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

Executive summary
This study sets the wooden furniture industry of Pakistan into a global context. It describes the
implications of the WTO agreements on the sector as well as the key obstacles, shortcomings
and opportunities for the country’s exports.. The study also reviews Pakistan’s export services
and their usefulness to the furniture sector. Finally, conclusions and recommendations have
been put together, also integrating some very recent developments (Furniture village), which
indicate that Pakistan’s furniture industry is taking its future into its own hands.
Findings
Export drive levels off
Pakistan’s furniture industry is exporting annually around US$12 million worth of mainly
wooden furniture representing four main styles, namely antique reproduction, mughal, modern
(Italian), and oriental styles. Pakistan exports to a large number of countries, of which Italy,
USA, Canada, Japan, Saudi-Arabia, the UAE, Germany and Spain are some of the biggest
buyers. Exports turned into a decline in 2006 after a steady growth over the past years.
Wood resources are wasted
Pakistan’s furniture has been fairly devoted to solid wood composition, and is therefore heavily
dependent on native sheesham wood (rosewood). Despite being a valuable species, sheesham
resource has not been sustained in the country. Industry claims widespread exports of
unprocessed logs and sawn timber to the Gulf countries, and clandestine trade by opportunistic
players in official positions. Inadequate measures have been taken by forest authorities to curb
illegal logging and trade, and replenish the timber with proper silviculture and forest
management. Scarcity of sheesham and other local hardwoods is the most serious threat to
Pakistan’s traditional wooden furniture industry.
International competition puts Pakistan under pressure
Even though the supply side constraints prevail, the industry has shown resilience in carving its
niche in the European and North American markets. Majority of the furniture workshops are
small in size, and use manual-intensive production methods. Competitive edge is derived from
high-skilled carving of traditional designs. Pakistan competes with countries like China, India,
Vietnam and Malaysia. Especially China and Vietnam are concentrating their industries into
larger bases and reap the benefits of mass production to the extent possible. If Pakistan wants
to move from the small cottage industry status into SME networking culture, it will be
challenged to adopt novel designs and technologies and formalize training of workforce, none
of which is currently the norm. On top of these come production according to international
standards and new level of quality awareness.
Industry is seeking new avenues
It will be difficult to compete against the Asian furniture giants from the small workshop
culture that Pakistan is pursuing. Not surprisingly, the Pakistan furniture trade and industry has
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