Businessmen have urged the government to expand the scope of the recently announced amnesty scheme for industrialists and demanded inclusion of the electronics sector as well.
They have lamented that the issues under the Afghan Transit Trade, such as smuggling, have dented the electronics industry of Pakistan.
In a press conference on Friday, Pakistan Electronics Manufacturers Association (PEMA) President Muhammad Farooq Naseem said that pressure from the Financial Action Task Force (FATF) helped in curbing the issue of cross border smuggling.
Installation of point of sales machines by the Federal Board of Revenue was helping the legitimate industry to boost and add value to local production, he said.
“Currently, dealers have held their stocks in markets all across Pakistan because there is no legitimate way to make them legal,” he said.
He called upon the government to grant amnesty to the electronics sector so the size of legal electronic markets could expand.
Pakistan’s home appliances industry comprises refrigerators, air conditioners, televisions, washing machines, water dispensers, small kitchen appliances, home theatres and other devices.
The estimated size of the home appliances industry, as per PEMA, stood at around Rs350 billion in December 2021.
The industry is contributing around Rs125 billion to the exchequer, he noted. Citing the breakup, he said that Rs60 billion were being paid in sales tax, Rs15 billion in income tax and about Rs50 billion in customs duties and other levies.
According to PEMA, around 5,000 shops were operated by nearly 2,500 dealers and establishments across Pakistan.
The total number of people directly employed by PEMA members is estimated at around 100,000 individuals. These include vendors that manufacture parts and components, technicians that provide after sales services, sales persons in shops and others who are part of the entire PEMA eco-system.
The products of the home appliances industry cater to Pakistan’s emerging middle class as they are becoming necessary in every Pakistani home, Naseem said.
“There is a general misconception that these products are for the rich and elite,” he said.
Published in The Express Tribune, March 5th, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ