Govt. Rejects Pak-Suzuki’ Veiled Demands to Acquire More Incentives

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In a shocking discovery, the Pakistan Board of Investment (BOI) has refused to bend to the pressure from existing auto manufacturers.

Speaking to a group of journalists on Tuesday (28th March 2017), Board of Investment (BOI) Chairman Shah Jahan Shah cleared the government’ firm stance, once again. He insisted that stakeholders are least interested in making amends to the recently approved Auto Policy 2016-21 under the influence of any existing or new market player.

While speaking to the media personals, he remarked, ‘Pakistan has already been criticized for an inconsistent policy. Therefore, the government is not in a mood to amend this policy under any pressure to accommodate some auto players.’

Thus in the light of above statement from the head of BOI, it is quite clear that the government is very staunch in its ‘No-Go’ approach towards any amendments in the Auto Policy 2016, which was designed primarily to bring in new players and improve the Pakistan’ vehicle standards via competition and new technology.

Sources report that Shah’ remark came following after the news of Pak-Suzuki’ veiled threat to review its new investment plan worth $460 million if the government did not consider its plea for incentives. Considering the multitude of players gunning to enter Pakistani auto industry, it does not come off as a massive surprise that policymakers are finally starting to realize how to get things done. Renault, Ghandhara Nissan, Nishat Group, Kia, and Hyundai have already contacted BOI for the much-coveted incentives.

It should be mentioned Dewan Motors, and Al-Haj FAW have also sought these incentives, but as reported by sources, both these cases fall in the gray area. Thus, the final decision on both these cases is still under consideration.

Coming back to the topic at hand, as per the BOI officials’, Pak-Suzuki has been operating in Pakistan for the past two decades and thus, does not falls in either brownfield or greenfield category. As mentioned earlier, the government is adamant on stating that the new auto policy is designed for Brownfield and Greenfield investments with no incentives for the existing market players.

 

Notable Replies

  1. Waiting for this to actually materialize. Govt. is just haggling and will sell eventually and at a better price....

  2. True. They will be looking to capitalize on this situation because from past couple of weeks there wasn't any update on this proposal and now suddenly everybody will be hyped up. So hook, line and sinker!

  3. Government has made the right decision.

    Paksuzuki is looking for incentives being offered to new assemblers. This is anti-competition behavior.
    Paksuzuki has already availed incentives from the government for three decades in various forms including huge yellow cab contracts, policy support, etc..yet it is the one protesting the most against incentives for new assemblers. Paksuzuki has a complete monopoly in small-car segment as its the only local assembler and has been dumping obsolete models like Mehran, Bolan, Ravi, Cutlus, and Swift.

    If Paksuzuki is given these incentives it will block entry of new assemblers. For benefit of the country and consumers under no circumstances should Paksuzuki be given any sort of preferential treatment as it would be completely unfair.

    New assemblers are the need of the hour, new manufacturing units will create competition, create new jobs and contribute towards improving the economy of Pakistan. If anything, government should consider increasing incentives for new assemblers to expedite their entry.

  4. Suzuki ka dimagh khud hi theek ho Jae ga . Ciaz ki tarhae ki aur bhi bethar garia aye gi suzuki ki janib se .

  5. Ab ik naya tamasha .
    OWN k baad ab dealer bi loot mar main shamal ho gy.
    TOYOTA dealers car book nhi kar rahy. jab tak aap un sy 38000 ka maintenance package na lain,
    aur company waly khamoosh hain.

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