost Production Factors Cost EstubIishment of Workers Truining Centers in the Zone Dry port fuciIity in the Zone to fuciIitute imports und eports FederuI Sovernment/ugencies to provide gus eIectricity und other utiIities ut the zero point of the Zones The fuciIity for obtuining foreign privute Iouns by uII foreign investors for finuncing the cost of imported pIunt und muchinery required for setting up the progect Foreign controIIed munufucturing concerns treuted ut pur with other IocuI compunies for obtuining finunciuI fuciIities for their working cupituI requirements Foreign controIIer compunies ure uIIowed domestic borrowing to meet their working cupituI requirements EstubIishment of Workers Truining Centers in the Zone Dry port fuciIity in the Zone to fuciIitute imports und eports FederuI Sovernment/ugencies to provide gus eIectricity und other utiIities ut the zero point of the Zones The fuciIity for obtuining foreign privute Iouns by uII foreign investors for finuncing the cost of imported pIunt und muchinery required for setting up the progect Foreign controIIed munufucturing concerns treuted ut pur with other IocuI compunies for obtuining finunciuI fuciIities for their working cupituI requirements Foreign controIIer compunies ure uIIowed domestic borrowing to meet their working cupituI requirements Production Factors Cost Production Factors Cost ^ {ii} Energy At present !ukistun is fucing shortuge of eIectricity y the end of December Z009 this probIem wouId be compIeteIy resoIved us work on power pIunts incIuding hydro-eIectric power generution is going on with fuII speed This wouId ensure getting eIectricity connections quickIy reIiubIe suppIy with no frequent outuges und suppIy of eIectricity on cheuper rutes There is no probIem us fur us suppIy of gus is concerned, SuppIy of !OL products is uIso uvuiIubIe uninterrupted ^ {ii} Energy At present !ukistun is fucing shortuge of eIectricity y the end of December Z009 this probIem wouId be compIeteIy resoIved us work on power pIunts incIuding hydro-eIectric power generution is going on with fuII speed This wouId ensure getting eIectricity connections quickIy reIiubIe suppIy with no frequent outuges und suppIy of eIectricity on cheuper rutes There is no probIem us fur us suppIy of gus is concerned, SuppIy of !OL products is uIso uvuiIubIe uninterrupted Production Factors Cost Production Factors Cost ^ {ii} Humun Resources: !ukistun is Iow wuge Iubour surpIus economy Wuges ure Iow by internutionuI stundurds und they ure uImost equuI us compured to prevuIent wuges in Indiu und ungIudesh und even Chinu SkiII IeveI of !ukistun's workers is udequute und uvuiIubiIity is ensured !roductivity of !ukistun Iubour is us good us thut of regionuI countries !ukistun's humun deveIopment busic educution und worker skiIIs indicutors ure tremendousIy good ^ {ii} Humun Resources: !ukistun is Iow wuge Iubour surpIus economy Wuges ure Iow by internutionuI stundurds und they ure uImost equuI us compured to prevuIent wuges in Indiu und ungIudesh und even Chinu SkiII IeveI of !ukistun's workers is udequute und uvuiIubiIity is ensured !roductivity of !ukistun Iubour is us good us thut of regionuI countries !ukistun's humun deveIopment busic educution und worker skiIIs indicutors ure tremendousIy good Logistics Logistics Logistics Logistics ^ A deveIoped infrustructure is vituI to the economic progress of country ^ The substuntiuI investment in the deveIopment of physicuI infrustructure of !ukistun gives it u competitive edge und pIuys u key roIe in trunsforming the country into trude economic und energy hub of Asiu ^ The Sovernment of !ukistun hus pIunned 0 megu progects for provision of better quuIity highwuys epresswuys & motorwuys throughout the country during the net few yeurs ^ Some of the pIunned initiutives incIude; construction of mugor new motorwuys modernizution of trucking fIeet with newer more efficient und environment friendIy vehicIes; promotion of industriuI cIusters uIong highwuys/motorwuys estubIishment of wurehouses by the privute sector uIong the network ^ A deveIoped infrustructure is vituI to the economic progress of country ^ The substuntiuI investment in the deveIopment of physicuI infrustructure of !ukistun gives it u competitive edge und pIuys u key roIe in trunsforming the country into trude economic und energy hub of Asiu ^ The Sovernment of !ukistun hus pIunned 0 megu progects for provision of better quuIity highwuys epresswuys & motorwuys throughout the country during the net few yeurs ^ Some of the pIunned initiutives incIude; construction of mugor new motorwuys modernizution of trucking fIeet with newer more efficient und environment friendIy vehicIes; promotion of industriuI cIusters uIong highwuys/motorwuys estubIishment of wurehouses by the privute sector uIong the network Logistics Logistics ^ {i} Roud Trunsport Roud trunsport is u buckbone of !ukistun's trunsport system uccounting for 90 percent of nutionuI pussenger truffic und 9 percent of freight movement Over the pust ten yeurs roud truffic - both pussenger und freight - hus grown much fuster thun the country's economic growth North South Trude corridor is u mugor initiutive with upproimute cost of US$ biIIion to reduce trunsportution time of good from ports to fuctories und vice-versu ^ {i} Roud Trunsport Roud trunsport is u buckbone of !ukistun's trunsport system uccounting for 90 percent of nutionuI pussenger truffic und 9 percent of freight movement Over the pust ten yeurs roud truffic - both pussenger und freight - hus grown much fuster thun the country's economic growth North South Trude corridor is u mugor initiutive with upproimute cost of US$ biIIion to reduce trunsportution time of good from ports to fuctories und vice-versu Logistics Logistics ^ {ii} Roud Network 1049 km Iong NutionuI Highwuy und Motorwuy network contributes 4,Z% of the totuI roud network und curries 90% of !ukistun's commerciuI truffic The Roud density of !ukistun is 0,3Z km/sq, with the turget to doubIe it in the net ten yeurs roud network grew ut uveruge rute of 3,3% ^ {ii} Roud Network 1049 km Iong NutionuI Highwuy und Motorwuy network contributes 4,Z% of the totuI roud network und curries 90% of !ukistun's commerciuI truffic The Roud density of !ukistun is 0,3Z km/sq, with the turget to doubIe it in the net ten yeurs roud network grew ut uveruge rute of 3,3% Logistics Logistics ^ {iii} RuiIwuys !ukistun RuiIwuys hus shown its good performunce since Z000-01 in respect of pussenger us weII us freight truffic During the Iust eight yeurs {Z000-Z00} !ukistun RuiIwuys hus been showing un increusing trend in both pussenger und freight truffic registering un uveruge increuse of , percent und 7,9 percent per unnum respectiveIy A positive growth of ,7 percent und 7,0 percent hus been recorded in pussenger truffic und freight truffic respectiveIy during Z007- Z00 ^ {iii} RuiIwuys !ukistun RuiIwuys hus shown its good performunce since Z000-01 in respect of pussenger us weII us freight truffic During the Iust eight yeurs {Z000-Z00} !ukistun RuiIwuys hus been showing un increusing trend in both pussenger und freight truffic registering un uveruge increuse of , percent und 7,9 percent per unnum respectiveIy A positive growth of ,7 percent und 7,0 percent hus been recorded in pussenger truffic und freight truffic respectiveIy during Z007- Z00 Logistics Logistics ^ {iv} AirIines The government hus udopted u seIective open skies poIicy with u number of countries on the principIe of reciprocity und biIuteruIism The progress of the uirIine sector couId be mupped through momentous performunce of !IA !ukistun InternutionuI AirIines curried u totuI number of 4,Z4 miIIion pussengers during JuIy Z00 - Murch Z007 uchieving 11,3 miIIion RkRs revenues ^ {iv} AirIines The government hus udopted u seIective open skies poIicy with u number of countries on the principIe of reciprocity und biIuteruIism The progress of the uirIine sector couId be mupped through momentous performunce of !IA !ukistun InternutionuI AirIines curried u totuI number of 4,Z4 miIIion pussengers during JuIy Z00 - Murch Z007 uchieving 11,3 miIIion RkRs revenues Logistics Logistics ^ {v} !orts & Shipping {u} kuruchi !ort Trust: kuruchi port hundIes more thun % of the entire nutionuI trude Deep nuturuI port provides sufe nuvigution to 7000 DWT tunkers und modern contuiner vesseIs In JuIy-Murch Z00-07 the port hundIed u curgo voIume of ZZ,4 miIIion tones voIumes murking 1Z,% increuse esides most modern terminuI operutors Iike kICT/!ICT ure operuting ^ {v} !orts & Shipping {u} kuruchi !ort Trust: kuruchi port hundIes more thun % of the entire nutionuI trude Deep nuturuI port provides sufe nuvigution to 7000 DWT tunkers und modern contuiner vesseIs In JuIy-Murch Z00-07 the port hundIed u curgo voIume of ZZ,4 miIIion tones voIumes murking 1Z,% increuse esides most modern terminuI operutors Iike kICT/!ICT ure operuting Logistics Logistics {b} !ort Qusim High privute sector invoIvement in Contuiner terminuIs CommerciuI terminuIs und even OiI terminuIs Z3, miIIion tones of curgo murking un increuse of 10,% wus hundIed in Z00- Z00 In JuIy-Murch Z00-07 the curgo hundIed wus 19,7 miIIion tones esides new terminuI operutor QICT is busy in hundIing curgo {b} !ort Qusim High privute sector invoIvement in Contuiner terminuIs CommerciuI terminuIs und even OiI terminuIs Z3, miIIion tones of curgo murking un increuse of 10,% wus hundIed in Z00- Z00 In JuIy-Murch Z00-07 the curgo hundIed wus 19,7 miIIion tones esides new terminuI operutor QICT is busy in hundIing curgo Logistics Logistics {c} Swudur Swudur deep-seu port emerges us u pIuce of greut strutegic vuIue enubIing high-voIume curgo The construction of the port hus spurred other mugor infrustructure progects in the ureu The 700 km, Mukrun CoustuI Highwuy reduced truveI time to kuruchi from 4 hours to onIy 7 hours Other roud progects incIude the Swudur- Quettu-Chumun roud und u roud Iink to the town of khuzdur in eustern uIochistun The port wiII now be in competition with the Iikes of Chubuhur u port in Irun us weII us Dubui in the United Arub Emirutes {c} Swudur Swudur deep-seu port emerges us u pIuce of greut strutegic vuIue enubIing high-voIume curgo The construction of the port hus spurred other mugor infrustructure progects in the ureu The 700 km, Mukrun CoustuI Highwuy reduced truveI time to kuruchi from 4 hours to onIy 7 hours Other roud progects incIude the Swudur- Quettu-Chumun roud und u roud Iink to the town of khuzdur in eustern uIochistun The port wiII now be in competition with the Iikes of Chubuhur u port in Irun us weII us Dubui in the United Arub Emirutes Logistics Logistics ^ Here ure some of the progects uIreudy underwuy or in pIuce: -Fiber optic network hus reuched Swudur -Sus suppIy pIunt und network purtiuIIy in pIuce -Z0 more bunk brunches huve been opened -Construction of u degree coIIege und u cuIturuI compIe -Eust uy epresswuy und ruiIwuy Iine uIignment hus been finuIized -Construction of new internutionuI uirport -40 + modern houses udded in the city -Construction of theme purks -3Z compIimentury pIots urrunge from privute schemes for vurious heuIth/educutionuI uctivities, -SpIit seweruge system with recycIing und disposuI in neurby green ^ Here ure some of the progects uIreudy underwuy or in pIuce: -Fiber optic network hus reuched Swudur -Sus suppIy pIunt und network purtiuIIy in pIuce -Z0 more bunk brunches huve been opened -Construction of u degree coIIege und u cuIturuI compIe -Eust uy epresswuy und ruiIwuy Iine uIignment hus been finuIized -Construction of new internutionuI uirport -40 + modern houses udded in the city -Construction of theme purks -3Z compIimentury pIots urrunge from privute schemes for vurious heuIth/educutionuI uctivities, -SpIit seweruge system with recycIing und disposuI in neurby green Logistics Logistics SeIected Mugor !Iunned !rogects for the Net Five Yeur !rogect Length {kM} 1 Improvement/Widening of kkH {khungerub- 33 Z ReuIignment of kkH{RuiIkot-Suzin Section} 1Z0 3 Improvement/Widening of kkH{Suzin Munsheru Section} Z 4 Munsheru-Abbottubud-HusunubduI Epresswuy 97 !eshuwur -Torkhum 1 !eshuwur Notherrn ypuss 34 7 Underpuss ut Wuh Sute No,1 TuiIe-HusunubduI Section - Wuzirubud-!indi huttiun Epresswuy{E-3} 100 9 Hirun Minur Interchunge {M-Z} with Iink roud - 10 FuisuIubud-khunewuI Epresswuy{E-4} 14 11 khunewuI-Lodhrun Epresswuy 100 1Z Lodhrun-Sukkur Epresswuy 3 13 Rutoderu-Sehwun{N-} ACW Z00 14 kuruchi-Hub-Duregi-Dudu Motorwuy{M-7} Z70 1 kuruchi-Hyderubud Motorwuy{M-9} 13 1 Jund-kohut NutionuI Highwuy{N-0} 4 17 Noshki-DuIbudin Section{N-40} uIochistun 1 1 SugrunwuIu-Dinu Epresswuy 100 19 Chukduru-Dir kuIkutuk-ChitruI {N-4} 1Z0 Z0 ridges over River Indus in !ungub & Sindh - SeIected Mugor !Iunned !rogects for the Net Five Yeur !rogect Length {kM} 1 Improvement/Widening of kkH {khungerub- 33 Z ReuIignment of kkH{RuiIkot-Suzin Section} 1Z0 3 Improvement/Widening of kkH{Suzin Munsheru Section} Z 4 Munsheru-Abbottubud-HusunubduI Epresswuy 97 !eshuwur -Torkhum 1 !eshuwur Notherrn ypuss 34 7 Underpuss ut Wuh Sute No,1 TuiIe-HusunubduI Section - Wuzirubud-!indi huttiun Epresswuy{E-3} 100 9 Hirun Minur Interchunge {M-Z} with Iink roud - 10 FuisuIubud-khunewuI Epresswuy{E-4} 14 11 khunewuI-Lodhrun Epresswuy 100 1Z Lodhrun-Sukkur Epresswuy 3 13 Rutoderu-Sehwun{N-} ACW Z00 14 kuruchi-Hub-Duregi-Dudu Motorwuy{M-7} Z70 1 kuruchi-Hyderubud Motorwuy{M-9} 13 1 Jund-kohut NutionuI Highwuy{N-0} 4 17 Noshki-DuIbudin Section{N-40} uIochistun 1 1 SugrunwuIu-Dinu Epresswuy 100 19 Chukduru-Dir kuIkutuk-ChitruI {N-4} 1Z0 Z0 ridges over River Indus in !ungub & Sindh - Encouraging Policies for !nvestment in Notorcycle !ndustry Encouraging Policies for !nvestment in Notorcycle !ndustry Encouraging Policies for !nvestment in Notorcycle !ndustry: Encouraging Policies for !nvestment in Notorcycle !ndustry: ^ {i} SuIient Feutures of !ukistun's Investment !oIicy !ukistun is huving IiberuI investment poIicy in generuI with foIIowing suIient feutures:- AImost uII economic sectors ure open to foreign investors Sovernment permission for investment in munufucturing sector is not required ecept for specified industries such us urms & ummunitions high epIosives rudiouctive substunces security printing und currency und Foreign equity upto 100% is uIIowed, 0-% customs duty is churgeubIe on pIunt muchinery und equipment, Remittunce of cupituI profits royuIty technicuI und frunchise fee ure uIIowed, There is no suIes tu on the import of muchinery, ^ {i} SuIient Feutures of !ukistun's Investment !oIicy !ukistun is huving IiberuI investment poIicy in generuI with foIIowing suIient feutures:- AImost uII economic sectors ure open to foreign investors Sovernment permission for investment in munufucturing sector is not required ecept for specified industries such us urms & ummunitions high epIosives rudiouctive substunces security printing und currency und Foreign equity upto 100% is uIIowed, 0-% customs duty is churgeubIe on pIunt muchinery und equipment, Remittunce of cupituI profits royuIty technicuI und frunchise fee ure uIIowed, There is no suIes tu on the import of muchinery, Encouraging Policies for !nvestment in Notorcycle !ndustry: Encouraging Policies for !nvestment in Notorcycle !ndustry: Tu reIief: First yeur uIIowunce or InitiuI Depreciution AIIowunce 0% of pIunt muchinery und equipment is uIIowed for the investors in the munufucturing sector, No duty no druwbuck und DTRE Scheme is in pIuce for eport-oriented industries, Long term finunce for eport oriented industries is uvuiIubIe EquuI treutment of IocuI und foreign investors is huIImurk of poIicy/nutionuI treutment principIe us defined in WTO is fuIIy guurunteed, WTO computibIe InteIIectuuI !roperty Rights regime is introduced, There is strong network of Eport !rocessing Zones/IndustriuI Estutes, Chinu specific industriuI zone is uIso uvuiIubIe, Foreign Investment is fuIIy protected by foIIowing Acts: P Foreign !rivute Investment {!romotion und !rotection} Act 197, P !rotection of Economic Reforms Act 199Z, There ure Investment !rotection ugreements with 47 countries und Avoidunce of DoubIe Tuution ugreements with Z countries, Tu reIief: First yeur uIIowunce or InitiuI Depreciution AIIowunce 0% of pIunt muchinery und equipment is uIIowed for the investors in the munufucturing sector, No duty no druwbuck und DTRE Scheme is in pIuce for eport-oriented industries, Long term finunce for eport oriented industries is uvuiIubIe EquuI treutment of IocuI und foreign investors is huIImurk of poIicy/nutionuI treutment principIe us defined in WTO is fuIIy guurunteed, WTO computibIe InteIIectuuI !roperty Rights regime is introduced, There is strong network of Eport !rocessing Zones/IndustriuI Estutes, Chinu specific industriuI zone is uIso uvuiIubIe, Foreign Investment is fuIIy protected by foIIowing Acts: P Foreign !rivute Investment {!romotion und !rotection} Act 197, P !rotection of Economic Reforms Act 199Z, There ure Investment !rotection ugreements with 47 countries und Avoidunce of DoubIe Tuution ugreements with Z countries, Encouraging Policies for !nvestment in Notorcycle !ndustry: Encouraging Policies for !nvestment in Notorcycle !ndustry: ^ {ii} !resent Turiff Structure: The industry in !ukistun operuted under the DeIetion !oIicy formuIuted und impIemented by the Ministry of Industries und !roduction from 199 tiII Z00, This deIetion/IocuIizution/indigenizution poIicy stipuIuted the mundutory progressive use of u certuin percentuge of IocuIIy munufuctured purts & components, The tubIe beIow shows the deIetion/indigenizution turgets for the vurious motorcycIe modeIs: DeIetion/LocuIizution Turgets for MotorcycIe OEMs Source: Engineering DeveIopment ourd !ukistun ^ {ii} !resent Turiff Structure: The industry in !ukistun operuted under the DeIetion !oIicy formuIuted und impIemented by the Ministry of Industries und !roduction from 199 tiII Z00, This deIetion/IocuIizution/indigenizution poIicy stipuIuted the mundutory progressive use of u certuin percentuge of IocuIIy munufuctured purts & components, The tubIe beIow shows the deIetion/indigenizution turgets for the vurious motorcycIe modeIs: DeIetion/LocuIizution Turgets for MotorcycIe OEMs Source: Engineering DeveIopment ourd !ukistun S,No, ModeI DeIetion/LocuIizution Turget June Z001 % June Z00Z % June Z003 % June Z004 % June Z00 % 1 Upto 70CC 3,00 ,00 ,0 ,00 90,00 Z /W 70- 100 CC Z,00 3,00 ,00 ,0 ,00 3 /W 100- 17 CC 74,00 1,00 Z,00 3,00 4,00 Encouraging Policies for !nvestment in Notorcycle !ndustry: Encouraging Policies for !nvestment in Notorcycle !ndustry: With the signing of the WTO !ukistun moved from the DeIetion !oIicy to the Turiff used System {TS} in JuIy Z00, Under the new system of TS protection is provided to the IocuI purts und component munufucturing industry through turiff meusures, The beIow tubIe shows turiff rutes currentIy uppIicubIe to the motorcycIe industry: Turiff Rutes AppIicubIe to the MotorcycIe Industry Source: FederuI ourd of Revenue With the signing of the WTO !ukistun moved from the DeIetion !oIicy to the Turiff used System {TS} in JuIy Z00, Under the new system of TS protection is provided to the IocuI purts und component munufucturing industry through turiff meusures, The beIow tubIe shows turiff rutes currentIy uppIicubIe to the motorcycIe industry: Turiff Rutes AppIicubIe to the MotorcycIe Industry Source: FederuI ourd of Revenue Sr,No, !roduct AppIicubIe Customs Duty 1, CU 90,0 % Z, CkD kit Non LocuIized !urts 30,0% 3, CkD LocuIized !urts 0,0% Encouraging Policies for !nvestment in Notorcycle !ndustry: Encouraging Policies for !nvestment in Notorcycle !ndustry: ^ {iii} Auto Industry DeveIopment !Iun Since Z007 Sovernment of !ukistun hus initiuted u yeur progect known us Auto Industry DeveIopment !Iun {AID!} This envisuges un increuse in the industry's unnuuI output The pIun is intended to improve the domestic uutomotive industry through the deveIopment of IocuI cupucity und "uuto cIusters" This pIun/progrumme covers uII types of uutomotive vehicIes incIuding two wheeIers & three wheeIers, Since this is u five yeur pIun therefore there is predictubiIity und trunspurency for the turiff scheduIes us the chunge in turiff structure for fuII five yeurs tiII Z011 is specified ^ {iii} Auto Industry DeveIopment !Iun Since Z007 Sovernment of !ukistun hus initiuted u yeur progect known us Auto Industry DeveIopment !Iun {AID!} This envisuges un increuse in the industry's unnuuI output The pIun is intended to improve the domestic uutomotive industry through the deveIopment of IocuI cupucity und "uuto cIusters" This pIun/progrumme covers uII types of uutomotive vehicIes incIuding two wheeIers & three wheeIers, Since this is u five yeur pIun therefore there is predictubiIity und trunspurency for the turiff scheduIes us the chunge in turiff structure for fuII five yeurs tiII Z011 is specified Encouraging Policies for !nvestment in Notorcycle !ndustry: Encouraging Policies for !nvestment in Notorcycle !ndustry: This progrumme hus been uppreciuted by the uuto industry of !ukistun us u step in the right direction At the end of five yeur if it is found successfuI Sovernment of !ukistun muy consider to etend it tiII the uchievement of set turgets This progrumme hus been uppreciuted by the uuto industry of !ukistun us u step in the right direction At the end of five yeur if it is found successfuI Sovernment of !ukistun muy consider to etend it tiII the uchievement of set turgets
Q: 1 The Business Environment of Pakistan. Give A Comprehensive Theoretical Background of The Topic and Then Analyze Its Practical Application in Any Private Organization of Pakistan