Pakistan

How to Start a Driving School in Pakistan

This article is about starting of Light Transport Vehicle (LTV) Driving School. Driving is a skillful task that needs proper training and knowledge of traffic laws and regulations. There is a tremendous increase in the number of vehicles particularly in the urban cities of Pakistan. Moreover, the government has been taking steps towards effective implementation of traffic regulations. This has created a demand for formalized driver training and provision of road safety information, thereby creating an opportunity for establishing a driving school in Pakistan.

The project is proposed to be set-up in a suitable locality of any urban city such as Lahore, Karachi, Sukkur, Hyderabad, Faisalabad, Sargodha, Multan, Quetta, DI Khan, Nowshera and Peshawar. Keeping in view the nature of services, there is a minimal requirement of establishing a formal office. The facility will comprise of 3 vehicles and employ 4 individuals including the owner / manager. The total capacity of the training service center will be to train 720 drivers annually. During the sessions, trainees shall be familiarized with the basic rules of driving along with traffic signal system, awareness about traffic rules and dealing with emergencies and accidents.

The following significant factors may be taken into account while making investment decision of opening a driving school in Pakistan:

  • Hiring of quality trainers / instructors with a special focus on engaging female drivers.
  • Effective marketing / awareness of the service particularly with traffic police & drivers licensing section.
  • Competitive fee structure offering value for money.
  • Efficient utilization of idle capacity by offering Pick & Drop facilities to office executives on need basis, as an additional business opportunity.
  • Timely and cost effective repair and maintenance of vehicles due to major / minor accidents during the training.

Returns on the investment and its profitability are highly dependent on trained staff, marketing, and competitive fee structure. In case the driving school is not managed efficiently, it will not be able to capitalize on the potential market and recover payments; hence cost of operating the business will increase.

Investment Required to Start a Driving School in Pakistan

Total investment to open a driving school in Pakistan is Rs. 1.8 million with Rs. 1.6 million as capital investment and Rs. 0.2 million as working capital. NPV and IRR of the project is Rs. 6.31 million and 47% respectively with a payback period of 2.58 years. Details of these financials can be studied in the business plan of driving school in Pakistan by SMEDA.

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