Sunday, May 10, 2009

Sheesham is not easily available

Sheesham (rosewood) is getting extinct. It is being cut in a large amount, but on the other hand not grown on a large-scale to overcome this scarcity. “The goldmine of Pakistan is being wasted”. Its prices are going high, have become two to four times expensive. There are people who are illegally exporting wood. Illegal wood import has also started since the launch industry has shifted to Dubai. However, there is no big issue regarding its import.

Latest technology is not being used

At least 98% of manufacturers are using traditional methods. The latest technology is not being used at all. One manufacturer demanded that “imported machinery be made available to us at the same rates”. The factory owner should be given the facility to purchase second-hand machinery. The government should come forward, reduce rates and make the imported machinery easily available for them.

No training institutes and centers are set up

All of the manufacturers said that no training centers were available. One or two centers are working, but no effective services are being offered by them. The manufacturers stress the importance of having such institutes in the country. The furniture industry is in dire need of trained and creative individuals.

No financial incentives given by the government

The government is providing no finance facilities. For the few facilities available, the process of documentation is discouragingly cumbersome. The government should also introduce new subsidies as the old rebate and subsidy facility has ended. The MoC freight subsidy is still there, but it is not generalized – it is only for specific destinations. Furniture is a high-value item; therefore freight rates are also high. Thus, for an importer it tends to be expensive. A supportive regulatory subsidy should be introduced. New investors are not coming in because of the high cost of setting up business.
Government takes no steps to promote exports of furniture

No longer-term steps are taken by the Government.

TDAP and SMEDA are working on it, but no concrete results have come forward. They gave examples of exhibitions and seminars organized by TDAP, but they are not at all effective.

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