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Honda Atlas hikes car prices once again

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  • Car prices jacked up to Rs1 million.
  • Industry affected by hike in sales tax. 
  • New prices come into effect from March 14.

KARACHI: Honda Atlas Cars Pakistan Limited (HACPL) once again jacked up its car prices following a hike in the sales tax on 1400cc and above vehicles, The News reported Wednesday. 

Recently, the government raised the sales tax to a whopping 25% on numerous items terming them as “luxury” goods to fetch an additional Rs11 billion in revenue. 

The auto industry, which had been already struggling with a massive devaluation of the local currency in a year and inventory shortages pushed by import curbs, was impacted by the decision. 

“Keeping in view further increase in exchange rate PKR/USD and increase in the rate of Sales Tax from 18% to 25% on 1400cc and above CKD [completely knocked down] vehicles, HACPL has to increase current prices,” the automaker said in a letter to its dealers.

With the increase in prices, Civic 1.5L M CVT, Civic 1.5L Oriel M CVT, and Civic Rs 1.5L LL CVT will cost Rs8.6 million, Rs8.95 million, and Rs10.2 million respectively.

The new prices would come into effect from March 14, the company informed.

The rate of the low-end Honda City MT 1.2L rose Rs220,000 to Rs4.799 million, while the 1.2L City CVT became costlier by Rs200,000 to Rs4.929 million.

Meanwhile, after an increase of Rs530,000, the 1.5L City CVT to be sold at Rs5.549 million.

The new price of BRV CVT S is Rs6.529 million, with a jump of Rs580,000. The rate of HRV VTI S has been increased by Rs800,000 and the new price is Rs8.199 million.

HACPL has announced a production break till the end of March, blaming the current economic situation, issues in the opening of letters of credit, and raw material shortages.

In recent months, almost all auto companies in Pakistan have raised their vehicles’ prices multiple times, as they struggle to cope with an economic downturn in the country that has forced the incumbent government to take some unprecedented decisions.

Last week, Indus Motor Company (IMC) and Lucky Motor Company also jacked up the prices of their vehicles.

“We are compelled to pass on some impact to the market,” IMC stated in a letter to the dealers, adding that the government had enhanced the sales tax on all CKD vehicles with an engine capacity of 1,400cc and above (with exception of IMV-I single cabin).

The new price of Corolla 1.6 MT is over Rs6.1 million, while Corolla 1.8 CVT SR Black would cost more than Rs7.8 million, with a rise of Rs593,000 and Rs760,000 respectively.

The most expensive Toyota vehicle would be Fortuner Diesel Legender at a price of over Rs20 million.

KIA’s Stonic EX and EX+ now cost Rs5.2 million and Rs5.73 million, respectively.

The revised price of Sportage Alpha, FWD and AWD are Rs7.05 million, Rs7.79 million and Rs8.39 million, respectively.

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Finance Minister: A “big” IMF program is coming for Pakistan.

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Speaking at the Karachi Stock Exchange ceremony, the Finance Minister announced that meetings with IMF representatives would take place in Washington on April 14 and 15.

He applauded the caretaker government’s effort to bring about economic stability and predicted that the nation’s economy would stabilize with improved economic policies.

Muhammad Aurangzeb emphasized that in order to move the country’s economy toward stabilization, structural reforms must be implemented.

He restated that the nation’s recovery from the economic crisis depends heavily on the stock market. The stock market is, nevertheless, trending upward.

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Pakistan is still classified as a secondary emerging market by the FTSE.

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The nation could perhaps be demoted, according to the worldwide index provider, since its index weight has decreased over the previous few years.

Pakistan’s market capitalization peaked in 2017 at $100 billion, but it fell to $21 billion by 2024, according to a Bloomberg research.

It did, however, state that Pakistan’s standing as a secondary emerging market will remain unchanged due to favorable political changes brought about by the establishment of a stable government.

Bloomberg saw Shehbaz Sharif’s election as prime minister, who is open to reform, as a step in the right direction for the nation struggling financially.

Shehbaz Sharif, the president of the Pakistan Muslim League-Nawaz, was chosen on March 4 to serve as the country’s 24th prime minister.

With 201 votes, PM Shehbaz defeated Omar Ayub Khan of the Sunni Ittehad Council (SIC) by 92 votes.

over the economy, earlier this month, Pakistan and the International Monetary Fund (IMF) came to an agreement at the staff level over the second and last review conducted under Pakistan’s Stand-By Arrangement.

The IMF secured a staff-level agreement with Pakistan on the second and final review of the nation’s stabilization program, which is backed by the IMF’s US$3 billion (SDR2,250 million) SBA authorized, according to the official statement released by an IMF team led by Nathan Porter.

The remaining US$1.1 billion (SDR 828 million) of SBA access will be made available following the IMF Executive Board’s approval of the deal.

It was reported shortly after the February 8 election that the newly elected PML-N-led government intended to apply for a new IMF credit package.

Pakistan is anticipated to pursue a $6–8 billion loan program from the global lender, and the IMF will be contacted right once to begin negotiations for this. The sources went on to say that the IMF would have tighter requirements this time.

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PM Shehbaz Sharif: “A plan to digitize the tax system is underway.”

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In an address to the All Pakistan Newspapers Society delegation in Islamabad today, the prime minister announced that plans were in motion to update the tax collection system.

The prime minister added that efforts are underway to broaden the revenue base and that the Federal Board of Revenue (FBR) is fully digitizing.

He emphasized that the Tax Excellence Awards were a recent initiative by the government to support female entrepreneurs, exporters, and engaged taxpayers.

The government’s priorities, according to the prime minister, are institutional changes, austerity, domestic and external investment, and privatization of government-owned businesses.

Praiseing the media’s contribution to public awareness-raising and good governance, he called on the sector to successfully communicate the benefits of economic stability under SIFC.

Calling fake news a major problem, he emphasized the need for cooperation to combat it. Additionally, he extended an invitation to the press to back Pakistan’s administration in its endeavors for the country’s growth and well-being.

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