2009年-世界发展银行全球_Pakistan___NWFP_Growth_Policy_Note_33页_207kb

Summary of the Policy Note: PAKISTAN NWFP Growth Policy Note (Report Number 44436-PK)

Core Content

This policy note, prepared by the World Bank for the North West Frontier Province (NWFP) of Pakistan, focuses on analyzing the value chains of key growth industries to identify constraints and propose policy recommendations aimed at boosting economic development and reducing poverty. The industries analyzed are horticulture, furniture, gems and jewelry, and non-gemstone mining. The report highlights the importance of addressing both sector-specific and crosscutting issues to enhance productivity and competitiveness.

Main Viewpoints

• NWFP's Economic Profile: NWFP is the poorest province in Pakistan with lower GDP per capita, higher poverty rates, and double the national unemployment rate. It contributes only 10% to Pakistan's economy despite having 14% of the population.
• Economic Diversification Potential: The province has significant natural resources (minerals, water, forests) and favorable conditions for horticulture and livestock production, but has not fully leveraged these.
• Value Chain Analysis: A comprehensive value chain analysis (VCA) was conducted using tools like Porter’s Diamond Model and Porter’s Five Forces to map out production, trade, and market dynamics.
• Constraints and Recommendations: The report identifies four common constraints across the industries: lack of coordination, limited access to information and knowledge, inefficiencies in input and output markets, and the need for stronger government involvement in regulation and certification.

Key Industries and Their Challenges

1. Horticulture

• Production Value: US$350 million annually, representing 3% of provincial GDP and 10% of the national agricultural output.
• Main Challenges:
  • Pre-growing and Growing: Lack of modern, high-yield, and high-value cultivars, leading to lower productivity and competitiveness.
  • Post-Harvest Interventions: High losses (up to 50%) due to poor handling, storage, and transportation. This is exacerbated by the lack of grading standards and infrastructure.
  • Agro-processing: Absence of agro-processing facilities in NWFP. Potential exists for developing frozen and dried fruit processing industries.
  • Distribution and Marketing: Limited marketing expertise and lack of information on prices, transport, and packaging requirements for both domestic and export markets.
• Policy Recommendations:
  • Strengthen producer organizations to improve coordination.
  • Introduce modern cultivars through legislation and collaboration with research institutions.
  • Improve extension services and provide training in best practices.
  • Develop infrastructure for post-harvest handling, including cold storage and grading facilities.
  • Encourage agro-processing with public-private partnerships, especially for dried fruits.
  • Enhance transparency and information dissemination to support marketing and export activities.

2. Furniture Industry

• Strategic Position: NWFP has a competitive position in the global furniture market due to its natural resources and skilled labor.
• Main Challenges:
  • Inputs: Limited access to quality raw materials and poor coordination in supply chains.
  • Manufacturing and Pre-manufacturing: Inefficient production processes and lack of standardization.
  • Sales, Distribution, and Marketing: Weak marketing strategies and limited access to international markets.
• Policy Recommendations:
  • Promote the formation of cooperatives and associations to enhance coordination.
  • Improve access to information on market demand and production technology.
  • Strengthen government role in regulation and certification.
  • Address inefficiencies in input and output markets, such as collusion in wood auctions.

3. Gems and Jewelry Industry

• Potential for Growth: The province has significant mineral resources, including precious and semi-precious stones.
• Main Challenges:
  • Mining and Pre-mining: Lack of modern mining techniques and infrastructure.
  • Lapidary and Processing: Limited processing capabilities and low value addition.
  • Trading and Exports: Inefficient trading practices and lack of export support mechanisms.
• Policy Recommendations:
  • Enhance the role of government in promoting the sector and improving mining practices.
  • Strengthen certification and quality control mechanisms to increase buyer confidence.
  • Develop a more efficient input and output market to reduce costs and improve competitiveness.

4. Non-Gemstone Mining Sector

• Main Issues:
  • Market Exposure: Limited access to international markets.
  • Cooperatives: Need for promotion of mining cooperatives to enhance efficiency and competitiveness.
  • Regulatory Role: Government needs to improve its regulatory role in the sector.
• Policy Recommendations:
  • Encourage the establishment and strengthening of mining cooperatives.
  • Improve government oversight to enforce property rights and ensure compliance with environmental and safety standards.
  • Support research and extension services to improve mining practices and technologies.

Crosscutting Issues

• Coordination: Lack of effective producer organizations across all industries.
• Information Access: Insufficient information on market demand, production technology, and R&D.
• Regulation and Certification: Need for stronger government involvement in enforcing property rights and product quality standards.
• Market Inefficiencies: Inefficiencies in input and output markets lead to higher costs and lower competitiveness.

Conclusion

• The value chain analysis reveals that with appropriate policies and practices, significant value can be created in these industries.
• Improving coordination, access to information, and regulatory frameworks can lead to substantial increases in productivity and export potential.
• The report emphasizes the importance of public-private partnerships and the need for the government to act as a catalyst in these developments.

Key Data Highlights

• Horticulture:
  • Annual production value: US$350 million
  • Export volume: US$15.5 million
  • Potential additional value: US$150-200 million or more than 1% of PGDP
• Furniture:
  • Potential increase in production value: 10-fold (US$200 million or 1.5% of PGDP)
• Gems and Jewelry:
  • Potential increase in production value: more than doubling (US$225 million per year)
  • Formalization of under-reported transactions: could increase the size of the formal sector 10-fold

Methodology

• The analysis used a combination of interviews, focus groups, and existing data.
• Tools like Porter’s Diamond Model, competitive position analysis, product cost analysis, and value chain mapping were employed.
• The lack of reliable data due to informality in the sector posed challenges, but the analysis aimed to provide actionable insights based on available data.

Final Notes

• The report is part of a broader effort to assess the investment climate in NWFP, with the Second Investment Climate Assessment (ICA2) expected to provide further insights.
• The recommendations are intended to support the Provincial Reform Program II and promote sustainable economic growth in the province.