Business

Toyota plans to launch locally-built hybrid car in Pakistan by year end

Published

1 year ago

Farwa

IMC CEO emphasises well-structured import policy for auto sector.
Introduction of HEVs promises a reduction in emissions.
Eco-conscious initiative aligns seamlessly with UN’s SDGs.

ISLAMABAD: In its bid to cut costs and emissions with an investment worth $100 million, the Indus Motor Company (IMC), the Toyota car assembler in Pakistan, has announced plans to launch the locally-made Corolla Hybrid Electric Vehicle by next month, The News reported on Thursday.

The development was reported after the company’s Chief Executive Officer Ali Jamali announced the IMC’s plans on Wednesday, underscoring the significance of Toyota’s whopping $100 million investment towards HEV production in Pakistan.

The investment will not only reduce import costs but also has the potential to yield an annual savings of $37 million as 30,000 HEV units enter production. This announcement marks a pivotal moment in the country’s automotive sector, charting a path toward a more sustainable and environmentally friendly future.

This eco-conscious initiative aligns seamlessly with the United Nations’ Sustainable Development goals, with a specific focus on addressing climate change concerns. The introduction of HEVs promises a reduction in emissions, the creation of job opportunities, and an enhanced potential for exports.

Jamali expressed grave concerns about various factors that have led to surging prices for locally manufactured cars. High taxation, inflation, the import of used cars, and currency instability were highlighted as key contributors to this escalating issue.

Emphasising the need for a well-structured import policy, Jamali stressed its importance in nurturing the growth of the domestic auto industry. He revealed that the influx of used cars into the country has had a detrimental impact on the sector. During the fiscal year 2022-23, over 6,500 used cars were imported, and in the first three months of the current fiscal year, more than 7,500 units had already made their way into the country.

Jamali pointed out that these used car imports not only undermine the progress made in localising car production but also impede the potential for further localisation in Pakistan.

Despite these challenges, Jamali appreciated recent relaxations in the opening of letters of credit (LCs) for imports. These adjustments have facilitated the procurement of essential raw materials for the local industry, resulting in a boost in sales for original equipment manufacturers (OEMs) in passenger cars and light commercial vehicles in September 2023. Nevertheless, a year-on-year comparison revealed a 26% decline in sales.

Acknowledging the production and demand-related challenges faced by the auto industry, including temporary plant shutdowns and reduced vendor capacities, Jamali commended the government’s efforts in promoting localisation-driven policies.

He also expressed gratitude for the government’s support in revitalising the auto industry and contributing to the nation’s economic recovery. The CEO emphatically reaffirmed Indus Motor Company’s commitment to surmounting the current obstacles and steering the auto industry toward a more promising and sustainable future.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.