KARACHI, Oct 9: Domestic appliances manufacturers forecast a 10-per cent growth in production of fridge, deep-freezers and air-conditioners from next year following the government’s decision to restrict the consumer financing on household durables to the local industry instead of imported goods.

“Production and market will definitely grow by at least 10 per cent from next year,” officials in domestic appliances industries say.

“We expect the market growth rate to reach at 40 per cent in 2005,” convener, Refrigerator and Airconditioner Manufacturers Group, Shakeel Ahmed, told Dawn.

“Growth cannot be achieved overnight. It will take some time,” he said, referring to the increase in sales and production of cars in the last one-and-a-half years thanks to the advent of leasing companies and banks in car-financing business. Out of total car sales, more than 70 per cent sales are being managed through leasing and banks’ auto-financing schemes.

“We have not yet geared up the production as we have enough stocks to handle any demand spurt,” he said.

He, however, pins hopes on the rising demand of refrigerators and deep-freezers particularly on the eve of Eid-ul-Azha when people buy electronic items for the purpose of storing meat.

“People will definitely buy fridge and deep-freezers by availing of the consumer finance scheme of banks particularly in two main religious events,” Shakeel said. Currently there is an off-season going on for the sales of fridge and deep-freezers.

A total of 300,000 refrigerators, 100,000 deep-freezers and 50,000 air-conditioners are being produced annually by three to four leading companies in Pakistan.

Local producers have made their presence felt in the market by cutting the market share of imported goods to only 17-18 per cent currently as compared to 70 per cent in 1990s. At a time when the import duty on fridge was 125 per cent in early 1990 local production was estimated at 60,000-70,000 as compared to annual import of 120,000 fridge. And now the import duty is 25 per cent, three main producers roll out 300,000 fridge per annum. Even the prices are being curtailed every year due to stiff competition among local companies. As a result of this, local producers are really giving a tough time to the imported goods due to quality and price competitiveness.

Television makers are also forecasting a brighter picture of the production as well as sales growth under the banks’ consumer financing scheme.

“We have estimated that our production will range between 600,000 and 650,000 units by the end of the current fiscal,” chairman, Pakistan Electronics Manufacturers Association, Sarfarazuddin, said.

Production of TV sets in 2001-02 were estimated at 450,000 sets and the manufacturers contributed Rs770 million to the exchequer in terms of revenue, he said.

He was of the view that people have now become aware of such consumer related schemes and they will definitely benefit from it.