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Category: Business

  • Pakistan exports first batch of Changan Oshan X7 SUVs to Kenya and Tanzania

    Pakistan exports first batch of Changan Oshan X7 SUVs to Kenya and Tanzania

    Pakistan has made a significant foray into the global automobile market, marking a historic moment as it exported a batch of 14 SUV vehicles to Kenya and Tanzania, as reported by ARY News on Thursday.

    In a landmark achievement, Pakistan, through the collaboration of Master Changan Motors, a joint venture between Pakistan and China, has officially joined the league of car-exporting nations. This endeavour has solidified their position as the first automotive company to send SUV vehicles to foreign shores.

    The occasion was celebrated with a ceremonial event held in Karachi, commemorating the milestone of becoming the inaugural Pakistani-Chinese auto entity to export vehicles to two overseas destinations. Notably, the ceremony was attended by the Federal Secretary of Industries and Production, Asad Rehman.

    Rehnan also revealed the government’s intent to urge auto manufacturers to revise their car prices, especially in light of the notable depreciation of the US dollar (USD). He underlined the efforts in this direction by mentioning a recent newspaper advertisement released by an auto company, signaling its commitment to reducing vehicle prices.

    The export of the Oshan X7 SUV is a significant milestone for Pakistan as it ventures into the global automobile market, and this achievement carries even greater importance given the challenging economic conditions the country is currently facing.

    In a groundbreaking move, Pakistan’s collaborative effort with a Chinese automotive company, Master Changan Motors, marked their entry into the league of car exporters. They proudly achieved this milestone by sending the initial consignment of 14 SUV vehicles to Kenya and Tanzania.

    A special ceremony was organised in Karachi to celebrate the occasion, as it signified the first instance of a Pakistani-Chinese automotive company venturing into foreign vehicle exports.

    The Federal Secretary of Industries and Production, Asad Rehman was also present at the ceremony.

    During the ceremony, Asad Rehman conveyed the government’s intention to encourage auto companies to lower their car prices, given the significant decline in the value of the US dollar (USD).

    He also mentioned that an automotive firm had recently placed a newspaper advertisement advocating price reductions.

    Master Changan Motors, the Pakistan-Chinese automotive collaboration, proudly shipped its SUV model, the Oshan X7, to Kenya.

    This achievement is a notable milestone for Pakistan, considering the challenging economic circumstances it faces.

  • Pakistan expected to export cars to Kenya

    Pakistan expected to export cars to Kenya

    Master Changan Motors, a noteworthy Pakistani-Chinese collaboration, has initiated the export of its Oshan X7 mid-size crossover to Kenya.

    The sight of containers laden with Oshan X7 vehicles en route to the port in Karachi has confirmed this export venture.

    Reliable sources affirm that a substantial quantity of Oshan X7 SUVs will soon grace Kenyan roads.

    While the official announcement of this export endeavour is yet to be made, it is anticipated to be unveiled at a ceremony scheduled for October 12, hosted at their Karachi manufacturing facility.

    In the past, Changan Pakistan’s CEO, Danial Malik, articulated the company’s intention to export right-hand drive vehicles initially designed for the Pakistani market to various other regions.

    Historically, the parent company produced left-hand drive vehicles exclusively for its domestic clientele.

    Danial Malik also emphasised that Changan’s Pakistan-assembled vehicles would find their way to distributors in South Africa, Malaysia, Indonesia, and other countries where right-hand drive vehicles are customary.

    This development unfolds against a backdrop of considerable economic challenges confronting Pakistan, including soaring inflation and the burdensome cost of conducting business. Exacerbating the situation, interest rates are presently at historic highs, resulting in decreased demand for automobiles.

    Furthermore, car prices within Pakistan have surged significantly, amplifying the financial strain on hard-pressed consumers.

    In response, the government has been strongly encouraging the automotive sector, which is heavily reliant on imported materials, to bolster its exports. The initial objective was to achieve 2 per cent of the total imports, a target unmet in FY23.

    According to Samaa, in May 2022, Pakistan marked a milestone by exporting its first vehicle crafted by Master Changan Motors under the newly implemented Auto Industry Development and Export Policy (AIDEP 2021-26). Notably, Pakistan stands as the sole country outside China to manufacture the latest Changan Oshan X7 model.

    Concurrently, the Pakistan Automotive Manufacturers Association (PAMA) disclosed on October 11 that car sales in Pakistan had risen by 10 per cent in September compared to the preceding month, with a total of 8,312 units sold. 

    Nevertheless, this apparent short-term upturn can be attributed to improved access to raw materials, whereas the year-on-year data indicates a substantial 26 per cent decrease in sales for the corresponding period.

  • Pakistan faces worsening financial woes as state-owned enterprises suffer losses

    Pakistan faces worsening financial woes as state-owned enterprises suffer losses

    Interim Prime Minister (PM) Anwaar-ul-Haq Kakar conveyed on Wednesday that Pakistan is grappling with financial challenges, exacerbated by the continuous losses incurred by state-owned enterprises (SOEs).

    The PM presided over a high-level meeting specifically addressing the issues plaguing Pakistan International Airlines (PIA). 

    During this meeting, comprehensive briefings were presented on various aspects of PIA’s operations.

    Key figures, including Caretaker Minister for Privatisation Fawad Hassan Fawad, Adviser to the Prime Minister Ahad Cheema, and other relevant authorities, were in attendance.

    PM Kakar articulated his concerns regarding the protracted decision-making process concerning PIA’s issues.

    He highlighted the urgency of expediting the privatisation of PIA and other state-owned enterprises that are incurring losses, highlighting that these financial setbacks should not be shouldered by the public through tax money.

    PM Kakar underscored that reforming the aviation sector could lead to improved services for the public.

    Furthermore, he stressed the importance of transparency in the privatisation process and the need to assign responsibility for the losses to facilitate corrective actions and prevent further financial setbacks.

    The meeting received updates on PIA’s financial situation and the progress of its privatisation process.

    The PM directed that the privatisation of the national flag carrier be expedited to relieve the burden on the national treasury.

  • Over 60 dead due to instant loan app scam blackmailing with nudes

    Over 60 dead due to instant loan app scam blackmailing with nudes

    A widespread blackmail scam, originating in instant loan apps, has ensnared victims in India and across Asia, Africa, and Latin America, with at least 60 Indians resorting to suicide after relentless abuse.

    The BBC conducted an undercover investigation that unveiled the culprits profiting from this pernicious scheme in India and China.

    Bhoomi Sinhaa, a Mumbai-based lawyer, fell victim to this ruthless scheme when she borrowed approximately INR 47,000 ($565; £463) from several loan apps.

    These apps, promising swift loans, often extract personal data and use it to extort users when repayments are delayed. Recovery agents, part of the gig economy, are then tasked with harassing individuals into paying back, resorting to insults and humiliation.

    Bhoomi’s debt spiralled, leading to relentless abuse, threats, and even the release of a manipulated, humiliating photo to her contacts.

    The BBC investigation revealed that at least 60 individuals have taken their own lives due to harassment by these loan apps, with most being young victims who suffered in silence.

    The culprits have managed to stay largely anonymous. However, the BBC did uncover a former debt recovery agent who exposed the system’s brutality.

    Rohan, an ex-employee, recorded over 100 incidents of harassment and abuse, capturing the extortion on camera.

    The most egregious behaviour was observed at Callflex Corporation, where agents were not going rogue but following directions from supervisors, including one named Vishal Chaurasia.

    The recovery process often involves painting victims as fraudsters and thieves and pressuring their contacts.

    The scheme’s sinister nature extends beyond India, involving a Chinese connection. Li Xiang, a Chinese businessman, operates in India through loan apps and recovery services, flouting local laws and resorting to shame to extract repayments.

    He emphasised that their approach is akin to exposing customers to their vulnerability, leaving them “naked” in front of the scammers.

    The emotional and psychological toll on victims like Bhoomi Sinhaa is profound. The shame and ostracization they experience have lasting consequences, with friends, family, and colleagues often distancing themselves from the victims.

    Despite the victims’ efforts to seek justice through police reports and media exposure, the culprits remain elusive, with denials and a lack of cooperation from the companies involved.

    Majesty Legal Services, another implicated company, refuted the allegations, while Li Xiang defended his operations, denying predatory practices.

    This investigation underscores the urgent need for authorities to address this alarming issue, protect vulnerable borrowers, and bring those responsible to justice, all while raising awareness to prevent further harm.

  • SBP reports $112 million increase in workers’ remittances

    SBP reports $112 million increase in workers’ remittances

    In September 2023, Pakistan experienced a notable surge in workers’ remittances, marking a 5.3 per cent increase compared to August 2023.

    This uptick can be primarily attributed to a crackdown on the informal money transfer systems known as hawala and hundi.

    According to the State Bank of Pakistan (SBP), the country received remittances amounting to $2.206 billion in September 2023, up from $2.094 billion in August 2023, equating to a $112 million rise.

    The majority of remittance inflows for September 2023 were derived from several key sources, with Saudi Arabia contributing $538.2 million, the United Arab Emirates $400 million, the United Kingdom $311.1 million, and the United States of America $263.4 million.

    This increase in remittances can be linked to the fact that a substantial number of Pakistani expatriates resorted to using the Hawala/Hundi channels during the initial two months of the fiscal year, largely due to a significant disparity between official and unofficial exchange rates.

    Subsequently, strict enforcement measures against illegal currency dealers have curbed this volatility, leading to a gradual appreciation of the Pakistani rupee in both the interbank and open currency markets.

    In the last month, the rupee has rebounded by 9 per cent, recovering from its record low of 307.1 against the dollar on September 5. The crackdown on these illicit currency dealers has also contributed to the 5 per cent month-on-month increase in remittances for September.

    However, when examining the entire first quarter of fiscal year FY24, the overall home remittances to Pakistan have experienced a sharp decline of 20 per cent, totalling $1.57 billion. Home remittances for the July-September period of FY24 amounted to $6.33 billion, a decrease from $7.90 billion during the same period in the previous fiscal year, FY23.

    During this initial quarter, remittances from all major sources displayed a downward trajectory. Specifically, home remittances from Saudi Arabia decreased by 22 per cent to $1.516 billion for July–September in FY24, down from $1.946 billion in the equivalent period in FY23.

  • World Bank proposes tax reforms with 3% GDP growth projection for Pakistan

    World Bank proposes tax reforms with 3% GDP growth projection for Pakistan

    The World Bank has advised Pakistan to implement taxes on the agricultural and real estate sectors and merge the income thresholds for salaried and non-salaried individuals to create a progressive Personal Income Tax (PIT) system.

    If agriculture income and property taxes are effectively enforced, they could contribute 3 per cent of the GDP annually, totaling over Rs3 trillion. The World Bank is awaiting approval for a $350 million allocation for Pakistan under RISE-II, with the meeting date yet to be confirmed.

    Currently, the annual income threshold for salaried individuals is Rs600,000, and for non-salaried income, it stands at Rs400,000, both exempt from taxes.

    The World Bank emphasises the urgency of Pakistan’s fiscal situation and the need to generate revenue and reduce expenditures, recommending taxing the wealthy while protecting the poor.

    The World Bank proposes simplifying the income tax structure by aligning it for both salaried and non-salaried individuals, ensuring progressivity without suggesting a reduction in the current nominal threshold.

    They acknowledge the importance of considering inflation and labour market changes in recent data when reforming the income tax structure.

    The focus of the recommended tax reforms should fall on higher income brackets and include a comprehensive tax package and expenditure reforms to address unsustainable fiscal deficits.

    These reforms involve cutting down on subsidy expenditures, eliminating regressive tax exemptions, and increasing the taxation of high-income earners, particularly in agriculture, property, and retail sectors, to enhance the progressivity of the tax system.

    Regarding a question about lowering the current exemption threshold for salaried workers earning below Rs50,000 monthly, the World Bank’s lead economist clarified that the bank does not recommend a reduction in the current nominal threshold.

    Instead, the emphasis is on streamlining the income tax structure for both salaried and non-salaried individuals to ensure progressivity while protecting the poor during the reform process.

  • Gold price drops by Rs15,500 to Rs199,500 per tola

    Gold price drops by Rs15,500 to Rs199,500 per tola

    The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) resumed its bullion rate updates after an approximate month-long hiatus, revealing a substantial decline in the value of precious metals.

    According to APSGJA’s data, the price of 24-carat gold plummeted by Rs15,500 per tola and Rs13,546 per 10 grammes, reaching new levels of Rs199,500 and Rs171,039, respectively.

    The last bullion rate report was issued on September 12, when the per-tola price of gold stood at Rs215,000.

    However, escalating uncertainties in the economic landscape led to increased speculation. Consequently, the government intervened with a crackdown on speculators, resulting in the temporary suspension of bullion rate updates.

    During this 28-day period of rate suspension, gold traders resorted to arbitrary pricing as no standardised rates were available. Simultaneously, in the international market, the price of gold experienced a notable decline, dropping by $55 to reach $1,891 per ounce.

    Furthermore, APSGJA’s data also revealed a decrease in silver prices, with a Rs50 per tola and Rs42.87 per 10 grammes reduction, bringing silver’s rates to Rs2,500 and Rs2,143.34, respectively.

  • First 2024 Tesla Cybertruck auctioned for over PKR 11 crore

    First 2024 Tesla Cybertruck auctioned for over PKR 11 crore

    Production of the Tesla Cybertruck seems to have finally started, with reports of a 2024 Cybertruck being auctioned at the Petersen Auto Museum during their 29th gala event hosted by Jay Leno.

    The truck supposedly sold for a staggering $400,000 (PKR 112,551,880). However, the museum couldn’t confirm the exact winning bid due to internal policies.

    This sale, if confirmed, would mark the first official sale of a Cybertruck. Originally revealed in 2019, the production timeline for the unique pickup was repeatedly delayed, pushing it past its initial 2021 target.

    The auction offered a “low-VIN” 2024 Cybertruck, with the winning bidder receiving their vehicle when Tesla completes production. Essentially, it’s an auction for a build slot rather than an immediate car.

    Recent sightings of Cybertrucks being tested and transported on flatbeds suggest progress. Tesla had previously announced that full-scale production wouldn’t commence until 2024, but they claimed that the first Cybertruck was built in July at their Giga Texas factory.

    It’s worth noting that this isn’t the first high-interest EV truck to be auctioned, with the 2024 GMC Hummer EV SUV and the Hummer EV SUT truck also fetching high prices at auctions.

    Despite these developments, Tesla has not announced an official delivery start date for the Cybertruck. Furthermore, specifications for the production model remain unconfirmed.

    Originally priced around $40,000, there were plans for various variants, including a single-motor rear-wheel-drive base model and a high-performance tri-motor version, but it’s unclear which will be produced in 2024, if any.

    In any case, the Cybertruck is now a tangible reality, as evidenced by Tesla’s recent video of it driving off-road in Baja, Mexico. It’s only a matter of time until it officially hits the market.

  • PM Kakar aims to make Hajj more affordable and comfortable for pilgrims

    PM Kakar aims to make Hajj more affordable and comfortable for pilgrims

    On Monday, Caretaker Prime Minister (PM) Anwaar-ul-Haq Kakar issued a directive emphasising the provision of high-quality and affordable facilities for pilgrims during the Hajj without compromising the overall arrangements.

    During a meeting focused on the Ministry of Religious Affairs, he stressed the importance of ensuring that all necessary measures are taken to facilitate pilgrims in performing this significant religious ritual, as reported by the state news agency.

    The Prime Minister was briefed on the ministry’s performance, the actions taken for Hajj, and the preparations for the Hajj policy in 2024, according to a press release from the PM Office Media Wing.

    According to ARY News, the meeting was attended by Caretaker Minister for Religious Affairs Aneeq Ahmed and other ministry officials.

    In his address to the participants, the Prime Minister emphasised the need for rigorous oversight of private Hajj companies to ensure that pilgrims using private schemes do not encounter any difficulties. 

    He also requested the submission of the Hajj policy for approval by the federal cabinet.

  • PM Kakar pushes for speedy privatisation of financially troubled state-owned enterprises

    Caretaker Prime Minister (PM) Anwaar-ul-Haq Kakar, in a meeting held on Monday, directed the relevant authorities to expedite the privatisation process of state-owned enterprises (SOEs) that are experiencing financial losses.

    Stressing the importance of this privatisation effort, the Prime Minister emphasised its role in safeguarding the national treasury from further deficits.

    During this meeting, Minister for Privatisation Fawad Hasan Fawad provided a detailed update on the progress made in the privatisation of these enterprises.

    PM Kakar also commended the Special Investment Facilitation Council (SIFC) for its commendable contributions to this endeavor. 

    It’s worth noting that the caretaker Premier had previously issued similar directives to accelerate the privatisation process of Pakistan International Airlines (PIA), a loss-making entity.

    This development comes in response to reports suggesting that unless emergency funding is secured, PIA’s flight operations could face suspension.

    A senior PIA director revealed that the operational fleet had been reduced from 23 to 16 aircraft, resulting in the cancellation of numerous flights.