OPPORTUNITIES FOR PAKISTAN IN AIR-CONDITIONING INDUSTRY

The air-conditioning industry is also very important for a country like other industries of the world. The air-condition business is very much in gulf countries, now in last four to six years this industry is also become very common in Pakistan as well. The air-conditioning market is totally captured by the China and Malaysia, and we import most of air-conditioning brands from these countries & we pay extra duties for importing these equipment. Air-conditioning equipment are split A/C, Chillers, Air Handing Units, Fan Coil Units, Valves, Pumps, Building Management Systems, Cooling Towers and Fans etc. these items are used in central Air-conditioning systems in commercial projects.  We do not have enough local brands in the air-conditioning field. This is the reasons the prices of the air-conditioning equipment is increase very much. The present situation is the recession situation and almost every country suffers in this problem. Almost every industry of all the country is affected by this recession period. Air-conditioning industry is also very affected from this recession period. The prices of air-conditioning equipment are also raise due to the inflation in dollar prices. Therefore the air-conditioning industry is very affected and firms started to downsizing. The recent example of this is the L.G firm from Pakistan cut of its size and kick off 400 hundreds employees. In addition the so many projects in government, semi-government & private sector have stopped or slowed. Same situation in all the countries of the world. In 2008 almost three to four times prices of air-condition equipment revised. The other reasons also behind in this price fraction e.g. duty & tax on imported items is also raised in Pakistan. Due to that so many international brands are less marketed than local brands. People switch over on other alternatives.

For the above analysis I have some suggestions about this industry in Pakistan.

a)      If we will able to produce the local brands instead of imported brands than the prices of the air-conditioning equipment will decrease.

b)      The government of Pakistan should encourage the local industry to produce the local brands.

c)      If we will able to produce the local brands in larger quantity than we will fulfill our local demand as well as we can export our brands in different parts of the world and we can get the large amounts of revenues.

d)      If we have large no. of local brands than the recession situation can not affect in this way as now.