GUJRAT: Local manufacturers have demanded a ban on the import of electric fans from China and withdrawal of the 20 per cent regulatory duty on the import of electrical steel sheet to boost the domestic industry.

The demands were made by a delegation of Pakistan Electric Fan Manufacturers Association (Pefma) led by Sheikh Khawar Rafique during a meeting with the prime minister’s advisor on commerce Razzaq Dawood in Islamabad on Tuesday.

According to sources privy to the meeting, the fan makers also called for business-friendly policies and atmosphere in the country, complaining about coercive measures employed by government institutions dealing with the business community, particularly the tax collecting agencies.

They told the advisor that since the imposition of the regulatory duty on the import of electrical steel sheet -- a basic raw material used in the production of export quality fans -- the number of local fan exports had been decreasing gradually, whereas the industry had been facing numerous challenges, including increase in the cost of doing business.

Moreover, they said the fan industry had been under pressure because of increased import of Chinese fans which should be curtailed, either through imposing a ban or enhancing the import duty.

A fan maker who was part of the delegation told Dawn that the meeting was aimed at apprising Mr Dawood of the issues being faced by the industry ahead of budget to get some relief.

He said the delegation demanded inclusion of the electrical sheet in the free trade agreement.

Seeking anonymity, he said the advisor was also briefed about the issuance of exorbitant tax notices by the Federal Board of Revenue (FBR) to some small and medium-scale fan manufacturers, that adversely affected the sector’s performance.

He said the FBR “pressure tactics” had resulted in decline in the ratio of production, besides causing unemployment, even during peak season which was not a good omen for the country’s economy.

Another manufacturer said the local industry had now been producing direct current (DC) fan motors that were earlier being imported from China for making solar fans that were in high demand locally. That necessitated a ban on import of Chinese fans, he added.

He said Mr Dawood assured the delegation that the government would take a sympathetic view of the fan industry’s demands and try to resolve the issues faced by it.

Published in Dawn, May 8th, 2019