German based Volkswagen is planning to step into Pakistan

Society Pakistan & World Affairs
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Create stability and investors will flock to the country b/c Pakistan is too big of a market to be ignored.

German based Volkswagen is planning to step into Pakistan | The News Teller

ISLAMABAD: Volkswagen – the leading German automaker company of Germany and Europe is aiming to step-into Pakistani automobile industry, reported by private media channel.

The spokesperson of Board of Investment said that the German based automaker wants to introduce its brands in Pakistan. According to German Ambassador to Pakistan Dr. Cyrill Nunn, a 14-mnember business delegation of Germany businessmen along with officials of Volkswagen is visiting Pakistan soon. The German Ambassador while giving the details at a press conference declared it a “highly important” visit.

According to Pakistani officials, Volkswagen was aiming to do business in Pakistan and government was also striding to make it happen that European brand also set up a manufacturing plant in Pakistan to break the monopoly of local car assemblers. Chairman Board of Investment Miftah Ismail said to the media, “In upcoming two years, the government will try to introduce at least one European brand – German or Italian.” He also welcomed the German delegation.

Pak Suzuki – owned by Suzuki Motor Corp – is the largest auto assembler in Pakistan having 60% of auto market share.

Currently major international brands in Pakistan are Suzuki, General Motors, Honda, and Nissan Motors. It is worth to note that currently the brand operating in Pakistan are not according to international standard. The models being assembled here are mostly retired models and are lacking international safety requirements.

German Ambassador said, “To get such a delegation into Pakistan, you have to persuade them and once they are in Pakistan they are realize it’s a huge country.”

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Re: German based Volkswagen is planning to step into Pakistan

thats a great news.. :k:

Hope it gets materialized

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Re: German based Volkswagen is planning to step into Pakistan

Cool..

Yamaha has also setup a Motorcycle plant in Pakistan recently. The factory is currently assembling about 40,000 units per year and has hired 200 employees. So good new overall.
Investment: Yamaha resumes assembly in Pakistan - The Express Tribune

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Re: German based Volkswagen is planning to step into Pakistan

Here is more good news.

Pakistan In Line For Upgrade to Emerging Market Status - Frontier Markets News - Emerging & Growth Markets - WSJ

Index provider MSCI has revealed it plans to consider upgrading Pakistan from frontier- to emerging-market status next year.

Citing “a number of positive developments over the course of the past 12 to 18 months,” MSCI said it would include Pakistan on its 2016 review list.

News that Pakistan is being considered for inclusion in the MSCI emerging markets index will be seized upon by a government desperate for international recognition of what it says are its achievements in stabilizing the Pakistani economy.

The government of Prime Minister Nawaz Sharif, who came to power in June 2013, inherited low growth, high inflation, a foreign-exchange reserve crisis and crippling electricity shortages. Since then, inflation has dropped sharply and foreign exchange reserves are more comfortable.

The government is now on a mission to boost economic growth from the anemic 3% that it inherited to around 7% by the end of its five-year term. The IMF expects GDP growth to hit 4.3% this year and rise to 4.7% in 2016.

Pakistan has already achieved recognition among frontier-markets analysts, including Renaissance Capital, which describes the country as “the best undiscovered investment opportunity in emerging or frontier markets.”

However, considerable challenges remain. The country is woefully short of electricity, for example, while plans to seriously boost the paltry tax revenues are also yet to come to fruition.

Tax revenues currently stand at around 10% of GDP.

The IMF, which rescued Pakistan with a $6.6bn loan program in 2013, agrees that progress is being made. The multilateral said last month that “strong implementation of reforms… will transform Pakistan into a dynamic emerging market economy.”

Pakistan is banking on help from China, which has a $46bn investment plan intended to address the country’s energy deficit and put in place other infrastructure for industrialization that it is hoped will change Pakistan’s economic trajectory.

The Karachi stock market has delivered stellar performance in recent years. Since the May 2013 election, it has gained more than 70%. News on the possible inclusion in the emerging markets index—a decision on that will be made by MSCI next year—had little immediate impact on the market on Tuesday.

Pakistan was last in the MSCI emerging markets index in 2008 and brokers said its re-inclusion would be positive.

“Not only size of passive fund flows will increase, many large [emerging markets] funds may return back to Pakistan,” Karachi brokerage Topline Securities said in a note on Tuesday.

Additional reporting by Dan Keeler.

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Re: German based Volkswagen is planning to step into Pakistan

V-Dubs will be very well liked in Pakistan. :k:

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Re: German based Volkswagen is planning to step into Pakistan

http://www.enfortainment.com/wp-content/uploads/2015/01/Zara-Num-Ho-Ye-Matti-Iqbal-D..png

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Re: German based Volkswagen is planning to step into Pakistan

We need to make sure that they manufacture cars in Pakistan.

Otherwise, it would just add more pressure on foreign exchange on imports of cars. We really need to step up import duty on imported cars and incentivize local car ‘assemblers’ to move towards manufacturing.

We need less cars and more buses and other mass transport vehicles.

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Re: German based Volkswagen is planning to step into Pakistan

^Also need to implement quality control and price control on these chors who are selling junk at exorbitant prices.

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Re: German based Volkswagen is planning to step into Pakistan

just for my curiosity, why they aren’t choosing to step in India but in Pakistan ?

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Re: German based Volkswagen is planning to step into Pakistan

What does GM make in Pakistan and Toyota is not there (shocked desi aunty emoticon).

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Re: German based Volkswagen is planning to step into Pakistan

They already are in India.

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Re: German based Volkswagen is planning to step into Pakistan

The exorbitant prices come from transfer pricing. The ‘parent’ companies of these car assemblers (Honda, Suzuki, etc.) sell parts to them at higher prices. It transfers to them the profits without paying tax in Pakistan. Higher priced parts of course mean higher priced cars.

India wouldn’t let car ‘manufacturers’ import parts. They have to be made in India.

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Re: German based Volkswagen is planning to step into Pakistan

We don’t have car industry we have car a mafia that controls prices. Btw, noticed outdated & substandard models are assembled at exorbitant prices, but the mafia is protected by politicians who directly or indirectly benefit from this.

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Re: German based Volkswagen is planning to step into Pakistan

Is there anything in Pakistan thats NOT run by a “mafia?” There must be a Mafia just to run the Mafia’s, the Mafia-Mafia…