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COVER STORY

AUTOMOBILE INDUSTRY

June 23 - 29, 2003  
ISSUE # 25  

This has been an eventful year for the Pakistani auto industry. During the first 10 months of the current fiscal ended April, a record 48,664 cars were produced in the country and collective production volume is expected to touch an all time high of 65,000 units when the fiscal comes to a close this month. Except for tractors, the production of all other types of vehicles, including two-wheelers, has registered a substantial increase over the previous years.

 

 

 

PAKISTAN STEEL
The expansion of Pakistan Steel which was long overdue is now about to take place at an estimated cost of $95 million. The existing capacity of 1.1 million tons will be expanded to 1.5 million tons in next two years. The original plan is to increase its capacity up to 3 million tons in next five years. The go ahead for expansion is naturally encouraged with the economic viability of the project and credit for this achievement certainly goes to the strict financial discipline. In order to improve financial health, shares of the Pakistan Steel are also planned to public through stock market.

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FOCUS ON HOUSING
The GoP, as a strategy to boost economic activities in the country, has focused housing sector. While many of the irritants are being addressed, some still remain unresolved. Yet another limitation is presence of only two housing finance companies in the country. The central bank must ensure availability of funds to these companies at competitive rates.