Pak Elektron wins $44M US export orders, eyes $50M by year-end

Pak Elektron Ltd. has made significant inroads into the U.S. energy and appliance markets, securing export orders valued at USD 44 million, with expectations to reach USD 50 million by the end of 2025, the company shared in a recent management briefing.

According to Chief Financial Officer Manzar Hasan and General Manager of Finance Nadeem Asghar, PAEL has already delivered USD 16 million worth of orders as of August, including shipments to Tesla Inc., showcasing the company’s engineering capabilities and competitiveness in international energy solutions. The remaining orders are scheduled for delivery by December.

The company is also awaiting U.S. government certification for its transformers business, which would allow it to expand into public sector contracts. Currently, PAEL is authorized to sell only to private-sector clients in the U.S.

Despite recent U.S. tariffs on Pakistani goods, the company reported that its American customers are absorbing the 19% import duty, noting that Pakistan’s tariff structure remains more favorable than key competitors like India and Bangladesh. PAEL also holds an advantage in delivery times—nine months versus two years for U.S. manufacturers—giving it a logistical edge.

Meter business, appliances, and distribution gaining traction

Domestically, PAEL is projecting a two- to three-fold increase in its energy meter segment next year, with revenues expected to jump from PKR 4.5 billion to PKR 9 billion. This surge follows a nationwide directive requiring power distribution companies (DISCOs) to replace traditional single-phase meters with two-phase and three-phase Automated Meter Reading (AMR) systems.

PAEL currently holds a 20% market share in this segment and competes with eight other firms. Margins are reported to be “decent”, according to management.

In consumer appliances, PAEL has distribution agreements with Electrolux and Panasonic, generating PKR 2 billion and PKR 1.5 billion in sales respectively. Electrolux products are locally assembled at PAEL facilities, allowing the use of the brand’s name. Management acknowledged a “slow start” with both premium brands due to gradual consumer adoption but remains optimistic about long-term growth.

Margins improve, sales expected to climb 30%

Despite lower volumes compared to peak levels in 2021, PAEL expects overall sales to grow by over 30% in 2025. The company reported improved margins in the second quarter, rising from 26% in Q1 to 27.7% in Q2, mainly driven by increased production volumes.

Out of Pakistan’s 2,600 appliance dealers, 1,513 are associated with PAEL, giving the company strong market penetration nationwide.

Market position and segment share

PAEL operates across both the power and consumer appliance segments. The Pakistani household appliance market is valued at PKR 328.6 billion ($1.2 billion).

PAEL holds 19% share in refrigerators, 9% in air conditioners, 4% in washing machines, and 25% in water dispensers.

In the power division, PAEL commands 90% share in the PKR 16 billion power transformer market, 17% in the PKR 41 billion distribution transformer market, 25% in the PKR 17 billion medium- and low-voltage switchgear market, and 18% in the PKR 20 billion energy meter market.

PAEL’s aggressive expansion in exports and a sharpened focus on high-margin domestic segments position the company to end 2025 on a high note, according to management. While challenges like tariffs and certification delays remain, the company’s diversified product base and strategic partnerships continue to drive momentum.