CPEC: PFC and Chinese companies in talks for Joint Ventures, says PFC chief

Islamabad: Pakistan Furniture Council (PFC) Chief Executive Officer of the Council Mian Kashif Ashfaq said on Sunday afternoon that PFC and Chinese companies were engaged in talks for Joint Ventures (JVs).

“We are engaged in efforts to collaborate with some local manufacturers with Chinese counterparts under the CPEC (China-Pakistan Economic Corridor),” he informed a delegation of furniture manufacturers at a meeting here.

Ashfaq maintained that with the help of the Chinese counterparts, the PFC will launch e-commerce units to explore targeted foreign markets, essential for doing business across the borders more effectively.

He elaborated that initially, the PFC will target a few countries, primarily Middle Eastern nations. “We cannot target the whole world so we have to focus on a few selected countries like Saudi Arabia. The choices of these nations are similar to ours and we hope for a good breakthrough from Saudis as two major players are ready to buy furniture from Pakistan,” he remarked.

Ashfaq underscored that the PFC was also studying the dynamics of other potential countries where “we can meet design, product quality and price requirements.”

He highlighted that currently, furniture exports stood at roughly Pakistani Rs 500 million, however, in the coming years the council plans to increase this figure to US $ 1 billion annually.

“This is a realistic target, which could be achieved in five years if things continue to flow smoothly. We have already managed to cut the import size by 25% and this was done by targeted exhibitions. However, the Primary issue that persists for this sector is the availability of raw material which is an issue and our cost of wood is increasing due to this shortage. The only option is importing the wood,” he underscored.

Ashfaq said that the PFC was calculating the price compatibility and if it becomes viable to directly import from any country, then they would present a complete plan to the Ministry of Commerce to gain some relaxation in taxes.