Pakistani manufacturing has found an unexpected opening in the global energy supply chain. Pak Elektron Ltd, one of the country’s oldest electrical equipment makers, is stepping onto the international stage in a way it has rarely managed before. The Lahore-based company, long dependent on domestic demand cycles, has begun exporting at scale to the United States — a move poised to reshape its revenue structure and global presence.
In March this year, the company shipped its first batch of distribution transformers to the US. This inaugural consignment marked the beginning of a steady flow of orders valued at around $44 million. By the company’s own projections, and backed by market analysts, export revenues could reach $50 million in 2025 and potentially double to $100 million in 2026. This shift is expected to make exports roughly a fifth of PEL’s total group revenue, a striking milestone for a business that has operated for nearly seventy years primarily within Pakistan’s borders.
The broader geopolitical and trade environment has played a pivotal role in shaping this opportunity. The US government has maintained significant tariffs on Chinese electrical equipment imports and increased scrutiny of supply chains moving through Mexico and, to a lesser extent, Canada. At the same time, North American utilities are confronting critical infrastructure challenges: transmission bottlenecks, long lead times for replacement equipment, and escalating costs. These combined pressures have created a capacity gap in the market.
PEL has emerged as a timely alternative supplier, positioned advantageously with a tariff structure that significantly undercuts Chinese imports. Pakistani shipments face a landed duty of about 19%, giving the company a clear price edge. Moreover, its delivery timeline of eight to nine months offers a compelling logistical benefit when compared to industry norms that can stretch up to two years.
Industry observers believe that these factors give PEL more than just a temporary boost. If the company can sustain quality, scale production, and manage its cost efficiencies, it could establish itself as a long-term supplier to North American utility companies. That kind of foothold would not only strengthen its balance sheet but also create ripple effects across Pakistan’s industrial and export ecosystem.
The move also reflects a strategic pivot from depending on volatile domestic markets to building stable revenue streams abroad. PEL’s export margins are expected to surpass its domestic margins, further boosting profitability. This export-led approach could serve as a model for other Pakistani manufacturers navigating a challenging economic landscape while searching for sustainable growth opportunities.
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