VDA Partner Portal

“MEHRAN COMMERCIAL ENTERPRISES is looking for a long-term partnership with A company to provide them an opportunity to enhance its capacity and capability to meet local requirements and increase market share and also to serve international market.”

MCE is looking to explore opportunities in:

• Advancement of technical capabilities in Sun visor, Door Trim (MOLDED), headlining's, Plastic Interior Parts, Honey comb material Molded parts and Floor Mats. manufacturing process to increase local share and meet international market requirement.
• Potential investor, who is established manufacturer in the same space and looking for expansion in other countries which provide competitiveness and conducive business environment. MCE has a ready infrastructure with state-of-the-art production facility, with a dedicated work force and produced products parts approved by Japanese OEMs. A partnership deed and share of the Pakistani OE market.

Mehran Commercial Enterprises would like to focus on the

• Market Share Increase in OE market from the current 25% to 80%
• Export market Sales to increase

WHY PAKISTAN?

Pakistan is on the top 10 countries to be a booming economy by 2025, already the trajectory of the economic indicators has shown a positive increase in major areas, the country has jumped to 108 on the International Ease of Doing Business, with the policy makers very committed to bring this number down more. Some of the key areas on why your investment is safe and profitable in the future are given below. This information can be verified by visiting and contacting our government offices involved in policy making.

• CPEC: Pakistan is the part of China strategic initiative One Belt One Road (OBOR) under China Pakistan Economic Corridor (CPEC). As a result of CPEC, Pakistan has become attractive destination of investors. This is huge investment on road infrastructure, energy projects, ports, air ports, Industrial zones. The project is scheduled to bring in Billions of dollars in foreign investment mainly from China and other development projects by the Middle eastern Countries. This is a huge turning point in the growth of the Pakistani economy. For detailed information please visit the official government website http://www.cpec.gov.pk/

• LOGISTIC’S: Pakistan will become a hub for transshipment trade once CPEC is fully on ground. Some of the timeframes of logistics from Pakistan for imports and exports:

• Karachi to America- Oakland port, (Trans Time = 32 Days)
• Karachi to America- New York port (Trans Time = 28 Days)
• Karachi to Saudi Arabia Jeddah port (Trans Time = 18 Days)
• Karachi to Australia to Melbourne port, (Trans Time = 22 Days)
• Karachi to Italy Venice port, (Trans Time = 20 Days)
• Karachi to Chile Santiago port, (Trans Time = 24 Days)

• STRONG OEM BASE: The current OEM market consists of Japanese orientation in the car and truck segments. With the Investment Policy in place and recently Korean giants, KIA and Hyundai have established manufacturing facilities in Pakistan he first to enter. Other OEMs including German Car Manufacturer, EV makers, MERCEDES TRUCKS, Chinese OEMs Zoyte are also set to start operation in Pakistan. The Truck Industry is also set to make a large mark, projected volumes are scheduled to grow from 8,000 units (2016-17) to 15,000 -20,000 in 2022. New entrants in the pipeline include Raina, SINO, FARLAND& MAN trucks. The new OEMs will be targeted for localization of the products produced with new technology and capacity. New products have been identified and a marketing strategy in place. https://www.pama.org.pk

• HUMAN RESOURCE: is a very big competitive advantage in Pakistan. Pakistan possesses a large pool of trained and experienced engineers, bankers, lawyers and other professionals with many having substantial international experience. The consumer market in Pakistan is growing at a very fast pace as reflected by tele-density which has now reached more than 150 million. The cost is low and availability is high.

• Skilled and unskilled workers
• Managerial staff
• Executive staff
• Financial staff
• Engineers.
• Legal staff
• The MCE management team has the skills, qualities, and strengths with which it can work successfully as partners. www.tevta.gop.pk, www.hec.gov.pk

• LAND IN Special Economic Zone (SEZ): The land available in SEZ is registered under Mehran Commercial Enterprises. SEZ have been designed and spread throughout Pakistan. Our management has the capacity to identify the best possible location for our business venture to take place. https://invest.gov.pk/home

• BENFITS OF YOUR INVESTMENT: Your investment in the country will increase contributions to the state budget. Employment levels will substantially increase because of increased production capacity. Improved processes and manufacturing technologies will be introduced and transferred to the auto engineering industries of the country. An influx of foreign management and technical training will enhance the quality of the regional work force and will set an example for regional industry.

• LOCATION: The geographical positioning of the country and the city in which MCE is situated, as well as the vast markets of the economies in transition and the stability of the country with its highly educated work force, make the country highly attractive to commercial development.  www.pakistan.gov.pk,

• TARIFF STRUCTURE: Pakistan uses the Harmonized System to classify goods. Customs duties are levied on ad-valorem basis. Pakistan’s overall average applied tariff in 2018 was 10.09 percent. In the 2018 budget, the government reduced the maximum general tariff rate from 25 percent to 20 percent (except for vehicles) and simplified the tariff structure by reducing the number of duty brackets from six to four. Other than customs duty, the government charges 17.0 percent sales tax on the duty paid value of a variety of goods produced in or imported into the country. Customs duty and other charges are payable in Pakistani rupees. www.fbr.gov.pk,

• POLITICAL SITUATION: With a largely peaceful political transition in July 2018, the incumbent Pakistan Tehreek-e-Insaf (PTI) led collation government is facing steep economic challenges both at macro and microeconomic levels. On the external front, Pakistan is facing severe challenges of balance of payments and trade deficit. This situation has resulted in slowdown of country’s GDP growth rate from 5.8 percent last year to an estimated 3.29 percent this year. The federal government has recently entered a fresh round of negotiations with the International Monetary Fund (IMF) for an estimated $6 billion bailout package. This budgetary support package would be the 19th IMF program in Pakistan since independence.

• COMPITION: Principal competitors in Pakistan are Chinese, European, Japanese, and South Korean suppliers which, at times, offer credit terms on major projects and government tenders that are difficult to compete with. State-owned Chinese firms are increasingly expanding into market segments traditionally dominated by Western firms.

• LOBBYING: With the lobbying power MCE has, Government officials have been extremely receptive and supportive of Joint Venture project. We ensure full cooperation from government departments.

• AUTOMOTIVE SECTOR IN PAKISTAN: Since the announcement of the new Auto Development Policy, AIDP 2016-21, Pakistan’s is on a growth path to large volumes as the targeted volume in the car sector is 500,000 making it a lucrative destination for new entrants. MCE currently is supplying to the existing Japanese players in the market and supply about 25% of the total requirement of the interior parts required. Other economic activities that will boost this sector is the investment on the China Pak Economic Corridor, which reflects major investments in energy and road infrastructure from the Port of Gwadar to Kashgar. This corridor will be used by China to reach Middle East and Europe. Making it a business route to reach the entire world. The new OEMs will be targeted for localization of the products produced with new technology and capacity. New products have been identified and a marketing strategy in place. Most of the raw material for the products are available the rest will be imported from our collaborator

for any kind of information related to Pakistan and the auto engineering industry, i am the focal person to answer any query. please get in touch