GUJRAT: The the electric fan makers deplore that the federal government has “unilaterally” imposed restrictions on the industry, asking it to produce the energy efficient fans, without taking the manufacturers into confidence with regard to the decision.

They say that talks between the fan manufacturers and Pakistan Standard Quality Control

Authority (PSQCA) were underway on the issue, but the government imposed the restrictions in a haste without taking into consideration the “ground realities” as the sector mainly comprised small and medium enterprises (SMEs), who have yet to build their capacity in this regard.

However, they say, in principle the industry is willing to shift to the inverter technology or energy efficient fans since the consumers in the market are demanding such products.

A meeting of the representatives of the industry and a cabinet committee being headed by federal minister Khawaja Muhammad Asif is scheduled to be held in Islamabad on January 10 (Tuesday) to discuss the issues pertaining to the implementation of the government decisions in connection with the recent measures ordered by the federal cabinet for energy conservation in the country.

Pin hopes on meeting with federal cabinet committee today

Umair Rafique, chairman of the Pakistan Electric Fan Manufacturers Association (PEFMA) told Dawn the industry had not been taken on board before the announcement of restrictions on it.

He says the manufacturers have reservations with regard to these restrictions as talks were still underway with the PSQCA on the matter when these curbs were announced.

He says one of the the major issues is availability of the raw material and technology, particularly for the SMEs. He adds the SMEs lack the capacity to directly import the quality raw material as there is a 17 per cent duty on the import of electric steel sheet, the basic raw material, for which the small manufacturers have to rely on commercial importers.

Moreover, he says the circuit kit, magnet, copper and aluminum are also import-related items and a large number of containers carrying such material are blocked at the port due to the current financial situation in the country, causing a shortage and adding to difficulties of such manufacturers.

He said all these issues would be discussed in the meeting with the cabinet committee as imposition of fine on the industry had created a serious concern among the business community. He said PEFMA had been demanding implementation of the standards gradually or voluntarily so that the SMEs could build their capacity during the period.

Another manufacturer says that at least 40 to 50pc of the production of electric fans have already been shifted to inverter technology as ceiling, pedestal and bracket fans were being produced using the technology. Such fans are in great demand in Sindh and Balochistan, he adds.

He says the restrictions will render the business community vulnerable to exploitation by corrupt officials, regretting that instead of checking electricity theft, use of furnace oil to produce energy and improving recovery from power defaulters, the government has been trying to shift all the burden of energy conservation on the fan industry which was not justified.

Mr Rafique says the industry can be given at least a couple of years to voluntarily shift to the inverter technology as SMEs may require more finances to purchase the required machinery during the period.

At least 200-250 fan manufacturing units have been operating in Gujrat and Gujranwala cities, whereas a few units are also located in Karachi and Lahore as well. The sector has been contributing

at least $30 million annually to the national economy through export of its products.

Published in Dawn, January 10th, 2023