LAHORE, Aug 25: A large number of small and medium entrepreneurs neither realise the importance of investment in quality culture nor employ qualified staff for testing and calibration, says a survey report.

The survey — Compliance Issues Affecting Enterprise Clusters in Punjab — has been conducted by the United Nations Industrial Development Organization (UNIDO). It was launched here on Saturday.

Presenting the report, programme leader Hashim Raza said the UNIDO support, within the framework of the EU-funded TRTA programme, included identification of the needs of enterprise clusters in the Punjab in addressing quality and conformity assessment issues and requirements.

Speaking as the chief guest at the launch of the report, Punjab Commerce and Investment Minister Dr Sohail Zafar Cheema said limited enterprise capacity to meet the requirements of international buyers was a major hindrance to linkage of low-income countries with the global economy through trade.

He said the international buyers were increasingly demanding compliance with safety, environment, ethical and social standards, along with product quality and reliability. Non-compliance with their requirements resulted in loss of valuable foreign trade.

He said the government was grateful to European Commission for funding the Trade Related Assistance Programme for fostering integration into world economy and enhancing pro-poor growth. UNIDO had been instrumental in implementing the TRTA Programme component aiming at enhancing the trade capacity with regard to standardisation, conformity assessment and metrology.

He said the UNIDO had conducted research on seven clusters, including those of textile garments in Lahore, textile in Faisalabad, sports goods in Sialkot, of cutlery in Wazirabad, fans in Gujrat, of citrus in Sargodha and mango clusters in Multan for identification of the compliance issues.

He said not only sector specific testing laboratories required to be established, but credible calibration services should also be made available to meet the international requirements. Moreover, he said, grading standards be introduced and CE marking applied. He said traceability methods and practices should be introduced in agro-based clusters. The SMEs should be assisted in understanding buyers’ requirements, including testing, calibration and certification. Gradual introduction and enforcement of testing, certification, safety and calibration requirements was also necessary for local and foreign markets, he said and added clusters exporting under local brand names should be supported.

He said the Punjab government was already proactively involved in supporting stakeholders to help them meet requirements set by international buyers.

He said the commerce and investment department was setting up testing laboratories for sports goods and material in Sialkot, study of horticultural products’ branding and marketing and a hot water mango treatment plant in Multan.

UNIDO chief technical adviser said in his welcome address that Punjab was not only the bread basket of the country but was also emerging as a major hub of export-oriented industries. The status brought with it responsibilities and challenges relating to both demand and supply side issues for ensuring continued competitiveness, technology upgrade, skill development, value addition and quality improvement.

He said UNIDO had conducted a survey of 195 selected enterprise clusters in Punjab covering the textile, sports goods, cutlery, fans, mango and citrus sectors. The main recommendations of the study pointed to the importance of creating awareness amongst exporters, value realisation through branding, strengthening of sector specific laboratory infrastructure, in the Mango (Multan), Cutlery (Wazirabad) and Tangerine (Sargodha) clusters. It also recommended disseminating information on the role and support to be provided by institutions such as PSQCA, PNAC, PCSIR, NPSL, PARC for meeting foreign buyers’ requirements. — Reporter