API Final Report|
Date of Submission:June 11, 2012|
Submitted to: Ms. Tahira Jaffery|
Submitted by:Fariha KhalidHafsa AlviSundus IftikharSyeda Hafsah HasanSyed Aqib Shah|
The purpose of this report was to examine the export related problems prevalent in the salt sector of Pakistan. Research for this report included interviews with the salt exporters and manufacturers in Pakistan. We interviewed, Mr. Ismail Suttar of Hub Salt, Mr. Mehtab of Al-Amin salt, and Mr.Abdul Razzak, a salt exporter. The results of our research are based on the insights from the salt representatives and through a deductive approach. The research findings suggest that a major issue encountered by the sector is minimal support from the government bodies. The report further discusses the primitive techniques of extracting methods used in the salt sector which hinders efficient productivity. It talks about water contamination which is yet another issue that prevents extraction of pure salt from the sea. Moving further, the report takes account of the rising fuel costs and inflationary pressures in Pakistan affecting the salt prices overall. According to our research labor issues were also found to be an important factor impeding growth of some companies. Proceeding with the findings, the report includes the adverse impact of changing weather conditions and unexpected rainfall on the salt reserves and salt processes. While it is clear that the industry is going through a series of problems, the report recommends that certain issues if resolved could bring prosperity to this sector. First and the foremost, corruption needs to be reduced, followed by an extensive support from the government bodies. The report proposes that if research and development is enhanced, labors are trained with the required skills, the shipping port capacity is increased and water pollution is controlled, the exports of salt can achieve a dramatic rise.
Table of Contents
Technology and Infrastructure7
Water Contamination and Pollution9
Lack of Government Support11
Tapping Potential Export Markets14
Training of Labour15
Subsidies, Duties and Loans16
Salt is one of the most essential commodities and its significance has prevailed since ancient times. Pakistan has abundant deposits of all three kinds of salt, namely Rock Salt, Sea salt and Lake Salt. The Salt Range of Pakistan is one of the world’s biggest Salt ranges and two of the famous salt mines located there are Khewra Salt mines and Warcha Salt mines. This Salt Range stretches from Kalabagh to Jhelum and covers the districts of Mianwali, Chakwal and Jhelum in the Punjab. Khewra Salt Mines is situated at the distance of 160 km from Islamabad and 260 km from Lahore in Tehsil Pind Dadan Khan District Jhelum.
Discovery of Rock Salt dates back to days of Alexander the great, where during his campaign against Raja Porus it was noticed that the horses were licking the rocks. Later on the the Moghuls exploited this salt and then the Sikhs, where after the British took over this natural resource after annexation of Punjab in 1849. It was in the year 1872, when scientific mining operation started under the British rule and it has been prevailing ever since. Around 34% salt is produced in the Asian region and Pakistan is one of the few countries that produce Rock Salt, along with Uzbekistan and Thailand. Over a 100 countries in the world produce salt and the production is increasing by 3% every The table below shows the production of salt by region:
Table 6: World: Salt production by region,...