IN a discussion in Sindh Assembly on June 17, the law minister confirmed that a marble city will be developed along Karachi Northern Bypass. Spreading over 300 acres of land, the project will be undertaken as a public-private partnership enterprise with Pakistan Stone Development Company.
The memorandum of understanding was finalised after the Sindh Investment Conference last year. Necessary administrative approvals are being sought from the chief minister to expedite the project on a fast-track basis. Whereas the decision to launch any economic enterprise seems a positive move, several technical and business-related matters must be reviewed in an objective manner to obtain optimum outcome from public spending.
There is no denying the fact that Pakistan is endowed with vast deposits of marble of very fine quality. Geologists and mining experts believe that more than 160 million tones of such deposits exist in the country. However, 97 per cent of these reserves lie in Khyber Pakhtunkhwa while the remaining in different locations in Balochistan. The territories of the Federally Administered Tribal Areas (FATA) have substantial deposits that are being mined as an organised enterprise.
Like other economic activities, marble production and refining have been gravely affected in that region due to the ongoing war on terror. However, the Khyber Pakhtunkhwa government, with financial and technical assistance from the US, has embarked upon a programme to enhance marble production. From strategic stand point, the region will lead in marble trade due to the natural advantage in respect to its raw materials and export links. Similarly in 2006, a marble city was set up in Gadani in Balochistan with the assistance from Omani government. Spread over 600 acres, the venture has taken off, albeit at a slow pace. Several units have been built while more are under construction. The Sindh government must take note of the competitive environment before moving ahead with its plans.
Marble industry is entirely dependent upon a technically sound mining process and a stable supply chain. Several factors affect this chain link. The ongoing troubles in Balochistan have greatly impacted the supply of raw material to the marble units. For example, mines at Kataro in Balochistan – about 140 km from Karachi – were not able to maintain sustained supplies to target units. While the quality of ore is appropriate, the conditions are anything but satisfactory. Miners, truck operators and unit owners keep complaining about the precarious state of law and order in the area.
There are small and medium-scale units of marble processing scattered along Manghopir Road, Pak Colony, SITE area and environs. These units largely, catering to local construction industry, complain about the power outages and loadshedding.
Needless to say that marble processing is a power- intensive production. Without adequate supply of electricity, any new venture is likely to hit snags, even before a proper take off.
The dilemma with consolidated single enterprise schemes is that they are often reduced to mere exercise of industrial land supply. Some investors acquire land and do no more than erecting boundary walls. Countless enterprise zones and industrial locations in Karachi and elsewhere depict this under-utilisation of strategic land reserves.
The Sindh government will do well by ensuring that the venture moves on beyond the laying of foundation stone. Marble exports have been highlighted as a hugely profitable sub-sector with expected volume to the tune of $1 billion in the next two to three years.
But without ensuring a well-conceived strategy, the investments may not yield results. From doing away with antiquated modes of mining to facilitating uninterrupted supply of raw materials to units, an exhaustive list of pre-requisites has to be satisfied on the basis of efficiency and productivity.
