The centuries old cutlery industry of Wazirabad which has an annual export of $34 million is facing crisis due to the dumping of cutlery from China, insufficient micro-credit facilities, depreciated or outdated technology, minimal support from the government institutions and dearth of trained manpower.
The sources connected with the cottage industry and small enterprises told Business Recorder here on Sunday that Wazirabad is an important part of the 'Golden Industrial Triangle' of Gujranwala, Sialkot and Gujrat, as it shares its geographical location with the Sambrial dry port, located on the road linking Wazirabad with Sialkot.
The recently constructed airport in Sialkot is also in the vicinity. There are around 300 production units, out of which 110 are members of the Cutlery Association of Pakistan.
The sources said that the history of cutlery industry in Wazirabad dates back to Alexander the Great when he repaired his swords in the region. The production of swords, daggers and knives flourished during Moghuls and British era.
According to the local producers, exports of cutlery from Wazirabad started in the year 1952. The last time the government of Pakistan transferred technology to the industry was in 1962 by establishing a training institute.
The machinery transferred was mainly German and it gave substantial technology advancement to the industry. The technology-transfer also benefited other industries as Bata, Service shoe company, Pak Fans etc used the institutes' facilities to prepare dies. A second institute for the training of labour was set up in 2001 by the Federal ministry of industries. However, this institute lacked basic technological and financial resources.
The policy planners and economists say that a co-ordinated policy between different federal institutions can provide a major impetus to the cutlery and other cottage industry in Wazirabad, making it competitive enough to face future intra-regional and international trade challenges, particularly in the face of the WTO.
They are of the view that the labour availability, the industrial history of the city and geographical significance of the area can play a crucial role to convince major domestic and foreign investors to invest in the industry. The local producers are willing to have a partnership with the government and other investors.
The economists say that these factors contribute to make it an ideal location for a government sponsored industrial zone or export promotion zone (EPZ) with preferential incentives, credits, and institutional support, as done by China to promote its industry. They add that the industrious, innovative, intelligent and competitive people of the area have the potential to bring about an industrial revolution in the country.
The local producers and investors have suggested two locations for setting up EPZ ie Wazirabad Bypass linking Gujranwala with Gujrat or Dry Port Road linking Wazirabad with Sialkot.
The industrialists say that the imported technology transferred in the year 1962 has either depreciated or become outdated, however, and at present advancement in the industry can only be achieved by transferring technology within Pakistan. For instance, laser cutters can be manufactured in the Lasers laboratory of the Atomic Energy Commission of Pakistan.
They apprehend that the present state of government-sponsored technology transfer and labour training institutes cannot provide the required facilities to the small and medium sized enterprises.
TECHNICAL ASSISTANCE IS ALSO REQUIRED IN THE FOLLOWING FIELDS:
1. Computer aided machining (CAM) of tools and Dies,
2. Pressure die-casting (metals)
3. Injection Moulding (Non-Metals)
4. Knife Blade manufacturing & grinding,
5. Heat treatment of cutlery items (atmospheric controlled)
6. Welding (advanced)
7. Electroplating
They say that around 25,000 people are presently employed in the industry and 80 percent of the existing labour is disorganised and working in segmented markets. In order to ensure a trickle down effect of the expansion of industry, labour institutions have to be strengthened.
The cutlery manufacturers further say that 85 percent of the steel used in production is imported from countries like Japan, Germany, and France as they have quality-related concerns over locally and nationally produced steel, adding that the duty on imported steel is detrimental for the competitiveness of the industry.
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