wood supply and demand analysis

2. WOOD UTILIZATION
AND ITS STATUS IN
PAKISTAN

3. Utilization
Status In Pakistan
 Demand analysis
 Supply analysis
 Issues and Suggestion

4. Forests are one of the man’s very important
natural resource for recreation.
The purpose of the forests in which the
foresters are interested, is its utilization.
IL lick defines forest utilization as
"converting standing timber and products
into forms and commodities usable by
mankind."

5. Wood utilization
“That branch of forestry which deals with the
most advantageous and suitable methods of
collecting, harvesting, converting and disposing
profitably of forests produce in accordance with
the result of experience and study, The most
complete satisfaction of our wants and securing
of highest possible profit.”

6. Wood Utilization
• The earliest and most important use of wood
was for protection.
• Ancient people use wood to protect himself
against the forces of nature.
• Bark shelters grew into thatched huts, huts into
cabins, cabins into frame buildings.
• vast amount of wood yet in demand assures its
continued use as a raw product.

7. Classification on the basis of uses
Timber
Round wood with mid diameter of greater
than 20 cm is called timber and is mostly
used for industrial purpose.
 Firewood
Round wood with mid diameter less than
20 cm is called Fuel wood and is mostly
used for burning and charcoal making.

8. Timber

9. Used in Superstructures

10. Used in contact with ground

11. Used in contact with water

12. Used for boats and ship buildings
38% Deodar
32% Shisham
24% Teak
6% Kikar

13. Used for boats and ship buildings

14. Used in joinery and cabinet making
82% Shisham
Deodar
Poplar
Mulberry

15. Used in machinery

16. Used for vehicle parts
60% Deodar
40% Shisham
25% Fir
10% Chirpine

17. Used for miscellaneous products

18. Used for miscellaneous products

19. Used for important wood based industries
 Air crafts timber industry
 Battery separators industry
 Match industry
 Packing case industry
 Paper and pulp industry
 Pencil industry
 Plywood and Lamin board industry
 Rifle stock industry
 Sports goods industry
 Tools handles industry

20. Used for Construction
 30% of total

21. Used in Packing case industry
 8000 sawmills at small level
 12 sawmills at large level
 70% Shisham
 12% Deodar
 7% Sufeda
 3% Poplar
 3% Babul

22. Used in Village carpentry
o Furniture
o Agricultural implements
o Doors and windows
• 38% Babul
• 16% Shisham
• 8% Deodar

23. Used in Match Industry
 12 match factories in Pakistan
4 in KPK
4 in Sindh
3 in Punjab
1 in AJK
 All the match splints are made from Poplar

24. Used in Particles board
 Chipboard made by mixing wood chips with
glue and pressing the mixture into a panel.
 Of the 11 plants using wood
 6 are in Sindh
 4 in Punjab
 1 in KPK
 Mostly used species is Poplar which 30%

25. Particles Board

26. Used in Fiber board
 5 fiberboards plants in our country
 Mainly used species are
Babul which is 97% and 3%Eucalyptus

27. Used in Plywood manufactures
 17 plywood plants in Pakistan.
10 of them are in Punjab
6 are in Sindh
1 in KPK
 Plywood can be made from hardwood such as teak
wood or as well as from softwood such as pine,
cedar or mango wood.

28. Ply Wood

29. Used for Sports goods
 Pakistan produces and exports a variety of
sports wooden products including hockey
sticks (about 60% of the world supply)
crickets bats, tennis and badminton rackets.
 Hockey sticks are made from Mulberry.
 Poplar is now used for 80% of them.

30. Fuel wood
Wood energy is a dominant
source of energy for over
two billion people
particularly in household in
developing countries.
Biofuels especially fuel
wood and charcoal currently
provides more than 14% of
the world’s total primary
energy.

31. Used in Charcoal kilns
 It takes about
10kg of wood
though to make 1
kg of charcoal.
 About 8% of the
wood is used in
Charcoal making.

32. Used in Commercial sector
 Hotels/restaurants
 Tea bars
 Ovens
 Bakeries
 Tikka shop
 Barber shops
 And others such as milk shops, sweet shops etc.

33. Used in Brick industry
 On average 83.370m³ and 290 tons of coal are
used to cure 1 million bricks.
 13 tree species are reported to use as fuel wood in
brick industry.
 Mostly used species are Eucalyptus and Kikar.

34. Used in Tobacco curing
 Pakistan’s annual tobacco production ranged
between 64.700 tons to 89.200 tons.
 About 3% of fuel wood is used in tobacco curing.

35. Used as biomass
 The use of wood biomass as fuel for energy
production is not new.
 Thousands of wood-fueled projects
producing power and heat, largely for
industrial applications throughout the
world.
 Electricity generation.

36. Status in Pakistan
 Pakistan has limited timber and wood resources
 Out of the total land area of 87.98 m ha, forests
cover only 4.4 m ha (4.96%) against desired level of
25% considered essential for sustainable economic
development.
 Forests include State-owned forests, communal
forests and privately owned forests.
 State forests cover 1.29 m ha
 communal and privately-owned forests cover 3.1 m
ha located primarily in the KPK and Punjab (GOP
2008)

37. Status in Pakistan
 Species found in Hilly areas of Pakistan are
Fir (Abies), spruce (Picea), deodar (Cedrus deodara),
blue pine (Pinus wallichiana), Chir pine (Pinus
roxburghii), Chilghoza (Pinus gerardiana) and juniper,
as well as broad-leaved species like oak (Quercus), maple
(Acer), walnut (Juglans regia), poplar (Populus)
 In irrigated plantations, species such as sheesham
(Dalbergia sissoo), mulberry (Morus Alba), bakain
(Melia azadarach) and semal (Bombax ceiba) are
grown for timber.

38. Status in Pakistan
 Pakistan is still a forest poor country with only 0.03
ha of forest are per capita of population.
 Reasons of low forests area are
1. Firstly, Pakistan inherited a very small forest area
at the time of independence
2. Secondly, most of the land area is arid and receives
too less precipitation to support growth
 As per Forestry Sector Management Plan (FSMP)
study in 1992, there was a wood shortage of about
15 million m³ in 1992 which increased to 29.36 m³ in
2003 and projected to be 43.97 m³ by 2018 (GOP
1992).

39. Wood Demand Analysis
Wood Consumption
 Wood is consumed in 2 ways.
1. Timber
2. Fuelwood

40. Timber Consumption
 Per capita timber consumption is 0.08 m³.
 Thus total timber consumption is estimated
at 13.57 million m3 in 2011 for population
of 170.52 million.
 Major requirement of timber is being met
from farmlands plantations (91.4%)
followed by imports (5.22%) and state
forests (3.34%; GOP 2005).

41. Timber consumption
 In irrigated plantation forests, species such as
sheesham, Kikar, Eucalyptus, mulberry, Poplar,
Bakain and Semal are grown which provide
timber for furniture and sports goods .
 Forests in the foothills are based on broad-leaved
evergreens, with main species of olive and phulai.
Deodar, Pertal, Kail, Shisham, Kikar/Babul,
Mulberry, etc. are the main wood species used for
construction and furniture.

42. Fuel wood consumption
 Per capita consumption of fuel wood is 0.205 m³.
 Total fuel wood consumption is estimated at 34.95
million m3 in 2011 for the population of 170.52
million .
 The species preferred for cooking are Kikar, Phulai,
Shisham, Ber, Mulberry and other because of their
good burning qualities.
 There are three sectors consuming fuel wood.
Household sector
Commercial sector
Industrial sector
Fuel wood consumption

43. Household sector:
 75% of the households have used wood as a principal
fuel for cooking.
 14% for water heating.
 11% for room heating.
 The situation is quite different by urban/rural divide
 90% in rural areas have used fuel wood for cooking but
only 10% in urban areas by slum dwellers (GOP 2005).
 Punjab has highest consumption.
 Sindh has applied electricity due to high level of
urbanization and dominance of Karachi.
 In KPK including FATA/PATA, Gilgit -Baltistan and
AJK where forest resources are highest, the majority of
the population has consumed fuel wood at the
household level.

44. Commercial sector
 Hotels/restaurants
 Tea bars
 Ovens
 Bakeries
 Tikka shops
 Barber shops and others such as milk shops, sweet shops,
etc.
 The fuel wood consumption by mode of business at the
country level has been estimated at 3.3% of the total fuel
wood consumption (GOP 2005).

45. Industrial sector
 Brick industry.
 tobacco curing units.
 charcoal kilns
 Coal industry
 some minor industries such as pottery and ceramics, lime
manufacturing, groundnut/turmeric curing, gur making, black
smith, dyeing, washing, silk cocoon processing, local medicines.
 fuel wood consumption in this sector goes to social ceremonies
(27%) followed by Coal production (24%), brick making (20%),
other industries (18%), charcoal making (8%), and tobacco
curing (3%).Total consumption of these wood based rural
industries is estimated at 4.703 million m³ (GOP 2005).

46. Sector wise wood consumption
 Capita wood consumption (timber plus fuel wood) is
0.285 m³ .
 While total wood consumption in the country is
estimated at 47.73 m³ million m³ in 2010 for the
population of 167.72 million.
 Three sectors which consume fuel wood in Pakistan

47. Wood supply and demand survey
 household sector has emerged the largest consumer (81.8%)
 industrial fuel wood entrepreneurs (14.9%)
 commercial (3.3%)
Sectorial distribution of timber
consumption
 major contribution goes to sawmilling (21%)
 housing sector 19%
 crates and box making (13%)
 miscellaneous wood based industries (10%)
 truck/bus boding building (9%)
 village carpentry (7%)
 sports goods (5%) and the rest 16% share goes to mining, boat
making, ply wood, chip/hard boards, wood aircraft, railway
tracks/carriages, pencil and match box industry etc.

48. Province wise wood consumption
Province Wood consumption %
Punjab 49.15%
KPK 17.9%
Sindh 16.77%
Gilgit Baltistan 9.73%
Baluchistan 6.43%

49. Projected wood consumption by 2025
 Per capita timber consumption is 0.08 m3
 Per capita fuel wood consumption is 0.205 m3.
 Currently total wood consumption is estimated at
48.52 m³ for the population of 170.5 million
 Projected wood consumption is estimated at 51.72,
55.64, and 59.44 million m³ by 2015, 2020, and 2025
respectively.

50. Projected wood consumption by 2025
Year Population
(Million)
Timber
consumption
(million m³)
Fuelwood
consumption
(million m³)
Total
(million m³)
2011 170.51 13.57 34.95 48.52
2015 181.74 14.47 37.26 51.72
2020 195.49 15.56 40.08 55.64
2025 208.84 16.62 42.81 59.44

51. Wood supply analysis
Wood supply sources
 3 major sources of wood supply
1. State Forests
2. Private forests and farm lands
3. Imports
 average production of commercial forests is less than half
(41.5%) of the total area under forest and the rest (58.5%)
are protection forests (GOP 2005)
 The biggest forest resources of Pakistan are the coniferous
forests in north, north east and North West constituting
39.3% of the total area under forest cover.

52. Wood supply sources
 Irrigated plantations mainly in the provinces of Punjab
contribute (5.8 %)
 Riverine forests (6.2%) especially in Sindh
 non-productive forests in the hills and plains are scrub
forests (36.7%) and coastal forests (11.3%).
 Out of the total timber used in the country, 91.4% is
coming from farm lands
 99.8% of the total fuel wood requirement is being met
from farm lands (GOP 2005).

53. Wood supply channels in domestic market
 Sale depots of territorial forest divisions in the
country are major source of timber and fuel wood
supply.
 A large scrap of timber is sold by government
timber markets. i.e. Forest Developing
Corporation (FDC) and Azad Kashmir Logging &
Saw-Mills Corporation (AKLASC)

54. sources of local wood supply
 Own lands (61%)
 Markets (34%)
 Others (5%)
 In rural areas majority of the population have
obtained from non-forest sources (farmlands, wild
lands)
 Usually obtained by pruning of trees or cutting
shrubs.
 In urban areas, the distribution channel is short;
markets (wholesaler and retailer) are reported the
major source of supplies.

55. Impact of Ban imposed on state forests harvesting; Comparative analysis
 The federal Government imposed a general ban on
commercial timber harvesting throughout Pakistan in
September 1993 to reverse the process of forest deterioration.
 Ban was lifted for one year in 2001
 As a result of the ban, legal harvesting and marketing
declined but illegal harvesting.
 The volumes of such unrecorded illegal harvesting and
marketing continued in a dimension more than ten-times
larger than the timber out-take recorded by the forest
department (Fischer et al 2010).

56. Production of Timber and Fuel wood from the State Forests
A comparison of timber and fuel wood production from the
state forests is made for the base year when ban was
imposed and the wood production currently.
Source: Forest Economist, Pakistan Forest Institute, Peshawar
Source Reported for
the year
Timber(million³) Fuelwood
(million³)
GOP 1994 1992-1993 0.3721 0.320
GOP2009 2007-2008 0.139 0.065
Difference
(decline in
wood
production)
0.232 (63%) 0.255 (80%)

57. Impacts of Ban
 Decline in timber and fuel wood production
can be largely attributed to ban.
 Rise in timber prices forced private owners of
the forests to cut forests illegally and sell the
same by all means.
 Rise in timber prices forced private owners of
the forests to cut forests illegally and sell the
same by all means.
 Rise in prices of timber have invited timber
mafia.

58. Production Gap
 Annual per capita wood consumption
0.285 million m³
 Currently total wood consumption
48.52 million m³
 Forest growth as sustainable annual wood supply
14.4 million m³
 Annual wood shortage
34.12 million m³
70%
 Analysis shows that if there is no increment in wood supply on
sustainable basis then this gap is going to be at 37.32, 41.24,
and 45 million m³ for the year 2015, 2020, and 2025

59. Imports of wood and wood products
 Huge increment observed from Rs. 9.76 billion in 2001
to Rs. 17.58 in 2004 and then drastic decline at Rs.
4.5 billion in 2005(GOP 1990-2009)
 During 2008-09, wood and wood based products
worth Rs. 5.4 billion
 the imports of timber constitute 76%
 the imports of wood products constitute 20%
 pulp and paperboard and the rest 4% are miscellaneous
items (GOP 2009)

60. Country-wise imports of wood and wood products in
Pakistan
 Round wood: Afghanistan, Malaysia and Singapore.
Softwood is imported from Afghanistan and teak and other
non-coniferous wood from Malaysia and African countries.
 Veneer and plywood: Indonesia, China, Malaysia, Singapore
and USA.
 Sawn wood: UK, USA, Romania, Malaysia and Singapore.
 Wood Pulp: Sweden, Switzerland, USA and South Korea.
 Paper and Paperboard: France, Sweden, Japan, Italy,
Finland and South Korea.
 Packaging materials: Brazil, China, Italy, Poland, Spain,
Romania and USA.

61. Country-wise imports of wood and wood products in
Pakistan
 Other paper and paperboard not elsewhere specified:
France, Japan, South Africa, Norway, Spain, UK
and USA.
 Special Coated Paper: Asian Countries, Finland,
Germany, Italy, Norway, Poland, South Korea, UK
and USA.
 Copying Paper: China, Japan and UK.
 Household Sanitary Papers: China, Dubai, Norway,
South Korea, Thailand, UK & USA.
 Packaging Cartons and Boxes: Austria, Australia,
Dubai, Switzerland and USA.

62. Why Imports – Contributing Factors
Low wood Production coupled with
increasing demand in the country
High prices of local wood
Quality concerns
Shortage/lack of desired species

63. Price Structure of Local and Imported Wood
 Prices for local wood have increased 100% within
one decade (on average 10% annually) whereas
imported wood prices have increased by 40% within
two years (approximately 20% annually). Increment
in prices of imported wood is double than increase in
prices of local wood increase because
a) Increase in global wood demand resulted in
increased wood prices at international market
b) Devaluation of Pakistani rupee make imported
goods more expensive

64. Current Price Structure of Local and Imported Wood
Type of timber Un sawn wood
(local timber
Rs./cft)
sawn wood
(local timber
Rs./cft)
Sawn wood
(imported
timber Rs./cft)
Pertal 800-900 1080-1215 850
Kail 800-1400 1080-1890 950
Deodar 1500-4000 2025-5400 2500-4000
Chir 800-900 1080-1215
Sheesham 700-2000 925-2700

66. Deforestation rate in Pakistan
 Deforestation rate in Pakistan estimated at
0.2% to 0.5% annually, the highest in the
world, which accounts for a 4-6 % decline in
its wood biomass per annum
 The total natural forest cover has reduced
from 3.59 million hectares to 3.32 million
hectares at an average rate of 27000
hectares annually

67. Deforestation rate in Pakistan
 The annual wood consumption in Pakistan
is 48.52 million meters against the annual
forest growth of 14.4 million cubic meters.
So it has to suffer a loss of 34.12 million
cubic meters per annum.
 The unchecked cutting of trees has resulted
in rapid deforestation and now the forest
cover is less than 5%.

68. Issues
1. Scarcity and high prices of wood
2. Adverse climatic factors
3. Social, financial and political issues in forestry development
4. Afghan Pakistan Transit Trade Agreement
5. Lack of proper record
6. Increasing Import of Wood
 Rise in demand
 Informal Import - Afghan Pakistan Transit Trade Agreement
7. Lack of Involvement of Private Sector
 Adverse climatic factors
 Lack of Support of Public-sector

69. Options and Way Forward
 Widening of production gap call for forestry sector
development:
1. Forestry sector development
2. Commercial timber plantation
3. Planting fast growing and high yielding tropical species
 Fuel wood plantations can be made in potential areas
a) Hillocks which are not suitable for agriculture
b) Along the rivers, canals and drainage channels
c) Roads and railway track
d) Wastelands in potential ecologies and waterlogged areas
including the head reaches of canals and watercourses

70. Options and Way Forward
Watershed based forest management and
restoration programs
Develop strategy and policy for encouraging
the private sector to enter into Private-
Public-Partnerships