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Islamabad: Pak Elektron Limited (PAEL) is set for significant expansion, having secured US$44 million in export orders, primarily from the United States, including contracts with prominent corporations like Tesla. The electronics manufacturer aims to achieve US$50 million in exports by the close of 2025, according to insights shared during a management meeting with Chief Financial Officer Mr. Manzar Hasan and General Manager Finance Mr. Nadeem Asghar.
Having already shipped US$16 million worth of products by August 2025, PAEL anticipates fulfilling the entire order book by December 2025. The corporation is pursuing US certification to amplify its transformer business, aiming to supply government entities in addition to its current private sector clientele. This certification is expected to further propel export expansion.
Despite a 19% tariff on Pakistani goods in the US, PAEL remains competitive. This levy is absorbed by consumers as it is still lower than tariffs imposed on competitors like Bangladesh and India. Furthermore, PAEL offers considerably shorter lead times compared to US manufacturers (nine months versus two years).
PAEL’s meter division is projected to experience a two to threefold rise in revenue next year, fueled by mandates requiring Pakistani distribution companies (DISCOs) to upgrade to advanced metering infrastructure. The firm currently holds a 20% share in this burgeoning market.
The company’s appliance partnerships with Electrolux and Panasonic are also contributing to growth, with projected sales of Rs2 billion and Rs1.5 billion respectively. PAEL assembles Electrolux products locally under a branding agreement. Overall, the firm projects over 30% sales escalation for 2025, though projected unit volumes will remain below the peak observed in 2021.
Second-quarter 2025 margins saw an uptick to 27.7%, attributed to higher volumes. PAEL boasts a network of 1,513 dealers across Pakistan, serving a household appliance market estimated at Rs328.6 billion (US$1.2 billion). The firm holds significant market share in various segments, including a commanding 90% share in the power transformer market. AKD Securities maintains a buy rating for PAEL, with the stock currently trading at attractive price-to-earnings ratios.