The increasing utility charges, oil prices and high cost of manufacturing are slowly forcing Pakistan fiber optic industry out of the export market. Pakistan has lost 25 km optic fiber cable combined market of Middles East and Saudi Arabia and India and China are making inroads into these markets by providing optic fiber at much lower rates than Pakistan offers.
At present three Pakistani companies are manufacturing optic fiber cable in Pakistan and out of them only one company manages to export substantial amount of its production. With joint efforts of the three companies Pakistan had managed to get share of 900 km in African counties around three years back.
In 2010-11 only one company managed to export 1000 km optic fiber cable to African countries which is a market of 7000 to 10,000 km optic fiber cable. Whereas all the three companies failed to get any room in Middle East and Saudi Arabian markets of 2500 km optic fiber cable.
Former Chairman Federal B Area Association of Trade and Industry (FBAATI) and Director of Premier Cables, Shahid Ismail while criticising polices of the government said that the ever increase cost of manufacturing had created hurdles in export of optic fiber cables and rendered it uncompetitive in the international market.
He said the government must give incentives to engineering industry to boost export as Pakistan engineering industry in general and Pakistan optic fiber industry in particular is capable to fetch huge foreign exchange for the country. Only what it need some incentives, he added. He said Pakistan optic fiber cable industry is capable to meet entire demand of African countries, Middle East and Saudi Arabia.
He said the cost of manufacturing in Pakistan is around 20 percent higher as compared to India and China. These countries while taking advantage of 20 percent difference in cost of manufacturing are increasing their share in these optic fiber cable export markets.
He said at present Middle East market meeting 50 percent of its total requirement through imports from China and India. Pakistan can penetrate into this market if government provides incentives, he added. To take hold of this opportunity Pakistan must take steps to reduce cost of manufacturing in the country
Criticising the attitude of custom authorities in Pakistan, he said that his company was going to participate in Saudi Arab Exhibition GITEX and prepared its catalog on CD and carrying samples of optic fiber cable which were not allowed by custom authorities to be carries out. He said his company exported optic fiber to African countries. Shahid Ismail suggested that Pakistan should allow duty drawback on export of optic fiber. He said the process of claiming duty drawback is very cumbersome and demanded that SRO relating to duty drawback must be simplified.