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Handicraft exporters losing market due to high inputs cost, taxes

NAYYAR ZUBERI

KARACHI: The exporters and manufacturers of handicrafts and marble products are facing tough competition in the international market due to their high cost of production in Pakistan.

A highly placed government official concerned with small and cottage industries development, said Indian fancy candles were available in the chain stores of USA at one dollar each whereas the production cost of the same or similar candle was over Rs 60 each in Pakistan.

Likewise, China is exporting onyx products to Korea at 1.5 dollars per dozen after importing onyx in raw form from Pakistan. In Pakistan, the production cost of same onyx articles is Rs 85 per dozen.

Replying to a question, he said that high tariff of power and gas and levy of heavy taxes as well as non-availability of finance facilities were the main cause of high production cost.

He said that the government or private sector exporters must devise a system to secure orders from abroad and then provide finance to the craftsmen to manufacture the required products. The craftsmen are very poor and they have no resources to produce goods in exportable quantity or maintain quality, he noted.

He said another way of supporting the craftsmen would be that either the government or private sector provide them raw material and money to meet labour costs.

Besides he said, the government should conduct a survey of this sector and compile a report on the cost and pricing of production in Pakistan comparing it with cost of production in other countries like China, India, Bangladesh, Sri Lanka, etc. as well as in importing countries this would help the government in formulating a package for this sector to encourage them and make them competitive in international market.