Dawlance, a wholly-owned subsidiary of Europe’s second-largest manufacturer Arcelik, is Pakistan’s top producer of innovative home appliances. Recently, the Chief Executive Officer of Dawlance, Mr. Umar Ahsan Khan, held a meeting with the Senate Finance Committee to discuss the adverse economic impact of the current interruption in Pakistan’s import trade. The participants discussed the shortage of foreign-currency reserves in Pakistan, which has forced the State Bank of Pakistan to curtail the imports of many critical commodities and goods. This has also affected Dawlance’s shipments of raw materials and components, halting manufacturing operations since January.
Expressing his concerns about this crisis, Mr. Umar Ahsan Khan said that restrictions were placed on Dawlance’s imports from May to August 2022, and from August till December 2022, the company was instructed by the State Bank to work under a quota of 38% of their past year’s imports, forcing them to reduce production. The Government has been requested to consider Dawlance as a special case, as most of its products are essential for food preservation and hygiene, playing a key role in public health.
Also read this: https://www.skipper.pk/alibaba-com-joins-south-asias-biggest-textile-trade-show-in-karachi-as-a-gold-sponsor/
The Chairman of the committee, Mr. Saleem Mandviwalla, asked the Governor of SBP to resolve the issues being faced by this important Turkish investor in Pakistan. Since its acquisition by Arcelik in 2016, Dawlance has not remitted any dividend, royalty, or technical fee to Arcelik. The company pays approximately PKR 15 Billion annually in duties and taxes to the Government of Pakistan and employs more than 4,500 Pakistanis. Dawlance is committed to playing a pivotal role in implementing the “Make in Pakistan” policy.
It is essential that the Pakistan Government understands that clear and consistent, long-term policies and a business-friendly environment are necessary to attract and retain foreign investments to stabilize the national economy during these challenging times. Dawlance is contributing significantly to Pakistan’s socioeconomic growth and sustainability by transferring technologies and providing value to the country.
