Why home appliances in Pakistan are so expensive?

[Patriot forever]

Expensive and ghatia.
Pak cheen dosti zindabad.
Lanti hukumran zindabad, jinhon nain mukami industry ko taqreeban khatam hi kerdia hai.

Exactly, this is what happens when you sign free trade agreement and artificially overvalue rupee. Facilitate import based economic growth. Install power plants and sign contracts which results in 25% more expensive electricity as compared to our neighbours.

The damage that has been done will take a long time as industries don't bounce back immediately but there is a significant lag. This is what's happening right now, rupee is brought to market value and imports are actively reduced, perfect environment for the industry (apart from electricity), to regain local market but in the mean time this has resulted in inflation. Hope our industries take advantage of this and innovate and expand production. Now interest rates are also low so capital can be raised.

 

[fitpOsitive]

Exactly, this is what happens when you sign free trade agreement and artificially overvalue rupee. Facilitate import based economic growth. Install power plants and sign contracts which results in 25% more expensive electricity as compared to our neighbours.

The damage that has been done will take a long time as industries don't bounce back immediately but there is a significant lag. This is what's happening right now, rupee is brought to market value and imports are actively reduced, perfect environment for the industry (apart from electricity), to regain local market but in the mean time this has resulted in inflation. Hope our industries take advantage of this and innovate and expand production. Now interest rates are also low so capital can be raised.

Spot on.
Pakistans main issue is not corruption. It's negligence and incompetence.

 

[darksider]

Jahez Industry.

Do you think indian dont give or get jahez?
I heard from indians themselves that they got lot of gold and cash with other things.even a labourer work in our company got a bike in dowry.

 

[Major Sam]

Exactly, this is what happens when you sign free trade agreement and artificially overvalue rupee. Facilitate import based economic growth. Install power plants and sign contracts which results in 25% more expensive electricity as compared to our neighbours.

The damage that has been done will take a long time as industries don't bounce back immediately but there is a significant lag. This is what's happening right now, rupee is brought to market value and imports are actively reduced, perfect environment for the industry (apart from electricity), to regain local market but in the mean time this has resulted in inflation. Hope our industries take advantage of this and innovate and expand production. Now interest rates are also low so capital can be raised.

But electricity prices are one of highest in the world.

 

[fitpOsitive]

Do you think indian dont give or get jahez?
I heard from indians themselves that they got lot of gold and cash with other things.even a labourer work in our company got a bike in dowry.

Larki bhi do, paisa bhi. Kia na-insafi hai.
Every man should marry atleast twice. That will create an high demand. Phir larky waly jahez dyker larki laingy.

 

[darksider]

Larki bhi do, paisa bhi. Kia na-insafi hai.
Every man should marry atleast twice. That will create an high demand. Phir larky waly jahez dyker larki laingy.

I am against dowry but i replied him because his post gave impression that indian dont give or get dowry.

 

[313ghazi]

Well the logical answer to your question is
1) India most of the brands have local manufacturing/assembly plants in India as compared to imports on our side.
2) The cost of manufacturing in India is less than Pakistan. (Electricity/transportation).
3) The huge local market plays an important part as increasing the volume of product decreases unit cost.
4) There are many local quality companies so competition is high and profit margins are reduced.
5) Companies usually compete for market share instead of forming a mafia to manipulate prices.

Perfect response.

As always we are lazy and don't make things ourselves. The things we do make are competitively priced.

 

[Maarkhoor]

Was just looking at Indian amazon and every home appliance/electronic is at least half of price compared to Pakistan. Why is that? From front load washing machines to inverter AC. etc Not to forget cars.

Pakistanis have to earn at least twice as much as Indians just to afford basic home appliances. Yes petrol is cheaper but everything else which is needed for better life is more then twice as expensive. And its not about higher taxes as India tax to GDP ratio is also almost twice that of Pakistan.

It looks like but if you see currency rate and compare it you will find Indians appliances are at same as our...Simply convert our appliances value into dollars and convert Indian appliances values into dollars.

 

[The Accountant]

Spot on.
Pakistans main issue is not corruption. It's negligence and incompetence.

Are you sure that this is negligence and not corruption? Corruption has many forms.

Do you think Ishaq Dar didnt know the consequences of artificially low exchange rates or when the imports were sky rocketing he didnt know that if no action taken it will destroy the local industry?

Do you think PPP and MQM didnt know that gang war in Karachi between MQM, PPP and ANP is destroying industrial base in Pakistan and textile is being shifted to Bangladesh?

They all knew and had powers to stop them but they let this happen to get personal benefits at the cost of country.

 

[Patriot forever]

Spot on.
Pakistans main issue is not corruption. It's negligence and incompetence.

I would disagree to some extent, in the previous governments this was not done out of negligence or incompetence but was done with intent, corruption (kickbacks from IPP's and imported fuel power plants while ignoring local fuel substitutes), more than that was political reasoning (flaunting GDP growth which was import based, and artificial rupee over valuation as our populace has a fake sense of progress linked with value of pkr).
The problem was planning limited to 5 years with no regards to long term economic prospects, there are multiple examples of white elephant projects for political reasons instead of economic viability. This form of governance system is not suited for Pakistan. We should go for a long term stable government like China or even Bangladesh. Only such government can do what is necessary, like dams, investment in mining, properly funding long term scientific research projects etc.
I am going off topic now, but this is in my opinion one of the major reasons of our lagging behind.

 

[American Pakistani]

haier, dawlance, pel etc are also assembling here, but nothing good is coming out of it. there are a lot of companies already, but like the automotive cartel, everyone has created cartels, this is the reason for similar prices. also, exorbitant duties and taxes by the govt, and expensive electricity, all of this points to the inability of the govt to nurture growth, this is incompetence of the highest order. ab IK kahin iska b notice naa lay bas.

@Kabira it is easier for us to blame govt on everything without looking at the complete picture.

Every country including US have taxes on these purchases and taxes are very high here too. If I purchase a refrigerator worth 2200$ I have to pay almost 200$ in taxes making the total to about 2400$. @KAL-EL

The problem in Pakistan is that people want it easy. Everyone want to have a 9 to 5 job and nobody want to take any risk to start businesses. Lack of competition locally has resulted in such high prices and monopoly.

Do let us know if constitution of Pakistan allow govt to dictate the prices.

 

[Hiraa]

Why aren’t things similarly priced you think?

Or is The answer not that simple, and many factors cause this?

has to be their manfucturing industry. Nissan, renault, suzuki, ford, GMT, hyundai, volkswagen all manufactured in india. They produce from local industries rather than importing kits and assembling them like us. As someone mentioned above, cost production are also relatively lower.
I believe their own automobile company TATA emerging a player in the market has alot to do with it. (Plus they bought jaguar and land rover from ford in 2008)

 

[S.Y.A]

@Kabira it is easier for us to blame govt on everything without looking at the complete picture.

Every country including US have taxes on these purchases and taxes are very high here too. If I purchase a refrigerator worth 2200$ I have to pay almost 200$ in taxes making the total to about 2400$. @KAL-EL

The problem in Pakistan is that people want it easy. Everyone want to have a 9 to 5 job and nobody want to take any risk to start businesses. Lack of competition locally has resulted in such high prices and monopoly.

Do let us know if constitution of Pakistan allow govt to dictate the prices.

so less than 10pc and you are crying? here, it is much worse. also, businesses are down, again due to the same stifling taxes.

 

[Kabira]

@Kabira

Kabira bhai,

The only plausible explanation is economies of scale and local manufacturing.

But are you sure the specs are exactly the same when you are making the comparison?

Regards

Its not about just local manufacturing. My friend was looking General inverter AC, original one.

On Amazon India it cost Rs52k and in Pakistan Rs190k. Same difference is seen in cheap generic brand AC's in both countries.

https://www.amazon.in/General-ASGA1...ords=general+ac+1.5+ton&qid=1594272874&sr=8-3

 

[S.Y.A]

Actually your 2nd point contradicts your first, duties protect and help nurture local manufacturing. This policy in the past has destroyed our local industries, markets were flooded with cheap imported Chinese brands, helped by artificially over valued rupee. India didn't accomplish this in a couple of years, it took them a decade to reach this position where they are now.

it doesnt. the taxes are also on components and raw materials.