Suzuki profits to ride high on Punjab taxi scheme

Published: June 14, 2011

The Punjab government allocated Rs4.5 billion in fiscal 2012 budget to provide 20,000 yellow cabs to youth of the province. PHOTO:FILE

KARACHI: 

Suzuki profits are expected to jump 88 per cent following the Punjab government’s taxi scheme, according to KASB Securities.

The Punjab government allocated Rs4.5 billion in fiscal 2012 budget to provide 20,000 yellow cabs to youth of the province.

“We have submitted a detailed report on the scheme to the Punjab government after having several meetings,” says a Suzuki official, adding that details on the scheme will be disclosed later this week.

Although details on the financing structure are not yet available, initial news flow suggests that the provincial government will provide cars on interest-free basis with down-payment of 10 per cent or with Rs20,000 to Rs30,000 down-payment.

The government has shortlisted Suzuki Mehran and Bolan for the scheme that will be launched in five big cities of the province, says KASB Securities in a research note. The vehicles will cost around Rs12 billion, according to rough estimates of KASB Securities.

The Bank of Punjab may be the only option available to the provincial government as all other leading banks are now privatised and the government does not hold any influence on them, says the note.

“This should help the stock break its performance jinx at the stock market as it has been trading in the range of Rs60 to Rs76 since January due to depressed financial performance,” adds the note.

The scheme should increase Suzuki’s car sales by 20,000 in 2011-12. The benefits will start near year-end as deliberations and processes will take at least three months.

Parallels to 90s yellow cab scheme

The scheme draws parallel to the yellow cab scheme that was launched by the Nawaz Sharif-led government in 1992-93. Under the scheme, 65,000 vehicles, including 35,000 taxis, were provided on 10 per cent down-payment with a 10 per cent mark-up.

For the scheme, public sector banks Habib Bank provided Rs8 billion, United Bank Rs3 billion and National Bank Rs1 billion.

“The scheme drew much criticism due to politically motivated allotments where even luxury cars were imported and financed under the scheme and due to large-scale defaults affecting banks’ financial health,” says the note.

However, there is a higher possibility that the Punjab government may replicate the recent tractor schemes whereby 200,000 subsidised tractors were offered in which the buyer had the option to either pay the remaining amount of the tractor or finance it from Zarai Taraqiati Bank Limited. Moreover, the step of only allowing locally assembled vehicles is a positive for the auto industry, says the note.

Published in The Express Tribune, June 14th, 2011.

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Reader Comments (69)

  • qaisera
    Jun 14, 2011 - 11:53AM

    its a good scheme, more should follow this proposalRecommend

  • Abdul hai
    Jun 14, 2011 - 1:23PM

    This is a good scheme for unemployed youth of Pakistan.Recommend

  • Abdul hai
    Jun 14, 2011 - 1:27PM

    @qaisera:
    You are right. Spread this message for the sake of Youth of Pakistan. We are not giving a good future to our Youth. But due to these steps, We can minimize the hopelessness of our youth.Recommend

  • Ubaid-ur-Rahman Sheikh
    Jun 14, 2011 - 3:08PM

    Yes this is very good scheme for poor pakistani unemployed youth for Rizq-e-Halal, surely I’m very happy.Recommend

  • Jun 14, 2011 - 3:15PM

    If transparent not bad scheme. Recommend

  • tayyab
    Jun 14, 2011 - 3:44PM

    its a good schemeRecommend

  • Hamid Javaid
    Jun 14, 2011 - 5:57PM

    Taxi Scheme is not viable for the literate youth as Govt is not planning as per the capacity of their youth and its skill set.Recommend

  • positive pakistani
    Jun 14, 2011 - 6:13PM

    Build some roads for these vehicles to run as well…Recommend

  • Jun 14, 2011 - 6:54PM

    We never learn from past mistakes. Badname Zamaza YELLOW CAB scheme launched by Nawaz Sharif badly failed and financial brunt was put on the Banks who had to write off huge bad loans.

    Daewoo Racer Cars were imported in majority for this Scheme. Now you see none or a very few on the roads. It is said their (Daewoo) A/C was good. So people removed their AC and dumped the body elsewhere. What a waste and loss of Foreign Exchange incurred on a Scheme which was waste of public money – only for the political gain / mileage.

    In the present scenario, the cost of Mehran and Bolan cars made by Suzuki will surely go up for the common users and also their delivery period will also be prolonged.

    Regards

    Dr. Saleem Siddiqi
    Johannesburg – South AfricaRecommend

  • Muhammad Shaban Janjua
    Jun 14, 2011 - 9:58PM

    This is a good scheme for unemployed youth of Pakistan.Recommend

  • Jun 15, 2011 - 12:16AM

    Has anyone rode on a taxi lately ? Those buggers rip people off like crazy. CNG band hai .. so the fare is like 600 Rs instead of a usual 100 rs for 4 km’s .. And there are so many taxis because of the ease in ripping people off right now . Either implement a strict authority that monitors and has metered taxis instead of letting almost anyone on the road..
    2ndly the quality suzuki is producing in pakistan does not qualify as a car .. the mehrans do not have any braking whatsoever .. the only decent car right now is the new swift due to the new automated plant that suzuki has installed for it. We honestly need quality control .. and these taxi schemes are idiotic .. bring more cars to the roads .. get the poor entangled in a web of installments and if the car crashes so does their life .. Recommend

  • Zain ul Abideen
    Jun 16, 2011 - 1:58AM

    @qaisera:
    This is not a good scheme at all. It will increase congestion and when gas and fuel is already short, the scheme will be useless. It will burden the low salary class which does not own cars. Essentially there was no need for such scheme. We dont want taxis in pakistan. We want Industry and growth not cheap schemes.Recommend

  • Sajid Habib Bhutta
    Jun 22, 2011 - 9:50AM

    Good scheme by Nawaz leading Govt. of Punjab. Great decesion.Recommend

  • Sheikh Ubaid
    Jun 22, 2011 - 11:30AM

    This is a very good schemel. It will decrease congestion when people use scheme correctly and honestly , the scheme will be useful for unemployment. It will take/share burden of the low salary class which does not own cars. Essentially there was much need for such scheme. We want taxis in pakistan like europe and We want Industry and growth.
    Govt. should must start yellow cab scheme without any havey down payment because many of unemployed youth has no moneyRecommend

  • Tahir Mobeen Lodhi
    Jun 27, 2011 - 11:43AM

    this is a good step from Punjab GOVT, we appreciate this kind of good steps for unempoyed, also request to GOVT try to look and decied good steps for poor person in the daily use items……….Recommend

  • mangokiller
    Jun 27, 2011 - 12:41PM

    yah right as in i will prefer to drive a taxi after doing my graduation wake up Recommend

  • shoaib khan
    Jun 28, 2011 - 11:19AM

    good scheme Recommend

  • khalid Ali
    Jun 28, 2011 - 1:58PM

    sir Its a good scheme to stop bad activities from youth.
    with due respect i want to get complete information about yellow cap when will this scheme expected to start and from where can i get application form also tell me about mode of payment

    Khalid AliRecommend

  • fawad
    Jun 30, 2011 - 1:22AM

    i think its a great decision by nawaz sharif,we should all have positive thoughts.let him try again Inshallah it will be beneficial for unemployed.Recommend

  • waseem ahmed
    Jun 30, 2011 - 10:26PM

    this is a good scheme. but please built some roads for these vehicles to rum as well.Recommend

  • manzoorasad
    Jul 1, 2011 - 12:38AM

    This is a very good scheme for the people of Punjab.You see that many people will criticise this scheme,but after all if Mr. Shahbaz Sharif will keep check and balance on this scheme InshaAllah it will be successful.Recommend

  • Jul 1, 2011 - 1:01PM

    This is a very good scheme for the people of Punjab.You see that many people will criticise this scheme,but after all if Mr. Shahbaz Sharif will keep check and balance on this scheme InshaAllah it will be successful.Thank full for shahbaz sharif .
    Naeem KhanRecommend

  • SamranRafiq
    Jul 1, 2011 - 3:11PM

    This is a very good scheme for the people of Punjab.You see that many people will criticise this scheme,but after all if Mr. Shahbaz Sharif will keep check and balance on this scheme InshaAllah it will be successful.Thank full for shahbaz sharif .Recommend

  • Jul 1, 2011 - 6:04PM

    wonderful and moral boosting scheme….Recommend

  • Jul 1, 2011 - 6:26PM

    strong textthis is very very good scheme by province (punjab) in the leadership of nawaz sharif and shehbaz sharif punjab launching good schemes for poor and needy peoples. they peoples are very very happy that the government to whomw they giving TAX doing something very good for them but this response is coming from just (punjab) the fedral GOVT just have one solution that is increase prices of that thing wich they have to profit .

    NOTE::::???
    dear reader pleas also focus on my own DISTT (pakpattan) and operate this scheme to them who are with you and were with you please read it also please.
    i am……..
    ijaz ahmad iffi i am 25 years old and jobless.
    president……almateen scouts open group (regd)
    president……punjab welfare foundation (regd)
    president……pationat welfare foundation (regd)
    Sen v.President media press club pakpattanRecommend

  • asghar
    Jul 1, 2011 - 9:05PM

    thats good for un eployees person.thats good thinking for punjab govt for punjab peoples…………………………………………all who say thats not good ,they nothing say to do this because they r all belong to rich and middle class family but the scheme favour for poor people only ……any how thats good for poor people and gave a work and money for unemployement person.Recommend

  • Gulshan
    Jul 1, 2011 - 9:30PM

    Well Taxi Scheme is better than the BISP which is the money distributed for support without any income generation. I dont know why people feel ashamed of driving taxi where as when the educated lot goes to US and EU there they feel proud.Recommend

  • Abdul Hayee
    Jul 2, 2011 - 10:42AM

    It is very good scheme for the people of Punjab. Credit goes to PML-N for really taking care of needy people of Punjab.Recommend

  • Babar
    Jul 2, 2011 - 1:39PM

    20,000 more CNG fitted cars for the region where you have no CNG for 03 days? Making ppl stand in lines for the thing which they want to pay but is not available ? Is the CM planning to have separate CNG stations for these vehicles? Will there be any record of the taxi drivers or will this add to another row of airport robbers ?

    I think we all like to play our known games only, Aata scheme was good but what was the outcome of this huge amount? The only question is ‘DO we really need TAXI’ ?

    How many of us can afford taxi ? and that too without CNG its irony :)

    I wish our leaders stand in the CNG lines for few times before they choose to come to use for vote begging … !!Recommend

  • Muhammad Naeem Ashraf
    Jul 3, 2011 - 9:34PM

    Please tell me the detail of this schemeRecommend

  • Jul 5, 2011 - 12:48AM

    very good scheme, yello cap scheme good futures scheme for youth, good luk for Punjab govt and PML,N this schemeRecommend

  • Jul 5, 2011 - 12:53AM

    good scheme from punjab govtRecommend

  • Jul 5, 2011 - 1:08AM

    its a good schemeRecommend

  • Ashfaq Ahmed Kallu
    Jul 5, 2011 - 1:11AM

    very very good scheme for youthRecommend

  • Ashfaq Ahmed Kallu
    Jul 5, 2011 - 1:22AM

    its a good scheme for youthRecommend

  • Jul 5, 2011 - 9:23AM

    AOA,
    Itx a gud scheme for graduate persons.Please tell me about how can i apply for this scheme.plz reply me…Thanks

    Regards

    H@MM@DRecommend

  • shakir
    Jul 6, 2011 - 1:46PM

    AOA,
    This is shakir Shah we are thanks full to u to interduce this scheme. i don’t have a job so this is very good for me to start my own business and we are thanks ful to Ministor of Punjab Janab Shehbaz Sharif.
    Can u tell me how can i apply to this scheme.

    SHakir Shah
    RawalpindiRecommend

  • waqas hameed
    Jul 6, 2011 - 2:27PM

    This is a good scheme for unemployed youth of Pakistan.Recommend

  • Adil khokhar
    Jul 8, 2011 - 7:15AM

    this is a very wonderful scheme for unemployed youth of Pakistan.Recommend

  • Waqas Aslam
    Jul 8, 2011 - 4:18PM

    Salaam to all
    yes it is good scheme but if the petrol and cng is available in economic price and could match the consumption . And many peoples could not pay one lac before . it must be 20000 to 30000 maximum or all payment in installments . Coz peoples like me who are jobless cannot pay 1 lac . So it goes to rich peoples.
    Hope NAWAZ AND SHABAZ will think upon it .
    Best Regards Recommend

  • arslan
    Jul 11, 2011 - 2:20PM

    it is a great think for youth and i m very glad bcoz our govt of punjab intrested in youth sucess
    i also need a car tell me how i can get it.03135138302

    Recommend

  • arslan
    Jul 11, 2011 - 2:22PM

    plz give me a car for earn money

    Recommend

  • malik zain
    Jul 12, 2011 - 12:10AM

    hiiiii
    good choice the chief minister of punjab thanks

    Recommend

  • Amjid Ali Bhatti
    Jul 13, 2011 - 2:27PM

    This is a good scheme for Yong Generation.

    Recommend

  • Mohammad Sajjad
    Jul 13, 2011 - 4:14PM

    How I can get this car give me more information about this and also the requirements also.

    Recommend

  • WASIF
    Jul 13, 2011 - 9:39PM

    @qaisera: HOW IT IS GOOD DICISION

    Recommend

  • Umair Waheed Sheikh, Khayban e Hafiz,IBA Karachi
    Jul 13, 2011 - 10:59PM

    This is the same analyst who was had a price of 30 per share for pak suzuki and now he has increased it by 50 rupees. It seems that he bought all the shares and now wants to get rid of them. Way to go man.

    Recommend

  • Ali
    Jul 14, 2011 - 12:42AM

    @Sheikh Ubaid:
    Pakistan has no shortage of taxis.Taxis are a declining industry it will create no jobs it will not reduce congestion

    Recommend

  • Rafaqat ali
    Jul 15, 2011 - 12:16AM

    however, this is a good scheme for our unjobed youth . in this way the government can know about the unemployed graduate person and can reduce the unemployment rate………………………………………………………………………….. .

    Recommend

  • Jul 15, 2011 - 9:39PM

    This is a good scheme for Yong Generation.
    Love U Shahbz Sharif Good …………………

    Recommend

  • Muhammad Zaheer
    Jul 17, 2011 - 11:36AM

    Yes, it may be a good scheme but i wanted complete details regarding this scheme so provide me the link where Punjab Government has launched it to get all information. thanks for sharing but waiting for a link of a scheme.

    Recommend

  • Kamran
    Jul 18, 2011 - 8:08PM

    Hello,
    How can i get this car from this scheme??
    i don’t done intermediate.
    but i need this car.

    thanks.

    Recommend

  • Malik Ali Yaser
    Jul 19, 2011 - 1:43AM

    perhaps it is a good scheme for many people but i believe its more of an election compain and its from our own money, May Allah give us Vision……….

    Recommend

  • rizwan
    Jul 19, 2011 - 10:26AM

    What a fabulous scheme of Mian Shahbaz Shareef for pakistani unemployed peoples. I much like this scheme.

    Recommend

  • rizwan
    Jul 19, 2011 - 10:38AM

    very very great job

    Recommend

  • Jul 19, 2011 - 2:10PM

    Why this scheme is only for Punjab, PML N workers available in the whole country. Last time when the Nawaz Sharfif is the Prime Minister the same scheme was launched for the country but now only for Punjab. Nawaz Sharif is a national leader and i advise he may think for the whole country.

    Thanks

    Recommend

  • MUBASHER ALI
    Jul 21, 2011 - 3:01PM

    this is very good scheme for pakistni
    very good

    Recommend

  • AdNaN
    Jul 22, 2011 - 10:34AM

    pakisatn does’t want these type of foolish schemes, pakistan want industry and enerfy resources at full capacity as we have that all.

    Wake up Youth, what happened to u all!

    Recommend

  • Zia Ch
    Jul 22, 2011 - 5:35PM

    Something is better than nothing….. I hope this scheme will bring positive changes in the development of Youth……
    Live Long Pakistan….

    Recommend

  • Silver Palomino
    Jul 22, 2011 - 7:25PM

    How many of these young men will be able to afford the down payment? Then they have to finance it through the bank. The same bank they will be paying off the loan on anyway. Did I miss something in this article????

    Recommend

  • Moazzam
    Jul 22, 2011 - 9:01PM

    For all those who supporters of PML N and big time fans of Shahbaz Sharif, i agree with the fact that Shahbaz Sharif in the past has taken many decisions which have improved life in the province of Punjab and the Govt of Sindh should also learn from them.

    But this taxi scheme introduced in a big blunder and the result of very narrow minded thinking. A country plagued with fuel and gas shortage does not need more taxis or cars. What they need to do is invest in a proper public transport system to ease out the pressures of private cars and reduce congestion in the cities. Taxis do not help the poor as well as are a big burden on the gas reserves. The industry in Punjab is already suffering from Gas shortages and this will increase their problems further. Employment is not generated by giving cheap taxis but rather promoting business and industries.

    Invest in a public transport system. All major cities in the world depend on a highly efficient public transport system rather then on Taxis.

    When will all those advisors of the governement start thinking and doing there job.

    Recommend

  • Jul 22, 2011 - 9:02PM

    panjab govment zindabad

    i need taxi
    .

    Recommend

  • molana M Zulqarnain
    Jul 22, 2011 - 10:23PM

    this is a good scheem
    salam and dua for shahbaz sharif

    Recommend

  • Fiaz Nazeer
    Jul 25, 2011 - 12:03AM

    After Receiving

    Recommend

  • Shahid
    Jul 28, 2011 - 12:58PM

    Your Scheme for providing the Yellow Cap to un employed youth is a very nice
    and help ful scheme uprise the un-employed youngers.

    There is one point that,
    You very well know that un employed young people normally hold their Degrees /
    Diplomas only.

    It is requested that this point may please be made easier for those who do not
    hold are old valid driving licence but not one year old.

    It is further requested that said point may please be eased to enable the fresh
    valid driving licence Holders to apply for this noble scheme.Recommend

  • Gulshan
    Jul 29, 2011 - 8:26PM

    however, this is a good scheme for our unjobed youth . in this way the government can know about the unemployed graduate person and can reduce the unemployment rate

    Recommend

  • usman aslam
    Aug 1, 2011 - 5:42PM

    cm sahib please give me help of pickup

    Recommend

  • usman aslam
    Aug 1, 2011 - 5:46PM

    please give me help of our scheme Suzuki pickup cm sahib is a good schemeRecommend

  • usman aslam
    Aug 1, 2011 - 5:49PM

    this is a good scheme

    Recommend

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