Ayesha Saba

The perception of Pakistan lacking established international market standards in the electronics sector has led to a decline in local product preference. Elevating standards equivalent to the European Union norms could enhance market acceptance and product credibility, potentially revitalising the local industry. Talking to WealthPK, M Yousaf Sajid, Regional Manager North at Digital World Pakistan Private Limited, said, “Pakistan has identified the electronics sector as a key area for economic development and export expansion. However, the industry still lags in terms of complete manufacturing capabilities. It heavily relies on importing components and then assembles them domestically to produce electronic appliances.” He added, “Our export potential is limited in the electronics sector due to a lack of indigenous research and development (R&D) capabilities. We heavily rely on importing technologies.” Sajid said that steps should be taken to reduce import dependency by incentivising local production of components and raw materials.

“This can be achieved through policies that encourage domestic manufacturing, provide tax incentives and subsidies, and facilitate technology transfer agreements with foreign partners.” He noted that the mindset contributing to the decline of local market was the perception that Pakistan lacked established international market standards. “Pakistan ought to establish its own standards matching those of the EU’s. If our products adhere to these standards, they will enjoy greater market acceptance. Ensuring compliance with EU standards will augment the quality and credibility of our products in the market,” he opined.Top of Form According to Pakistan Business Council data available with WealthPK, during the first quarter of fiscal year 2023-24, the export of engineering goods amounted to $59 million, marking a decline of 4.7% compared to the same period last year. The major products exported were electrical machinery ($15 million), other machinery ($19 million), industrial machinery ($9 million), electric fans ($6 million) and auto parts and accessories ($5 million) with growth patterns of 32.87%, -30.73%, 12.12%, -12.26% and -5.61%, respectively.

INP: Credit: INP-WealthPk