The massive export of the poplar wood to Afghanistan has threatened the very existence of the profitable match industry in the NWFP and would very soon lead to closure of safety match industry. Pakistan Match Manufacturers Association's former Chairman Adeel Rauf told the Business Recorder on Thursday.
Pakistan has a total of 24 match-manufacturing units, out of which 20 are located in NWFP as the poplar, a basic raw material used in the manufacturing of safety matches, was available in abundance and cheap rate.
Until two and half years back, it was available at Rs 80 per mound, but the massive illegal export of the poplar to Afghanistan shot up its price by 300 percent and now it is available at Rs 250 per mound.
" Even at this exorbitant price, the availability of poplar to the safety match industry is becoming increasingly difficult," he added.
This is all going in the garb of shuttering material exported to Afghanistan for construction of buildings and bridges in the ongoing reconstruction prices in the neighbouring country. Daily 25 to 30 trucks, loaded of poplar wood, is finding its way across the border into Afghanistan weighing 30,000-kilogram each worth Rs 125,000 ie 56,250 dollars for 30 trucks.
"30 trucks of poplar wood is approximate raw material for 550,000 gross matches, worth 330,000 dollars in foreign exchange ie value-addition of around 273,750 dollars is being lost each day by the government of Pakistan due to unchecked transportation of poplar wood to Afghanistan," Adeel Rauf elaborated.
The matter has been brought into the notice of both federal and provincial government and NWFP Governor Khalil-ur-Rehman has even written a letter to Federal Minister for Commerce Hamayun Akhtar Khan for bringing the matter into his notice.
In the letter, the governor has reiterated that the export of poplar wooden logs in the cover of shuttering material to Afghanistan should be discouraged and has proposed a total ban on the export of poplar wood.
Pakistan has started the export of Safety matches since 1995 and due to competitive prices, earning minimum profit, quality marketing skill had ousted her competitors like India, China and Malaysia in particular from the African market. The industry is earning 15 million dollars foreign exchange, of which the NWFP share is 13 million dollars.
The industry is also labour intensive and providing employment to 7,000 people in the NWFP and 10,000 in the whole country. The industry consumes almost 80 percent raw material including paperboard, paper, corrugated cartoons, chemicals and glue etc.
He said that due to unavailability of poplar, the safety match industry closed down twice this year for one week each time, while currently the production has been curtailed.
He said, the non-availability of poplar and its high price in the local market was forcing Pakistan Safety matches out of competition in the international markets.
In the current situation, the industry is not in position to continue producing and exporting matches at loss and is fastly losing competition with India, China and Malaysia.
The Pakistan Match Manufacturing Association has demanded total ban on the export of poplar and Sufaida, and stoppage of the export of shuttering material under PTC heading 4418.4000.
It has also called for directing customs authorities to increase vigilance on the movement of poplar wood towards the Afghan border.
"Wooden shuttering material export should be immediately banned and instead of it steel material be only allowed to export, which would also bring benefit to the steel industry of Pakistan as well," he concluded.