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

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Strengths Major strengths are as follows • Rich cultural, i.e. handwork (carving, cut work, brass inlay, etc.) done by labour is excellent • Different range of products are produced • Low-cost labour with high carving skills Other strengths mentioned are as follows • Good quality raw material • Cheap labour • Good designs and styles • Finest wood craved for international markets • Traditional and distinct designs for the regional Islamic markets • Association building and clusters: lobbying power • Realisation of the core of the problem and an open mind for new solutions Weaknesses Major weaknesses mentioned are as follows • Latest technology not being used • No training institutes • Lack of products/process standardisation Other weaknesses mentioned are as follows: • No government support • No financial incentives • High taxes imposed by the Central Board of Revenue (CBR) • Sheesham is diseased • Exporters have no international market knowledge (no researches are done before entering into a new market) • Image of Pakistani companies is very bad, perception needs to be changed • Limited access to market information • Lack of networking among entrepreneurs • Lack of domestic production materials (wood) and operating supplies (chemicals, foams, technology) • Export infrastructure and location • Excessive role of middlemen in value chain 44 International Trade Centre
Opportunities Major opportunities mentioned are as follows: • The Middle East markets boom • EU and US markets grow steadily, with up-market niche expansion • Sector development policies and support Other opportunities mentioned are as follows: • Furniture demand is increasing with an increase in MNCs, banks and new houses • People have more money to spend • DTR for export • If skilled labour gets proper training, the quality of furniture will be enhanced • Adopt skills to imported wood carving • “Modernize” designs and trading channels • Cluster synergy optimization and networking • Furniture awarded with priority sector status Threats Major threats mentioned are as follows: • Skilled labour getting non-existent • Material bottlenecks (reliance on dwindling Sheesham resource, deforestation) • Inadequate support exporters and finance (incentives) Other threats mentioned are as follows: • Labour rates going high • Competition from international companies • Electricity rates going up • Imports from China and Malaysia rising (Low priced and good quality) • Under-invoicing • Sheesham getting extinct • Forest policy weaknesses allowing illegality: smuggling of unprocessed wood • Slow change of design orientation • Red tape in customs and cargo clearance • Inactive training centres for skilled workers 2.4 Furniture association and its role in services Number of members in All Pakistan Furniture Exporters Association: 125 60% of Pakistan’s furniture exports are from APFEA’s members Over half a million people are involved in this industry. International Trade Centre 45
Page 1 and 2:
The Furniture Sector in Pakistan
Page 3 and 4: Acknowledgements The report was pre
Page 5 and 6: Abbreviations AFTA AHEC AKTRIN APFE
Page 7 and 8: Table of contents Acknowledgements
Page 9 and 10: Box 3.1 Multilateral discipline of
Page 11 and 12: Executive summary This study sets t
Page 13 and 14: the extent possible maintain or imp
Page 15 and 16: 1 Background and objectives 1.1 EC
Page 17 and 18: 2 Furniture sector in Pakistan 2.1
Page 19 and 20: On the buyer’s side, there are gl
Page 21 and 22: According to the websites of import
Page 23 and 24: Global demand for furniture in main
Page 25 and 26: suppliers, both domestic and other
Page 27 and 28: Table 2.3 Pakistani furniture expor
Page 29 and 30: Figure 2.4 Distribution structure f
Page 31 and 32: freight rates have increased and do
Page 33 and 34: Price The prices of local machinery
Page 35 and 36: Indonesia has also announced a ban
Page 37 and 38: industry itself should support effo
Page 39 and 40: various counterparts, the supplier
Page 41 and 42: Box 2.7 UK Timber Trade Federation
Page 43 and 44: Figure 2.5 Simplified example on ch
Page 45 and 46: At least 70% of the wood used in ma
Page 47 and 48: 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: Box 2.10 USAID initiative in the fu
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 and 100: 5.1.3 Federation of Pakistan Chambe
Page 101 and 102: • Pakistan International Freight
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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