Although world stone is an over USD 100 billion industry, Pakistan's contribution share stands at a deplorable figure of 0.060 percent. This shows that every market is open to be explored irrespective of their current state of economics, a spokesman of the Association said.
Pakistan Dimensional Stone Strategy Paper prepared by the public sector sometime back estimation that USD 23 million marble sector exports would reach a figure of USD 2.44 billion in 10 years is nothing but a day dream; he said adding it is also Fata/Khyber Pakhtunkhaw specific and not national.
The Association is of the view that if its recommendations are included in the working paper and strategies already highlighted in it if followed with agreed time line with additions of some more activities then we could see this sector showing sustainable development and growth.
The Association, as such, has made following recommendations Mining / Quarrying / Supply Chain:
-- PASDEC and SSDC (Sindh Stone Development Company - Sindh Board of Investment) should enlist all the mines across Pakistan or part of their jurisdiction which are operational and the enlistment should cover mines operating directly by the mine owner or by the contractor working under contractual agreement.
-- After enlistment, survey regarding mine viability should be done to determine current operational modus operandi, deposit strength, work force technical expertise level and monthly production.
-- Survey should also be carried out to determine requirement of investment to up-grade mine to a reasonable level and PASDEC / SSDC should engage their regional offices to carry out this exercise. After conducting the survey, a consolidated report should be prepared, which should highlight aforementioned areas. As part of survey, level of investment should be ascertained by PASDEC with an intention to up-grade mine and production.
- If investment is required to up-grade then simple steps should be laid down to be followed by miners. Initially, stones that are being exported or consumed in big volumes locally should be considered for this exercise. For second phase new stones should be taken into consideration.
This activity would definitely give a near to true figure of our current operational deposit strength. There is a possibility that 25 per cent - 30 per cent mines that are operational might not require huge investment for up-gradation but due to lack of technical expertise their existing operations are resulting in high wastage and less yield.
If this exercise is going to be carried out in its true senses then this would definitely increase technical knowledge of miners and if investment done for up-gradation then production will increase with evident decline in wastages. Up-graded mines will definitely give better and up to standards produce, which will be helpful to bring the cost level down to make our products to have a broader market base.
Besides, as mentioned in strategy paper, phase out strategy should be followed for blasting at the mines. Chemical mining methods can be suggested in place of blasting as they prove to be cheaper than wire cutting. International studies should be taken into consideration for different less-expensive mining techniques conforming international standards.
Processing: This is a least considered zone of this sector. The success of this sector is not only limited to mining/quarrying and marketing but also with value addition. If processing industry will not developed in tandem with quarrying then long-term sustainable success achievement for this sector would be a rare possibility.
Lack of education has been a biggest component that preclude development of this variant. Processors are not properly qualified to ascertain the advantages of modern processing requirements. It's a dilemma but true that Pakistan value added industry of this sector considered as the lowest quality conscious processors by international world.
Stone wastages due to outmoded mining result in increase of cost and wastages due to primitive processing methods add more to this cost regime. The biggest impediment in the development of processing side is financials. Due to lack of financing activities and un-expected exchange rates movement, processors have not been able to up-grade their facilities.
The Association has recommended forming delegations of different groups to visit production/processing plants in Turkey, China, Oman and Italy, which surely considers as leaders in processing today. This would not only enhance knowledge of Pakistani processors but also would instigate to up-grade their facilities by looking at their rate of success.
Marketing / Sales / Trade promotion is the most spoken but least active variant of Pakistani Dimensional Stone Sector. We lack in promoting our material due to financial issues, lack of sources, presentation skills and education. We need to promote our stone into every available market.
The Dutch national eco-labelling Foundation Stichting Milieukeur (SMK) developed a certification scheme for furniture, in which requirements for stone are formulated, concerning, specifically, the extraction of natural stone. In the UK, Marshalls, a company specialised in construction materials including natural stone, has adopted the Ethical Trading Initiative (ETI) code and works towards implementation of this code by its Chinese and Indian suppliers of natural stone.
The European Commission has established an eco-label for hard floor coverings that aims to promote products with a reduced environmental impact compared with other products in the same group. The Association has recommended: Branding of all stones should be done on most immediate basis with test done as required by International Market based on ASTM, BS and EU standards.
Introduce standards to increase quality for raw and finished goods and quality inspection agency should be engaged to carry out testing services and quality inspection services. SGS Pakistan can be considered. Participation in all leading stone exhibitions and delegations should visit and hold B2B meetings in EU, USA, Middle East and Far Eastern Countries. Single Country Exhibitions or Road Shows should be planned specially for USA, Switzerland, Germany, Holland, Qatar, Australia, Tunisia, Libya and Saudi Arabia.
Support should be provided to all exporters to send stone samples to their potential customers (code of conduct can be discussed for this facilitation). TDAP has recommended 2 exhibitions in their 2012-2013 activity calendars, which hold least importance among international stone customers. TDAP should be advised exhibition to be participated in. TDAP should be involved in exploration of new market sources by using their trade offices world-wide and immediate steps should be taken for participation in exhibitions and delegations for market assessments. Machinery / Capacity Building: To study current processing capacities. This study will also help in determining scope of machineries in this sector.
Following are the recommendations Since natural stone is an unknown sector in Pakistan therefore we have to develop a work paper that could invite EOI from Light Engineering Industry sector. PMTF and Heavy Mechanical Complex should be engaged to study this sector machinery requirement and devise solution for their local productions.
Italian Machine Manufacturers should be consulted in order to offer them to set up local production facility in a joint venture for this market. Since market closer to Pakistan does require these machines therefore it could be a good proposition for Italian manufacturers to set up a joint venture facility not only for domestic sales but for exports as well. Special incentive from government should be acquired for a joint venture arrangement and same should be offered to local manufacturer already engaged in engineering sector showing interest for natural stone related machinery productions.