Pakistan As A Sourcing Destination For Parts & Assemblies

SOURCE PAKISTANImtiaz Rastgar

CHINA & INDIA

An Alternate

To

PAKISTAN

WHAT DO THESE HAVE IN COMMON ?

Pak Vendors

EU Sub Contractor

PARTS MADE IN PAKISTAN

Autoparts


Food Machinery Parts


Aerospace


Forging

PARTS MADE IN PAKISTAN Casting

PARTS MADE IN PAKISTAN Jigs, Fixtures, Dies

Automobile Cars Manufactured

Toyota 55,000/year

Honda 50,000/year

Suzuki 150,000/year

ASSEMBLED IN PAKISTAN

Heavy Commercial Vehicles



Tractors

Motorcycles


• Total Volume Production : 2.2 Million• Honda Capacity : 1 Million• Yahama Capacity (under construction) : 1 Million

92% Parts Made in Pakistan (by Value)

Motorcycles


• Fire Vehicles• Mobile Kitchens• Security Bullet Proof

Armored Vehicles• Military


Automotive Derivatives


Sugar Machinery

Ceiling Fans Refrigerator / Deep Freezer Air Conditioners0

500

1,000

1,500

2,000

2,500

Production

Production / year

Figure in 000

1262

2220

340

HOUSE HOLD GOODS

• Packaging Machinery• Local Machinery for Local Industrial Users• Flour Mills Machinery• Steel Milling & Rerolling Machinery• Oil Expellers• Ginning• Agricultural Machinery

Machinery


• Plastic Resin & Plastic Components for Machinery

• Moulds, Dies, Welding Jigs, Foundry Tooling• Surface Mounting Processes, • Multi Layer Circuit Boards• Electronic Design & Assembly


Plastics and Electronics

0 - 14 15 - 24 25 - 54 55 - 64 Over 650

5

10

15

20

25

30

35

40

45

Population of Pakistan in 2020

MaleFemaleBoth

Age Pe

rcen

tage

0 - 14 15 - 24 25 - 54 55 - 64 Over 65

0

5

10

15

20

25

30

35

40

Population of Pakistan in 2013

MaleFemaleBoth

Age

Perc

enta

ge

Population 2013 : 190 Million Population 2020 : 230 Million

RESOURCES

The Population

Category Wages in Rupees/Month Wages in Euro/Month

Unskilled Workers 10K - 15K /M € 75 - €100

Skilled Workers 15 - 20 K/M € 110 - €150

Office Staff 25 - 30 K/M € 190 - €225

Managerial Staff 50 - 65 K/M € 375 - €490

Reference: Cost of Doing Business in Pakistan

MANPOWER COSTSIN PAKISTAN

http://www.engineeringpakistan.com/EngPak1/codbnov2012.pdf

• Per Capita Income : € 1,000• Exports : € 18 Billion

1 Euro = 135.40 (24th April, 2014)

GDP Share

Agriculture

Industrial

Services

RESOURCES

Economy

• Karachi• Hyderabad• Multan• Lahore• Okara• Faisalbad• Gujranwala • Gujrat• Sialkot• Islamabad/Rawalpindi• Wah – Taxila - Haripur - Hasan Abdal

ENGINEERING MANUFACTURING CLUSTERS

• KARACHI

•LAHORE

•FAISALABAD

•ISLAMABAD

INDUSTRIAL AREAS

WORLD CLASS INDUSTRIAL AREAS IN ALL MAJOR TOWNS

http://nip.com.pk/nip-projects/

http://nip.com.pk/

http://nip.com.pk/

http://nip.com.pk/

http://nip.com.pk/



http://nip.com.pk/

LOGISTIC SERVICES

• M-1 : Peshawar - Islamabad• M-2: Islamabad – Lahore• M-3: Pindi Bhattian - Faisalabad• M-4 : Faisalabad – Multan *• M-5: Multan – Rajanpur *• M-6-A: Rajanpur – Ratodero *• M-6-B: Ratodero – Dadu *• M-7: Dadu – Hub *• M-8: Ratodero – Gawadar *• M-9: Hyderabad – Karachi *• M-10: Karachi – Northen Bypass

MOTORWAYS

HOSPITALITY

• Karachi• Sialkot• Risalpur• Saindak• Duddar• Gujranwala• Gwadar• Tuwariqui

EXPORT PROCESSING ZONES

http://www.epza.gov.pk/









• Jinnah International, Karachi• Allama Iqbal International Lahore• Benazir Bhutto International, Islamabad• Bacha Khan International, Peshawar• Faisalabad International • Multan International• Quetta International • Sialkot International • Gligit International Airport

AIRPORTS


2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

4.31 6.2511.89

26.26

44.06

58.962

64.168.4

7274.9 77

TELEDENSITY

• Cheap Internet with 3G,4G x 190 Million People

Imagine the Market

INTERNET


PRE SHIPMENT INSPECTION

• Casting – Sand– Die Casting– Precision Investment– Ferrous– Non Ferrous

• Forging• Machined Parts

• Plastics– Injection– Blow Moulding– Food Grade– Extrusion

• Rubber– Extrusions– Moulding– Special Processes

• Assembly Work

COMPONENT SOURCING POSSIBILITIES


• Design• Proto Type• Low Volume Hitech• Solutions• Integration • Series Production

ELECTRONICS OPPORTUNITIES


• Products with high wage content – Engineering Design

• Products With High Demand In Pakistan Market ( e.g. like Proctor & Gamble, Lever, KSB, Siemens, Phillips and 600 others are doing)

• Food , Dairy , Agri Machinery Assembly• Automotive Derivatives and Private Label Manufacture

INVESTMENT IN PAKISTAN

Inward investment Possibilities


• Existence of high growth sectors, which require machinery.• Extend Product Life Cycle of European Machines and tap into market demand in

Developing Countries.• Long term availability of low cost manpower.• Contract assembly and private label production, in Pakistan, for world market sales.• Universities bringing out large supply of graduates ensure endless supply for design

houses, high-tech manufacturing businesses.• Vendor base already in place because of long history of manufacture for

car, truck, tractor, motor cycle and house hold appliances manufacture in Pakistan.• World class industrial, manufacturing estates exist in all major industrial towns.• Availability of multinational trained managerial manpower as well as assembly line

supervisors and other HR Resource. • Investment and ease of company formation

INVESTMENT IN PAKISTAN

Why Manufacture in Pakistan

http://www.adb.org/countries/pakistan/economy

http://en.wikipedia.org/wiki/Demographics_of_Pakistan

http://www.hec.gov.pk/OurInstitutes/Pages/Default.aspx

http://www.paapam.com/

http://www.pama.org.pk/

http://nip.com.pk/

http://boi.gov.pk/InvestmentGuide/FiveReasons.aspx


MAKE YOUR OWN COMPANY

YOU CAN MAKE

A 100% OWNED COMPANY

OR

CREATE A JOINT VENTURE


• Proctor & Gamble• Unilever• Grundfos,• Phillips , Huawei , ZTE• METRO, MAKRO, CARREFOR • KSB PAKISTAN • SIEMENS PAKISTANNORDEX• ABB• BASF Pakistan• Haier• Honda Atlas Motor Cycles• Toyota• Volvo ( Nissan Trucks)• Hino Trucks• Daewoo Trucks & Buses• and 600 others are doing business

ALREADY IN PAKISTAN

http://www.pg.com/en_US/



http://www.unilever.pk/

http://www.hmapumps.com/

http://www.philips.com.pk/

http://www.huawei.com/en/

http://en.zte.com.pk/

http://www.metro.pk/public/home

http://www.hyperstarpakistan.com/about-us/en

http://www.ksb.com/ksb-pk/Investor_relations/Annual_Reports/

http://www.siemens.com/answers/pk/en/

http://www.nordex-online.com/index.php?id=53&L=2&tx_ttnews%5Bpointer%5D=7&tx_ttnews%5Btt_news%5D=2209&tx_ttnews%5BbackPid%5D=46&cHash=057c54448a

http://www05.abb.com/global/scot/scot244.nsf/veritydisplay/e7af7737478c69ecc12575e60026c013/$file/CH_EMR_2009.pdf

http://www.asiapacific.basf.com/apex/AP/en/content/AP_Regional/1.1_About_Us/1.1.2_Locations_Asia_Pacific/Pakistan/Intro

http://www.haier.com/pk/

http://atlashonda.com.pk/

http://www.toyota-indus.com/

http://www.vpl.com.pk/

http://www.hinopak.com/

http://www.afzalmotors.com.pk/


12

ALREADY IN PAKISTAN

PAKISTAN SIGHTS

MIX BUSINESS WITH PLEASURE

TAKE A HOLIDAY IN PAKISTAN


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