Finance Minister Aurangzeb Engages with Electric Fan Industry on Growth and Exports
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb conducted a virtual meeting on Monday with key representatives from Pakistan's electric fans industry. The session, led by members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Pakistan Electric Fan Manufacturers Association (PEFMA), focused on addressing sectoral challenges, exploring export opportunities, and discussing avenues for enhanced policy support.
Industry Overview and Economic Impact
During the meeting, the group provided a comprehensive overview of the electric fans industry, highlighting its status as a fully indigenous manufacturing sector. With approximately 300 manufacturers concentrated in Gujrat and Gujranwala, the industry plays a vital role in the national economy. It contributes significantly to employment, generating around 40,000 direct jobs and over 150,000 indirect positions, while maintaining a strong value addition profile. The representatives also shared insights into the sector's export footprint, particularly in markets across the Middle East and Africa, and discussed recent trends in export performance.
Transition to Energy-Efficient Technologies
A key focus of the discussions was the industry's transition towards energy-efficient DC fan technology. The group emphasized its capacity and readiness to support large-scale replacement of conventional fans, which could have substantial implications for reducing national electricity consumption. In response, Finance Minister Aurangzeb noted that while the policy framework for such initiatives is already in place, achieving greater traction will require enhanced public awareness and improved coordination with financial institutions. He stressed the importance of addressing implementation gaps to accelerate the adoption of these technologies.
Access to Finance and Raw Material Challenges
The meeting also delved into issues related to access to finance for capacity expansion, especially in the context of scaling up production to meet potential demand under energy efficiency initiatives. The finance minister underscored the importance of facilitating investment in productive capacity and indicated that existing financing frameworks would be reviewed to better align with sectoral requirements. Additionally, industry representatives raised concerns about structural and policy-related matters affecting the sector, particularly regarding the availability and utilization of key raw materials such as copper and aluminum. They noted that increased exports of these inputs in raw form have impacted domestic value-added manufacturing, emphasizing the need for a balanced approach that promotes higher value addition within Pakistan.
Policy Reforms and Export Growth
Discussions further covered matters relating to SME liquidity, including the processing of tax refunds, export facilitation mechanisms, and tariff structures on inputs. Finance Minister Aurangzeb highlighted that ongoing reforms are aimed at rationalizing input costs and improving the overall business environment. He encouraged the industry to provide specific details for further review to refine these policies. In his remarks, the minister underscored that sustainable export growth depends on a combination of competitiveness, scale, and policy consistency. While taxation remains an important element, he noted that access to finance, energy efficiency, and market development are equally critical to strengthening industrial performance.
Commitment to Continued Engagement
Concluding the meeting, Finance Minister Aurangzeb reaffirmed the government's commitment to supporting value-added manufacturing and export-oriented sectors. He emphasized that sustained dialogue with industry stakeholders will remain central to policy formulation and economic planning. The meeting was attended by Minister of State for Finance Bilal Azhar Kayani, along with senior officials from the Finance Division, Federal Board of Revenue, and other relevant departments. Industry representation included Nabeel Ahmed Ilyas (Chairman PEFMA), M Azhar Aslam (Chairman Export Committee PEFMA), Yesir Ihsan (Director Pak Fans), Imad Rafiq (Director Royal Fans), and M Faisal Afzal (CEO Super Asia Group), among other sector representatives.
