Meeting stresses adoption of energy-saving fan technology

Seeks access to finance to scale up production, meet consumer demand

ISLAMABAD:

Federal Minister for Finance Muhammad Aurangzeb on Monday held a virtual meeting with representatives of the electric fan industry, led by members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Pakistan Electric Fan Manufacturers Association, to discuss challenges, export potential and policy support avenues.

The finance minister, while recalling his recent engagement with the business community at the FPCCI Lahore, reiterated the government's commitment to undertaking focused consultations with individual sectors to better understand their operational landscape and support growth.

The industry representatives provided an overview of the structure and economic significance of the fan industry, highlighting that it was a fully indigenous manufacturing sector with around 300 manufacturers working in Gujrat and Gujranwala. The industry contributes significantly to employment, with approximately 40,000 direct and over 150,000 indirect jobs, and maintains a strong value addition profile.

They shared insights into the sector's export footprint, particularly in the Middle East and Africa, including the recent export performance.

Discussions also focused on transition towards energy-efficient DC fan technology. Industry players highlighted their capacity and readiness to support large-scale replacement of conventional fans, which would help reduce electricity consumption.

In this context, the finance minister noted that while the policy framework was in place, greater traction would require enhanced awareness and improved coordination with financial institutions. He emphasised the importance of addressing implementation gaps to accelerate adoption.

Access to finance for capacity expansion was also discussed, particularly in the context of scaling up production to meet potential demand under energy efficiency initiatives. The finance minister underscored the need for facilitating investment in productive capacity, adding that the existing financing frameworks would be reviewed to better align with the sector's requirements.

Members of the group drew attention to a number of structural and policy-related matters affecting the sector, particularly in relation to the availability and utilisation of key raw materials such as copper and aluminium. It was observed that increased exports of these inputs in raw form have had implications for domestic value-added manufacturing and the need for a balanced approach that could promote higher value addition was emphasised.

Matters relating to SME liquidity, including the processing of tax refunds, export facilitation mechanisms and tariff structures for inputs were also taken up for deliberation. The finance minister explained that ongoing reforms were aimed at rationalising input costs and improving the overall business environment, while encouraging the industry to share specific details for further review.

The discussion touched upon opportunities for expanding market access and enhancing competitiveness of the electrical appliances sector through targeted policy support and innovation. The finance minister said that sustainable export growth was contingent upon a combination of competitiveness, scale and policy consistency. While taxation remains an important element, access to finance, energy efficiency and market development are equally critical to strengthening industrial performance.