The document analyzes Pakistan's marble and granite industry. It discusses the history and importance of the industry, both globally and within Pakistan. Pakistan has significant marble and granite reserves but the industry is still developing. The government has introduced policies to support the industry's growth, including training programs and industrial zones. With improved technology and organization, the industry has potential to significantly increase production, exports, employment, and contribution to Pakistan's economy.

1. ANALYSIS OF PAKISTAN INDUSTRIES MARBLE AND GRANITE INDUSTRY SHAFQAT ALI ALI TABISH MOHAMMAD ZOHAIR

2. AGENDA INTRODUCTION HISTORY IMPORTANCE & USES WORLD SCENARIO PAKISTAN SCENARIO IMPORTS AND EXPORTS PROBLEMS GOVT. POLICIES AND STEPS FUTURE PROJECTIONS CONCLUSION RECOMMENDATIONS

3. INTRODUCTION Marble is a crystalline, compact variety of metamorphosed limestone, consisting primarily of calcile (CaCO3), dolomite (CaMg (CO3)6) or a combination of both minerals. Granite is igneous rock of visible crystalline and formation and texture. It is composed of feldspar (Usually potash feldspar and oligoclase) and quartz with a small amount of mica (biotite and muss covite) and monor accessory minerals.

4. HISTORY Marble and Granite has been mined and cut for centuries. Mass production was introduced in the 20 th century. In 1960’s, mines development was initiated in Europe. The stone industry registered an annual growth rate of 13.3% since late 70’s. WORLD’S TOTAL PRODUCTION SINCE 1970’s 3400 7385 17625 19350 N.A 13600 13130 26450 27650 50 MILLION 1976 1986 1996 1997 2002 GRANITE 000 TONS MARBLE 000 TONS YEAR

5. HISTORY (cont:) In Pakistan, this industry started to develop in the last 60’s without any quality consideration. At that time, most of processing equipment was locally made at Gujranwala and Lahore. In mid 70’s, few plants were imported from Italy, but were 2 nd generation plants and had no quality consideration. During late 70’s, few large projects and wealthy private housing clients brought imported granite tiles and introduced quality in Pakistan. In last decade, very few units were established in accordance with international standards.

6. IMPORTANCE & USES It contributed in the GDP at a percent of 0.5% (2004-05). It’s demand increases with investment in construction sector. It is used in buildings, masjids, and homes. It is also used in statues and monuments. It create large number of jobs. It’s forward and backward linkages also provide jobs to many people, i.e. Non-Skilled; Semi-Skilled & Skilled Labors.

7. World scenario Dimensional stone are produced in more than 42 countries of the world while 12 of these producers are dominant in the international market i.e. European countries and 3 from Asia and Africa. A major part of production is consumed locally by the producing countries. Today, World’s total production is approximately 65 million tons and consumption is estimated $40 Billion per year. Italy is the world leader in marble, granite and other stone sector. It is leading with 17% of the total worlds production.

8. World scenario (Cont:) Almost 50% of the world’s marble output is consumed in the Middle East , Far East and European countries ; therefore, there is a great demand for marble in these regions. The international marble & granite trade is marked $3.5 billion or 1.987 million tons in 2002-03 (Pakistan’s share was only 0.047 million tons i.e.2%). India has been the main exporter of marble granite for the five years. It capture 15.2% of the world’s total export. Italy has been the largest importer of marble and granite for the five years. It accounted for 39.4% of the total imports.

9. WORLD’S MAJOR EXPORTERS & IMPORTERS MAJOR EXPORTERS VALUE IN $ MILLION MAJOR IMPORTERS VALUE IN $ MILLION 11.3 92.38 81.13 83.04 JAPAN 12.5 102.85 97.60 100.11 SPAIN 19.0 155.82 112.47 100.49 CHINA 39.4 323.59 344.48 350.46 ITALY % Share 2002 2002 2001 2000 COUNTRIES 7.3 51.37 52.42 54.04 CHINA 9.1 63.42 60.98 59.21 ITALY 12.4 86.54 80.88 77.02 NORWAY 15.2 106.55 99.58 102.66 INDIA % Share 2002 2002 2001 2000 COUNTRIES

10. PAKISTAN SCENARIO Pakistan’s marble and granite sector is in its nascent stage of development. The country is currently mining 40 types of natural color marble and also dying the marble in various colors. Marble, combined with granite is included in the list of sixth largest minerals extracted among coal, chromite, rock salt, limestone, china clay, dolomite, fire clay, gypsum, silica and etc. Since 1990 mining and quarrying has consistently contributed 0.5% to the gross domestic product. It is providing job opportunity to more than 40000 people.

11. PAKISTAN SCENARIO According to estimates, there are 160 million tons of marble and more than 414 million tons of granite reserves in the country. 158 million tons of marble reserves are found in NWFP. The process of extraction of marble and granite is very out dated and obsolete. We still use explosives to blast the blocks resulting not only in a high wastage (up to 73%), but also smaller stone size. There are 1600 units and 9 units for the processing of marble and granite, respectively. There are only 25 to 30 units which have appropriate machinery Majority of units operated manually, which causes high rate of wastage.

12. PAKISTAN SCENARIO Pakistan get only 1% share in world total production. 412000 521000 542000 685000 1142000 3.3 MILLION 5 MILLION 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 TONS PRODUCTION

13. REGIONAL CONTRIBUTION BALOCHISTAN: It has nearly 60 operational mines. Total known reserves of marble are around 2 million tons .i.e. 1.5% of total reserves. It has only 60 small size units. SINDH: There are 15 operational mines. The estimated reserves are 1.5 million tons of marble & 1 million tons of granite. It has one large, 180 medium & over 600 small units working.

14. PUNJAB: It has no contribution to this sector, but more than 250 medium and small units are working. N.W.F.P: There are158 million tons of marble reserves found in NWFP i.e.97% of total reservers. REGIONAL CONTRIBUTION (cont:)

15. EXPORT Pakistani marble is being export to more than 60 countries. The 40 per cent export of the marble was in the shape of handicraft while, the rest of 60 per cent in slabs and bricks form. The Exports amounted to approximately $21 million in the fiscal year 2005-06, showing an increase of 28% than 2004-2005 ( approx. $16.4 million).

16. EXPORT Major countries include Bangladesh, China, Hong Kong, Saudi Arabia, USA, Italy, etc. Value in 000$ 2384 1712 USA 235 196 Saudi Arabia 593 670 Italy 93 386 Hong Kong 415 501 China 1000 967 Bangladesh 2000-01 2001-02 COUNTRIES

17. IMPORT Pakistan only import the machine for the process of mining, polishing and cutting etc. Values in US $ 16.3 19.6 19.8 15.9 16.6 % 479.5 606.7 6601 452.4 438 Italian Share 100 100 100 100 100 % 2944 3093 3326 2845 2638 Total 2002 2001 2000 1999 1998

18. PROBLEMS Lack of proper machinery to produce quality production. Lack of awareness and facilitation in selecting appropriate tools for different tools. Untrained workers. Non existence of quality control prices. Poor raw material supply. Lack of distribution channels including raw material and finished goods warehousing. Incapability in supplying consistent product. Ineffective marketing strategy.

19. GOVT. POLICIES & STEPS The federal govt. is inviting the investors, both local and foreign, to invest in marble & granite sector. The Government also directed the Industrial Development Bank of Pakistan (IDBP) to setup a marble processing plant in Quetta for which the provincial Government would provide land. The SMEDA was also directed to provide guidance and cooperation to the industrialists for establishing marble & granite processing plants in the province.

20. GOVT. POLICIES & STEPS (cont).. The Prime Minister of Pakistan announced that an international standard Marble Training Institute would be setup in industrial Unit phase 1 , to promote skilled labor force which would ultimately contribute to the growth of this industry and promote its exports. He urged the private sector to come forward to exploit huge wealth of untapped mineral.

21. GOVT. POLICIES & STEPS (cont).. Last year in 2006 President of Pakistan inaugurated the “marble city” at Gaddani and assured the manufacturers that mining would be undertaken latest technology to avoid wastages. About 300 units would be setup for the marble city on some 600 acres and investments from the citizens of Pakistan from USA, JAPAN, SPAIN and UAE. He also assured other measures to help marble industry as they have failed to utilize boom in marble industry.

22. FUTURE PROJECTIONS It is forecasted that the production increases with a compounded annual growth rate of about 8% per annum. 455000 2025 306500 2020 206240 2015 138750 2010 PRODUCTION 000TONS YEAR

23. FUTURE PROJECTIONS In Pakistan, this sector has a long-term potential, which is ensured by large local reserves, and a growing global market. The export estimate that the country’s export of marble, which is presently $7 million, can be increased to $40 million within 3 years. The experts estimate that the country’s will be increase from $7m to $40m within 3 years. Provided wastage is reduced and reserves should be exploited and market properly

24. Conclusion This sector needs to be organized on modern lines. The induction of modern technology in this sector will increase efficiency of processing units. Improving the standard can only increase the demand of Pakistani products in international market. This sector has great potential to contribute to the national economic growth and for the generation of employment mostly in the rural areas. This sector also needs be organized scientifically with a consistent follow-up by the ministry of industries and production to achieve the export target of $500 million. If the sector is scientifically treated, it can generate more employment to 10000 to 50000 people.

25. RECOMMENDATIONS Government should make a policy. They provide licenses to the firms, discovering marble reserves in previously un explored area. Private sector should be motivated by giving incentives, security, etc for making investments. Technology should be upgraded. This sector needs better marketing campaign.