Industrialization

Is the process of social and economic change that transforms a human group from a pre-
industrial society into an industrial one It is a part of a wider modernization process, where
social change and economic development are closely related with technological innovation,
particularly with the development of large-scale energy and metallurgy production. It is the
extensive organization of an economy for the purpose of manufacturing.

Industrialization also introduces a form of philosophical change where people obtain a

different attitude towards their perception of nature, and a sociological process of ubiquitous
rationalization.

History of industrialization

Industrialization through innovation in manufacturing processes first started with the Industrial
Revolution in the north-west and Midlands of England in the eighteenth century. It spread to
Europe and North America in the nineteenth century and to the rest of the world in the
twentieth.

Industrial revolution in Western Europe

A Watt steam engine, the steam engine fuelled primarily by coal that propelled the Industrial
Revolution in Great Britain and the world.

In the eighteenth and nineteenth centuries, Great Britain experienced a massive increase in
agricultural productivity known as the British Agricultural Revolution, which enabled an
unprecedented population growth, freeing a significant percentage of the workforce from
farming, and helping to drive the Industrial Revolution.

Due to the limited amount of arable land and the overwhelming efficiency of mechanized
farming, the increased population could not be dedicated to agriculture. New agricultural
techniques allowed a single peasant to feed more workers than previously; however, these
techniques also increased the demand for machines and other hardware’s, which had
traditionally been provided by the urban artisans. Artisans, collectively called bourgeoisie,
employed rural exodus workers to increase their output and meet the country's needs.

The growth of their business coupled with the lack of experience of the new workers pushed a
rationalization and standardization of the duties in the workshops, thus leading to a division of
labor, that is, a primitive form of Fordism. The process of creating a good was divided into
simple tasks, each one of them being gradually mechanized in order to boost productivity and
thus increase income.

The accumulation of capital allowed investments in the conception and application of new
technologies, enabling the industrialization process to continue to evolve. The industrialization
process formed a class of industrial workers who had more money to spend than their
agricultural cousins. They spent this on items such as tobacco and sugar, creating new mass
markets that stimulated more investment as merchants sought to exploit them.

The mechanization of production spread to the countries surrounding England in western and
northern Europe and to British settler colonies, helping to make those areas the wealthiest,
and shaping what is now known as the Western world.

Early industrialization in other countries

After the Convention of Kanagawa issued by Commodore Matthew C. Perry forced Japan to
open the ports of Shimoda and Hakodate to American trade, the Japanese government
realised that drastic reforms were necessary to stave off Western influence. The Tokugawa
shogunate abolished the feudal system. The government instituted military reforms to
modernize the Japanese army and also constructed the base for industrialization. In the
1870s, the Meiji government vigorously promoted technological and industrial development
that eventually changed Japan to a powerful modern country.
In a similar way, Russia suffered during the Allied intervention in the Russian Civil War. The
Soviet Union's centrally controlled economy decided to invest a big part of its resources to
enhance its industrial production and infrastructures to assure its survival, thus becoming a
world superpower.

During the Cold war, the other European socialist countries, organized under the Comecon
framework, followed the same developing scheme, albeit with a less emphasis on heavy
industry.

Southern European countries saw a moderate industrialization during the 1950s-1970s,

caused by a healthy integration of the European economy, though their level of development,
as well as those of eastern countries, doesn't match the western standards.

The Third World

A similar state-led developing program was pursued in virtually all the Third World countries
during the Cold War, including the socialist ones, but especially in Sub-Saharan Africa after
the decolonization period. The primary scope of those projects was to achieve self-sufficiency
through the local production of previously imported goods, the mechanization of agriculture
and the spread of education and health care. However, all those experiences failed bitterly
due to a lack of realism: most countries didn't have a pre-industrial bourgeoisie able to carry
on a capitalistic development or even a stable and peaceful state. Those aborted experiences
left huge debts toward western countries and fuelled public corruption.

Petrol producing countries

Oil-rich countries saw similar failures in their economic choices. An EIA report stated that
OPEC member nations were projected to earn a net amount of $1.251 trillion in 2008 from
their oil exports. Because oil is both important and expensive, regions that had big reserves of
oil had huge liquidity incomes. However, this was rarely followed by economic development.
Experience shows that local elites were unable to re-invest the petrodollars obtained through
oil export, and currency is wasted in luxury goods.

This is particularly evident in the Persian Gulf states, where the per capita income is
comparable to those of western nations, but where no industrialization has started. Apart from
two little countries (Bahrain and the United Arab Emirates), Arab states have not diversified
their economies, and no replacement for the upcoming end of oil reserves is envisaged.

Industrialization in Asia

Apart from Japan, where industrialization began in the late 19th century, a different pattern of
industrialization followed in East Asia. One of the fastest rates of industrialization occurred in
the late 20th century across four countries known as the Asian tigers thanks to the existence
of stable governments and well structured societies, strategic locations, heavy foreign
investments, a low cost skilled and motivated workforce, a competitive exchange rate, and low
custom duties.

In the case of South Korea, the largest of the four Asian tigers, a very fast paced
industrialization took place as it quickly moved away from the manufacturing of value added
goods in the 1950s and 60s into the more advanced steel, shipbuilding and automobile
industry in the 1970s and 80s, focusing on the high-tech and service industry in the 1990s and
2000s. As a result, South Korea became a major economic power and today is one of the
wealthiest countries in Asia.

This starting model was afterwards successfully copied in other larger Eastern and Southern
Asian countries, including communist ones. The success of this phenomenon led to a huge
wave of off shoring – i.e., Western factories or Tertiary Sector corporations choosing to move
their activities to countries where the workforce was less expensive and less collectively
organized.

China and India, while roughly following this development pattern, made adaptations in line
with their own histories and cultures, their major size and importance in the world, and the
geo-political ambitions of their governments (etc.).

Currently, China's government is actively investing in expanding its own infrastructures and
securing the required energy and raw materials supply channels, is supporting its exports by
financing the United States balance payment deficit through the purchase of US treasury
bonds, and is strengthening its military in order to endorse a major geopolitical role.

Meanwhile, India's government is investing in specific vanguard economic sectors such as

bioengineering, nuclear technology, pharmaceutics, informatics, and technologically-oriented
higher education, openly overpassing its needs, with the goal of creating several
specialisation poles able to conquer foreign markets.

Both Chinese and Indian corporations have also started to make huge investments in Third
World countries, making them significant players in today's world economy.
Industrial Revolution

A Watt steam engine, the steam engine fuelled primarily by coal that propelled the Industrial
Revolution in Great Britain and the world

The Industrial Revolution was a period from the 18th to the 19th century where major
changes in agriculture, manufacturing, mining, transport, and technology had a profound
effect on the socioeconomic and cultural conditions starting in the United Kingdom, then
subsequently spreading throughout Europe, North America, and eventually the world.

The Industrial Revolution marks a major turning point in human history; almost every aspect of
daily life was eventually influenced in some way. Most notably, average income and
population began to exhibit unprecedented sustained growth. In the two centuries following
1800, the world's average per capita income increased over 10-fold, while the world's
population increased over 6-fold.[2] In the words of Nobel Prize winning Robert E. Lucas, Jr.,
"For the first time in history, the living standards of the masses of ordinary people have begun
to undergo sustained growth. ... Nothing remotely like this economic behavior has happened
before." Starting in the later part of the 18th century, there began a transition in parts of Great
Britain's earlier manual labor and draft-animal–based economy towards machine-based
manufacturing. It started with the mechanization of the textile industries, the development
of iron-making techniques and the increased use of refined coal. Trade expansion was
enabled by the introduction of canals, improved roads and railways

The introduction of steam power fuelled primarily by coal, wider utilization of water wheels and
powered machinery (mainly in textile manufacturing) underpinned the dramatic increases in
production capacity. The development of all-metal machine tools in the first two decades of
the 19th century facilitated the manufacture of more production machines for manufacturing in
other industries. The effects spread throughout Western Europe and North America during the
19th century, eventually affecting most of the world, a process that continues as
industrialization. The impact of this change on society was enormous.

The first Industrial Revolution, which began in the 18th century, merged into the Second
Industrial Revolution around 1850, when technological and economic progress gained
impetus with the development of steam-powered ships, railways, and later in the 19th century
with the internal combustion engine and electrical power generation.

Some 20th century historians such as John Clapham and Nicholas Crafts have argued that
the process of economic and social change took place slowly but surely and the
term revolution is a misnomer.

Innovations

The only surviving example of a Spinning Mule built by the inventor Samuel Crompton

The beginning of the Industrial Revolution is closely linked to a small number of

innovations, made in the second half of the 18th century:

Textiles – Cotton spinning using Richard Arkwright's water frame, James

Hargreaves'sSpinning Jenny, and Samuel Crompton's Spinning Mule (a combination of
the Spinning Jenny and the Water Frame). This was patented in 1769 and so came out of
patent in 1783. The end of the patent was rapidly followed by the erection of many cotton
mills. Similar technology was subsequently applied to spinning worsted yarn for various
textiles and flax for linen.
 Steam power – The improved steam engine invented by James Watt and

patented in 1775 was initially mainly used for pumping out mines, but from the 1780s was
applied to power machines. This enabled rapid development of efficient semi-automated
factories on a previously unimaginable scale in places where waterpower was not
available.

Iron making – In the Iron industry, coke was finally applied to all stages of

iron smelting, replacing charcoal. This had been achieved much earlier

for lead and copper as well as for producing pig iron in a blast furnace, but the second
stage in the production of bar iron depended on the use of potting and stamping (for which
a patent expired in 1786) or puddling(patented by Henry Cort in 1783 and 1784).

These symbolize three 'leading sectors', in which there were key innovations, which allowed
the economic take off by which the Industrial Revolution is usually defined. This is not to
disparage many other inventions, particularly in the textile industry. Without some earlier ones,
such as the spinning jenny and flying shuttle in the textile industry and the smelting of pig iron
with coke, these achievements might have been impracticable. Later inventions such as
the power loom and Richard Trevithick's high pressure steam engine were also important in
the growing industrialization of Britain. The application of steam engines to powering cotton
mills and ironworks enabled these to be built in places that were most suitable because other
resources were available, rather than where there was water to power a watermill.

In the textile sector, such mills became the model for the organization of human labour in
factories, epitomized by Cottonopolis, the name given to the huge collection of cotton
mills, factories and administration offices based in Manchester. The assembly line system
greatly enhanced efficiency, both in this and other industries. With a series of men taught to
do a single task on a product, then having it moved along to the next worker, the number of
finished goods also rose significantly.

Also important was the 1756 rediscovery of concrete (based on hydraulic lime mortar) by the
British engineer John Smeaton, which had been lost for 1300 years.

Transfer of knowledge

A Philosopher Lecturing on the Orrery(ca. 1766)

Informal philosophical societies spread scientific advances

Knowledge of new innovation was spread by several means. Workers who were skilled in the
method might move to another employer or might be poached. A common method was for
someone to make a study tour, gathering information where he could. During the whole of the
Industrial Revolution and for the century before, all European countries and America engaged
in study-touring; some nations, like Sweden and France, even trained civil servants or
technicians to undertake it as a matter of state policy. In other countries, notably Britain and
America, this practice was carried out by individual manufacturers concerned to improve their
own methods. Study tours were common then, as now, as was the keeping of travel diaries.
Steam power

The 1698 Savory Engine – the world's first commercially useful steam engine: built by Thomas
Savery

The development of the stationary steam engine was an vital early element of the Industrial
Revolution; however, for most of the period of the Industrial Revolution, the bulk of industries
still relied on wind and water power as well as horse- and man-power for driving small
machines.

The first real attempt at industrial use of steam power was due to Thomas Savery in 1698. He
constructed and patented in London a low-lift combined vacuum and pressure water pump,
that generated about one horsepower (hp) and was used in several water works and tried in a
few mines (hence its "brand name", The Miner's Friend), but it was not a success since it was
limited in pumping height and prone to boiler explosions.
Newcomen's steam powered atmospheric engine was the first practical engine. Subsequent
steam engines were to power the Industrial Revolution

The first safe and successful steam power plant was introduced by Thomas
Newcomen before 1712. Newcomen apparently conceived theNewcomen steam engine quite
independently of Savery, but as the latter had taken out a very wide-ranging patent,
Newcomen and his associates were obliged to come to an arrangement with him, marketing
the engine until 1733 under a joint patent.

A number of Newcomen engines were successfully put to use in Britain for draining up till
now unworkable deep mines, with the engine on the surface; these were large machines,
requiring a lot of capital to build, and produced about 5 hp (3.7 kW). They were tremendously
inefficient by modern standards, but when located where coal was cheap at pit heads, opened
up a great expansion in coal mining by allowing mines to go deeper. Despite their
disadvantages,
James Watt

A essential change in working principles was brought about by James Watt. In close
association with Matthew Boulton, he had succeeded by 1778 in perfecting his steam engine,
which included a series of radical improvements, notably the closing off of the upper part of
the cylinder thereby making the low pressure steam drive the top of the piston instead of the
atmosphere, use of a steam jacket and the celebrated separate steam condenser chamber.
All this meant that a more steady temperature could be maintained in the cylinder and that
engine efficiency no longer varied according to atmospheric conditions. These improvements
increased engine efficiency by a factor of about five, saving 75% on coal costs.

Chemicals

The Thames Tunnel (opened 1843)

Cement was used in the world's first underwater tunnel

The huge scale production of chemicals was an important development during the Industrial
Revolution. The first of these was the production of sulphuric acid by the lead chamber
process invented by the Englishman John Roebuck (James Watt's first partner) in 1746. He
was able to greatly increase the scale of the manufacture by replacing the comparatively
costly glass vessels previously used with larger, less expensive chambers made
of riveted sheets of lead. Instead of making a small amount each time, he was able to make
around 100 pounds (50 kg) in each of the chambers, at least a tenfold increase.

The manufacture of an alkali on a large scale became an important goal as well, and Nicolas
Leblanc succeeded in 1791 in introducing a method for the production of sodium carbonate.
These two chemicals were very important because they enabled the introduction of a host of
other inventions, replacing many small-scale operations with more cost-effective and
controllable processes. Sodium carbonate had many uses in the glass, textile, soap, and
paper industries. Early uses for sulfuric acid included pickling (removing rust) iron and steel,
and for bleaching cloth.

Machine tools

Sir Joseph Whitworth

The Industrial Revolution could not have developed devoid of machine tools, for they enabled
manufacturing machines to be made. They have their genesis in the tools developed in the
18th century by makers of clocks and watches and scientific instrument makers to facilitate
them to batch-produce small mechanisms.

Before the arrival of machine tools, metal was worked manually using the basic hand tools of
hammers, files, scrapers, saws and chisels. Small metal parts were readily made by this
means, but for large machine parts, production was very arduous and expensive.
A lathe from 1911, a machine tool able to shape parts (usually metal)for other machines

Apart from workshop lathes used by craftsmen, the first large machine tool was the
cylinder boring machine used for boring the large-diameter cylinders on early steam engines.

Gas lighting

Another key industry of the later Industrial Revolution was gas lighting. Though others made a
comparable innovation elsewhere, the large scale introduction of this was the work of William
Murdoch, an employee of Boulton and Watt, the Birmingham steam engine pioneers.

Effects on agriculture

The creation of machinery played a big part in driving forward the British Agricultural
Revolution. Agricultural improvement began in the centuries before the Industrial revolution
got going and it may have played a part in release of labor from the land to work in the new
industrial mills of the 18th century. As the revolution in industry progressed a succession of
machines became available which increased food production with ever fewer laborers.

Roads

Much of the original British road system was poorly maintained by thousands of local
parishes, but from the 1720s (and occasionally earlier)turnpike trusts were set up to charge
tolls and maintain some roads. Increasing numbers of main roads were turnpiked from the
1750s to the extent that almost every main road in England and Wales was the responsibility
of some turnpike trust. New engineered roads were built by John Metcalf, Thomas
Telford and John Macadam. The major turnpikes radiated from London and were the means
by which the Royal Mail was able to reach the rest of the country. Heavy goods transport on
these roads was by means of slow, broad wheeled, carts hauled by teams of horses. Lighter
goods were conveyed by smaller carts or by teams of pack horse. Stage coaches carried the
rich, and the less wealthy could pay to ride on carriers carts.

Railways

Puffing Billy, an early railway steam locomotive, constructed in 1813-1814 for colliery work.

Wagonways for moving coal in the mining areas had started in the 17th century and were
often associated with canal or river systems for the further movement of coal. These were all
horse drawn or relied on gravity, with a stationary steam engine to haul the wagons back to
the top of the incline. The first applications of the steam locomotive were on wagon or plate
ways (as they were then often called from the cast iron plates used). Horse-drawn public
railways did not begin until the early years of the 19th century. Steam-hauled public railways
began with the Stockton and Darlington Railway in 1825 and the Liverpool and Manchester
Railway in 1830. Construction of major railways connecting the larger cities and towns began
in the 1830s but only gained momentum at the very end of the first Industrial Revolution.

After many of the workers had completed the railways, they did not return to their rural
lifestyles but instead remained in the cities, providing additional workers for the factories.

Railways helped Britain's trade enormously, providing a quick and easy way of transport and
an easy way to transport mail and news.

Social effects

In terms of social structure, the Industrial Revolution witnessed the triumph of a middle
class of industrialists and businessmen over a landed class of nobility and gentry.
Ordinary working people found increased opportunities for employment in the new mills and
factories, but these were often under strict working conditions with long hours of labour
dominated by a pace set by machines. However, harsh working conditions were prevalent
long before the Industrial Revolution took place. Pre-industrial society was very static and
often cruel—child labour, dirty living conditions, and long working hours were just as prevalent
before the Industrial Revolution.

Factories and urbanization

Manchester, England ("Cottonopolis"), pictured in 1840, showing the mass of factory

chimneys

Industrialization led to the creation of the factory. Arguably the first was John Lombe's water-
powered silk mill at Derby, functional by 1721. However, the rise of the factory came
somewhat later when cotton spinning was mechanized.

The factory system was largely accountable for the rise of the modern city, as large numbers
of workers migrated into the cities in search of employment in the factories. Nowhere was this
better illustrated than the mills and associated industries of Manchester, nicknamed
"Cottonopolis", and arguably the world's first industrial city. For much of the 19th century,
production was done in small mills, which were typically water-powered and built to serve local
needs. Later each factory would have its own steam engine and a chimney to give an efficient
draft through its boiler.

The changeover to industrialization was not without difficulty. For example, a group of English
workers known as Luddites formed to protest against industrialization and
sometimes sabotaged factories.
Organization of labor

The Great Chartist Meeting on Kennington Common, 1848

The Industrial Revolution concerted labour into mills, factories and mines, thus facilitating the
organization of combinations or trade unions to help advance the interests of working people.
The power of a union could demand better terms by withdrawing all labor and causing a
resulting termination of production. Employers had to decide between giving in to the union
demands at a cost to themselves or suffering the cost of the lost production. Skilled workers
were hard to replace, and these were the first groups to successfully advance their conditions
through this kind of bargaining.

Standards of living

The history of the change of living conditions during the industrial revolution has been very
contentious, and was the topic that from the 1950s to the 1980s caused most heated debate
among economic and social historians. A series of 1950s essays by Henry Phelps
Brownand Sheila V. Hopkins later set the academic

During the period 1813-1913 there was a significant increase in worker wages
United States

Slater's Mill

The United States initially used horse-powered machinery to power its earliest factories, but
ultimately switched to water power.

Intellectual paradigms and criticism

Capitalism

The arrival of the Age of Enlightenment provided an intellectual framework which welcomed

the sensible application of the growing body of scientific knowledge—

Socialism
Socialism emerged as a critique of capitalism. Marxism began essentially as a reaction to the
Industrial Revolution. According to Karl Marx, industrialisation polarised society into
the bourgeoisie (those who own the means of production, the factories and the land) and the
much larger proletariat (the working class who actually perform the labour necessary to
extract something valuable from the means of production). He saw the industrialization
process as the logical dialectical progression of feudal economic modes, necessary for the full
development of capitalism, which he saw as in itself a necessary precursor to the
development of socialism and eventually communism.

Romanticism
During the Industrial Revolution an intellectual and artistic antagonism towards the new
industrialization developed. This was branded as the Romantic Movement

Causes

Regional GDP per capita changed very little for most of human history before the Industrial
Revolution. (The empty areas mean no data, not very low levels. There is data for the years 1,
1000, 1500, 1600, 1700, 1820, 1900, and 2003)

The causes of the Industrial Revolution were complex and remain a topic for debate, with
some historians believing the Revolution was an consequence of social and institutional
changes brought by the end of feudalism in Britain after the English Civil War in the 17th
century.
Causes for occurrence in Europe
One query of active attention to historians is why the industrial revolt occurred in Europe and
not in other parts of the world in the 18th century, chiefly China, India, and the Middle East, or
at other times like in Classical Antiquity or the Middle Ages. Numerous factors have been
recommended including education, technological changes (see Scientific Revolution in
Europe), "modern" government, "modern" work attitudes, ecology, and culture.  The Age of
Enlightenment not only meant a better educated population but also more contemporary views
on work. However, most historians contest the assertion that Europe and China were roughly
equal because modern estimates of per capita income on Western Europe in the late 18th
century are of roughly 1,500 dollars in purchasing power parity (and Britain had a per capita
income of nearly 2,000 dollars[) whereas China, by comparison, had only 450 dollars.

Causes for occurrence in Britain

As the Industrial Revolution developed British manufactured output surged ahead of other
economies. After the Industrial Revolution, it was overtaken later by the United States.

The debate about the start of the Industrial Revolution also concerns the huge lead that Great
Britain had over other countries. Some have harassed the importance of natural or fiscal
resources that Britain received from its many abroad colonies or that profits from the
British slave trade between Africa and the Caribbean helped fuel industrial investment. It has
been pointed out, however, that slave trade and West Indian plantations provided only 5% of
the British national income during the years of the Industrial Revolution.
Another theory is that Britain was able to succeed in the Industrial Revolution due to the
availability of key resources it possessed. It had a dense population for its small geographical
size. Enclosure of common land and the related agricultural revolution made a supply of this
labour readily available. There was also a local coincidence of natural resources in the North
of England, the English Midlands, South Walesand the Scottish Lowlands. Local supplies of
coal, iron, lead, copper, tin, limestone and water power, resulted in excellent conditions for the
development and expansion of industry. Also, the damp, mild weather conditions of the North
West of England provided ideal conditions for the spinning of cotton, providing a natural
starting point for the birth of the textiles industry.

Pakistan's 2 leading companies, as perForbes Global 2000 ranking for

2005.

Global
Company Name
ranking

1,284 Oil & Gas Development

1,316 PTCL

Forbes Global 2000

Industry of Pakistan
Pakistan ranks forty-first in the world and fifty-fifth worldwide in factory output.

Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile manufacture and
clothing manufacturing are Pakistan's largest industries, accounting for about 66% of the
products exports and almost 40% of the employed labor force.  Other major industries include
cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.

The government is privatizing large-scale parastatal units, and the public sector accounts for a
shrinking proportion of industrial output, while growth in overall manufacturing output
(including the private sector) has accelerated. Government policies aim to diversify the
country's industrial base and bolster export industries.
Mining and quarrying

The country has vast reserves of various minerals and natural capital. significant minerals
found in Pakistan are gypsum, limestone,chromites, iron ore, rock salt, silver, gold, precious
stones, gems, marble, copper, coal, graphite, sulphur, fire clay, silica. The salt range in
Punjab Province has the main deposit of pure salt not found at anyplace in the
world. Balochistan province is a mineral loaded area having considerable mineral, oil and gas
reserves which have not been browbeaten to their full ability or fully explored, recent
government policies have begun to develop this region of the country and to tap into the
immense resources found there. The province has significant quantities of copper, chromate
and iron, and pockets of antimony and zinc in the south and gold in the far west. Natural gas
was discovered near Sui in 1952, and the province has been gradually rising its oil and gas
projects over the past fifty years.

Major reserves of copper and gold in Balochistan's Reko Diq area have been discovered in
early 2006. The Reko Diq mining area has proven predictable reserves of 2 billion tons of
copper and 20 million ounces of gold. According to the current market price, the value of the
deposits has been estimated at about $65 billion, which would generate thousands of jobs.

The discovery has ranked Rekodiq among the world's top seven copper reserves. The
Rekodiq project is estimated to produce 200,000 tons of copper and 400,000 ounces of gold
per year, at an estimated value of $1.25 billion at current market prices. The copper and gold
are currently traded at about $5,000 per ton and $600 per ounce respectively in the
international market

Fuel extraction industry

Fuel extraction in Pakistan

Pakistan's first oil field was discovered in the late 1952 in Baluchistan close to a giant gas
field at Sui in Balochistan. The Toot oilfield was exposed in the early 1960s the Islamabad in
the Punjab. Production has progressively increased since then Pakistan's first gas field was
the giant gas field at Sui in Balochistan which was discovered in the late 1952.  Pakistan is
also a major creator of Bituminous coal, Sub-bituminous coal and Lignite. Coal mining started
in the British colonial era and has continued to be used by Pakistani industries after
independence in 1947.  Pakistan produced about 45 tonnes of Uranium in 2006
Manufacturing

In FY 2002-03, real growth in manufacturing was 7.7%. In the twelve months end 30 June
2004, large-scale manufacturing grew by more than 18% compared to the previous twelve-
month period. The textile and garment industry's share in the economy along with its
contribution to exports, service, foreign-exchange earnings, investment and value added
make it Pakistan’s single largest manufacturing sector. The industry comprises 453 textile
mills: 50 integrated units; and 403 spinning units, with 9.33 million spindles and 148,000
rotors, The capacity utilization was 83% for spindles and 47% for rotors during 2003
.The Federal Bureau of Statistics provisionally appreciated large-scale manufacturing at
Rs.981,518 million in 2005 thus registering over 138% growth since 2000 while small-scale
manufacturing was valued at Rs.356,835 million in 2005 thus registering over 80% growth
since 2000.
Introduction

Factors affecting the livelihood of the people associated with the marble industry in
Mohmand agency and Bajaur

Mohmand agency located in Khyber Pakthoon Khwa linking Afghanistan through Bajaur

this area is rich with natural resources like CROMITE, JIMSTONES, and MARBLE which

is properly used can bring a revolutionary change in these backward areas of mohmand

agency and Bajaur. There are about 20 types of marble stone with different shades in

mohmand agency and bajaur. The only industry which is working in mohmand agency

and bajaur is the marble industry employing more then 10,000 workers in mines,

factories and transport. This area is now war affected as the Pakistan army is clearing

this area from the terrorism as this area was in control of Taliban’s for some time but this

operation against terrorism has greatly affected the local people and the marble industry

as the infrastructure has been greatly affected. As far as the mines are concerned they

are some time closed for months some times by the Taliban’s and some times by the

Pakistan army from both sides the marble industry is affected. Besides that the marble

industry is having other problems which is affecting the livelihood of the people
associated with the industry as this industry has not been given a separate electricity line

by the WAPDA they use the same lines which the local population uses for their home

use which is a low voltage the electricity is provided from 9 to 10 hours in 24 hours and

according to one of the owners in documents its duration is from 14 to 16 hours

because of which the industry runs in different shifts of 2 to 3 hours which is increasing

the production cost and turnover in employment rate. The infrastructure is very poor

there is no natural gas available to the industry no piped water no proper derange

system no proper waste disposal the polluted water is used for farming which is affecting

the agricultural production of the area near Subhanhwar the factories are in scattered

form like in Subhanhwar, Mechni, Eakaghund, Daman, Samanat, Aranda, Srow,

Kodahel, Bajaur etc. a marble city is under construction in Carede near warsak road in

mechni. There is no Govt support to the marble industry the banks are also not providing

the financial support. According to one of the owner for a bank loan one need to have a

political approach to MNA or MPA then they will sanction loans which not many

businessmen have. The other problem is of tax as being a part of FATA it’s a tax free

zone still tax is taken from the industry. There are two types of tax one is called Minerals

tax and the 2nd is the black tax which has no record known as the Gate tax there are no

technical institutes to support the industry or to provide technical assistance to them all

round the marble industry in mohmand agency and bajaur is facing a lot of problems still

they are doing their best to compete the market. And there is good potential all what is

needed is Government support.

Purpose of the study

The purpose of this study was to identify all those problems which are affecting the

marble industry and the people associated with this industry because there are a great

number of people associated with it. And these problems were not identified by any one

from outside or from the local area.

District Profiles and Sector Assessments: Detailed Outline

1. Introduction and Background

Like other natural resources there are a great number of marble stone available in Mohmand
agency and Bajaur this area is administered by the federal government this part has a verity
of natural resources like MARBLE, CROMITE, and JIMSTONES. According to the people
associated with the marble industry there are 20 types of stones available in this area. There
are hundreds of mines in these areas like ZYARAT, SPEENKT TANGY, SPEENKY TRAKY,
KOHE, SAGY, GUMBATEE, KOHE-MOOR, BISMILLAH, TOORA HWA, ASHAB BABA. There
are hundreds of mines in these areas employing thousands of people from the local area
currently there is disturbance in the area because of terrorism in the area mohmand agency
became a battle field for army and Taliban’s which is greatly affecting the livelihood of the
people associated with the marble industry in this area in bajaur factories has been destroyed
and in mohmand agency the business is on decline its getting hard foe the businessmen to
find market because of low financial position of the people braking in the supply of raw
material.

Business Environment

The business environment in mohmand agency and bajaur currently is not very good because
of terrorism the marble industry in mohmand agency is greatly affected not only the local
market is on decline but also the national market is on decline. Because of low financial
position not many of the businessmen have showrooms countrywide but the local people are
hopeful that the law and order situation will be restored and the marble business will again
flourish.
2. District Profile - Purpose: To provides data and analysis of critical characteristics based on social
and economic indicators of the district and identifies what exists in district.

Snap shot of local economy.

Majority of the people are poor in mohmand agency there is agricultural land in mohmand
agency and bajaur which is a primary source of income about 45 % are working as labor in
other countries and are supporting their families the 2nd biggest source is of the marble
industry which is employing more then 10,000 local people both in factories and mines.
Other then marble industry there are 3 to 4 iron compressing factories that collect the iron
peaces from the houses and compresses that making a Simi finished product for the steel
industry they are in the Ghallanai head quarters of mohmand agency.

Employment and Wages

In Mohmand agency and Bajaur there are about 175 marble and powder factories and about
500 mines in different areas of mohmand agency and bajaur employing about 10,825 people
from the local area. And normal employee is paid 6000 RS and those who are technically
sound are paid according to their work.

Tax burden (Tax rates)

Being in the FATA built the area is exempted from tax still they pay tax. They pay 2 types of
taxes the 1 is minerals tax and the 2nd is the black GATE tax which has no record and no
serial number is given it goes to the political, s pocket and they cant even challenge it in court
according to one of the owner of marble factory. Minerals tax is 1400 for small truck and 2000
for large trucks and gate tax is 1000 for small trucks and 2000 for large trucks. And in 24
hours about 200 to 250 trucks cross that gate about 2,00,000 to 3,00,000 RS goes to political
pocket per day from the marble industry.

Security (Crime levels by category, security personnel)

The areas security is in hands of FC forces and the local Hasadares administered by the
political administration before Taliban’s the area was full of criminals and it was hard for
outsiders to come to this place but when the Taliban’s came they killed all the criminals and
some joined them now there are no criminals but there are Taliban’s who are now creating
problems for the industry and the local people. Those crimes are now converted to terrorism.

Health Services and Primary Education

There is one Hospital and two Degree Colleges in mohmand agency and one hospital and a
degree college in bajaur one of these three colleges is a Management college which is giving
the local people a great chance to polish the management and leadership qualities of the local
people the hospital is not enough to cover all the departments but it gives the first add
services and for further treatment they are sent to the cities. The Government College of
Management Sciences is likely to provide management and marketing support to the marble
industry in mohmand agency and also the human resource department will play its role. There
are Basic Health Units in different areas of mohmand agency and bajaur but they are closed
and some are destroyed because of Taliban’s the area is very much disturbed the economic
level of the people is going down as the marble industry is suffering and the other sectors are
affected as well the management students who got their degrees went to Afghanistan instead
of working in the local area.

Efficiency Enhancers
Higher Education, Vocational and Technical Training

There are institutes providing education to the local people but their relevance is not according
to the needs of the marble industry only the management institute and provide support.

Relevance of higher education

There is one institute named as Government College of Management Sciences in Ghallanai

which can provide some assistance on the field of Financial management, in marketing field,
and in human resource which is relevant to the need of the marble industry in the area

Relevance of vocational and technical training

There is one technical training institute in Ekaghund area but it’s not providing support to the
marble industry of mohmand agency as the students are not trained according to the needs of
the local marble industry to provide technical support to the industry. They should be giving
training according to the needs of the marble industry which is a big source of their income in
mohmand agency thousands of people are working their and for technical assistance they hire
workers from different areas if these institutes will provide support the employment
opportunities will further increase the area

Goods Market Efficiency

According the owner of Omar marble factory there are about 20 types of stone in Mohmand
agency and Bajaur so they can provide a verity of products to the markets but because of no
professional marketing knowledge they are not efficient enough to capture new markets nation
wide or on international level as only 4% of its stone is marketed internationally not directly
through other dealers from other areas as in mohmand agency there are no advance cutters

Number of firms in sector, presence of monopoly and corporate tax rate

According to the sources there are 175 factories in mohmand agency and bajaur these
factories are not situated in one place they are in scattered form. There are two types of taxes
1 is the minerals tax and the 2nd is the black Gate tax which has no record.

Condition of logistics infrastructure

Infrastructure is very poor because there is no piped water available to the industry no natural
gas is available to the industry electricity cutout is about 13 to 14 hours and some times 15 or
16 hours telephones are working but because of no security the phone cables are theft some
times all round if we look at the roads they are damaged every where and in the mine areas
they are disappeared which consumes a lot of time for trucks to reach to the place of
extraction or to the factory.
 Availability of transportation/logistics services

There is no other source of transportation without trucks. Trucks are the only mean of
transportation to bring raw material to the factories there are about 1200 trucks rolling on the
roads to bring raw material or to deliver the finished goods to the market. To deliver the
product to different parts of the country air and rail tracks are used and for delivering goods to
the near areas the trucks delivers them.

Availability and access to banking and non-banking finance

There are banks near to mohmand agency in Shabqaddar area but according to the sources
they do not help the industry we are not given loans for that one must have approach to the
MPA or MNA then they will give loan and not every has approach to that level. So the
businessmen generate finance from family or friends t run the business and some times by
family or friends partnership the business is started that’s why advance technology is out of
their reach as they are not financially strong and to install 1 Italian vertical it costs 10 million
RS.

Technological Readiness

To enhance the productivity one need to adopt the technological change the people
associated with the marble industry in mohmand agency do change but because of low
financial position they can not bring a rapid change in the technology because of the old
technology a lot of stone is wasted from extraction to the finished product about 75 to 80%
stone is wasted if advance technology is used we can save a lot of stone and produce an
international standard product which will increase the exports from this area and the economic
level of this area will increase and a lot of job opportunities will come for the newly graduated
students of this area and the terrorism activities will also decrease.
Marble
Background

Pakistan has vast reserves of marble and granite. Currently over 40 types of natural color
marble are mined, and there are 160.2 million tons of marble reserves in the country. 1 Marble
and Granite is the sixth largest mineral extracted in Pakistan, the others being coal, rock salt,
lime stone and china clay. Pakistan holds an estimated 1000 million tons of dimension stone
of which 160 million tons is in marble. 2 In 2004, nearly 2000 quarries and 1500 processors
produced an estimated 100 million square feet of marble and granite, of which 97 percent was
sold domestically, earning a total of PKR 1.7 billion.3 Pakistan has the share of worth $5
million of dimension stone market in world trade turnover of $6,600 million but mostly in the
form of undersized and odd shaped boulders.

1
Marble and Granite Sector Brief, Small and Medium Enterprise Authority, 2002
2
Export Promotion Bureau of Pakistan
3
Actual reserves are unknown and figures are best estimates by PISDAC
The Marble and Granite Industry in Pakistan is severely underdeveloped. About 80-90 per
cent of the marble is used in the construction industry and the rest is utilized in handicrafts. A
value chain analysis recently conducted by the industry shows that 65 to 70 percent of the
potential volume is wasted at the extraction stage due to the old method of mining methods
and antiquated technology. Stone that is extracted through indiscriminate blasting is
inconsistent and in irregular shapes locally called potato shaped of this a small amount is of
international level which is exported to golf and other countries. About 4 % is exported. 25%
stone is wasted in the factories during process.

Provincial Context:

According to PISDAC survey report 98 percent of total reserve of marble and granite are in
Balochistan and NWFP. A number of varieties of marble are present in the Swat, Mardan,
Nowshera, Buner, and Malakand agency of the province as well as in federally administered
areas of Mohmand and Khyber Agencies. A variety of types are also found in district Chitral.
The first major marble deposits were discovered at Mullagori and Swabi according to SCCI
report.

According to the cluster mapping of Pakistan’s marble (NWFP) report there were an estimated
390-415 processing units in NWFP in 2002. These units were producing to 4600 to 5000 tons
marble daily. The largest clusters identified at that time were the processing units in Buner
that had 145-155 units. Mardan has 70-80 units, Hayatabad (Peshawar) has 25 -30 units,
Jehangira has 40-45 units, Warsak has 55-60 units and Swat has 55-60 units. Mohmand
agency and bajaur has 175 factories currently they are working in bajaur all the units are off
because of the operation against terrorism in the area by the Pak army.
District context

Mohmand agency and bajawer is providing stone to many parts of Pakistan especially to
Peshawar. There are 20 types of stone like super white, white, gray white, white gray, badil,
silky black, red & white, etc. but there are a number of problems which should be addressed
for the betterment of the economic level of the people living in that backward area.

Industry and Market Structure

Number of factories.

According to the president of marble industry in mohmand agency there are about 175
factories in all the area including the marble city in carred which is established by the Govt of
Pakistan for the improvement of marble sector but unfortunately it didn’t worked. These
factories are located in different areas namely Subhanhwar, Samanat, Daman, Parchawe,
Ekaghund, Mechni, Sroo, Kodahell, Gandhab, Rashaki, Bajaur. They are getting the raw
material from the local area of mohmand agency and bajaur . its a war affected area
because of which a lot of problems took place which also affected the livelihood of the people
associated with the marble industry.
 16%

37%
Within District
Regional
21% National
International

26%

This sector historically has high sales volume. but now its getting low because of the terrorism
the infrastructure is finished and nines are closed for months which results in stopping the
production some time for months so they cannot fulfill the demand of the market and the
people are not that much financially strong to have raw material in a large amount. That is why
they don’t have international market and only 3 to 4% of its stone is marketed internationally.

Competitive Environment (presence of monopoly/oligopoly)

The market is competitive as now it’s a mater of survival in the industry they don’t have high
financial position still they earn a minimum profit to attract the customers. As their no advance
technology because to install an Italian vertical costs about (10 millions) to produce an
international standard stone. Still they are trying their best without the support of the
Government they manage to sell 4% of their stone not directly through other dealers.

Dec lying
G rowing

95

Trends in Investment
According to figures contained in Directory of Industrial Establishments 2007, Current
investment in this sector is PKR 175 million (secondary) however primary research reveals
that current investment amounts for PKR 950 million including large firms: PKR 950 million
and medium firms: PKR 560 million. Potential Investment depends on the law and order
situation and also the fact that even the current factories are currently working at 40-50 % of
their total capacity. Due to high investment and low performance, probability of future huge
investment is low.

Uns killed
11.08 10.85

S killled

Manageri
78
al

A large amount of investment is needed in marble sector in Mohmand agency and Bajaur for
the betterment of marble industry. The blasting method also created problems as the area is
war affected and the dynamite is banned so thy get it by black it costs about 1, 00000 PKR to
buy 10 dynamites which also affects the per product cost. There for Government help is
needed to promote the industry as thousands of people associated with this business.

Employment

According to the president marble industry in Subhanhwar there are 500 mines providing the
raw material each mine has about 12 workers so there are about 6,000 workers working in the
mines and avarge employees of a company are 15 and there are 175 factories running so
their total number of employees are 2,625 and there are 1200 trucks to provide raw material to
the industry each truck has 2 workers one driver and one conductor. So about 2200 workers
are associated with the marble industry and their total numbers of employees are 10,825

Geographical Concentration (presence of industry or service clusters)

Subhanhwar, mechni, samanat, daman, sroo, koodo, parchawe, ekagund, bajaur, these are
the locations where the factories are working.

Market Dynamics and Potential

As there is a good verity of stone in mohmand agency and Bajaur according to the owner of
UMAR Marble factory about 20 types of stone is available here and there is a lot of potential
for the international market all they need is advance cutters and polishing materials to make
an international standard stone and some technical education is also needed to fulfill the
requirements of the market.
It’s a profitable business but now a day as there is disturbance in the area as terrorism took
place before that they were able to earn up to 3 millions per month. But its very hard to reach
that figure.

Price of marble depends upon many attribute of product like chemical composition, size,
colour, pattern, texture, hardness and resistance to environmental changes.design and
polishing also causes charging high prices. As the power supply is irregular so the factories
keeps on producing different types of stone not waiting for the orders to come they cut the
stone in slier shape so when order comes then they cut it according to the order. Prices are
set separately for each order depending upon availability of infrastructure, logistics, and
volume of order. Machinery and quality of product also affect the price of marble pieces.

Domestic sales amount for PKR 410 million according to from Directory of Industrial
Establishments 2007. There are exports to the international market but on minimum level and
their dealers are from noshera. A marble city is established on 200 Akers in mechni near
warsak road in mohmand agency. This is likely to attract the international market still it’s a
long way because they are not using the advance technology so the marble city is useless
until the advance technology is introduced.

Primary data collected from the firms in the sector and a careful extrapolation of this data

Market Readiness (use and adherence to national and international standards)

Technology, labor skills, modern knowledge of industry and production process, capital,
availability of different resources like infrastructure and energy are main determinants of
quality of production and adherence of processes with international standards. According to
firm surveys and interviews with the owners of factories and the president of the marble
industry in mohmand agency a few companies who are registered with the FATA
Development are producing up to some standard but not every factory. In Mohmand agency,
labors are skilled in particular work and working on the basis of experience. Due to lack of
professional training, proper education and employment of experts, most of units are
producing the products according to domestic rules and standards and do not feel the need to
adhere any international standard.
 Value Criteria

Value Chain capture (value added, and residual value streams, the entry and exit points and
linkages)

Value addition is not up to international level due to lack of skills and technology. The
technology used for cutting and polishing of marble is not sophisticated. In general, the
entrepreneurs in the mohmand agency are not satisfied with the quality of their products and
they think that improved technology will be helpful in enhancing their value additions. They
believe technology is the top priority. Lack of quality control, absence of modern extraction
methods and precision machinery at the manufacturing units is creating a huge loss of value
stream. Local marble industry having lack of capital needs Govt. support to update its
technology. Most of the value addition lost during the cutting process. About 60-70 % is the
wastage reported due to unsophisticated extraction and cutting techniques. This leads to
heavy wastage during work by mixing up and further finishing the marble waste.

Value creation structure in Marble sector is as follows; Marble Stone= Rs 5/Sq Feet + Cutting
& Polishing 10 Sq/Feet = 15/Sq Feet Selling Price = 25/Sq Feet. Total Value Added is 40%
these values very from stone to stone as super white is an expensive atone still the prices are
comparatively very less. Domestic marble industry of Pakistan needs huge investment both in
human capital and technology. There is no proper residual value streams and residual and
wastages are either stored on factory unused areas or dumped in water and in the ground.
This causes environmental deterioration. Air and water of local areas are badly polluted by the
marble pieces left over and powder. As the local fields are badly affected as that water is used
for watering the plants. There should be proper treatment of residual such as utilizing them
into value added products or dump them according to international standards.

Similarly marble piece can also be used to make garden furniture and put to other useful
purposes like construction and decorative purposes. It even doesn’t require any sophisticated
or expensive machinery. It has the potential to develop as a cottage industry like in many
parts of the world like China. Also the marble powder can be used in making the other
households if properly recycled it can be used for ceramics if a factory is installed in the
industrial area will help protect the environment and also will create employment opportunities
for the local people and cheap households.

A small amount of handicrafts are made of the marble waste in the area also from proper
marble peaces which are vary much attractive like tables, chars, fire places, etc. if proper
technical tanning is provided then a variety of handicrafts will be produced which will generate
a good amount of money.
 Employment Opportunities and Prospects:

Women

There are no women employed in mohmand agency as they are not technically aware and
lack of technical education but there is an opportunity for them if technical education is
provided to them like polishing and using the small cutters also for making the handicrafts.

Youth

Since experienced employees are attached to the cutting and other which is specialized skill,
the youth employment potential is not very high. Still a lot of them are working in the factories
but they don’t have technical education they are trained by the old workers of the factories as
there is no technical relevant tanning provider so the factories are their institutes as well. Yet
youth after getting professional education can attach with residual value streams.

IDPs

As this is a part of FATA and the disturbance started from this part so IDSs are the actually
the local people of this area who were and are employed here terrorism not only affected their
livelihood but also the marble industry.

Supporting Environment
Sector-specific Business and Regulatory Constraints

order situation. Mines are closed because of operation cleanup in Electricity outages and rising
power prices are big constraints. Secondly, the depleting rose wood resource may work as a
constraint. Thirdly, the input costs including the raw materials are on a rise. The heavy tax
burdens are also pointed out as the constraints. Huge investment, scarcity of skilled labor and
proper infrastructure are main problems of this sector. Systematic problems should be
addressed by Govt. institutions and raw material supply chain should be improved by restoring
law and the area against the terrorism the mines are closed sometimes for months some time
by Taliban’s or by the army.

Availability and Relevance of Support Institutions

Associations

Some of marble businessmen are members of the Sarhad Chambers of Commerce and
Industry. Associations are not so powerful that can put any significant effect on industry. But
they are a few In number as many of the businessmen are un educated so the are not
significantly effective to influence the marble industry. And on the other hand there is no
supporting institution to back them up.

Education/vocational workforce institutions

There is no such institution for training and developing the skills of the local people nor Sarhad
Industrial Development Board (SIDB) or FATA Development authority is helping them to
provide such training

Other government/nongovernmental institutions

According to the president of marble industry and other owners of factories in mohmand
agency Government is not providing them any type of help there is no such institution to
decrease their problems no Government support or from the political administration instead of
helping we are forced to pay some black taxes known as the (GATT TAX)

Availability of Supporting Infrastructure

Energy

Electricity is main source of energy and runs all the heavy machinery. According to the
owners and labor associated with the marble industry in mohmand agency that 13 to 14 hours
electricity outage is there on average during 24-hours. The machines cannot be run during
this time and therefore, since the machinery is heavy, the generators are not used to run
because the cost would be unbearable in that case. According to our estimate based on the
primary data around 40-50 % of the production loss is normal during these electricity
shortages small industries can not afford this huge cost. Additionally in remote areas
electricity voltage is low and it cause losses in case of burning heavy motors and electricity
appliances. Therefore production inefficiency and increase in the cost of production shrink the
profits of businessmen and discourage new entrants. Still no alternative resources of energy
are being used there.

Other utilities such as water, telecommunications

There are no piped water they use heavy motors to pump out the water as being above the
sea level the water level is down according to the president of marble industry in mohmand
agency the soon our water resources will go much deeper and for that they had meetings with
the higher authorities still nothing has been done yet. The 2nd thing telephone lines are their
and they are working good sometimes the cables are theft then problems are created for us
as the security level is not good.

Industrial zones

There is no industrial zoon in the area a marble city has been established near warsak area in
mechni mohmand agency which is not fully covered t support the marble industry in the area.

Transportation and Logistics (including cost and time to market)

Being the undeveloped area of mohmand agency there is no railway track no water ways the
only link is of road being away from the city this area has not been given priority so they reach
other markets through trucks but majority of the factories deal on spot they go nowhere in
search of markets a few have showrooms in different pets of the country so the export their
product by a combination of means.

Financial Institutions

According to the people associated with the marble industry in mohmand agency there is no
financial institution helping them. According to sources the banks will give them loan if they
have some political approach through MPA or MNA etc other wise being FATA as these lands
have no registrations or documentation the banks are not giving loans as our loans according
to the business are in millions so they thing it will be a great deal of risk to handover such
loans.
 Recommendations
Opportunities
Issues
Human Resource Development
• Lack of institutional training system to • Introduction of formal education on • Creation of progressive workforce to
produce skilled workforce for the sector
• Hesitation to adopt new ways of doing
business, conservative attitude.
• Lack of basic literacy in workforce
 Low financial positions.
Technology
• Technology out dated and low capacity
to produce product according to demand
• Machinery does not produce desired
quality. And local producers follow no
standards to upgrade machinery
Marketing
• Limited understanding about market
(local and international) trends
• Lack of basic know how about branding
and product marketing strategies
• Little use of advertisement domestic
and internationally about product.
Interventions
Human Resource Development Human Resource Development
awareness and modern business
strategies to create value in the
products.
• Initiation of skill development training
for cutting, mining and polishing, and
extraction of raw material.
• Training in handicrafts for men and
women.
Technology
• Up gradation and modification of
existing machines and assistance of
financial institutions to purchase
machinery.
• Technical and design support to
machine manufacturers for improvement
in machine design
Marketing
• Introduction of marketing agencies to
train as well as market the local product
at international media with the
cooperation of private sector.
• Producing sector specific newsletters
on upcoming projects and use of stone
Impact
contribute towards
• Improvement in literacy level in the
workforce
• Product diversification improvement
• Increased role of low capital, high
skilled labor, investment and gender
participation in sector
Technology
• Improved quality and quantity of
products to increase productivity and
profitability
• Development of efficient machines to
meet international specifications of
production
Marketing
• Improved understanding of market
potential
• Improved earnings and business for
companies
• Improved access to international
markets with cost sharing formula.
* Not attending the international
exhibitions because of some issues.
Infrastructure
• Lack of Govt. facilitation centers like
export processing zones, show rooms
and exhibition centers.
Production
• Wastage of 70%raw material due to
traditional mining and blasting
techniques
• Low quality issues due to non
adherence of quality standards.
Investment
• due to poor law and order situation
hesitation and avoidance of fresh
investment.
•Due to limited demand and limited
supply of raw material, investment is
declining.
Lack of access capital
Investment
• Limited entrepreneurial capital
investment due to lack of access capital
and high capital costs.
•tight monetary policy and low financing
by banks.
Low Value Addition
• Lack of expertise and machinery to
transform semi finished products into
finished products.
Strengthening and coordination of
the local businessmen.
• Big businessmen are member of SCCI
but they do not play active role in sector
development.
in different applications
Infrastructure
• Introduction of public-private
cooperation to invest in infrastructure
development.
Production
• Introduction and training of modern
machinery and techniques for cutting
and polishing.
Investment
• Improvement in law and order situation
and
Lack of access capital
Investment
• Establishment of financial advisory
agencies and SME banks to guide
entrepreneurs and small businessmen.
Low Value Addition
• Introduction of modern technology and
provide at discount rates.
• Provision of training to young staff
Strengthening and coordination of
the local businessmen.
• Strong need of sector specific
association that can understand the
problems of sector and represent the
sector in national and international forum
Infrastructure
• Improved business processes and
reduction of business costs and
increased capacity of exports.
Production
• Improved quality of products to enter
the international markets locally and
low end export markets with minimum
investment
Investment
• Improved predictability for investment
and reduction of risk for
entrepreneurs / financial institutions
Lack of access capital
Investment
• Improved investment and growth of
the sector; creation of new
opportunities for investment
Low Value Addition
• Increased revenue and demand of
products
•Access to international markets.
Strengthening and coordination of
the local businessmen.
• Increase role with enhanced skills of
the members to enable the association
to play active role in the promotion of
SME and present industry on different
level nationally and internationally
Lack of Extraction Techniques
• Improper blocks size and wastage of
marble deposits
Lack of efficient utilization of
Byproduct Products
• Wastage of by-products and lack of
proper industry to utilize it efficiently.
Lack of information of market
dynamics to entrepreneurs
• Lack of innovation adoption of advance
technology.
Inconsistent supply of raw
material
• Inconsistent supply of marble stone
from non target districts due to law and
order situation.
Regulatory Environment
• Lack of awareness in entrepreneurs
About Govt regulation regarding
licensing and export.
Lack of Extraction Techniques
• Assessment of blocks size through
proper structural study regarding the
joints and fractures of deposits
Lack of Byproduct Industry
• Strengthening of SIDB (Small Industrial
Development Board) and SDC (Skill
development council) to train the
individuals to utilize it
•Develop the industry of byproduct to
add value.
Lack of information of market
dynamics to entrepreneurs
• Introduction of forum where successful
businessmen should share and guide
the new comers.
Inconsistent supply
• Introduction of modern multilayer
supply chain techniques and improve
suppliers coordination.
Regulatory Environment
• Introduction of one window operation
for licensing and exports.
Lack of Extraction Techniques
• Systematic quarrying will result in
extraction of larger blocks and less
wastage
Lack of Byproduct Industry
• Waste of the marble will be utilized
in economic activities
•Increase in women employment in
value addition industry.
Lack of information of market
dynamics to entrepreneurs
• It will provide the entrepreneurs
awareness of new trends in the
international market, networking,
building linkages for future
Inconsistent supply
• Consistent supply of products into
market and reduced business cost.
Regulatory Environment
• Improved Understanding of
regulations and rights, dealing with
issues like paying royalty to
government and get leases and
licenses