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Figure 3‐24: Pakistan Export Price Comparison, 2005‐2009 (US$/Kg of Wood) Source: UN Commodity Trade Statistics 3.3.8.1 Value Chain Issues Figure 3-25 provides a snapshot of the furniture value chain and highlights the challenges which are currently impeding the performance of the industry. 3.3.8.2 Shortage of Sheesham and Other Wood Resources Although Pakistan possess some of the best quality wood varieties (e.g. Sheesham, Deodar, and Walnut), this 2.3 Million hectares of wood is not managed well. There are claims of widespread exports of unprocessed logs and sawn timber to the Gulf countries. The waste happens from sawing to poor storing practice of final products, which can reach 50% on average based on the value chain analysis provided below. Another issue is quick depletion of natural resources. Estimates indicate that around 1.23 to 2.4 million cubic feet of Sheesham wood is cut annually [Furniture Strategy paper, SMEDA (2007 :p.9)]. At such an accelerated pace of deforestation, replenishing of resources will not be possible. 249
Figure 3‐25: Key Challenges in Pakistan’s Furniture Value Chain Weak managerial capacity at firm and cluster level Consumer Consumer Channel Channel Distributor (National & International) Transport Manufacturing Inputs Timber/board Wood Supply, Roundwood PRoduction Domestic Bedroom Kitchen Other furniture Non-Specialized Distribution Domestic manufacturers Flooring, Joinery, Furniture and parts - firms Intermediate & final Products Sawmills, veneer, plywood (4.2 million sheets (8x4) particleboard / year) Sheesham (82%) Log bidding and auction Reconstituted panel plants (Kiln Drying is Missing) Other, i.e. deodar, poplar, mulberry (18%) 250 Selling agents Buying agents International Market Hypermarket Mail order Dept Franchise Chain Retail DIY Stores housee Stores Stores Stores Stores Bedroom Kitchen Other furniture Specialized Distribution Non-Specialized Distribution Local and imports: Woodworking items, seating/upholstery items, glass, marble, metal, plastic (structural design), finishers, measuring, jig fixture Raw material instability Source: Furniture Strategy paper, SMEDA 2007 Imported sawn wood (USA, Europe, Malaysia) Large retailers Buying Groups Poor market knowledge key inputs are imported Importers/ Wholesalers Domestic International market Domestic & international Key sector challenges Inadequate handling of wood / lack of skilled labor Sources: Peter Rayner (2006), ITC report (2007), SWOG analysis (2007) 3.3.8.2.1 Value‐Chain Productivity In addition to the raw material replenishment gaps wood is also wasted due to lack of proper handling and processing techniques. The quality of the wood is compromised
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INDUSTRIAL POLICY, ITS SPATIAL ASPE
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Table of Contents List of Tables ..
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3.3.13 Fisheries Sector ...........
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List of Tables Chapter 2 Table 2‐
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List of Figures Chapter 2 Figure 2
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Figure 4‐12: Spatial inequality i
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Acronyms and Abbreviations ADR Alte
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Acknowledgements This study has bee
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percent average GDP growth rate, th
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Development Fund and a Skill based
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knowledge based industries such as
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Therefore, we recommend specific ty
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manufacturing industries is widespr
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• Expansion of the tax base by in
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• In special economic zones, scie
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which could cross from Iranian to P
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• Provide infrastructure of the p
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transaction cost of smuggling and r
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Accordingly, the government should
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information flows between the train
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etc., that operate outside the form
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In view of the credit problems face
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• Establishment of testing and ce
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the interim period the Ministry sho
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growth of downstream industries esp
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• Strictly enforce the Tariff-bas
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• New courses in systems design m
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• Allow long-term subcontracting
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in KP. The total production of the
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• Keep on supporting PHDEC to imp
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Sports Goods Sports Goods industry
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• Ensure that the ceramics centre
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• Allow free import at 0-5% for 3
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• Operationlaise the planned marb
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• Support provision of market inf
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In order to improve the competitive
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• Advocate the use of pre-fabrica
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diversification which has been a ma
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gives a brief synopsis of the compe
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The 1980s brought a major shift in
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the costs of entry for a pioneer fi
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macro level investigation of indust
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on its own. The Government of Pakis
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Source: IMF, 2008 However, in the p
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2.1.2 Structural Rigidity & Inadequ
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share in formal non-agriculture emp
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Breaking down the analysis of manuf
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Moreover, during the 1990s, total f
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Figure 2‐13: Output per Worker Gr
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of world exports increased on avera
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More so, the product concentration
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The underlying reason for South Asi
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Source: Felipe and Lim, 2008 2.1.5
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order to bring about technological
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sector. The role of the government
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eforms in particular trade liberali
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07. In the last two years, the priv
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from 12% to 24% of total investment
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2005-07 controlling for the size of
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skewed away from the manufacturing
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sustained growth and wide spread em
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interest rate remained stable in th
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45.00 40.00 35.00 30.00 25.00 20.00
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Source: Felipe and Lim (2008). Rece
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increased as a premium for being a
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The government faces an immediate n
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services, TRIPs (Trade Related Inte
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most of the burden, for e.g., those
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that it comes second only to Bangla
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Box 2‐2: Energy in Comparison wit
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Hydel or Hydropower While the gener
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announced at least two months in ad
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network. Road linkages connecting m
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Ministry of Industries and Producti
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According to the World Bank (2004),
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Absence or weakness of skills in th
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and Nazli (1998)]. In Balochistan,
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Source: PIHS (2001-02 and 2005-2006
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Pakistan do not consider inadequate
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curricula, poor quality of instruct
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also to enhance information flows b
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shortage of qualified textile profe
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Figure 2‐36: growth in lending by
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the average value of the collateral
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The procedural requirements such as
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2.3.3.6 Policy Recommendations: The
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approving the certification bodies,
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Balochistan Sindh Punjab NWFP Small
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of manufacturing the tyre. Such ina
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Cost (% of Claim) Source: World Ban
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Due to the tax rates and complicate
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are: import duties, import surcharg
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Competitiveness & Industry Stagnati
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egional competitors like India and
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the overall TFP growth rate to 0.9
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aiding hidden sugar stocks. This il
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Second, a science park captures the
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This should be done while preservin
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• Pilot projects that help demons
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ecome too costly for more developed
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inputs/raw material by the domestic
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Table 3‐1: Demand for Petrochemic
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products is reasonable (import of e
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3.1.2 Steel Industry Steel is a cri
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scrap and serviceable engineering g
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sector. Investments in improved fer
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Figure 3‐5: Comparison of Pakista
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3.2 Value Added Knowledge Based Ind
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About 75% of the firms supply to th
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Electronics is one of the largest m
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3.2.2.1.2 Lack of Technological Kno
Page 223 and 224: 3.2.2.1.4 Trade through Illegal Cha
Page 225 and 226: 3.2.2.2 Policy Recommendations: The
Page 227 and 228: new patent laws under the TRIPs whi
Page 229 and 230: Figure 3‐8: Broad Comparison of P
Page 231 and 232: • Income Tax: The advanced income
Page 233 and 234: 3.3 Value Added Skill & Engineering
Page 235 and 236: • Adequate human resource with gr
Page 237 and 238: etween 5-10 years. Sales are also f
Page 239 and 240: 3.3.2.1.1 Low levels of productivit
Page 241 and 242: etc are fetching much higher export
Page 243 and 244: • Strongly advocate with State Ba
Page 245 and 246: The above composition suggests that
Page 247 and 248: Out of this 70% of the cost is for
Page 249 and 250: • Similarly, grinding is done usi
Page 251 and 252: The industry seems to be doing reas
Page 253 and 254: Another major area that has restric
Page 255 and 256: for such industry already exists in
Page 257 and 258: Chinese products fetch (US$0.35 - i
Page 259 and 260: more than the producer. The mean re
Page 261 and 262: 3.3.5.2 Policy Recommendations: The
Page 263 and 264: US$0.26 billion in 2009 from a high
Page 265 and 266: Figure 3‐21: Typical Value of Han
Page 267 and 268: 3.3.6.3 Policy Recommendations: Sin
Page 269 and 270: Source: UN Commodity Trade Statisti
Page 271 and 272: • Ensure that the Ceramics Indust
Page 273: level of quality control, inefficie
Page 277 and 278: Another issue faced by the furnitur
Page 279 and 280: 3.3.8.4 Policy Recommendations: It
Page 281 and 282: 675 tanneries in the formal sector,
Page 283 and 284: • Limited availability of modern
Page 285 and 286: 3.3.10 Gems & Jewellery Sector Paki
Page 287 and 288: Raw Mat erial Waste is 7% Filing &
Page 289 and 290: 3.3.10.2 Policy Recommendations: Ca
Page 291 and 292: 3.3.11.1 Value Chain Analysis Value
Page 293 and 294: capable of processing stone in acco
Page 295 and 296: Figure 3‐29: Traditional Quarryin
Page 297 and 298: of the NEEDS. Below we have summari
Page 299 and 300: 3.3.12.1.9 Levy of Federal Excise D
Page 301 and 302: production assets and technology. T
Page 303 and 304: Source: ‘Pakistan: Growth and exp
Page 305 and 306: • Explore possibility of increasi
Page 307 and 308: 3.3.12.12 Electrical Fittings The e
Page 309 and 310: scale commercial fishing vessels. I
Page 311 and 312: overtime, we freeze the district bo
Page 313 and 314: The phenomenon of localized versus
Page 315 and 316: 4.3 Mapping Measures of Regional an
Page 317 and 318: Source: GoP (2001) Khan (2003) disc
Page 319 and 320: Log of population 2005-06 13 14 15
Page 321 and 322: Log of population growth from 1981-
Page 323 and 324: Ghaus-Pasha and Jamal; 1996-97 Jafr
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FBS 2550 calories -- -- 26.6 29.3 2
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eginning; it has remained constant
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Figure 4‐5: Poverty headcount in
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a ratio equal to twice the area bet
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egistered slightly increasing magni
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4.3.3 Evidence on Spatial Dispariti
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system in each district. Since thes
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Intermediate college size -0.047 0.
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Table 4‐10: Most and least develo
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eporting of data. However, district
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Figure 4‐10: Industry clusters an
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4.3.4 Market Access and Spatial Ine
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Figure 4‐12: Spatial inequality i
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indicates that Peshawar, Abbottabad
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Moreover, we also present evidence
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Table 4‐11: Change in concentrati
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Next, we discuss the geographic con
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313 Beverage industry 32 36 16 -0.0
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Table 4‐13: Geographic concentrat
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district, it is termed as urbanizat
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Table 4‐15: Localisation versus u
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5 Poverty Impacts of Public Investm
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landholding and the incidence of po
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ijt household and individual level
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individual characteristics. Column
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Financial assets owned by household
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Mardan =1 if individual belongs to
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Survey year 1992-93× Punjab 0.073
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Table 5‐4: Effects of household a
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is roughly similar, except that mal
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Pseudo R 2 0.131 0.131 Notes: All r
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Survey year 1996-97 0.139 0.346 0 1
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status dummies and province-year fi
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unchanged until 1996-97. This is re
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the whole country, f ( yi ) is the
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Province× year fixed effects inclu
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Individual level controls included
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We take corresponding data from Pak
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second five year period, industry a
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oads density variable is positive a
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complete set of sub-industry (3-dig
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The two time dummies reflect produc
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0.125) in road density of a distric
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Fourthly, the literature tells us t
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References Ahmad, H., M. Mahmud, N.
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Competitiveness Support Fund (2010)
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Gelman, A., J.B. Carlin, H.S. Stern
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Henderson, J. V., Todd Lee, Yung J.
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Levine, Ross and Renelt, David (199
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Shabbir, T., A.H. Khan (1991). Minc
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World Development Report (2000). En
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