WOOD INDUSTRY

ASSIGNMENT # 3
MOHAMMAD HASSAAN ANSAARI – 16999
SHAEEL SIDDIQUE – 17411
SYED HAIDER RAZA -17392
The wood industry falls under the wide sector of agriculture, and sub categorized as forestry. Furniture
has the carry over to the manufacturing sector. It employs about 500,000 people and contributes
roughly 0.3 to 0.6% to the GDP of Pakistan over a span of the last decade. Forests supply a huge amount
of Pakistan’s total energy needs, in both rural and urban areas. In the furniture market, 95% of the
country’s demand is met by wooden furniture. Mostly, the demand is met locally; however there are
several importers of lumber and other types of woods. (“A Look into Pakistan’s Furniture Industry –
Business Recorder” n.d.)

Pakistan has the highest rate of deforestation according to Lahore High Court. The country has 3.32
million ha of forest equal to 3.9% of the total land area. (Iqbal 2019) The average in the world is 1.0 ha
per capita, but Pakistan is considered forest poor due to only having 0.05 ha per capita. Annually 27000
ha of forests is cut down. Considering the costs to benefits; the value of intangible benefits from forests
is almost 8 times greater than tangible benefits from the products of forestry. This is mainly due to
unchecked deforestation and the role of the timber mafia. Firewood/Fuel wood is the most inefficient
use of wood. Forests supply 32% of total energy needs in Pakistan although the value addition is minimal
to the potential(“An Overview of Forest Products Statistics in South and Southeast Asia” n.d.). Despite
the governments’ efforts in the past decade, the timber mafia usually goes unregulated. Excess
deforestation has a negative effect on the crop sector of agriculture in the form of erosion of fertile soils.
Use of firewood affects sheesham and timber, which are valued types of woods, as they are often cut
down pre maturely.

The industry of crafts and furniture is one that has massive potential. However this potential has been
untapped in the previous decade. The demand for furniture exists in countries such as Britain, where
Harrod, an official furniture retailer, stocks Pakistani furniture products.(“Prospects and Fears for
Pakistan’s Furniture Industry | The Express Tribune” n.d.) The country also has a history of
craftsmanship, and Chiniot is known for its engravings and brass inlays in furniture. Chinioti furniture
contributes to 80% of total demand. The problem lies in the mechanization and development of the
manufacturing units. Overall, there are some 700 units of production of which most are cottage and
small scale. In exhibitions abroad, the Pakistani furniture was displayed and loved by European and
Asian craft lovers, which brought back hefty orders to the country. However, due to the lack of policies
and scale limitations, the demand could not be catered to. These small units still use outdated tools and
manual labor. Sheesham, which is the most valued wood when it comes to furniture, over the years, has
lost quality and quantity. Premature cutting and use for firewood are the main factors. Moreover, it
costs 4 times more to import sheesham. Lack of distrust by foreign firms, due to lagging quality accounts
to decreasing furniture exports. The raw materials used in furniture production have increased, which
has given the supplier a leverage to charge higher prices. China as the industrial hub of the world has
penetrated Pakistan with inexpensive machine produced furniture that has pushed down local sales by
30%. However, what Pakistani furniture industry differentiates upon is the customization and handicraft
of furniture, and new entrants would enhance the competition in the local industry. Moreover, lack of
capital investment means that woodworkers use outdated machinery and mostly manual labor which
provides a far lesser value addition as compared to developed countries such as Germany. [ CITATION
NAI18 \l 1033 ]
The government has been urged to boost its exports and raise foreign direct investment(“Pakistan
Furniture Council to Help Boost Furniture Exports” n.d.). Currently, the total focus of the industry is
furniture, sporting goods, paper, particle boards etc. In the past, policies relating to forestry have been
made in isolation. The policymakers need to coordinate with other policymakers in wildlife, agriculture,
and tourism sectors for sustainable development. The by-products of the industry are not being
efficiently utilized. These include Sawdust and wood chips.

The paper sector mainly serves domestic purposes, with big players like Packages and Century paper.
Pakistan has a competitive advantage over India in 7 different categories of paper products. Exports are
minute since most of the trade is conducted only bilaterally. Pakistan also makes sporting products, of
which cricket bats are the first choice for many international greats. India, however, is ahead of Pakistan
as the world’s biggest sports manufacturer. The sector was hit after the tragic attack on the Sri Lankan
team in 2009, but with the reemergence of cricket in Pakistan has led to some breath of fresh air.(“From
Timber to Sixer: How a Pakistani Bat Manufacturer Shaped Cricket - Newspaper - DAWN.COM” n.d.)

The government has to be vigilant in making policies for this sector as they can act as a double-edged
sword. Keeping a check on the deforestation rate, while making efficient use of the forest products, is
surely a hard task. As discussed above, Pakistan is one of the countries which are at the highest risk of
environmental damage. For starters, the potential of the furniture industry should be tapped since it
seems the most promising out of all the wood related industries. Production units should be upgraded
from small scale to a mechanized level. Training units for craftsmen should be established, along with
wood works institute and testing laboratories to meet international standards. These are some of the
opportunities that can make the furniture sector grow. However, the deforestation factor should also be
taken into account. The government should strictly introduce and implement policies that require
logging companies to plant 10 trees for every 1 tree cut down, and a ban should be imposed on less
profitable uses of valuable woods such as sheesham and rosewood. The Japanese and European
markets have a market for Pakistani furniture; but in order to do so, the government should introduce
business friendly policies such as revising tax rates and import duties for the industry. All these
measures can successfully negate the threat incurred by the influx of Chinese wooden products and the
turmoil caused by excessive load shedding.

Bibliography
Mubashir, A. A. (n.d.). Paper and Paperboard Sector. Pakistan Institute of Trade and Development.
Retrieved from http://www.pitad.org.pk/Publications/26-Pakistan%20India%20Trade
%20Liberalization%20Sectoral%20Study%20on%20Paper%20and%20Paperboard
%20Industry.pdf
NAILA NAZIR, L. S. (2018). Forest Wood Consumption and Wood Shortage in Pakistan: Estimation and
Projection through System Dynamics. The Pakistan Development Review, . 73–98.

“A Look into Pakistan’s Furniture Industry – Business Recorder.” n.d. Accessed February 18, 2020.
https://fp.brecorder.com/2011/09/201109091230079/.
“An Overview of Forest Products Statistics in South and Southeast Asia.” n.d. Accessed February 18,
2020. http://www.fao.org/3/ac778e/AC778E15.htm.
“From Timber to Sixer: How a Pakistani Bat Manufacturer Shaped Cricket - Newspaper - DAWN.COM.”
n.d. Accessed February 18, 2020. https://www.dawn.com/news/1214638.
Iqbal, Nasir. 2019. “Pakistan’s Deforestation Rate World’s Highest, Observes LHC.” DAWN.COM.
September 4, 2019. https://www.dawn.com/news/1503365.
“Pakistan Furniture Council to Help Boost Furniture Exports.” n.d. Accessed February 18, 2020.
https://www.globalvillagespace.com/pakistan-furniture-council-to-help-boost-furniture-
exports/.
“Prospects and Fears for Pakistan’s Furniture Industry | The Express Tribune.” n.d. Accessed February
18, 2020. https://tribune.com.pk/story/19304/prospects-and-fears-for-pakistans-furniture-
industry/.