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<span class="easy-breadcrumb_segment-separator"> » </span> <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"> <span itemscope itemprop="item" itemtype="http://schema.org/Thing" itemid="#2"> <span class="easy-breadcrumb_segment easy-breadcrumb_segment-title" itemprop="name">Pakistan</span> </span> <meta itemprop="position" content="2" /> </span> </div> </div> </div> </div> </div> </header> </div> <div id="page"> <div id="main"> <div id="left-content"> <div id="content" class="column" role="main"> <a id="main-content"></a> <article class="node-764818 node node-wikifleet view-mode-full view-mode-full clearfix" about="/en/wikifleet/pakistan" typeof="sioc:Item foaf:Document" data-uid="44" data-contentGroup1="auteur-Caroline-Thonnon"> <header> <span property="dc:title" content="Pakistan" class="rdf-meta element-hidden"></span> </header> <header class="group-wiki-header field-group-html5"><div class="field field-name-field-image field-type-image field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><img typeof="foaf:Image" src="https://www.globalfleet.com/sites/default/files/styles/uc_thumbnail/public/wiki_pakistan.png?itok=HQi0pXsH" width="35" height="23" alt="" /></div> </div><div class="field field-name-title-field field-type-text field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><h1>Pakistan</h1> </div> </div><em class="last-update">Last modification: 29 Aug 17</em><div class="wikifleet-navigation"><select class="chapter-selector" name="chapters"><option value="_none">Chapters</option><option value="#group-chapter-one">Chapter 1: Economic and business environment</option><option value="#group-chapter-two">Chapter 2 : Automotive market, segments & sales</option><option value="#group-chapter-three">Chapter 3: Company car market</option><option value="#group-chapter-four">Chapter 4: Taxation & legislation</option><option value="#group-chapter-five">Chapter 5: Car policies</option><option value="#group-chapter-six">Chapter 6: Funding methods</option><option value="#group-chapter-seven">Chapter 7: Fuel</option><option value="#group-chapter-height">Chapter 8 : TCO components</option><option value="#group-chapter-nine">Chapter 9: Safety, insurance and telematics</option><option value="#group-chapter-ten">Chapter 10: Environment</option><option value="#group-chapter-eleven">Chapter 11: Mobility</option><option value="#group-chapter-twelve">Chapter 12: Key trends to watch</option></select></div></header><div class="group-chapter-one-items field-group-accordion field-group-accordion-wrapper effect-none" id="group-chapter-one"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 1: Economic and business environment</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_one_table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_one_table "> <table class="field-group-format group_chapter_one_table table table-striped"> <tbody> <tr class=""><th class="field-label">Demographics</th><td class="field-content"><div class="field field-name-field-demographics field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>188.924.870</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Capital</th><td class="field-content"><div class="field field-name-field-capital field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Islamabad</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Major cities</th><td class="field-content"><div class="field field-name-field-major-cities field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Lahore, Faisalabad, Rawalpindi </p> </div> </div></td> </tr> <tr class=""><th class="field-label">Languages</th><td class="field-content"><div class="field field-name-field-languages field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Urdu (ur-PK), English (en-PK), Panjabi (pa), Sindhi (sd), Pushto (ps), Brahui (brh)</p> </div> </div></td> </tr> <tr class=""><th class="field-label">GDP</th><td class="field-content"><div class="field field-name-field-gdp field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>1,428.99 USD (2015)</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Unemployment rate</th><td class="field-content"><div class="field field-name-field-unemployment-rate field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>6.7% (2016)</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Main industries</th><td class="field-content"><div class="field field-name-field-main-industries field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><strong>GDP Composition by Sector:</strong><br /> Agriculture (21.8 percent)<br /> Industry (23.6 percent)<br /> Services (54.6 percent)</p> <p><strong>Industrial Production Growth Rate</strong>:<br /> 4.9 percent</p> <p><strong>Industries</strong>:<br /> Textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Currency</th><td class="field-content"><div class="field field-name-field-currency field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>PKR Pakistani rupee</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Interest rate</th><td class="field-content"><div class="field field-name-field-interest-rate field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>7,27%</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Inflation</th><td class="field-content"><div class="field field-name-field-inflation field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>5,02% (2017</p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-two-items field-group-accordion-wrapper effect-none" id="group-chapter-two"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 2 : Automotive market, segments & sales</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_two_table group-chapter-two-table field-group-table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_two_table group-chapter-two-table field-group-table"> <table class="field-group-format group_chapter_two_table table table-striped"> <tbody> <tr class=""><th class="field-label">Total Car park</th><td class="field-content"><div class="field field-name-field-total-car-park field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>2.557.858 vehicles</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Dealer network (including fleet dealer network)</th><td class="field-content"><div class="field field-name-field-dealer-network-including field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Very limited dealer network, but remarkably professional and helpful.<br /> Most of the car business is related to Japan import</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Used car market/renewal cycle</th><td class="field-content"><div class="field field-name-field-used-car-market field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Due to the shortage of cars in PK, the second hand market is big and vehicles are used, sold & bought as long as possible</p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-four-items field-group-accordion-wrapper effect-none" id="group-chapter-four"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 4: Taxation & legislation</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-five-items field-group-accordion field-group-accordion-wrapper effect-none" id="group-chapter-five"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 5: Car policies</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-car-policies field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><strong>Company Car Entitlement:</strong><br /> Surprisingly many employees in PK have some sort of a company car. Ofter the car is offered in order to guarantee a safe home-office commute.<br /> <br /> <strong>Which sectors provide most fleet cars? </strong><br /> Most of the intermational corporates will offer company cars in PK<br /> <br /> <strong>Which job functions often include a company car?</strong><br /> Traditionally Sales & Account management, but also in house functions might receive a company car<br /> <br /> <strong>Reference cars:</strong></p> <table> <tbody> <tr> <td>Entry level / junior sales level</td> <td>Small and cheap vehicles, depending on the availability on the market.type FAW, Suzuki Mehran/Alto, …</td> </tr> <tr> <td>Senior sales / Management level</td> <td>Honda City & Civic, Toyota Vitz</td> </tr> <tr> <td>Executive level</td> <td>Toyota Fortuner</td> </tr> </tbody> </table> <p> </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-six-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-six"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 6: Funding methods</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-funding-methods field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><table width="693"> <tbody> <tr height="37"> <td height="37" width="254">Overview of penetration of funding methods (buy or lease statement)</td> <td width="439">Purchase is by far the cheapest way of financing in PK. The only cheaper option would be cash allowance</td> </tr> <tr height="37"> <td height="37" width="254">Type of suppliers (captive versus multibrand, international versus local…)</td> <td width="439">Operating lease : international suppliers (Hertz, Orix)<br /> Other financing types : local players</td> </tr> <tr height="18"> <td height="18" width="254"><strong>6.1 Outright purchase:</strong></td> <td width="439"> </td> </tr> <tr height="35"> <td height="35" width="254">Definition</td> <td width="439">Vehicle is registered as a fixed tangible asset on the balance sheet at the acquisistion value and depreciated over total useful economic life</td> </tr> <tr height="18"> <td height="18" width="254">Pro’s and con’s</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Economic & legal ownership</td> <td width="439">Full ownership, included Risks asd Rewards</td> </tr> <tr height="18"> <td height="18" width="254">Business practices</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254"><strong>6.2 Renting (Finance lease) :</strong></td> <td width="439"> </td> </tr> <tr height="53"> <td height="53" width="254">Definition</td> <td width="439">Is available in PK via banks or the limited number of leasing companies. Finance lease needs to be acceptable for the Islamic modes of Finance. Finance lease will typically include insurance and tracking device</td> </tr> <tr height="18"> <td height="18" width="254">Pro’s and con’s</td> <td width="439">Not flexible. Fixed duration of 3 to 5 years</td> </tr> <tr height="35"> <td height="35" width="254">Economic & legal ownership</td> <td width="439">The lessor / bank owns the car. Depending on the type of finance lease, the lessee can purchase the car at the end of the life cycle</td> </tr> <tr height="18"> <td height="18" width="254">Business practices</td> <td width="439">Any type of leasing is still rather unusual in PK</td> </tr> <tr height="37"> <td height="37" width="254"><strong>6.3 Full service leasing (operational leasing)</strong></td> <td width="439"> </td> </tr> <tr height="35"> <td height="35" width="254">Definition</td> <td width="439">Full Service Lease exists in Pakistan, but is expensive and not popular. There are only a very limited number of suppliers available.</td> </tr> <tr height="35"> <td height="35" width="254">Pro’s and con’s</td> <td width="439">The leasing fee is deductible from corporate income tax, but still expensive in comparison with outright purchase</td> </tr> <tr height="18"> <td height="18" width="254">Economic & legal ownership</td> <td width="439">The leasing company owns the vehicle</td> </tr> <tr height="18"> <td height="18" width="254">Business practices</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254"><strong>6.4 Fleet Management</strong></td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Definition</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Pro’s and con’s</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Economic & legal ownership</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Business practices</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254"><strong>6.5 Short term rental</strong></td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Definition</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Pro’s and con’s</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Economic & legal ownership</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254">Business practices</td> <td width="439"> </td> </tr> <tr height="18"> <td height="18" width="254"><strong>6.6 Other funding methods</strong></td> <td width="439"> </td> </tr> <tr height="18"> <td height="18"> </td> <td width="439"> </td> </tr> </tbody> </table> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-seven-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-seven"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 7: Fuel</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-height-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-height"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 8 : TCO components</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-nine-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-nine"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 9: Safety, insurance and telematics</a></h3> <div class="field-group-format-wrapper group-chapter-nine field-group-accordion-item"><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-ten-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-ten"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 10: Environment</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-eleven-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-eleven"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 11: Mobility</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-twelve-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-twelve"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 12: Key trends to watch</a></h3> <div class="field-group-format-wrapper "><p>This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!</p><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/764818" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><span property="dc:title" content="Pakistan" class="rdf-meta element-hidden"></span> </article> </div> </div> <aside class="sidebars"> <div class="region region-sidebar-first"> <div id="block-bean-wiki-pakistan-square1" class="block block-bean"> <div class="entity entity-bean bean-dfp-block clearfix" about="/en/block/wiki-pakistan-square1" typeof=""> <div class="content"> <div class="field field-name-field-elements field-type-dpf-ads-field field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><div id="dfp-ad-wiki_pakistan_square1-wrapper" class="dfp-tag-wrapper"> <div 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