Maheen Khattak Danyal Obaid Dawar Khan Introduction: • The production of marbles and tiles is increasing in Pakistan because of its use in the construction industry which gained popularity after the earthquake of 2005. • This has further led Pakistan to be one of the largest and major exporter of marbles and tiles worldwide. • Marble stone and tiles are both a very big trade source of Pakistan and are acknowledged world wide as they are best in quality, variety and color • The two major products produced used are marble stripes and tile slabs for interior and exterior designs. • More than 30 kinds of marble are found and extracted in KPK and its adjoining tribal belts, Balochistan as well as FATA. There are mines in areas of Sindh as well but are not easily extractable. The Marble Industry: • Marble is gaining popularity due to its increasing usage in the construction industry and the growing housing industry has further increased the marketing potential of the marble industry. • Marbles are imported mainly by China and other counties include Italy, Saudi Arabia and the UAE as well. • The average industry growth rate over the last 3 years was 35 percent. The Tile Industry: • The tile industry is also a very big trade source for Pakistan. • Pakistan’s tiles manufacturing industry was facing a precarious situation due to massive influx of imported tiles on abnormally under- invoiced values. Pakistan's main exporter: China • China is our main exporter for both marbles and tiles. • Their main raw materials of purchase are squared marble, raw tiles, granite and onyx blocks. • In 2010, Pakistans export to China in stone, marble and tile was $29.1 million which increased to $63.5 million in 2011. • In 2016, trade between Pakistan and China stood at US$19.2 billion. • In August of 2017, the two nations finalized a trade pact, with 18 Chinese companies signing 38 trade agreements that caused an export of US$325 million worth of goods which include onyx blocks, marbles, unprocessed tiles and a special type of black and gold marble. Pakistan's main exporter: China • In the year 2016 alone, 15 million square meter tiles were exported to China • The marbles exported also include semi-processed marble which is then exported from China to other countries after further value addition and sold at a higher price. This is causing trouble for the industry to a significant extent. • “China is the biggest buyer of our marble but its purchase is limited to raw material (squared marble, granite and onyx blocks). As there is very scarce facility for value addition in the country, Pakistan is losing substantial foreign exchange through raw marble export” says a marble trader and exporter in Karachi. Regional Contribution • Balochistan: It has around 60 operational mines and the total known reserves are 2 million tones. Around 80 types of marble are available in Balochistan alone and due to its proximity to Karachi and Gwadar ports, the province has an edge over other areas. Product 2006-2007 2007-2008
Balochistan Marble 461465 337756
Raw tile 1092 291
Regional Contribution: • Sindh has 15 operational mines. The estimated reserves are 1.5 million tons of marble and 1 million tone of raw tile and granite. Product 2006-2007 2007-2008
Sindh Marble 3305 1415
Raw tile and 180 629
granite Regional Contribution: • Punjab has 250 small and medium working units that contribute to this sector Product 2006-2007 2007-2008
Punjab Marble 10059 42016
Raw tile 370 90
Regional Contribution: • The province of Khyber Pakhtunkhwa has reserves worth of 158 million tons. Product 2006-2007 2007-2008
KPK Marble 428649 196545
Raw tile 2528 1044
World Exports: • As of of the year 2009-2010 the world exports are:
World Exports US$62 Billion
Pakistans Exports US$59.79 Million
Pakistans share in world 0.096%
exports Major Importers: Country Estimated Value per year (millions) China 3,907.71 Italy 2,323.06 Germany 1,651.5 Turkey 1,284.13 India 1,256.9 Japan 941.46 United States 898.2 Problems faced by the industry: • Power shortages • Unfavourable law and order situation in selected parts of the country • Use of outdated quarrying techniques • Lack of proper infrastructure • Absence of value addition • Absence of government cooperation and coordination How the industry can be improved: • Upgrade operational and abandoned quarries and processing units • Handling, cutting, storing and transportation must be significantly improved • Production volumes must be expanded to match the availability of exploitable reserves in line with market demands • Mine-operational performance could be improved and financial losses due to wastages minimised by introducing latest technologies. How the industry can be improved: • Develop infrastructure in areas where the stone deposits are located • To meet the industrial power needs, investors must be encouraged to install and maintain their own coal-power plants • The Pakistani governemt should introduce business-friendly laws • Help establish training centres for the workforce and provide a safe and healthy work environment Steps taken by the government: • The government is in collaboration with USAID on how to make the industry globally competitive. • The Pakistani government has also taken anti-dumping actions against Chinese goods by placing tariffs on them which has boosted the local industry of marbles and tiles. It improved local production to 23% • https://tribune.com.pk/story/972426/tile-smuggling-local- ceramic-industry-in-hot-water/ • https://dailytimes.com.pk/133428/local-manufacturers- call-continuation-regulatory-duty-imports-ceramic-tiles/ • https://www.thenews.com.pk/print/141334-Tile-makers- seek-30pc-increase-in-import-price • https://tribune.com.pk/story/845840/driving-local- industry-tile-producers-complain-over-unfair-price-of- imports/ PASDEC: • Pakistan Stone Development Company (PASDEC) is playing an integral role in the marble sector by continuously exploring and starting new projects. • PASDEC has recently established 29 prototype projects of marble, 2 warehouses at Gaddani and Risalpur for storage of raw stone and finished products of marble.