Pak Furniture Industry

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Furniture Industry
Empowering Furniture Manufacturing based SMEs in Chiniot will result in higher volumes of Furniture Exports|

Group Member:
Amjad NawazL1S07BBAM0122
Saqib Zahoor KhanL1S07BBAM2044
Zain Bin GoharL1S07BBAM0080
Ammar Akram AlizaiL1S07BBAM0155
Syed Hammad RazaL1S07BBAM

Introduction to Furniture Industry of Pakistan4
Chiniot’s Furniture Industry6
Literature Review7
Prospects and fears for Pakistan’s furniture industry7
Why do small firms fails to graduate to medium and large firms in Pakistan7
Wooden furniture: Great Export Potential8
Dimensions of manufacturing strength in the furniture industry8
Aggressive and passive exporters: a study in the furniture industry8
Handbook On Long Term Financing Schemes  Of State Bank Of Pakistan9
“Empowering Furniture Manufacturing based SMEs in Chiniot will result in higher volumes of Furniture Exports”10
Identification of problem through research11
Exogenous Factors:11
Endogenous Factors:12
Other Obstacles12
Conclusion & Recommendation14

This project was performed to measure the potential of Chiniot made furniture in the foreign market. We feel that lack of government support to streamline this industry is one of the main reasons but the report will enlighten the other factors which made the government uninterested in this sector of industry. A questionnaire was made to test what were some of the reasons this sector of the industry in not flourishing and what can be done so that this industry to perform to its fullest potential.

Introduction to Furniture Industry of Pakistan
Pakistan’s share in the international wooden furniture market is insignificant, despite the fact that the country has a history of craftsmanship and innovation in the field of wooden furniture. The wooden furniture industry represents 95 percent of the total market in the country. The leading furniture making areas of Pakistan are Chiniot, Gujrat, Peshawar, Lahore and Karachi. In terms of exports, Karachi comes first, followed by Lahore and Peshawar. But prospects are not rosy. Exporters are suffering manifold problems while local manufacturers are facing challenges due to heavy imports of furniture. Chinese furniture has also hit the local industry by 70 percent and the sales of locally manufactured household furniture have gone down by 30 percent. Pressure on the domestic industry has immensely increased as other countries like Thailand and Korea have started exporting extensively to Pakistan. At the same time, the high cost of the furniture business has threatened the sector as a whole.  The prices of all raw materials used in making furniture which include chipboard, timber, foam, polish chemical materials, color paints and hard ware have increased. Timber production on the other hand has gone down drastically because of unchecked deforestation. As a result, imported chipboard is used in manufacturing bedroom sets, which sell the most. About sixty percent raw material used in furniture making is imported from China. Imported item mostly used in furniture making are chipboard, hardware items and glass. Pakistan’s major buyers of wooden furniture are the UK, the USA, Sri Lanka and Gulf countries like the UAE, Saudi Arabia, Oman and Kuwait. The United States buys mostly bedroom furniture. UK and the Gulf countries import kitchen furniture and office furniture. For example, the British retail chain Harrods sells some Pakistani furniture at its outlets. In Pakistan, the wooden furniture industry can be categorized into small scale and cottage. These units unfortunately use obsolete machinery, inadequate tools and manual labor for manufacturing wooden furniture. This means high costs and poor output. There are more than 700 units of wooden furniture in the country. The market is divided into home use and contract...
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