Company set up to boost furniture exports

A company 'Furniture Pakistan' has been established at a cost of Rs 590 million with an aim of setting up a training institute and producing skilled manpower to give a boost to the furniture exports.
Addressing a press conference, the company's first chairman Shahbaz Aslam said though the accurate data regarding the furniture exports is not available, yet it has been estimated at only $15 million by Smeda and we have planned to take it to $1 billion by the year 2015.
Briefing about the formation of the company, he said that Smeda and J.E Austin Associates, which is a consultation company had invited the stakeholders to discuss and exchange views regarding the furniture sector's problems so that these could be resolved through a certain platform.
As a result, a company namely Furniture Pakistan was decided to be set up in the country in line with the government policy to promote non-traditional items' exports.
Initially, training institutes would be established in Chiniot and Peshawar, which would produce skilled manpower and while collaboration would be sought from Germany and Italy to impart training to the master trainers.
Out of the total funding of Rs 590 million, Rs 150 million were allocated for setting up of company which would be comprised 75 percent Board members from the private sector and 25 percent from the public sector, he maintained.
Shahbaz further said that Pakistan with only 3-percent forested land was lagging behind in forestation as compared to those countries having 25 percent to 60 percent forest of the total area.
To avoid further deforestation, we would prefer to import wood for which the government has reduced duty from 25 percent to 5 percent while machinery import has been made zero rated in the next budget so that the furniture industry could flourish in the country.
Similarly, an amount of Rs 30 million has been made available for attending exhibition abroad and the board has been authorised to decide participation in the exhibition, he said.
"If one-third attention is paid to the furniture industry, it could yield three times more than the textile sector," he opined. Speaking on the occasion, Dr Warren Weinstein, Country Director J.E Austin Associates said that first ever testing laboratory would be established to test the quality of wooden furniture so that its credibility for the exports could be enhanced.
The company would develop its linkage with Germany, United Kingdom, Italy and other countries. He appreciated the role of Pakistan Council of Scientific and Industrial Research Laboratories in developing the industries in the country. Zonal Chairman FPCCI, Azhar Saeed Butt and Sh. Muhammad Ali, also spoke on the occasion.