Karachi: The All Pakistan Marble Mining Processing Industry and Exporters Chairman Sanaullah Khan on Tuesday said marble exports had fallen 32pc from $57.96m in 2016 to $39.46m by end of financial year June 2017.
Khan cited the absence of bank support for such a major plunge in marble exports. He said that the industry has been unable to obtain industrial loans and has been compelled to get loans on commercial rates which have severely hampered their ability in developing their operations. He added that Pakistani marble is in high demand abroad and domestic requirement of it has also risen in the construction industry, but due to a lack of funds it is unable to invest in new machinery.
As per industry officials, the failure to implement proper policies on part of previous regimes has been a major reason for the decline of the marble industry. They said that the Pakistan Stone Development Company (PSDC) is also to be blamed equivocally for the fall of the marble industry.
Each and every text book on Business Economics will tell you that: “If it does not make sense to invest in business on commercial basis, then perhaps it should not expand.”
Maybe the industry needs to contract before it can grow. The businessmen who are willing to risk their own capital will prosper and grow their market share, while others are driven out.
Unfortunately the “industrial unions” in Pakistan exist to create cartels and goad concessions from the government. Funny how these same committees will never allow their workers to unionize 🙂