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KARACHI: Pak Suzuki Motor Company Ltd (PSMCL) will review its decision to invest $460 million if the government fails to respond to its request for incentives until April, PSMCL spokesperson Shafiq Ahmed Sheikh told Dawn on Friday.
The proposed plant will generate 319,000 direct and indirect jobs, he added.
The company has been waiting for the government’s response for one year. Mr Ahmed said Finance Minister Ishaq Dar had assured PSMCL that the company would receive approval for incentives by January.
Board of Investment (BoI) Chairman Dr Miftah Ismail had assured PSMCL of the same in a recent visit to its plant.
As per the request of Mr Dar, the company submitted specifications, schedule and other details to the BoI on January 1.
He said PSMCL’s principal in Japan has been waiting anxiously for approval of requested incentives to start work on the new plant.
The project is already delayed, he said, noting that the company’s financial year started from January 1.
Total promised investment is around $660m in which foreign direct investment from Japan is $250m. PSMCL is going to arrange $210m through its own funds and bank borrowings while vendors will invest $200m.
He said the company has purchased land for the plant. “This is a one-time investment. The plant’s completion will be in 18-24 months.”
However, Mr Ahmed said it is premature to comment about upcoming model details and specifications.
Senate’s Standing Committee on Industries and Production Chairman Hidayat Ullah and Federation of Pakistan Chambers of Commerce and Industry President Zubair Tufail informed the government last month that they were in favour of granting incentives to PSMCL for two years on new models at the greenfield plant.
Published in Dawn, March 25th, 2017
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Comments (54) Closed
Mar 25, 2017 09:36am
No problem. After the entry of new assemblers, the group will expand to counter the entry of new entrant.
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Mar 25, 2017 09:49am
Incentives? The entire unnecessary rozgar scheme was based off of a suzuki Bolan in Punjab. No doubt heavy commissions were made but suzuki did massively well. I think its about time suzuki left the scene. Take your canisters and be headache for someone else.
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Mar 25, 2017 09:55am
If after the 30 plus years of total domination of the car market the company can't function without a crutch handed out by the government, it is best this company close down and stop selling substandard cars to the hapless people.
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Mar 25, 2017 09:56am
No Japanese goods are required as they are all of high quality. Only Chinese goods are needed now which is cheap and of course, sub-standard. How can paksitan offend China by giving incentives and approvals to Japan.
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Mar 25, 2017 09:57am
The proper hands were not greased and until that happens this will remain in limbo.
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Mar 25, 2017 10:03am
Good riddance! If investment means blackmailing for incentives along with carte blanche for manufacturing sub-standard cars jeopardizing lives of their occupants, then this is good news!
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Mar 25, 2017 10:11am
Dont allow pak suzuki to expand. they have been selling the customer short for 20 years. Swift has seen 5-6 models in past 10 years, latest is already launched in India.
Also swift sport was never launched, Why?
In Pakistan PSMCL is still selling the 2006 version.
Given Incentives to VW instead
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Mar 25, 2017 10:15am
Get rid of them
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Mar 25, 2017 10:19am
Why is the govt delaying approvals for foreign investment??
Looks like they are interested only with Chinese businesses where there is no transparency and siphoning off is easy.
No wonder the country is in such bad economic position.
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Mar 25, 2017 10:23am
since plant is not in punjab, so suzuki should wait.
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Mar 25, 2017 10:31am
Suzuki which is Indian Maruti in diguise desres no help from tax payers. Suzuki has been selling its cars by instaling AC units and engine blocks made in India by Suzuki / Maruti for a very long time.
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Mar 25, 2017 10:31am
Pakistan should be importing its Suzukis from India. Most of the world does.
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Mar 25, 2017 10:42am
@Truth v2
NO if Suzuki like to invest now what stopping them earlier to at least digital clock in there Mehran ??
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Mar 25, 2017 10:45am
This is nothing but blackmail. Pak Suzuki has been selling sub-standard cars for the past 30 years and principles dictate that it should invest what it has earned from us. If you read closely, the investment portion of Paksuzuki is only USD 210 million, while the rest is expected from us Pakistanis, and from that USD 210 million, most of it will be borrowed from Pakistani banks. So they are only dangling USD 50 million at most.
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Mar 25, 2017 10:51am
Black mailers did not do any upgrading or transfer technology
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Mar 25, 2017 10:56am
So, let's get this straight, the country is being given free half a billion dollars but people here don't want it?
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Mar 25, 2017 10:57am
Pak Suzuki is delivering low quality old vehicles at astounding prices. Recently, the public has moved towards imported cars. Look at the insane price of Suzuki Wagon-R as compared to India where its available in approx 6 lac pakistani rupees (exchange rate adjusted).
Now they want same incentives that were announced for new entrants and black mailing. Government should convince German and French manufacturers and dump Pak Suzuki (more than 75% japanese share) forever
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Mar 25, 2017 11:17am
That's it. Squeeze them harder for a deal and threaten to bring in Russian automobiles.
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Mar 25, 2017 11:19am
@haroon In 12 months Maruti Suzuki sold 165,896 unit of Swift . In the same time Maruti Suzuki also sold 104,614 unit of Baleno model. Then how do you expect they will lunch new model in pakistan where sales are quite low ?
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Mar 25, 2017 11:24am
460 million to generate 3 lakhs jobs. So 46 billion will give 3 crore jobs to Chinese.
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Mar 25, 2017 11:28am
@Omer rightly said bro
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Mar 25, 2017 11:26am
@Raj ..Dear Japanese automobile are introducing and selling 3rd class technology in Pakistan and making huge profit..etc Suzuki Mehran and Alto..
They should improve their quality otherwise ll be out from market,since new players about to enter in the market with latest design and technology..
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Mar 25, 2017 11:32am
@Raj plz take them to india. they are producing 30 old year cars and selling them more expensive then gold. china is a new Super power u people still unable to digust this. even i phones made in china as for class is concerned. http://www.gsmarena.com/apple_invests_500m_in_two_r_d_centers_in_china-blog-24027.php
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Mar 25, 2017 11:42am
30 plus years and Pak Suzuki is producing the same old expired junks and offering it at mind boggling prices without any safety features and significant upgrades.
Better leave than asking for incentives looters!!!
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Mar 25, 2017 11:40am
They are jealous of cpec. They don't won't Pakistan to become the world's largest automobile exporter once cpec becomes fully operational.chinese automobile companies are welcomed are here.
Long live pak-china friendship.
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Mar 25, 2017 11:57am
No any incentive should be given. This substandard company has been fleecing the people of pakistan for the last three decades. Now there are a lot of substitute options in the market, and we will got for that. Keep your teen daba with you and do not try to thrive on our tax money...
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Mar 25, 2017 11:59am
They infested our roads with cheap quality cars with exuberant prices, time to pack and go home.
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Mar 25, 2017 11:59am
Dear Pak Suzuki, pls favor us with not only rolling back the expansion plan but also the entire business.
Kindly do not worry about the lost jobs, as we hope to fix them in the factories of new entrants soon.
You played with the sentiments of the nation of Pakistan for decades while being hands in gloves with top tier bureaucracy and politians and didn't serve the nation.
All you, Honda Toyota and your kind self are a permanent losers.
We'd thoroughly appreciate if you all leave the stadium for VW, Kia, Hyundai and Renault.
I live abroad and see Hyundai's and Kia's best offerings, check out Hyundai Accent vs Pakistani Honda City (which doesn't even have a 1000Rs clock, leave alone airbag and other winning features), Hyundai Elantra vs Pakisani loser Corolla and Pakistani loser Civic.
Kia Optima and Cerato are beautiful alternatives either.
Current assemblers have lost us!!!
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Mar 25, 2017 12:05pm
Imagine how many lives could have been saved by introducing some safety features in their cars.But no, these corrupt companies are here only to gain profits by selling obsolete, substandard cars that have been banned all over the world at prices that can buy you a comfortable and up to date car elsewhere.
It is not business, it is cheating! it is murder!
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Mar 25, 2017 12:05pm
Thanks to CPEC we now have good roads, all we need now is just more camels.
Instead of giving incentives to Pak Suzuki, we should import camels from KSA.
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Mar 25, 2017 12:19pm
@Raj do you really know what PakSuzuki is giving to local masses of 0.8 million PKR or 0.5 million INR. Its called Suzuki Mehran just google it. and if you dont know anything then don't be a tumbleweed .
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Mar 25, 2017 12:25pm
Thats great .we dont want outdated and crappy models from them.enough of it.you have looted us for 3 decades.infact please close therr plants.
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Mar 25, 2017 12:27pm
Good we don't want your cars. you sell the basic car at 5 Lakh I can say it's rubbish. So just leave all together.
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Mar 25, 2017 12:40pm
@oSD Dear ..
Total promised investment is around $660m in which foreign direct investment from Japan is $250m. PSMCL is going to arrange $210m through its own funds and bank borrowings while vendors will invest $200m.
Investment from PSMCL is $250 M remaining they ll arrange from local...But issue with their sub-standard cars @ high prices..
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Mar 25, 2017 12:50pm
Please go ahead. Your products are worth nothing as compared to what you are charging. You will automatically be wiped out by competition.
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Mar 25, 2017 12:53pm
Good job by government! For future survival psmc has to invest ...currently its monoply with dealers results in customers are not even given their due respect . ordered recently mehran given 2 months time period but now 1 month has passed deadline and no response on as to when my car will be delivered ....
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Mar 25, 2017 01:03pm
why did suzuki continue assembling/manufacturing suzuki mehran, bolan etc for over 2 decades. They should have paid attention then. Honda and Toyota are better than suzuki as they have been offering new models time and again
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Mar 25, 2017 01:06pm
They should Pack their backs and fly back to Japan instead.
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Mar 25, 2017 01:20pm
@Retired EXCELLENT COMMENT. REALLY AGREED ON THIS POINT
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Mar 25, 2017 01:34pm
In the mid eighties India built it's auto Industry with the entry of Suzuki. The Japanese set their standards and manufacturing procedures. Today just about all established auto manufacturers in the world has a facility in India making it 5th largest car manufacturing country in the world. Pakistan has some of the same road condition as India and Suzuki has some unique products and prices which are designed for these conditions. Somewhere Pakistan is not doing something right for them to pull the plug on investment.
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Mar 25, 2017 01:50pm
Pakistan will still remain a poor country Even If you establish 10 more motor companies in Pakistan. The Main problem is the deeply-rooted corruption everywhere in Pakistan.
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Mar 25, 2017 02:09pm
@RAJ, well I assume you are from across border so you probably don't know about quality and functions of Suzuki cars in Pakistan. If China firms provide cars with airbags, ABS brakes, power mirrors and steering then everyone will welcome them. BTW government have already provided incentives to Renault which is a French company and is no way close to China.
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Mar 25, 2017 02:24pm
Considering the Auto trade volume of India. I m shocked why cant India produce indigenous automobile of international standards. Although we have Mahindra and Tata but they are considerd sub standarded and thus fail miserably in competing with Korean & Japanese auto companies. Mahindra keeps importing engines from abroad but The All Indian Tata is making heavy loses.Though Govt of India buys military vehicles from them just to keep them relevant in Indian auto industry
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Mar 25, 2017 02:26pm
Considering the Auto trade volume of India. I m shocked why cant India produce indigenous automobile of international standards. Although we have Mahindra and Tata but they are considerd sub standarded and thus fail miserably in competing with Korean & Japanese auto companies. Mahindra keeps importing engines from abroad but The All Indian Tata is making heavy loses.Though Govt of India buys military vehicles from them just to keep them relevant in Indian auto industry
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Mar 25, 2017 02:35pm
Considering the Auto trade volume of India. I m shocked why cant India produce indigenous automobile of international standards. Although we have Mahindra and Tata but they are considerd sub standarded and thus fail miserably in competing with Korean & Japanese auto companies. Mahindra keeps importing engines from abroad but The All Indian Tata is making heavy loses.Though Govt of India buys military vehicles from them just to keep them relevant in Indian auto industry
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Mar 25, 2017 03:24pm
Pak Suzuki needs to pack up and go home we have suffered enough with the well below standard of tins they have been supplying us.
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Mar 25, 2017 04:15pm
Where Government means just squeezing the people out of their pockets to finance the layers of the so called democracy where common people are considered trash for duping we would have companies like Suzuki to comprehend with. They know well how to press the right buttons and make us buy sub standard product. While the elite cruises in latest BMWs on taxpayers expense.
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Mar 25, 2017 04:33pm
@TechScribe
Third class production
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Mar 25, 2017 07:25pm
Pakistan need changes in policy of Auto Sector as we are producing decades old models wich are not manufacturerd by any country in the world. .
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Mar 25, 2017 07:42pm
Another Threat ... Hmmmm
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Mar 25, 2017 10:26pm
New assemblers are the need of the hour. These are nothing but pressure tactics used by the exploitative Paksuzuki to get block entry of new assemblers. Paksuzuki has availed govt incentives for three decades but is unable to let govt give a mere 3-5 year incentives for new assemblers.
New assemblers = more competition = more choice for consumers = more manufacturing units = more jobs for Pakistanis = contribution towards improvement in economy.
Government can either take a decision in favor of "PAKISTAN" or this exploitative "Paksuzuki". Incentives for new assemblers should be further increased and Paksuzuki should be fined by Competition Commission of Pakistan for indulging in anti-competitive practices.
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Mar 25, 2017 10:40pm
@Humans of Srinagar if india imported engines from other countries, you would not have got car priced as low as 2.5lakhs and exported millions of automobiles every year....
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Mar 26, 2017 12:11am
Suzuki should be fined heavily as it has been producing substandard cars for the Pakistani market.
The government should fine all the companies and revoke the their licenses.
Important cars are actually cheaper and better quality.
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Mar 26, 2017 03:33pm
Day of deliverance! This nation can now hope that Suzuki leaves Pakistan for good alongwith their greatest joke tin-can namely 'Mehran'.
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