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Ecnomy Overview of Pakistan Motorcycle Industry in Pakistan Production Factors Cost Logistics
Pakistan is a country located in South Asia at a strategic and important location at the crossroads of South Asia, the Middle East and Central Asia
It has 1,046 km coastline along the Arabian Sea and Gulf of Oman in the South, and is bordered by Afghanistan and Iran in the West, India in the East and China in the far northeast
Ecnomy Overview of Pakistan Pakistan is the sixth most populous country in the world having population of 170 million The Demographic Profile of Pakistan is such that 54% of population is below 19 years of age, 27% between 20-39 years of age, 13% between 40-59 years of age and 6% are 60 years and above
Ecnomy Overview of Pakistan Pakistans GDP (Nominal) has reached to US$ 167 billion in the year 2008 with per capita GDP of US$ 1,044 The components of GDP during 20072008 were agriculture sector 21%, manufacturing sector 22% and services sector 57% Indicate shift in the structure of Pakistans economy from mainly agriculture base to manufacturing and services
Ecnomy Overview of Pakistan 1.8% increase in Workers Remittances during 2007-2008 (US$ 6.5 billion)
Pakistan is occupying the 7th position in production of The motorcycle industry of Pakistan is 45 years old Later on, Yamaha and Suzuki brands were introduced in
43 Original Equipment Manufacturers (OEMs) operate in the motorcycle industry of Pakistan These OEMs are supported by nearly 2,000 parts and component manufacturers employing 50,000 employees Critical mass has been reached in Pakistans motorcycle industry and the prices of motorcycles in Pakistan have on the average come down by more than 30% in past 8 years
Honda, Yamaha and Suzuki have joint ventures China is lagging behind with almost no
investment in this industry
focus on the immense opportunity of investment in Pakistans motorcycle industry specially in new motorbikes driven by rechargeable batteries
Human Resources
would be completely resolved as work on power plants including hydro-electric power generation is going on with full speed quickly, reliable supply with no frequent outages and supply of electricity on cheaper rates concerned. Supply of POL products is also available uninterrupted
they are almost equal as compared to prevalent wages in India and Bangladesh and even China
Logistics
Logistics
A developed infrastructure is vital to the economic progress of country The substantial investment in the development of physical infrastructure of Pakistan gives it a competitive edge and plays a key role in transforming the country into trade, economic and energy hub of Asia The Government of Pakistan has planned 50 mega projects for provision of better quality highways, expressways & motorways throughout the country during the next few years Some of the planned initiatives include; construction of major new motorways, modernization of trucking fleet with newer, more efficient, and environment friendly vehicles; promotion of industrial clusters along highways/motorways, establishment of warehouses by the private sector along the network
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(i) Road Transport Road transport is a backbone of Pakistans
transport system, accounting for 90 percent of national passenger traffic and 96 percent of freight movement
passenger and freight has grown much faster than the countrys economic growth
with approximate cost of US$ 6 billion to reduce transportation time of good from ports to factories and vice-versa
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and Motorway network contributes 4.2% of the total road network and carries 90% of Pakistans commercial traffic
0.32 km/sq. with the target to double it in the next ten years road network grew at average rate of 3.3%
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(iii) Railways Pakistan Railways has shown its good
performance since 2000-01 in respect of passenger as well as freight traffic Pakistan Railways has been showing an increasing trend in both passenger and freight traffic, registering an average increase of 5.6 percent and 7.9 percent per annum, respectively percent has been recorded in passenger traffic and freight traffic respectively during 20072008
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(iv) Airlines
The progress of the airline sector could Pakistan International Airlines carried a
total number of 4.245 million passengers during July 2006 March 2007 achieving 11.63 million RKRs revenues
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(v) Ports & Shipping (a) Karachi Port Trust:
In July-March 2006-07, the port handled a Besides, most modern terminal operators like
Container terminals, Commercial terminals and even Oil terminals increase of 10.8% was handled in 20052006 handled was 19.7 million tones
busy in handling cargo
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Here are some of the projects already underway or in place: -Fiber optic network has reached Gwadar -Gas supply plant and network partially in place -20 more bank branches have been opened -Construction of a degree college and a cultural complex -East Bay expressway and railway line alignment has been finalized -Construction of new international airport -450 + modern houses added in the city -Construction of theme parks -32 complimentary plots arrange from private schemes for various health/educational activities. -Split sewerage system with recycling and disposal in nearby green
Logistics
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Project Length (KM) Improvement/Widening of KKH (Khunjerab335 Realignment of KKH(Railkot-Sazin Section) 120 Improvement/Widening of KKH(Sazin Manshera Section) 258 Manshera-Abbottabad-Hasanabdal Expressway 97 Peshawar Torkhum 51 Peshawar Notherrn Bypass 34 Underpass at Wah Gate No.1 Taxile-Hasanabdal Section Wazirabad-Pindi Bhattian Expressway(E-3) 100 Hiran Minar Interchange (M-2) with link road Faisalabad-Khanewal Expressway(E-4) 184 Khanewal-Lodhran Expressway 100 Lodhran-Sukkur Expressway 385 Ratodera-Sehwan(N-55), ACW 200 Karachi-Hub-Dureji-Dadu Motorway(M-7) 270 Karachi-Hyderabad Motorway(M-9) 136 Jand-Kohat National Highway(N-80) 46 Noshki-Dalbadin Section(N-40), Balochistan 165 Gujranwala-Dina Expressway 100 Chakdara-Dir, Kalkatak-Chitral (N-45) 120 Bridges over River Indus in Punjab & Sindh -
investors Government permission for investment in manufacturing sector is not required except for specified industries such as arms & ammunitions, high explosives radioactive substances , security printing and currency and Foreign equity upto 100% is allowed. 0-5% customs duty is chargeable on plant, machinery and equipment. Remittance of capital, profits, royalty, technical and franchise fee are allowed. There is no sales tax on the import of machinery.
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Product CBU CKD Kit Non Localized Parts CKD Localized Parts
successful, Government of Pakistan may consider to extend it till the achievement of set targets
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