The Pakistan’s sports goods
manufacturing industry is one of the major source of foreign exchange
earnings of Pakistan. It is centralized in and around the city
of Sialkot, where it has flourished as a cottage industry with
most of its production by generations of skilled craftsmen. At
the time of independence, this industry was in an infant stage
with a nominal export of Rs. 0.82 million. The Government took
immediate steps to develop this industry by providing loans and
subsidies to the manufacturers and arrangements were made to market
the manufactured goods. Since then, the industry has flourished
locally and enjoys good reputation in the international markets
as well.
Production
At present, there are more than 2000 units, mostly on small scale
in operation with an installed capacity of Rs. 20 billion per
annum. The units are operating on single-shift basis.
Pakistan produces a wide range of sports goods, accessories, games
and athletic equipment generally following the British, American
and German specifications.
The Government is also enforcing on a compulsory basis, minimum
quality standards for sports goods manufacture. The Pakistan Standards
Institute, a government agency, has devised specific standards
for different types of sports goods. The important items being
produced are tennis rackets, hockey sticks, hokey balls, polo
sticks, cricket bats and balls, footballs, (complete) and numerous
goods used in both in-doors as well out-door games.
At present, Pakistan's sports goods enjoy a world-wide recognition
mainly because of the care that goes into their designing, manufacturing
and selecting of the finest raw materials. The basic raw materials
required for the production of sports goods, are leather, wood,
glue, nylon guts, rubber and chemicals. Out of these, leather
and various kinds of wood are abundantly available in Pakistan.
The industry annually utilises materials worth Rs. 8 billion including
imported raw material.
Exports
This industry is one of the major foreign exchange earners for
Pakistan and is, therefore, receiving full government backing
in its development. It is estimated that more than 75 per cent
of the total production is exported every year.
In fact, the export demand has acted as the main stimulus for
the rapid growth of this industry because of care that goes into
designing, manufacturing and selecting of raw materials. There
are two factors which are responsible of this.
(i) Low price as compared to general price level
(ii) Durability plus good workmanship
Export of sports goods has increased by 23 per cent annum. The
export market for sports goods is fairly diversified. More and
more countries are being added to the list of their imports. In
1990-91 there were in all 50 countries importing these good from
Pakistan. Thereafter, the list has continuously expanded so that
during 1992-2000, Pakistan exported sports goods to more than
90 countries. However, the principal importing countries are Germany,
USA, UK, France and Italy. Others are Spain, Netherlands, Hong
Kong, Denmark, Canada, Belgium, Dubai and Chile.
In the international market, India, Japan, Taiwan and South Korea
are the main competitors of Pakistan. They are supplying their
products at lower prices. While India has an advantage of cheap
labour and raw material Taiwan, Japan, and South Korea have semi-automotive
and mechanized units and are always engaged in introducing cheap
sports goods such as metal rackets and cricket bats etc.
Government has taken several positive steps to encourage the export
of sports goods and has offered various incentives. Customs duty,
sales tax and excise duty rebates on f.o.b. value of exported
various types of sports goods are available.
Another incentive is that import of restricted and tanned raw
materials are also allowed on cash licenses against export of
sports goods. |
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