A representative of the sector said high production costs in Pakistan are a major impediment preventing Pakistan's glassmakers from being competitive in the international market.
Prices of soda ash, electricity and furnace oil and so on in Pakistan are higher than in the Middle East. He said after the LTFF, through latest technology and extension and addition in modern machinery and equipment, the export-oriented sector would grow.
According to the SBP, financing for plant, machinery and equipment used by the export-oriented projects in glass sector for producing exportable goods shall also be eligible under the LTFF scheme.
He said production could even go higher if impediments such as the high cost of inputs, non-existence of strict anti-dumping laws, existence of special concessions in Customs duty on imports of some glass products and other matters are resolved in favour of the sector.
Pakistan exports glassware products to the United Arab Emirates, Iran, South Africa, Tanzania, Oman, Bangladesh, Belgium and other countries. Exports could increase enormously if Trade Development Authority of Pakistan would help the manufacturers and exporters besides the manufacturers improve the quality of their products.
"This is great news for the Pakistan industry" says Derek Burston, Marketing Manager, Gulf Glass 2011 (7-9 March, ADNEC, Abu Dhabi) " and strengthens the sector's hand in machinery purchasing and modernisation" he adds.
With Pakistan's glass industry just a short hop from this year's exciting Gulf Glass event, there is no doubt that the upcoming exhibition will serve as an excellent focal point for the entire, wider Middle East region.
Pakistan glass industry gears for revival
The Pakistan Glass Manufacturers Association (PAGMA) has hailed the decision of the State Bank of Pakistan (SBP) that glass-manufacturing industry producing exportable goods is eligible for financing under the SBP Long-Term Financing Facility (LTFF).