Below 850cc cars: Pak Suzuki MD voices concern over proposed GST hike
During a meeting with Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan here, MD Pak Suzuki Motors, while discussing budgetary impact on auto sector, said that it will not have a positive impact on industry.
The SAPM, while explaining the impact of the federal budget and the proposed new tariff policy on the automotive industry, stated that since Pakistan was in an IMF programme, so, under such a situation it cannot continue providing tax exemptions to any sector as it has not served the purpose. The MD Pak Suzuki argued that the increased tax burdens are typically passed on to consumers and could lead to higher vehicle prices, reducing affordability and dampening market demand.
'The impact of higher sales tax is always borne by customers,' Kawamura remarked and cautioned that the resultant price hikes may hinder industry growth and put pressure on production.
In response, SAPM Haroon Akhtar reiterated the government's resolve to support the auto industry, emphasising that Prime Minister Shehbaz Sharif is deeply committed to the growth of the sector and is fully aware of the challenges it faces.
'Yes, there are challenges,' Haroon stated, 'but progress demands unity and collaboration. The auto industry is a vital source of employment and local manufacturing strength.'
He assured that the prime minister would not allow the sector to falter and pledged continued engagement with industry stakeholders to navigate challenges and seize growth opportunities.
In another meeting with chief of another automaker, Haroon Akhtar Khan discussed the strategic challenges facing Pakistan's automotive industry and the potential implications of the federal budget on the sector.
Danial Malik, chief executive officer of Master Changan Motors called on the SAPM to present the reservations of the auto sector. The two sides focused on the importance of transitioning towards New Energy Vehicles (NEVs), especially electric vehicles, as a national priority. Malik emphasised the need for sustained policy support and industry-friendly measures to ensure a stable and growth-oriented environment.
Haroon Akhtar reaffirmed the government of Pakistan's commitment to implementing a sustainable and modern auto policy aligned with global trends. He announced that the National Electric Vehicle Policy will soon be unveiled.
'The prime minister envisions Pakistan's auto industry becoming globally competitive,' Haroon Akhtar said and added,'Our upcoming EV policy will provide a comprehensive framework for infrastructure development, investment incentives, and policy facilitation.'
He added that, in line with the prime minister's vision, special incentives will be offered to promote the adoption of electric vehicles in the country, supporting long-term industrial growth and environmental sustainability.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 days ago
- Express Tribune
Japan seeks investment incentives for automakers
Japan has expressed interest in diversifying markets amid global trade risks and underlined the importance of regulatory certainty and targeted investment incentives for Japanese automakers to help them expand exports from Pakistan. Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan, along with Pakistan's Ambassador to Japan Abdul Hameed, held a meeting with Japan's Vice Minister for International Affairs, Ministry of Economy, Trade and Industry Matsuo Takehiko in Tokyo. The meeting explored new avenues to strengthen industrial cooperation, with a particular focus on the automotive and IT sectors. It was noted that Pakistan has a large and young population as well as growing market potential, and over 70 Japanese companies are already operating in the country. Discussions covered Pakistan's new industrial policy, which seeks to boost exports, reduce tariffs, streamline regulations and attract greater foreign investment in line with the prime minister's vision for export-led annual economic growth of 6-7%. Global industry trends also came up for discussion along with the Japanese auto industry's focus on biofuels in emerging markets, led by Toyota and Suzuki. Both sides reviewed Pakistan's Auto Industry Development Policy and the planned shift from punitive to incentive-based measures to encourage investment. Opportunities for Japanese investment in Pakistan's automotive and textile sectors, the role of biofuels and the need for regulatory standards in the auto industry were highlighted.
Express Tribune
2 days ago
- Express Tribune
PSX ends flat below 146.5k on profit-taking
The Pakistan Stock Exchange (PSX) closed marginally lower on Friday as profit-taking in the latter half of the session erased early gains amid concerns over mounting losses of state-owned enterprises (SOEs), the International Monetary Fund's (IMF) next review for loan tranche and the falling global crude oil prices. The KSE-100 index, after touching intra-day high of 147,534, retreated to settle slightly below 146,500, down 38 points. Engro Fertilisers, Lucky Cement and Engro Holdings supported the index while Oil and Gas Development Company (OGDC), UBL and Pakistan Petroleum Limited (PPL) weighed on sentiment. "Stocks closed flat amid concerns over SOE losses and next IMF review for the release of third tranche," noted Ahsan Mehanti, MD of Arif Habib Corp. Worries about the unmet IMF conditions for provincial tax collection and falling global crude oil prices fueled the negative close at the PSX, he said. At the end of trading, the benchmark KSE-100 index posted a decline of 37.67 points, or 0.03%, and settled at 146,491.63. Arif Habib Limited (AHL), in its market review, noted that the KSE-100 closed the week flat on Friday, capping gains at 0.7% week-on-week. Some 49 stocks advanced and another 49 declined, where Engro Fertilisers (+3.25%), Lucky Cement (+2.31%) and Engro Holdings (+1.63%) were the top contributors to index gains. On the flip side, OGDC (-2.57%), UBL (-1.34%), and PPL (-2.13%) dragged the index lower, it said. AHL mentioned that the Economic Coordination Committee had approved the setting up of an industrial estate on 4,800 acres of unused Pakistan Steel Mills' land. For the coming week, the resistance for the index is seen near 148,000 with support around 145,000, it added. Topline Securities, in its report, commented that the KSE-100 opened on a positive note and rose to intra-day high of 1,005 points. However, during the latter hours, profit-taking was observed as jittery investors booked profits before the weekend. The top positive contribution to the index came from Engro Fertilisers, Lucky Cement, Engro Holdings, Meezan Bank and Airlink Communication as they contributed 512 points. On the other hand, OGDC, UBL, PPL, Hub Power and Mari Petroleum lost ground, pulling the index down by 499 points, it said. Traded value-wise, Airlink (Rs3.38 billion), OGDC (Rs2.32 billion), PSO (Rs1.53 billion), Lucky Cement (Rs1.30 billion) and NBP (Rs1.11 billion) dominated the trading activity, Topline added. Muhammad Hasan Ather of JS Global said that the KSE-100 closed 38 points down after trading within a tight range throughout the session. Activity remained range bound, driven by upbeat corporate earnings, and investor sentiment was underpinned by optimism about Pakistan's improving macroeconomic indicators and recent credit rating upgrades, he said. Despite intra-day volatility, the market held firm, reflecting growing confidence in fiscal reforms and economic recovery. Going forward, investor focus will remain on earnings season, policy continuity and external inflows, with expectations of a gradual upward trend in equities amid improving fundamentals, the analyst added. Overall trading volumes were recorded at 473.6 million shares, compared with the previous tally of 647.1 million. The value of shares traded was Rs32.9 billion. Shares of 479 companies were traded. Of these, 226 stocks closed higher, 219 fell and 34 remained unchanged. Aisha Steel Mills was the volume leader with trading in 30 million shares, gaining Rs0.55 to close at Rs13.47. It was followed by Media Times with 21.7 million shares, gaining Rs0.39 to close at Rs3.62 and Airlink Communication with 19.9 million shares, gaining Rs9.76 to close at Rs168.04. Foreign investors sold shares worth Rs154 million, the National Clearing Company reported.
Business Recorder
2 days ago
- Business Recorder
PSX ends flat
KARACHI: The Pakistan Stock Exchange (PSX) closed almost unchanged on Friday, as a lack of fresh triggers and persistent macroeconomic concerns kept investors sidelined. The benchmark KSE-100 Index ended the day at 146,491.63 points, down 37.67 points or 0.03 percent from the previous close of 146,529.31. The index fluctuated between an intraday high of 147,534.41 points and a low of 146,269.59 points, eventually settling marginally lower. BRIndex100 closed at 14,962.21 points, down 31.99 points or 0.21 percent, with total turnover of 364.59 million shares. BRIndex30 shed 312.23 points, or 0.74 percent, to close at 42,078.55 points, on a total volume of 147.17 million shares. Profit-taking in oil and energy stocks offset selective buying in banking and technology counters. 'Stocks closed flat amid concerns for SOEs' losses and the IMF's next review for release of the third tranche under the EFF. Concerns for unmet IMF conditions for provincial tax collection, and falling global crude oil prices played a catalyst role in the negative close at PSX,' commented Ahsan Mehanti, Director at Arif Habib Corporation. Market capitalization slipped slightly to Rs 17.469 trillion, compared to Rs 17.491 trillion on Wednesday. Overall trading volumes also moderated, with the ready market turnover at 473.6 million shares against 647.09 million shares in the previous session. The traded value of shares fell to Rs 32.88 billion from Rs 40.89 billion in the prior session. Aisha Steel Mills led the volume chart with over 30 million shares, closing marginally higher at Rs 13.47. Media Times Ltd followed with 21.7 million shares, ending the day at Rs 3.62. Air Link Communication ranked third, closing at Rs 168.04 with 19.88 million shares traded. Hoechst Pakistan Limited and Unilever Pakistan Foods Limited were the top gainers of the day, with share prices increasing by Rs 280.91 and Rs 41.00 to close at Rs 3,506.71 and Rs 32,000.00, respectively. On the flip side, PIA Holding Company LimitedB suffered the steepest decline, losing Rs 856.90 to close at Rs 27,814.97, while Nestle Pakistan Limited fell by Rs 103.97 to Rs 8,654.09. Out of 479 active scrips, 219 closed in the red, 226 ended higher, and 34 remained unchanged, indicating a cautious and range-bound trading environment. The BR Automobile Assembler Index finished at 23,880.46 points, gaining 216.46 points or 0.91 percent, with 6.21 million shares traded. The BR Cement Index advanced to 11,692.16 points, up 85.86 points or 0.74 percent, on a turnover of 25.44 million shares. In contrast, the BR Commercial Banks Index slipped 65.44 points, or 0.15 percent, to close at 43,619.93, on 40.28 million shares. The BR Power Generation and Distribution Index fell sharply by 240.95 points, or 1.06 percent, to settle at 22,405.13, with 16.77 million shares traded. The BR Oil and Gas Index also came under pressure, losing 189.78 points, or 1.45 percent, to close at 12,871.27, with a turnover of 24.58 million shares. Meanwhile, the BR Technology & Communication Index inched up by 8.25 points, or 0.25 percent, closing at 3,340.99, on an active volume of 90.80 million shares. According to JS Global's Muhammad Hasan Athar, the index traded within a tight range throughout the session, with activity remaining largely range-bound on the back of upbeat corporate earnings. He noted that investor sentiment was supported by optimism over Pakistan's improving macroeconomic indicators and recent credit rating upgrades. Despite intraday volatility, he said, the market held firm, reflecting growing confidence in fiscal reforms and the broader economic recovery. Copyright Business Recorder, 2025
