The Furniture Sector in Pakistan: Export performance and ... - TRTA i
The Furniture Sector in Pakistan: Export performance and ... - TRTA i
The Furniture Sector in Pakistan: Export performance and ... - TRTA i
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4 Obstacles <strong>and</strong> shortcom<strong>in</strong>gs to export<br />
4.1 Obstacles <strong>and</strong> shortcom<strong>in</strong>gs – exporters’ op<strong>in</strong>ions<br />
<strong>The</strong> comments presented <strong>in</strong> this part are based on the <strong>in</strong>terviews conducted by AAL of<br />
furniture manufacturer/exporters, participants present <strong>in</strong> the workshop <strong>and</strong> comments of the<br />
President of APFEA.<br />
4.1.1 Obstacles<br />
At company level<br />
• Raw material is diseased; its cost is high <strong>and</strong> it is of sub st<strong>and</strong>ard. As a result, low<br />
quality of furniture is produced. Companies have to suffer severe loss (PKR 2 million<br />
annually).<br />
• Quality of labour is deteriorat<strong>in</strong>g, as they do not get proper tra<strong>in</strong><strong>in</strong>g. Consequently, the<br />
quality of work produced is low. (PKR 1 million loss is <strong>in</strong>curred annually which results<br />
<strong>in</strong> los<strong>in</strong>g customers).<br />
• Sheesham (rosewood) gett<strong>in</strong>g expensive <strong>and</strong> ext<strong>in</strong>ct. This wood is very important,<br />
there’s no replacement. As a result, sales are affected <strong>and</strong> import<strong>in</strong>g is done at a large<br />
scale <strong>in</strong> order to meet this need. It costs four times more.<br />
• Transportation rates are <strong>in</strong>creas<strong>in</strong>g. Where previously a company would have sent 4<br />
conta<strong>in</strong>ers, it ends up send<strong>in</strong>g only two. Diesel/petrol rates have also <strong>in</strong>creased.<br />
• Lack of space is a problem. Because of small area, less pieces of furniture are<br />
produced. <strong>The</strong>re’s 40% loss <strong>and</strong> as a result all opportunities are lost. If more material is<br />
produced, it is wasted because there is no space for its storage<br />
At country level<br />
• Government departments follow red tapism, blackmail<strong>in</strong>g, bribery, corruption,<br />
taxation <strong>and</strong> have lengthy procedures for exporters. Companies as a result are<br />
affected badly. (<strong>The</strong>re is a loss of PKR 5 million)<br />
• No proper guidance is given to companies regard<strong>in</strong>g f<strong>in</strong>ancial <strong>in</strong>centives given by<br />
the government. <strong>The</strong> attitude of banks is very bad <strong>and</strong> they have cumbersome<br />
procedures for loans. As a result, companies have no knowledge <strong>and</strong> they fail to make<br />
use of f<strong>in</strong>ance facilities. In addition, the government is not provid<strong>in</strong>g any subsidy.<br />
• No <strong>in</strong>centives given by the government to make use of the latest technology. As a<br />
result, all companies are us<strong>in</strong>g traditional methods <strong>and</strong> the quality of furniture is much<br />
below the level of global furniture, especially for “Season<strong>in</strong>g” which requires latest<br />
mach<strong>in</strong>ery, but unfortunately the natural method is used, which is very time-consum<strong>in</strong>g.<br />
Some exporters use the wood that has moisture <strong>in</strong> it. This results <strong>in</strong> bad piece of furniture<br />
<strong>in</strong> the end. Sometimes due to moisture, it breaks down even after delivery, which ru<strong>in</strong>s<br />
the image of <strong>Pakistan</strong>i furniture <strong>in</strong>dustry.<br />
76 International Trade Centre