Yamaha to invest $150million in Pakistan

[asjdsm]

^^ there is one stubmling block in yamas investment ..
first there were some 65 % taxes/duty on imported parts that was reduced drastacly to 5 or 10 % .. now yama weants even this to be removed .. so yama pays zero duty..

read about it in detail on Automark magazine .. my figures are and specific words are not accurate but the scale iis like that ..

now the prolem is that the govts main source f income is taxes and duties etc .. if govt allows it to yama y not others if to others then govt pehlas hi bikari ha agay jo bacha ha us ko bhi aag laga do..

yama shoul not do business on its terms .. it should follow govt terms .. if they are biased they have right to ask for fairness but there denmands are childish

[nabilM]

This is IMPORTANT development....

Read the following articles and you will get the idea.

Japan asks Pakistan to resolve CNG, auto sector problems - thenews.com.pk

[LEFT]Japan asks Pakistan to resolve CNG, auto sector problems


Mehtab HaiderSaturday, September 08, 2012
From Print Edition


101 4 1 0

ISLAMABAD: Identifying inconsistent policies as the major stumbling block in the way of boosting foreign investment in Pakistan, Japan has asked Islamabad to resolve the existing problems of compressed natural gas (CNG) supply to vehicles, senior officials of the Japanese embassy told reporters here on Friday.

It has further asked the federal capital to put in place appropriate auto policies and ensure macroeconomic stability and electricity supply for attracting investment in this part of the world, they said.

In order to ensure networking between the business tycoons of both the countries, Japan’s business mission is scheduled to visit Pakistan from October 6 to 11, 2012 for finding opportunities to boost avenues of partnership.

The government of Japan is organising this upcoming visit of the business mission to Pakistan and it will coincide with the Expo Pakistan in Karachi. The upcoming mission will be comprised of those Japanese companies which are interesting to invest in Pakistan. The mission will visit Karachi, Islamabad, Lahore and Sialkot.

Senior officials said that they were discussing possibilities for assisting Pakistan in different areas of the economy but funding for Diamer Basha dam was not yet finalised. “We have not decided whether we will fund Diamer Basha dam or not,” they added.

They said that they were conveying the message of vast opportunities that exist in Pakistan to potential investors.

There are currently approximately 60 to 70 Japanese companies working in Pakistan in different sectors of the economy, especially in areas of auto sector. However, they said: “The inconsistent policies are hurting Japanese companies to invest in Pakistan.” Pakistan is currently out of the scope for Japanese companies mainly because of security concerns, lack of infrastructure, inconsistent economic policies and lack of marketing, resulting into creating a ‘perception gap’ about the country, they said.

Citing an example of the inconsistent economic policies, a Japanese official said that the previous government had promoted the CNG industry by giving incentives to convert vehicles on this fuel but the existing government was discouraging the CNG sector.

They also cited the example of the auto sector and said that those companies which had invested in Pakistan would not like to see changes in the import policy of the auto sector. There might be different point of view from the prospective of customers but as private investors, there should be consistent policies for giving a long-term view to potential investors.

When asked whether Japan had used its aid as a leverageto get incentives for its auto sector companies, the embassy official said that there had been a linkage between the two issues. “We always want to use better utilisation of aid money,” he said.

In regards to the number of Japanese companies investing in Pakistan, he said it was on a rise but the speed for increasing investment was quite slow. To another query about finding opportunities for investment in Federally Administered Tribal Areas, the embassy officials said that Japan could not depute its staff in any volatile area of the country.
[/LEFT]

Another Article .........................

Bhasha dam, KCR project may be affected: Japan no longer considering investing: diplomat | Business Recorder

[h=1]Bhasha dam, KCR project may be affected: Japan no longer considering investing: diplomat[/h]

September 08, 2012
WASIM IQBAL0 Comments



<saqib></saqib>

The government of Japan is no longer considering investment in major hydroelectric projects such as Diamer-Bhasha dam and revival of Karachi Circular Railway (KCR) because of financial constraints, a Japanese diplomat said on Friday. The KCR project, costing Rs 140.2 billion, was recently approved by the Executive Committee of National Economic Council (Ecnec).

An official of the embassy of Japan told media persons that these projects required huge funding and the government of Japan was not in a position to finance these projects. Responding to a question regarding Bhasha dam, he said that Japan was not interested in investing in the construction phase of the dam. "It may invest in the power generation phase in future, depending on the situation," he added. The official also said that Japan International Co-operation Agency (Jica) has held a comprehensive study regarding the viability of Karachi Circular Railway, but had not yet reached any final conclusion, because it "also requires huge funding".

Pointing out inconsistencies in policies of Pakistani government, he said: "This takes Pakistan out of the scope of Japanese companies." He said Japanese firms working in Pakistan were facing a "lot of problems" According to him, the Board of Investment (BOI), which should act as a facilitator for foreign investors, "has no action plan".

The government of Japan, he said, had deputed a Japanese expert in the BOI who was working on capacity-building of staff so that they could attract foreign investment. He said that companies were unable to benefit from Port Qasim as there "is no road network to access the port...absence of infrastructure is another reason".

The embassy, he said, was receiving complaints from Japanese companies working in Pakistan regarding "absence of any appropriate auto policy, macroeconomic instability, power shortages and recent ban on CNG kits. This has deeper impact on the economic health of companies".

Despite difficulties, he believed, there was a huge potential to attract foreign investment. "High-skill labour force and growing market is a favourable factor. Similarly, Pakistan has geographical advantage, as it is located on crossroads to India, Afghanistan, Central Asia and the Gulf." He said that the government of Japan will soon send business mission to visit Pakistan from October 6-11, to coincide with Expo Pakistan in Karachi. "This Business Mission will include (representatives of) Japanese companies interested in investing in Pakistan. The objective is to address concerns of companies regarding security, infrastructure, economic policy consistency and lack of marketing."

<center style="color: rgb(0, 0, 0); font-family: Arial, 'MS Trebuchet', sans-serif; line-height: 18px; ">Copyright Business Recorder, 2012</center>

[nabilM]

Entry of new player: Two out of 100 bike makers invited for consultation

By Our Correspondent
Published: September 9, 2012

Almost 1.6 million motorcycles were sold in fiscal 2011-12. PHOTO: FILE
KARACHI:
Perturbed by the possible entry of a new motorcycle manufacturer with ‘unfair’ incentives, the automobile industry has asked the government to take them on board and hold meaningful dialogue before drawing up new policies.
Speaking to select journalists here on Saturday, Pakistan Automotive Manufacturers Association (Pama) Director General Abdul Waheed stressed that the government should not allow any new two-wheeler manufacturing company into the local market with relaxation in import duty. “This will be unfair as it will hurt existing players of the industry,” he said.
Waheed said the Economic Coordination Committee (ECC) of the cabinet did not follow directives of finance minister, who called for consulting the motorcycle industry on the proposal to grant extraordinary concessions to an upcoming Japanese company. The ECC only met the formality and ignored the directives, he commented.
He, however, praised the finance minister for asking the committee as well as officials to address concerns of the domestic industry. Waheed termed it unfair to invite only two bike manufacturers for negotiations out of the entire industry, which comprises around 100 manufacturers. “It is certainly not possible to invite 100 manufacturers, but their representative body should be consulted.”
So far, the consultation process had been eyewash and was apparently meant to justify what had already been decided behind closed doors, he remarked.
Waheed said the motorcycle industry had flourished and qualified to become an integral part of the economy with thousands of skilled workers. The ECC should involve stakeholders of this billion-dollar industry for consistent development instead of taking unilateral decisions that will lead nowhere, he suggested.
He acknowledged that efforts should be made to attract foreign investment, but said the fundamental concept of level-playing field for existing and new players should not be ignored. “Pama just requests the government not to offer any duty concession to a single player.”
Pakistan is among 20 top motorcycle manufacturing countries, producing two-wheelers of international standards from 70cc to 150cc engine capacity. The industry’s installed capacity was 2.5 million bikes in 2011-12 and sales stood at 1.6 million in the same period, with capacity utilisation at 64%.
Published in The Express Tribune, September 9[SUP]th[/SUP], 2012.

[Juste]

producing two-wheelers of international standards from 70cc to 150cc engine capacity.

Lol on that.

[aliahmed0012]

bro all im trying to say here is if Yamaha does enter the market, it won't be good for the vendor industry. i tell you how, they wont be able to invest heavily into the technology that Yamaha wants in order for it to produce motorcycles. second of all Yamaha isnt being fair. they want reduced duties on CBU's, which points out that they want to just assemble the motorcycle and sell it for 5 to 10 years. with this they'll be gaining on profits and the other players will be effected. i want yamaha to come in the market and do their own thing, and progress the motorcycle market, but with no effects to other players, or to the dependable millions of people running their houses.

[2468]

There is no chance of brand new 150cc efi yamaha bike with a price tag of 40,000 so how would they affect the market of locally produced suzuki or china bikes, don't expect such bikes under 1 lac, but the monopoly of honda would break as yamaha surely would introduce much newer and advanced bike in Rs.116,000 compared to honda deluxe.

[vickytulla]

What if they introduce the R15 of India same in pakistan .. we would see a very nice competetion ...

There is no chance of brand new 150cc efi yamaha bike with a price tag of 40,000 so how would they affect the market of locally produced suzuki or china bikes, don't expect such bikes under 1 lac, but the monopoly of honda would break as yamaha surely would introduce much newer and advanced bike in Rs.116,000 compared to honda deluxe.

[nabilM]

[h=1]http://tribune.com.pk/story/434466/attracting-investors-zardari-signs-sez-bill-2012/

Attracting investors: Zardari signs SEZ Bill 2012[/h]
"A consensus law had been passed to ensure continuity of economic and investment policy," says President Zardari. PHOTO:FILE

ISLAMABAD: President Asif Ali Zardari on Monday accorded his assent to The Special Economic Zones Bill 2012 at a signing ceremony held here, putting in place a legal and regulatory framework for creation, development and efficient operation of SEZs and to encourage domestic and international investors.

Speaking on the occasion, the president said one of the major reasons for economic backwardness of the country had been frequent reversal of economic and investment policies with change of governments for political reasons.
This was for the first time, he said, that a consensus law had been passed to ensure continuity of economic and investment policy and it would no longer be possible to change the policy without changing the law.
[I]Published in The Express Tribune, September 11[SUP]th[/SUP], 2012

[/I]

[nabilM]

Motorcycle industry : New entrant policy termed ‘disaster’
Staff Report

ISLAMABAD: Pakistan’s motorcycle industry here on Monday termed new entrant policy for new motorcycle manufacturers as a disaster for the existing industry and warned that this would result in promoting organised sector into an unorganised sector.

The representatives of the motorcycle industry informed a selected group of reporters that the new entrant policy is being formulated to benefit one new manufacturing company, which intends to manufacture motorcycles above 100cc.

The representatives of the industry were of the view that the policy would not benefit the company being rewarded at the cost of the existing industry as it would only hurt the expansion in the existing industry. They were of the view that at a time when motorcycles are being sold at $110 to $1,200 in other countries, due to localisation of parts in Pakistan motorcycles are being sold at less than $500. Localisation has benefited the consumers in Pakistan and new entrant policy will promote imports and would have a very negative impact on localisation efforts being made by the existing industry. The country would turn into a trading hub if the proposed policy is approved and implemented as local players would prefer importing motor cycles rather than manufacturing them locally.

The proposed import tariff for new entrants has been proposed at 5.0 percent against the 65 percent for others who would be importing motorcycles in Completely Built Unit (CBU) condition.

They feared that existing manufacturers of motorcycles would get themselves as new entrants and would like to benefit from import tariff incentives proposed in the policy and local vender industry, which has already achieved localisation up to 93 percent in 70cc would get hurt badly along with loss of thousands of job opportunities in the country.

Home | Business

[nabilM]

After reading the blow mentioned articles which I posted earlier, Things are very complicated and this issue doesn't seem to straight forward. Japan asks Pakistan to resolve CNG, auto sector problems - thenews.com.pk

Bhasha dam, KCR project may be affected: Japan no longer considering investing: diplomat | Business Recorder

[amjad635]

yeah Yamaha does not seem to come sooner, i don't think Gov: would accept their conditions
And Chonda's manufacture's have united they are totally opposing entry of Yamaha

[nabilM]

ECC meeting postponed | Business Recorder

[h=1]ECC meeting postponed[/h]

September 27, 2012
WASIM IQBAL



<saqib></saqib>

The meeting of the Economic Co-ordination Committee of the Cabinet was postponed which was earlier scheduled for today (Thursday), sources said. Seven items were on the agenda of the upcoming meeting of ECC. Apart from reviewing the performance of key economic indicators and implementation of decisions taken by the ECC of the Cabinet, the forum was expected to take other important economic decisions.

Ministry of Commerce was expected to propose to the ECC that new entrants in the motorcycle industry should be allowed to start production with 25 percent locally manufactured parts and be required to achieve 85 percent localisation after five years. General tariff reduction was proposed for the protection to motorcycle industry in Pakistan with 'new entrant policy' including bringing import duty on import of sub-assemblies from 20 percent to 10 percent, import of Completely Built Units (CBU) and components for assembly or manufacture of vehicles in any kit form from 65 percent to 10 percent, Completely Knocked Down (CKD) kits not manufactured locally from 15 percent to 5.0 percent, and CKD kits manufactured locally from 47.5 percent to 25 percent. However, import duty on import of raw materials is proposed to be maintained at zero percent and sub-components and components at 5.0 percent.

The new entrant policy for motorcycle industry will be applicable on motorcycles of 100cc and above with new technology for new entrants; the concessionary rate of duty for CKD kits is proposed to be 5.0 percent at the start of commercial production, and localisation level be kept at a minimum of 25 percent. By the end of five years localisation level be allowed to reach a minimum of 85 percent and the agreement template for new entrants, including the localisation plan, be developed by Engineering Development Board in consultation with National Tariff Commission. The agreement would be designed in such a way that new entrant scheme is not misused. Non-implementation of localisation plan should result in the imposition of prevalent duties.

Ministry of Petroleum and Natural Resources has also moved a summary for import of Liquefied Natural Gas (LNG). Amendment in Oil and Gas Regulatory Authority (OGRA) rules has been proposed to facilitate import of LNG. The ECC will likely consider a summary moved by Production Division regarding renewal of Government of Pakistan guarantee of Rs 2 billion for Pakistan Steel Mills. The PSM has yet to receive Rs 2 billion from the Finance Ministry despite the orders of Prime Minister Raja Pervez Ashraf during his visit to the Mills on August 10.

Water and Power Division has also moved a summary for consideration of ECC which requires that the Government of Pakistan should provide an indemnity for implementation of Hydropower projects. Permission to release latex foam imported from India by Shafi Lifestyle (pvt) Limited, Lahore will also likely be discussed in meeting.

[r1]

yet no green signal from khappay and spys! But govt should allow Yamaha and must ban all chondas who selling their 3rd and 4th class bikes looting and sucking blood of poor people like a bug.

[7thgear]

^ +1 to what R1 said..

[Juste]

I would say govt should allow Yamaha and Ban all big local blood suckers like AHL, DYL, Pak Suzuki.

[r1]

AHL, DYL, SUZUKI has quality products CG, YB, GS to kick a** chonda. True riders always prefer quality on Shushka

[vickytulla]

A LINK : Food For thought ( the small china 70 makers / 125 copiers are not the bigger problem , mainly it is the Big MAGAR MUCH monopolist not going to name it because that will ignite a stupid arguments from haters )

Why Yamaha Japan's plan to build latest bikes in Pakistan still lingers on | PakWheels Blog

This is what article has to say about it :

"It has said that Yamaha Japan will only make models which have never been build in Pakistan before which means that we would finally get rid off the 3-4 decades old CD70 and CG125 motorcycles and come to par with the rest of the world but PAAPAM doesn’t want that."

"Local automotive assemblers are trying to block Yamaha’s investment in Pakistan so they can continue selling atleast four decades old design motorcycles built with obsolete technology to Pakistanis for the foreseeable future effortlessly. As Yamaha aims to introduce bikes built with today’s technology and design. "

[guess who is bribing PAAPAM for that other the Mr 10% off course you got that right the makers of CG *** ]

and by the way to block Yamaha Chinese copiers and magar-much are teamed up against Yamaha and trying there best to make it fail heres another one :

PAMA seeks to block Yamaha

I would say govt should allow Yamaha and Ban all big local blood suckers like AHL, DYL, Pak Suzuki.

[Shakills]

I would say govt should allow Yamaha and Ban all big local blood suckers like AHL, DYL, Pak Suzuki.

They dont need to ban these companies, They should allow Yamaha and other brands and let them introduce new models for Pakistani people, after that current looters will feel the pinch. they will either shut down or come with some new and exciting models.

[amjad635]

Big Magar Much & small are on one lane this time
forcing government, not to facilitate Yamaha entrance

[vickytulla]

yeah

becuase they know exactly that if Yamaha did introduced International models ... they all will be pretty much f**ked up.

It is never gona happen. SIGH

Big Magar Much & small are on one lane this time
forcing government, not to facilitate Yamaha entrance