By Razi Syed

KARACHI: The Long Term Financing Facility (LTFF) for import of machinery to export oriented furniture sector will largely help its capacity building and in meeting international standards, chairman All Pakistan Furniture Exporters Association (APFEA) said Monday.

The Ministry of Commerce has allowed LTFF to the sector for the import of machinery as well as from local market, chairman APFEA, Maqbool Elahi said.

He said after the LTFF, the sector would overcome its financial stress by a large extent and SMEs with good track of exports could build up their production capabilities.

He said around 7 to 8 percent duty could be affordable for the sector to avail LTFF while advance technology would help exporters to compete.

Elahi asked the government to establish Goods Early Testing Laboratory and Material Testing Laboratory in order to meet the certification requirement of international buyers.

“Italian machinery companies has offered establishment of training centre in the country on import of their furniture making machinery.”

He said the industry has planned Export Strategy 2013 under the directives of the government and Technical Upgradation and Skill Development Company (TUSDEC) would provide technical and training assistance to the sector.

He said the government should take concrete measures to curb the smuggling of sheesham wood to Dubai under the garb of raw material for making boats.

All possible efforts should be made by the government in order to save the precious value added product’s unlawful export.

Former chairman APFEA, Turhan Baig Mohammed, said the export of furniture during July-February 2016 remained around $11.50 million as compared to $9.90 million in same period last year.

Pakistani exporters can now compete with international exporters like China, India, Vietnam and Malaysia. Our export to UAE is indicative of regional trade possibilities and there is a need to explore new avenues in this regard.

He said this sector could touch $750 million export target by 2013 if we are provided training centers for skill workmanship, women development schemes and high tech machinery.

Mohammed said the constitution of a federal timber board, comprising private and public sector members on the board is necessary in order to restructure the sheesham wood plantation and ban on illegal export in the garb of material for boats to Middle East countries.

“We are in touch with Italian and German firms in connection with the set up of training centers besides setting up two Furniture Cities, one each in Karachi and Peshawar”.

The exports to Italy stood around 15.5 percent of the total exports, Canada 10 percent, Germany 9 percent and UAE 19 percent.

Pakistan’s furniture export is around $16 million while the world trade in furniture is about $38 billion.

Source : www.dailytimes.com.pk/