The Furniture Sector in Pakistan: Export performance and ... - TRTA i

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• Bilateral trade committees A large number of bilateral trade and industry committees have been set up with several countries of the world for the promotion of trade, joint ventures and economic ties. These committees invite trade missions, trade officials and diplomats of the countries concerned for exchange of views and review of difficulties in the fields of trade, joint venture, investment, etc. • Standing committees FPCCI has constituted a number of standing committees, which deliberate intensively on different problems and issues being confronted by the trade and industry in the country; prepare suitable pragmatic recommendations for their resolution and submit the same to the government for consideration. These standing committees have been established on the important subjects of banking, taxation, exports, imports, industry, investment, agriculture, planning and economic affairs, privatisation, research and development, ports and shipping, environment, health, transport, labour, tourism and many others. • Exhibitions FPCCI also undertakes the responsibility to organise, in consultation with Export Promotion Bureau, Pakistan's participation in international trade fairs and holds single country exhibitions of Pakistani goods and services in selected countries. At home, it also organises international trade fairs (such as PITF-84) and national industrial exhibitions and fairs of specialised single commodities. • Export trophy awards To encourage the export of Pakistan's goods and technical/ consultative services, FPCCI instituted export trophy awards in 1976-77. The awards are given every year to those who excel in promoting the export of goods and services both in quantum, value and to new directions. In addition, the federation has instituted a 'Businessman of The Year’ award, which is conferred on a businessman/industrialist who, in the judgment of FPCCI, has made an outstanding contribution to the growth of national economy. A 'President of Pakistan' trophy is also conferred on a business house has made the overall best and highest performance in exports. FPCCI has also instituted a ‘Best Lady Exporter’ gold medal, which is conferred on a lady who, in the judgment of FPCCI, has made the best export performance during the year. • Arbitration FPCCI has set up arbitration machinery under Section 12 of the Trade Organisations Ordinance, 1961, to arbitrate in matters of disputes arising between member bodies of FPCCI and its members. • Pakistan Shippers’ Council (PSC) The Pakistan Shippers’ Council, having the status of a Standing Committee of FPCCI, works for the protection and furtherance of the interests of exporters and importers in Pakistan in relation to the transportation of goods by sea, land and air, and undertakes studies on problems affecting shippers in Pakistan. PSC is affiliated to the Association of Shippers’ Councils of Bangladesh, India, Pakistan and Sri Lanka (ASCOBIPS), as a member. 90 International Trade Centre
• Pakistan International Freight Forwarders’ Council (PIFFC) PIFFC is another specialised agency of FPCCI functioning to safeguard the interests of freight forwarders who facilitate the transportation of import and export cargo of Pakistan. PIFFC is affiliated with the International Federation of Freight Forwarders Association (FIATA). • Trade delegations FPCCI sponsors general and specialised trade delegations to various destinations in the world to promote export of goods and services and to locate most competitive sources of imports to save foreign exchange. Public sector industries and business houses’ representatives are also associated with such missions. Similarly, buyers and sellers missions from abroad are invited by FPCCI besides investment and joint venture delegations. • Pakistan's trade missions abroad Briefing of Pakistan's trade officials abroad and an exchange of information, country profiles with them is the hallmark of FPCCI on this front. Since economic considerations have overtaken political considerations in the present world environment, even ambassadors/high commissioners and commercial counsellors of Pakistan posted abroad visit FPCCI for individual or collective briefing on economic and trade ties/issues before taking up assignment and during the course of assignment. • International symposia/seminars/workshops Holding of international seminars/workshops/symposia in cooperation with international agencies in the fields of trade, industry, joint venture, training of manpower, etc is a regular feature of FPCCI. The programmes familiarise participants from business and industry with the latest market trends, the state of competitiveness, trade regulations, customs procedure, duty structure, port facilities, containerisation system, incentives offered by competitors, etc. 5.2 Export services as they actually are – expressed views Most of the interviewees were of the view that TDAP/SMEDA are offering no export services. Few of them recalled some of trade fairs held in 2003 and 2004 in Italy, Malaysia and Spain. Only one of them said that the seminars being conducted are effective, as they get an opportunity to discuss the problems faced by exporters, a lot of information is gained related to local and global industry and as a result exports increase. They also help in imparting knowledge on rates of raw material. Others feel that TDAP and SMEDA just organise conferences and seminars but they produce no concrete results. Recommendations are made and in the end it is ensured that these recommendations would be given to the government. But no follow-ups are made. TDAP exhibitions are not at all effective. They are mostly set in very far away countries. Companies incur lot of transportation expense incurred by companies. In Dubai an exhibition was organised, where products were taken on subsidy and then dumped. Others recalled festivals like Expo, which were again not effective. At exhibitions, rates are too high for setting up stalls and space provided for setting up stalls is very limited. SMEDA is making efforts but only big companies are taking advantage of them. International Trade Centre 91
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The Furniture Sector in Pakistan
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Acknowledgements The report was pre
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Abbreviations AFTA AHEC AKTRIN APFE
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Table of contents Acknowledgements
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Box 3.1 Multilateral discipline of
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Executive summary This study sets t
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the extent possible maintain or imp
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1 Background and objectives 1.1 EC
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2 Furniture sector in Pakistan 2.1
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On the buyer’s side, there are gl
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According to the websites of import
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Global demand for furniture in main
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suppliers, both domestic and other
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Table 2.3 Pakistani furniture expor
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Figure 2.4 Distribution structure f
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freight rates have increased and do
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Price The prices of local machinery
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Indonesia has also announced a ban
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industry itself should support effo
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various counterparts, the supplier
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Box 2.7 UK Timber Trade Federation
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Figure 2.5 Simplified example on ch
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At least 70% of the wood used in ma
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Scope of joint ventures There exist
Page 49 and 50: • With FAO’s Forest Products an
Page 51 and 52: The contact information of many of
Page 53 and 54: Box 2.10 USAID initiative in the fu
Page 55 and 56: Opportunities Major opportunities m
Page 57 and 58: pressure on the price. There appear
Page 59 and 60: Pakistan does not export this furni
Page 61 and 62: 3.1.3 Functional scope The function
Page 63 and 64: Current status of efforts to libera
Page 65 and 66: 3.2.2 Information flow-upwards, i.e
Page 67 and 68: Commission (EC/EU) has established
Page 69 and 70: Figure 3.3 Relevant intensity of WT
Page 71 and 72: Box 3.2 Regional Trade Agreements (
Page 73 and 74: Trade Related Aspects of Intellectu
Page 75 and 76: Agreement on the application of san
Page 77 and 78: country or materially retards the e
Page 79 and 80: Relevance of the furniture sector T
Page 81 and 82: 3.4.2 Other countries’ access to
Page 83 and 84: Table 3.2 Top 10 buyers of the Paki
Page 85 and 86: Arabian market. Here again, there i
Page 87 and 88: • Material from China is being us
Page 89 and 90: 4.2 Obstacles and shortcomings - im
Page 91 and 92: Raw material recovery Raw material
Page 93 and 94: • Consistent policy for supportin
Page 95 and 96: A short-term but maybe a costly mea
Page 97 and 98: 5 Export services in Pakistan 5.1 E
Page 99: 5.1.3 Federation of Pakistan Chambe
Page 103 and 104: The lessons learnt here could be re
Page 105 and 106: 6 Conclusion and recommendations 6.
Page 107 and 108: 6.2 Critical success factors • A
Page 109 and 110: 6.4 Global value chains 6.4.1 Poten
Page 111 and 112: Benefits All timber tends to be air
Page 113 and 114: • Optimise cutting; • Calculati
Page 115 and 116: 6.6.5 If we had US$100,000: A techn
Page 117 and 118: • To modernise such a laboratory,
Page 119 and 120: Annexes Annex A — Sources of info
Page 121 and 122: • Federmobili information on the
Page 123 and 124: • National Home Furnishings Assoc
Page 125 and 126: International Trade Centre 115
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