ISLAMABAD Under the Auto Development Policy 2016-2021 fifteen (15) new companies have been awarded t

[Murgah]

In Pakistan once the Auto sales pick up local , parts manufacturers step up their game to make OEM specific parts to help with vehicle maintenance

There are quite a few such players who make auto parts for Suzuki vehicles

for this first we need to put heavy taxes on procurement of parts from abroad so they start manufacturing parts here suzuki and other auto companies still procured 70% parts from japan and korea thats why they take all profit from pakistan in the form of dollers and give us junk car in heavy price

 

[valkyr_96]

The magic wand they had was the ability to borrow money. Another thing soaring during the "rising stars" era of "great Sharifs" was Debt

View attachment 557580



Here is the data of Debt to GDP ratio

View attachment 557579

If you go back and look at our Eurobond IPOs, the rate set was higher despite our better than before credit rating. In fact, Dar was disappointed. The last issues were secured and assets had to be ring-fenced i.e. an additional measure was added for assuring the prospective bondholders. We did not invest that money in generating exports. Thus, we have a crunch. We neither have external borrowing power nor enough exports to payback the massive maturing debt.

 

[jericho]

If you go back and look at our Eurobond IPOs, the rate set was higher despite our better than before credit rating. In fact, Dar was disappointed. The last issues were secured and assets had to be ring-fenced i.e. an additional measure was added for assuring the prospective bondholders. We did not invest that money in generating exports. Thus, we have a crunch. We neither have external borrowing power nor enough exports to payback the massive maturing debt.

Thanks for your input. A little too technical for me, if you could provide some links I would appreciate it, to better understand. The exports have been increasing in recent months, December 2018 was the highest export Pak had in its history, and the months following that have been high also, (Feb was lower, probably due to tensions in the country), of course, the gap between import and export is still huge but at least there is an improvement.

 

[airmarshal]

I just dont know how will it work for a market like Pakistan. If auto assembly is manufacturing, then Pakistan will always remain a country with low penetration of auto products.

Pakistan assembled cars even stripped of all necessary accessories cost around 1.2 million rupees. The reason being that most of the parts are imported. If Pakistan does not manufacture majority of parts like Turkey, India or Thailand, Pakistani cars will always be expensive.

Also, Pakistan needs to find export markets to get the maximum benefit of auto industry. New auto policy should create incentives, policy framework for quality and international standard of manufacturing to make our exports competitive. More recently Morocco has been a great example of exporter of automobiles.

 

[valkyr_96]

Thanks for your input. A little too technical for me, if you could provide some links I would appreciate it, to better understand. The exports have been increasing in recent months, December 2018 was the highest export Pak had in its history, and the months following that have been high also, (Feb was lower, probably due to tensions in the country), of course, the gap between import and export is still huge but at least there is an improvement.

what kind of links do you want? None of this is technical. For starters you may want to consult the Luxembourg bourse website https://www.bourse.lu/issuer-securities/Pakistan/34653 and look for prospectus. These are the details the investment bankers provide to prospective buyers including the terms and conditions of the bond both parties will agree to. If you want to see if the the issue was overpriced there are two ways compare the ratings of Pakistan and other similarly rated countries and see how much they paid for similar issues. You can also however see that the bonds are selling at premium this indicates that to the bondholder the issues are paying above average returns.

 

[Cash GK]

I’m perplexed...honestly....despite all of this why is the economy going down the drain....what magic wand did the Sharifs have that our gdp was soaring and we were one of the rising stars in Asia.

Are PTI so tough as nails / incompetent that the business community/ investors are petrified of what’s next? The current crackdown on tax is the toughest I’v seen and business ppl are now running like headless chickens

Corrupt business putting hurdles..they are taking out their money..but I tell you they can not resist longer . Remember what Zardari said to media. Yeha tu nab chale gah yah pir economy chale gey...that was open and clear challenge by corrupt system and we all know Nawaz and zaradi are the leaders of this corrupt system

 

[Pakhtoon yum]

Remember when Suzuki threatened to shift to Iran. Someone should tell them to move

 

[Wa Muhammada]

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