ISLAMABAD: The Pakistan Electronics Manufacturers Association (PEMA) has called upon the government to reduce duties on the material related to electronics and home appliances and introduce incentives for exports, according to WealthPK.
PEMA Chairman Muhammad Farooq Naseem has requested the government to provide loans to the lower- and middle-income people through banks for production of home appliances in order to boost the industry. He also asked for introduction of an amnesty scheme to bring the industry under tax to expand the size of the legal electronics industry.
The size of the industry is about Rs350 billion. It contributes Rs125 billion to the national exchequer and generates Rs60 billion as sales tax, Rs15 billion as income tax, and Rs50 billion as customs duty.
Household appliances like refrigerators, freezers, air-conditioners, washing machines, microwave ovens fall in the category of large appliances, while coffee/tea makers, food processors, grills & toasters, vacuum cleaners, water dispensers are included in small appliances.
The household appliance market is a sub-sector of the electronics group of the large-scale manufacturing (LSM) sector. Home appliances contribute 4 percent to the LSM. The major contributors are refrigerators, air conditioners, and deep freezers, which make around 50 percent of the total market. Among these categories, the major appliance market is dominated by the refrigerator, which contributes the most revenue.
According to the PEMA data, the country produces 2 million refrigerators annually. During the fiscal year 2021, the production of refrigerators grew by 112 percent compared to 27 percent in the previous year.
The value of the household appliance market is Rs215 billion with a year-on-year increase of 43 percent. The sector showed downward growth of 1 percent in 2020 owing to the lockdown. In FY2021, growth showed a positive trend because the industry started recovering from the pandemic. In the fiscal year 2021-22, the electronics market will grow by 7 percent following the contraction of 14 percent in the previous year. (PBS)
Overall, the production of major home appliances has increased in FY2021. Air conditioners showed the highest growth of 195 percent in FY 2021 compared to the previous year when it was 54 percent. Similarly, refrigerators showed a growth of 112 percent, deep freezers 102 percent, and televisions 26 percent in FY2021.
In Pakistan, big players are producing a large number of products. The major players include Haier, Orient, Waves, Dawlance, Samsung, LG, and Pakistan Elektron limited.
All the companies work with the collaboration of and under the supervision of PEMA. The main role of PEMA is to safeguard the interests of member countries and it is the principal source of statistical data. It also helps to make the Pakistani home appliances compatible with the global market.
The Association has also proposed a plan of activity for the current year under which it looks forward to issuing a yearly English magazine to spread awareness about the electrical appliances’ manufacturing at the national and international levels.
INP
