Inside Financial Markets

Punjab’s taxi scheme ‘delayed’

taxiPunjab’s taxi scheme ‘delayed’

KARACHI: The launch of Punjab government’s taxi scheme, for which the Pak Suzuki Motor Company Limited (PSMCL) has already entered into an agreement with the Bank of Punjab (BoP), is reported to have been delayed.

Vendors said that they have received a note of caution from the PSMCL on Thursday about the delay.

The car maker informed vendors that there will be no production of taxis in October this year, adding that further details would be provided soon.

Know more: Pak Suzuki gets order for 50,000 cabs

The PSMCL signed an agreement with the BoP last month for sale of 50,000 units of Suzuki Ravi and Suzuki Bolan Van under “Apna Rozgar Scheme” of Punjab government.

The car assembler informed the stock exchanges last month that these vehicles would be supplied from October 2014 to October 2015. Punjab has allocated Rs25 billion for the scheme in this year’s budget.

The provincial government is under immense pressure over the devastation of floods and its impact on the economy coupled with ongoing political turmoil in Islamabad.

Sources said there was also some advance payment issues that need to be settled between Pak Suzuki and the BoP as the company had required advance payment for providing the vehicles.

They said that colour scheme and logo on the vehicles are also not finalised yet. Special price has been fixed for the scheme for vans and pick-ups instead of market price.

Vendors, who make parts with the help of imported raw material, said they are concerned as they have already started piling up material and inventory used in making of parts and accessories after Pak Suzuki gave schedule of part procurement to them for the period October 2014 to October 2015.

Meanwhile, a senior PSMCL official said there has been no issue of any delay in the taxi scheme so far. Agreements between the Bank of Punjab, Punjab government and the firm have been intact so far, he said, adding that the company and the bank are finalising details regarding production of 50,000 taxis.


Sanie Khan

Sanie Khan holds a deep knowledge of the financial markets in Pakistan. Based in Karachi, he has over 20 years of hands-on management experience in financial technologies and managing operations in the financial sector. He was the General Manager at the Pakistan Stock Exchange (PSX) for 17 years. He along-with senior members of Exchange

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)