Small and Medium sector is gaining popularity all over the world and are considered as the base for the industrialization process around the globe


Jan 15 - 21, 2007

Gujranwala, Gujarat and Sialkoat are the main contributors in economy of Pakistan. These cities collectively are known as the Golden Triangle of the Pakistan. The main reason for this attribution is the rapid growth in the sector of small and medium enterprises.

Small and Medium sector is gaining popularity all over the world and are considered as the base for the industrialization process around the globe. The prospects of the development are formulated due to the increasing realization of their importance, included Muslim countries. In this regard establishment of the OIC Task force on SMEs is worth mentioning initiative among all other things.- Further more the recently approved National Policy on SMEs reiterates the Government's determination to boost the SME-led Economic growth.

Technology Up-gradation and Skill Development Center (TUSDEC) has recognized Gujranwala. as the hub of light engineering. According to the statistics available 30% of engineering industry is happened to be in Golden triangle, while Gujranwala is main shareholder. Therefore Government along with TUSDEC has decided to establish Tools, Dies and Molds Center in Gujranwala whereas SMEs of Sialkoat and Gujarat would also be beneficiaries of Tools, Dies and Molds Center. It would be second tools, Dies and Molds center after Karachi. Government has approved this center for Gujranwala in next fiscal year however the demand from industrialists and TUSDEC on common grounds is accelerating to start Gujranwala Tools, Molds and Die Center in this year.

Establishment of Tools, Dies and Moulds center (TDM) in Gujranwala would provide design and manufacturing assistance and capability, training on current technologies, help in modernizing factories by providing skilled technicians specialized in design and manufacturing. It would serve as the support for industry especially SMEs by providing common facilities at door steps and by introducing digital technology in tools, moulds and dies manufacturing using Computer aided designing and Computer aided manufacturing and CNC machines tools.

It is accepted fact that no nation can progress 'or even survive unless it's technological and skill base is well organized, efficient and productive. Hence higher economic performance and economic development is directly proportional to the highly productive technology and skilled manpower. With changing world scenario quality of products are needed to be significantly improved to compete in international markets. Changing requirements of product competitiveness, labor market, governance and timely delivery can only be ensured by adopting advanced technologies and skilled composition. Developing countries like Sri Lanka and Croatia could enhance their exports manifold only by bringing upward changes in fields of production technologies and improving the skills of work force in SMEs. However, SMEs in Pakistan are neither organized nor have sufficient technologies and skilled manpower. Previously the support of Government has not been sufficient in this regard. SMEs in Pakistan are facing increased pressure of cut throat competition in domestic and international markets, this situation calls for the restructuring of SMEs in accordance with new production technological needs and with improved skills base.

TUSDEC, has conducted need assessment survey in April 2006, for which they have visited 110 SME units where Tools, Dies and Moulds were used in this area says; primitive manufacturing tools and skills are being used in these units; excessive time is being wasted for the development of these tools; which results in poor finishing of products unable to satisfy the demands of customers. Further more there is deficiency of material testing and product qualification services along with scarcity of training facilities. Even Chairman Mr. Almas Haider during his visit to Gujranwala Chamber of Commerce & Industry told business community of Gujranwala that during survey it was found that technological know-how in Gujranwala was very poor. TUSDEC Need Assessment, April 2006 shows that 10% industry installed CNC machines, 22 % industry had the capability to specify a CNC machine while 68% industry had heard about CNC machine but had no acquaintance with the working of it. While engineering sector calls for the accuracy of one micron to meet the needs of quality conscious people. While this has become the most neglected area in this region and the concept of reverse engineering has found its strong roots that on low costs replica of various machines are available, even it is believed that industrious people from Gujranwala can reproduce missile technology on local levels. But lack of assistance and training has led them to adopt old and conservative methods. In this regard Tools, Dies and Molds center can be helpful to large extent because its main features are to train, assist and provide advisory services to 750 students annually in accordance with the technological needs of this region that includes computer aided designing, computer aided manufacturing, CNC milling, basic mould design, sheet metal press tool design, advanced mould design, heat treatment, inspection and measuring techniques, jigs and fixture design, pattern making, die casting die design, mould polishing, mould repair, CNC control, press specification, material specification, assembly and fitting of mould dies. These trained and skilled students can utilize their training and skills in industries for bring productive changes. Estimated profit is 8 to 10 billions in coming years just by spending 1.4 billions rupees. Investments are measured on basis of cost benefit ratios hence this center is expected to play a constructive role in economy of Pakistan. This is the biggest project presented by TUSDEC to planning commission. Total cost being spent on Karachi Tools, Dies and Moulds center is 45 Carors whereas Karachi is the commercial hub of Pakistan.

Directorate of Industries, Punjab, 2002 shows that all sorts of utensils manufacturers are 26%, foundry products are 17%, sanitary fittings 10%, cutlery 9%, motor/pumps/turbines 7%, washing machines 4% auto parts 3%, machine tools 3%, electric goods 2%, plastic melamine 2%, weight scales 2%, sanitary ware 2%, Die & blocks 1%, gas appliances 1%, while these would be the beneficiaries of Gujranwala Tools, Dies and Moulds Center. TUSDEC has recognized technical areas in need assessment survey are CNC vertical machining center, heat treatment, EDM wire die-sinking, coordinate measuring machines, surface treatment, rapid prototyping, precision grinding, electroforming, 3D scanner, Mould welding, laser engraving and wire cut etc for the promotion of engineering sector. Tools, Dies and Mould center can assist SMEs in this regard because with huge investment and expert foreign faculty would ensure these. Hence adoption of new technologies by the SMEs can lead to increased production and competitiveness by way of technical efficiencies and best turnovers.

The establishment of Tools, Dies and Moulds Center would help in increasing the out put of industry manifold. For which CNC operator can be paid higher, skilled labor can bring fruitful results along with employment opportunities would increase and a process of industrialization would be initiated. Timely delivery of perfectly designed products would results in encouragement of already established industry and pave way for new industry in the region. A positive industrial growth and higher levels of wages will help Pakistani trained workforce to stay in Pakistan against the steady depletion of workforce with a tendency to migrate to greater pastures abroad. During last two years 315,959 skilled workers have left Pakistan to seek employments in other countries showing that dangerously big void has been generated in Pakistani labor market. This has adversely impacted the economy of Pakistan.

Training infrastructure available with the public institute, this center will surely minus the gloomy performance of obsolete technology. Estimated time of completion of this project is one year after the approval whereas PC I has been submitted for the approval. 3 acres land is required for the' establishment of this Center in Gujranwala. It is ripe time to formulate a long term planning for Small and medium sector from Gujranwala. Need is to pay heed to each and every sector individually in Gujranwala however calculated leaps from lower technological progress levels to higher would help Pakistani SMEs to capture market efficiently.