Local Manufacturers and Dealers Are Concerned

Except for large importers and assembly companies of domestic home appliances, local manufacturers and dealers are concerned that sales will slow from July, blaming high prices and tax measures. They also reported that the freezer and refrigerator sales failed this year even in Eidal Azha (August 12-14) this month after the slaughter of sacrificial animals was reduced. Moreover, from April to August, demand for air conditioners did not increase rapidly even in hot weather.

A reference to air conditioning sales

An executive of a company based in Lahore, found that AC sales fell 20-30% between July and August due to higher prices and some compared to the same period last year. For dealers, sales of more than 50,000 rupees, taxation measures taken by the government in the budget FY20, as in CNIC terms. He said AC prices have risen by at least 8,000-9,000 over the past year because of the rupee depreciation against the dollar. He said no company employees or employees have been sent home until now, reducing production and job losses.

As with many companies, we have revised our sales target this year by anticipating that the market situation will fall, in addition to reducing output on demand. However, many companies added that they would keep production low because they still had stocks that were not sold last year. Our company reduced margins and did not fully communicate the impact of exchange rates to consumers in order to maintain some margins. His company predicts that sluggishness will continue throughout this fiscal year.

Air conditioning sales fell 1.37pc from FY19 to 512,841 units. In contrast, the B2B Solutions division, LG Pakistan, and Syed Farrukh Raza Alam, said July-August sales of AC, washing machines, TVs, double-door refrigerators, etc. increased 15-20%, but were better than in the previous year. Price for the past year. His inverter AC sales were also active. He is currently assembling LED TVs in Pakistan and plans to launch locally produced air conditioners and washing machines next year.

According to official statistics

However, he said that imports of fully assembled (CBU) units of various items have declined because of the lack of inventory of previous imports on the market and imports of consumer electronics due to issues related to tariffs and taxes. According to official statistics, the total local production of FY19 TVs increased 3.3pc to 380,559 units. Mohammad Rizwan Irfan, Chairman of the Karachi Electronics Dealers Association (KEDA), said that in the past two months, freezer and refrigerator sales have risen by 15-20pc over the past year, while low slaughter of sacrificial animals has led to buyers moving away from 50pc in the past two months

A sharp drop was reported. In the market. He said the cooling unit sales stagnated despite the wedding season between Eid and 1st Muharram. He said CNIC's terms and sales tax registration process have already caused unrest among dealers and manufacturers. Liz Wan says many companies have stopped supplying consumer electronics after various taxation measures, while many dealers are not taxpayers. According to statistics from the Pakistan Bureau of Statistics (PBS), refrigerator production jumped 24pc from FY19 to 1,093 million units, while FY19's freezer sales jumped 39pc to 186,545.

Karachi, a sales representative for a home appliance manufacturing company based in Lahore, said that overall sales of home appliances have declined 20-25pc over the past two months due to high prices. Despite repeated attempts, officials in Dawlance Pakistan did not respond to Dawn queries.

In the first two months of the current fiscal year

The private sector's credit deduction was negative, indicating that companies are heavily lending rather than borrowing investment or working capital requirements. State bank's latest data show that the private sector credit has reached RMB 8.7 billion by August 30 for net borrowings of R39 billion in the same period of last fiscal year. When contacted by the Commercial Bank, the situation was clear at the end of the first quarter when contacted, but thought it was a major cause of slowing economic growth and repaying private sector credit with low borrowing costs.

He said the private sector is still borrowing from banks, but that amount is lower than debt retirement. Bankers said the government is making more money in the private sector, while providing attractive participation in debt auctions, while also drawing strong participation. Both conventional and Islamic banks were faced with increasing debt repayments. The existing bank's debt disposal figures were 88.1 billion rupees for two months (July-August) against net borrowings of 250 billion rupees in the same period last fiscal year.

It clearly indicates that the situation has changed significantly from the last fiscal year. But for Islamic banks, the amount of debt was increased this year compared to the amount of debt in the last fiscal year. Islamic banks recorded net retirement of 19 billion rupees compared with net retirement of 6.5 billion rupees.

For Islamic bank branches of existing banks, only the unchanged situation was noted. At this point, the private sector borrowed increased to 16 billion rupees, compared to 3 billion rupees borrowed in the last fiscal year during the first two months of the last fiscal year.

The highest week in 10 years

The euphoria over the surprising rally last week was unsustainable in the outgoing week, when the KSE-100 index recorded a record increase of 2,585 points (9%), the highest week in 10 years. As the KSE-100 index plunged 1,678 points (5.35pc) and fell below 30,000 levels at 29,672 points, the stock regained almost 62pc of its previous profit. By the way, the benchmark index closed negative for seven straight months and fell 6.8pc in August, the biggest drop this year. Placing Pakistan on the Asia Pacific Group's' Enhanced Prompt Follow-up List 'on August 23 buffered investors' sentiment and the market closed its first trading session in red.

In addition, the potential sale of 10pc shares of Pakistan Petroleum (PPL) and 7pc shares of Oil Gas Development Company (PGDC) has a high share of the index and put additional pressure on the index. Geopolitical tensions have also hit the market. The main positive of the week was the introduction of the government's presidential ordinance to exempt 50pc of government infrastructure development tax on delinquency of CNG, power, fertilizer and industrial gas consumers. 

Disadvantages of sales tax, subsidies and tariffs you may receive from the government. Development was primarily positive in the fertilizer sector and alleviated the overall market downturn. Over the past month, foreign exchange reserves have surpassed 4pc and participated in the 12-month Treasury bill, indicating that market expectations for interest rates have peaked.

Average daily trading volume recorded 126 million shares, down 29pc per share, and the average value traded decreased to 29m, down 23pc year-on-year. LOTTE Chemical is K-Electric's 53.63 million shares, 34.86m flashlight, 29.68m maple leaf cement plant, 25.22m Unity food, 21.55m OGDC, and others. Foreign banks have been witnessed in commercial banks at $ 2.0m, and in technology and communications at $ 1.0m.

The main sale on the domestic front

The main sale on the domestic front was reported at $ 13.5 million by mutual funds, individuals bought $ 8.1 million and banks $ 2.6 million. Sectoral negative contributions came from 519 points for oil and gas exploration companies, 400 points for commercial banks, 160 points for oil and gas marketing companies, 139 points for cement and 216 points for power generation and distribution. The wise delay was 247 points for OGDC, 193 points for PPL, 134 points for Habib Bank Ltd, 79 points for Bank Al Habib Ltd and 63 points for Pakistani national oil.

In the future, the market is likely to be affected by several factors. The Financial Action Task Force meeting will be held in Bangkok on September 5 to discuss Pakistan's progress on terrorist financing. The meeting results set the direction of the market. Investor confidence will lag behind August inflation figures. They will determine the latter monetary policy outlook, which will eventually affect market behavior. 

Progress on the government's 200 billion-seat issuance plan to address the power sector's issue could improve sentiment, while deep discounts on local peers in Pakistan stocks have the opportunity for foreign investors to accumulate to current levels provide.
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