Why home appliances in Pakistan are so expensive?

[SoulSpokesman]

@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

 

[Dr. Strangelove]

I tried to translate it but I failed. Do you know how much that equals in US dollars?

426.76 USD

 

[S.Y.A]

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.

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.

 

[The Accountant]

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.

Because most of the appliances in Pakistan are based on assembly of imported kits and hence alot of profit get transferred outside Pakistan. Plus this will result in custom duties.

The best benefit for India is its a huge market so economies of scale are available for these type of product economies of scale means lower per unit cost.

If we want to reduce the cost, we need to establish local manufacturing base and not just assembly of imported kits.

Initially they will be expensive however, in longer run they will be cheap.

 

[Genghis khan1]

426.76 USD

Not too bad. Average starting price in US $400. Idk about quality in Pakistan.

 

[KAL-EL]

426.76 USD

Thank you For the translation

Not too bad. Average starting price in US $400. Idk about quality in Pakistan.

I was thinking the same thing. Not much more than starting prices in USA.

Not sure about quality though.

 

[Yaseen1]

due to devaluation of rupee raw material or components used for manufacturing appliances got expensive resulting in high cost of production,In this world not all raw material can be indigenous as we have to import it from other world for manufacturing but cost can be lowered if we use non value added raw material by manufacturing items on our own instead of using components for assembling finished items

u.s public earn more than average Pakistanis so we should consider this while comparing prices

Thank you!



I was thinking the same thing. Not much more than starting prices in USA.

Not sure about quality though.

 

[KAL-EL]

u.s public earn more than average Pakistanis so we should consider this while comparing prices

Very good point my friend! That should also be a part of the equation.

 

[Genghis khan1]

Thank you!



I was thinking the same thing. Not much more than starting prices in USA.

Not sure about quality though.

Labour, transportation, insurances, laws and liabilities are cheap or non existent in Pakistan. I doubt there is govt mandated energy star rating. So if you think about it. $426 isn’t cheap.

 

[Patriot forever]

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.

To be honest unless you generate cheaper electricity you can not provide cheap electricity. Thanks to the imported fuel and exorbant IPP contracts. 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.
Now mobile companies are exploring local manufacturing/assembly. Haier is exporting microwave ovens. We are moving in the right direction. If you notice the market trend people are now preferring to buy local appliances instead of Samsung's and LG's. India actively protects it's local industries with duties as well for a long time and forces foreign companies to setup local manufacturing.

 

[fitpOsitive]

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.

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

 

[Hiraa]

Not just home appliances, cars too. They get better car varients, latest design models with better equiped saftey features. We get overpriced tins.

 

[Enigma SIG]

This is what you get when you want everyone to trade instead of manufacture.

 

[Rakesh]

Lack of local manufacturing can not be attributed to lack of market, 220 million is big population (hence big market). It must be something to do with policies.

 

[KAL-EL]

Not just home appliances, cars too. They get better car varients, latest design models with better equiped saftey features. We get overpriced tins.

Why aren’t things similarly priced you think?

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