Auto firms fail to comply with technology transfer obligation

[CrazyZ]

Auto firms fail to comply with technology transfer obligation
TOKYO: Automobile companies failed to comply with an obligation to transfer manufacturing technology to Pakistan within five years of investment with an estimated 70 percent of auto parts still imported into the country, a top official said.


“Only 30 percent of spare parts are manufactured in Pakistan, while 70 percent are imported and used in assembling,” said Rana Abid Hussain, president of Pak-Japan Business Council. “Millions of jobs could not be created in Pakistan while foreign companies are gaining huge profits from the government of Pakistan in the name of manufacturing.”

Pakistan offered a score of tax incentives to automotive businesses under the Automobile Development Policy 2016-21 to lure investment in manufacturing units in the country, dominated by three carmakers – Suzuki, Honda and Toyota – from Japan since the early 90s.

“Had foreign car manufacturing companies abided by the agreement of transfer of 100 percent of their manufacturing technology to Pakistan within five years of their investment, thousands of new factories would have opened and millions of people would have been employed,” Hussain said. “However, foreign companies are hurting national interests by preferring personal interests.”

After the introduction of the auto policy in 2016, various local and foreign auto players sought permissions from the government to set up plants to meet growing demand of cars in the 200,000 to 250,000 auto market. At least 15 companies have expressed interest to avail the benefits in the policy and to manufacture trucks, cars, and sports utility vehicles.

Of them, 13 have been given Greenfield status — the new investment with new technology and products – while two were awarded Brownfield status as they want to expand their existing plants. The new entrants are from France, Germany, Korea, Japan, China and UAE with aggregate investment plan of $1.3 billion.

Hyundai, KIA and some others started production to avail the policy’s incentives, but the auto sector slipped into the mess due to fiscal policies later.

Pakistan’s automobile industry has been going through worst crisis since last year amid rising prices due to imposition of new, higher taxes and steep currency devaluation. Auto industry was the highest taxpaying industry during the last government’s tenure.

The government planned to introduce a new five-year auto industry development policy from next year. Hussain requested the government to provide an easy and one-window operation for overseas Pakistanis to invest. “Huge investments can be transferred to Pakistan which requires special attention of Prime Minister Imran Khan.”

https://www.thenews.com.pk/print/65...to-comply-with-technology-transfer-obligation

 

[Arsalan]

Auto firms fail to comply with technology transfer obligation
TOKYO: Automobile companies failed to comply with an obligation to transfer manufacturing technology to Pakistan within five years of investment with an estimated 70 percent of auto parts still imported into the country, a top official said.


“Only 30 percent of spare parts are manufactured in Pakistan, while 70 percent are imported and used in assembling,” said Rana Abid Hussain, president of Pak-Japan Business Council. “Millions of jobs could not be created in Pakistan while foreign companies are gaining huge profits from the government of Pakistan in the name of manufacturing.”

Pakistan offered a score of tax incentives to automotive businesses under the Automobile Development Policy 2016-21 to lure investment in manufacturing units in the country, dominated by three carmakers – Suzuki, Honda and Toyota – from Japan since the early 90s.

“Had foreign car manufacturing companies abided by the agreement of transfer of 100 percent of their manufacturing technology to Pakistan within five years of their investment, thousands of new factories would have opened and millions of people would have been employed,” Hussain said. “However, foreign companies are hurting national interests by preferring personal interests.”

After the introduction of the auto policy in 2016, various local and foreign auto players sought permissions from the government to set up plants to meet growing demand of cars in the 200,000 to 250,000 auto market. At least 15 companies have expressed interest to avail the benefits in the policy and to manufacture trucks, cars, and sports utility vehicles.

Of them, 13 have been given Greenfield status — the new investment with new technology and products – while two were awarded Brownfield status as they want to expand their existing plants. The new entrants are from France, Germany, Korea, Japan, China and UAE with aggregate investment plan of $1.3 billion.

Hyundai, KIA and some others started production to avail the policy’s incentives, but the auto sector slipped into the mess due to fiscal policies later.

Pakistan’s automobile industry has been going through worst crisis since last year amid rising prices due to imposition of new, higher taxes and steep currency devaluation. Auto industry was the highest taxpaying industry during the last government’s tenure.

The government planned to introduce a new five-year auto industry development policy from next year. Hussain requested the government to provide an easy and one-window operation for overseas Pakistanis to invest. “Huge investments can be transferred to Pakistan which requires special attention of Prime Minister Imran Khan.”

https://www.thenews.com.pk/print/65...to-comply-with-technology-transfer-obligation

Glad that someone is FINALLY paying attention to this. It is such a shame that despite enjoying the perks the companies never fully delivered on their promise to support local industry. I hope action is taken here and these companies are made to support local manufacturing.

 

[Azadkashmir]

put it in the newspaper, make it national news, embarrass the Japanese bosses and beat the corrupt Pakistanis.

 

[crankthatskunk]

This is such a shame. You provided the incentive and then failed to monitor the implementation of the contracts and hold the investors' responsible for their failures. Typical Pakistani incompetence.
Pakistan should demand from Japanese companies to fulfil their commitments on priority basis, before the 5 years period expires in 2021. There is still time for them to implement it on emergency footing.


What kind of politicians we have in Pakistan!!

They cannot monitor the IPPs either.
The crooks have played all kind of havoc with Pakistani government, its people, its industry, its exports. You name it.
Now the crooks wants to have a deal with the Government.
Which our imbecile and toothless government would do and allow these crooks to operate.
Pakistan should cancel all the licences awarded to IPP, confiscate their properties and freeze their bank accounts.
Take over the production itself. Do plant by plant audit. Punish the investors for their unlawful, illegal and criminal activities, including fines, impounding their personal properties and putting them in prisons.
That's what the law should do to the people who have broken their contract by scamming and

 

[WarKa DaNG]

At last somebody have some senses

 

[IceCold]

Toyota Honda Suzuki all are looting with insane price tags and low build quality. Plus while the auto makers are quick to increase prices at the slightest rupee devaluation, but completely forget to bring back once rupee appreciates. This shows that malicious intent. I hope government can come up with a body that can keep checks and balances not just on the pricing but also to the deteriorating quality.

 

[porris]

Auto firms fail to comply with technology transfer obligation
TOKYO: Automobile companies failed to comply with an obligation to transfer manufacturing technology to Pakistan within five years of investment with an estimated 70 percent of auto parts still imported into the country, a top official said.


“Only 30 percent of spare parts are manufactured in Pakistan, while 70 percent are imported and used in assembling,” said Rana Abid Hussain, president of Pak-Japan Business Council. “Millions of jobs could not be created in Pakistan while foreign companies are gaining huge profits from the government of Pakistan in the name of manufacturing.”

Pakistan offered a score of tax incentives to automotive businesses under the Automobile Development Policy 2016-21 to lure investment in manufacturing units in the country, dominated by three carmakers – Suzuki, Honda and Toyota – from Japan since the early 90s.

“Had foreign car manufacturing companies abided by the agreement of transfer of 100 percent of their manufacturing technology to Pakistan within five years of their investment, thousands of new factories would have opened and millions of people would have been employed,” Hussain said. “However, foreign companies are hurting national interests by preferring personal interests.”

After the introduction of the auto policy in 2016, various local and foreign auto players sought permissions from the government to set up plants to meet growing demand of cars in the 200,000 to 250,000 auto market. At least 15 companies have expressed interest to avail the benefits in the policy and to manufacture trucks, cars, and sports utility vehicles.

Of them, 13 have been given Greenfield status — the new investment with new technology and products – while two were awarded Brownfield status as they want to expand their existing plants. The new entrants are from France, Germany, Korea, Japan, China and UAE with aggregate investment plan of $1.3 billion.

Hyundai, KIA and some others started production to avail the policy’s incentives, but the auto sector slipped into the mess due to fiscal policies later.

Pakistan’s automobile industry has been going through worst crisis since last year amid rising prices due to imposition of new, higher taxes and steep currency devaluation. Auto industry was the highest taxpaying industry during the last government’s tenure.

The government planned to introduce a new five-year auto industry development policy from next year. Hussain requested the government to provide an easy and one-window operation for overseas Pakistanis to invest. “Huge investments can be transferred to Pakistan which requires special attention of Prime Minister Imran Khan.”

https://www.thenews.com.pk/print/65...to-comply-with-technology-transfer-obligation

These Companies must be fines according to accord Made.

These Companies must be fines according to accord Made.

These companies must be Fined huge penalties must be imposed on them for not complying
on accord.

On One hand These Japanese Companies gained huge profits but on the other hand they give Pakistani citizen substandard products (electronic to Bikes ).

 

[bananarepublic]

Auto firms fail to comply with technology transfer obligation
TOKYO: Automobile companies failed to comply with an obligation to transfer manufacturing technology to Pakistan within five years of investment with an estimated 70 percent of auto parts still imported into the country, a top official said.


“Only 30 percent of spare parts are manufactured in Pakistan, while 70 percent are imported and used in assembling,” said Rana Abid Hussain, president of Pak-Japan Business Council. “Millions of jobs could not be created in Pakistan while foreign companies are gaining huge profits from the government of Pakistan in the name of manufacturing.”

Pakistan offered a score of tax incentives to automotive businesses under the Automobile Development Policy 2016-21 to lure investment in manufacturing units in the country, dominated by three carmakers – Suzuki, Honda and Toyota – from Japan since the early 90s.

“Had foreign car manufacturing companies abided by the agreement of transfer of 100 percent of their manufacturing technology to Pakistan within five years of their investment, thousands of new factories would have opened and millions of people would have been employed,” Hussain said. “However, foreign companies are hurting national interests by preferring personal interests.”

After the introduction of the auto policy in 2016, various local and foreign auto players sought permissions from the government to set up plants to meet growing demand of cars in the 200,000 to 250,000 auto market. At least 15 companies have expressed interest to avail the benefits in the policy and to manufacture trucks, cars, and sports utility vehicles.

Of them, 13 have been given Greenfield status — the new investment with new technology and products – while two were awarded Brownfield status as they want to expand their existing plants. The new entrants are from France, Germany, Korea, Japan, China and UAE with aggregate investment plan of $1.3 billion.

Hyundai, KIA and some others started production to avail the policy’s incentives, but the auto sector slipped into the mess due to fiscal policies later.

Pakistan’s automobile industry has been going through worst crisis since last year amid rising prices due to imposition of new, higher taxes and steep currency devaluation. Auto industry was the highest taxpaying industry during the last government’s tenure.

The government planned to introduce a new five-year auto industry development policy from next year. Hussain requested the government to provide an easy and one-window operation for overseas Pakistanis to invest. “Huge investments can be transferred to Pakistan which requires special attention of Prime Minister Imran Khan.”

https://www.thenews.com.pk/print/65...to-comply-with-technology-transfer-obligation

Good
Push against the mafia force them to comply or go out of business. Bring in better competition and manufacturers, incentives the good manufacturers.