“An investment opportunity in dimensional stone sector”

Background

Pakistan has huge reserves of different variety of world class marble and granite. The absence of scientific quarrying practices, lack of technology, trained manpower and proper equipment however, has resulted in huge losses in form of wastages and poor quality. The age old practice of blasting is the major reason for such low and in-efficient yield. It is preventing the economy from a rich harvest of these valuable natural resource and adds to environmental degradation.

marblecityCurrently, the average loss at the quarry is estimated at 85% compared to a maximum of 45% as per international standards. The wastage is further supplemented when these irregular shaped blocks are used downstream for producing finished goods. There is no practice of scientific prospecting and geological studies at quarry sites which is another impediment in fully exploiting the true potential of the quarries. Blasting often produces cracked and asymmetrical boulders. Limited choice of useful stone subsequently results in poor yield, less margins and weak competitive position in the export markets. The shock of blasting also has a collateral affect on surrounding unexplored reserves which already lose their worth even prior to being explored.

There is a wide gap between conventional practices of quarrying and modern methods. Modern technology produces dimensional stones with maximum wastage of 45%. The local investor lacks both awareness and capital to adopt these new methods. The new scientific approach not only requires modern machines but a sound infrastructure and trained manpower to run these specialized machines.

The potential of the marble and granite sector of Pakistan has recently attracted tremendous attention both from the government and the stake holders alike. The government is fully committed to upgrade this sector at a fast track to be at par with international level and has set aside considerable allocations for this purpose.

Establishment Of PASDEC

In order to realize its plans for the modernization of the M&G sector, Pakistan Stone Development Company (PASDEC) has been established under the Ministry of Industries and Production as a public private partnership. It is a not for profit organization incorporated under section 42 of the Companies Ordinance, 1984 as subsidiary of Pakistan Industrial Development Corporation.

Vision

“To Become Globally Competitive and Socially Responsible Dimension Stone Industry.”

PASDEC is focused on extraction of “Square Blocks” through modern techniques. This strategy will have trickle down effects throughout the value chain of the industry, achieving tremendous transformational impact. The development projects of PASDEC will provide employment opportunities to far-flung remote areas and increase income incidences. This revolution in the industry as a whole requires restructuring of the entire value chain, starting from the quarrying and followed by investments in the processing capabilities with advanced technology/ up-gradation.

Initiatives to achieve the goal:

  • Raise Value Chain Productivity
  • Investment in Workforce Development
  • Export Marketing
  • Promote Strategic Partnerships (Joint Venture & Direct Foreign Investments)
  • Develop Industrial & Market Information System

The development projects based on modern practices of quarrying envisioned by PASDEC shall transform this industry in to a globally competitive industry and an engine of economic growth for the country.

Marble & Granite Sector Strategy

The Marble& Granite sector project development strategy is part of a comprehensive plan for up-grading the dimension stone industry in Pakistan. PASDEC has already revolutionized by started the process of the M&G sector by addressing the following key strategic areas.

Quarry development strategy-Key Features:

  • 1) Prospecting & quarry selection on scientific basis
  • 2) Report generation
  • 3) Transformation to modern methods of quarrying
  • 4) Ownership of the private sector

Location and Access

  • Risalpur – Hub to major up to dimensional stone quarry clusters and Motorway interchange
  • Quarry clusters including Chitral, Dir, FATA, Swabi, Buner, Swat, Mansehra & Nowshera
  • Approach to Market
  • Railway track at Risalpur
  • Adjacent to Motorway (M1)
  • 40 minutes drive from Islamabad
  • 20 minutes drive from Peshawar (Provincial Capital -NWFP)

Site Characteristics

  • 185 Acres of land for industrial purpose and advance facilities
  • 199 Industrial plots of multiple categories (8 Kanal, 4 kanal, 2 kanal)
  • Excellent Infrastructure (Roads, Electricity, Sewerage & Gaspipeline etc.)

Major Services

  • Processing facilities
  • Common Facility & Training Center (CFTC)
  • Warehousing
  • Waste Water Treatment Plants
  • Mechanical & Electrical Workshops
  • Waste Collection Management system
  • Machinery Pool