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CPEC and Its Effects on Marble Industry

(Capstone Project-1, BPR 601)

Group Members:

Maria Mobin – 17675 (Group Lead)


Amin Akhter Mombani –17242
Muhamamd Ahsan Uddin –17252
Muhammad Faheem Essani – 17134
Muhammad Owais Rehman – 17317
Umer Farooq Hashmi – 18051

Faculty Advisor: Sir Naveed Ilyas, IoBM

Submitted On: January 13, 2017


Table of Contents
Acknowledgement ........................................................................................................................................ 4
Letter of Transmittal ..................................................................................................................................... 5
China Pakistan Economic corridor (CPEC) .................................................................................................. 6
Province wise breakup Of Projects ....................................................................................................... 7
Projected Investment Plan............................................................................................................................. 8
CPEC and its Effects on Marble Industry ................................................................................................... 11
Dimension Stones4 ................................................................................................................................. 11
Identification of Marble, Onyx and Granite ...................................................................................... 11
Marble and Granite Deposit in the World ................................................................................................... 13
Applications of Marble ............................................................................................................................... 13
Industrial Use ........................................................................................................................................ 13
Consumer products............................................................................................................................... 13
Production Sculpture ............................................................................................................................ 14
Construction marble ............................................................................................................................. 14
Marble Production Process ......................................................................................................................... 14
Introduction ........................................................................................................................................... 14
Extraction .............................................................................................................................................. 14
Polishing and Sealing ............................................................................................................................ 15
Water jet Cutting and wet sawing ....................................................................................................... 15
Granite Production process ......................................................................................................................... 16
Introduction ........................................................................................................................................... 16
Extraction .............................................................................................................................................. 16
Processing .............................................................................................................................................. 16
Possible Product categories after Processing...................................................................................... 17
Available Marble Extraction Techniques ................................................................................................... 18
Marble and Granite Deposit in Pakistan ..................................................................................................... 20
Available colors in Pakistan ........................................................................................................................ 22
Extraction Technique Pakistan.................................................................................................................... 23
Modern Extraction Technique............................................................................................................. 23

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 1
The Helical Wire: A Real Revolution ................................................................................................. 23
Marble Trade Statistics ............................................................................................................................... 24
World Export Import Data .................................................................................................................. 24
World Import Share ............................................................................................................................. 25
Pakistan Export Import Data .............................................................................................................. 26
Pakistan Export Share .......................................................................................................................... 26
Pakistan Import Share ......................................................................................................................... 27
Pakistan's Export Share in Top 10 Importers.................................................................................... 28
China Export and Import Data ........................................................................................................... 29
China Export Share .............................................................................................................................. 29
China Import Share .............................................................................................................................. 30
Industry Development Limitation ............................................................................................................... 30
Political Instability ................................................................................................................................ 31
Extraction and Processing Pitfalls ....................................................................................................... 31
Old Mining Hacks ............................................................................................................................... 31
Lack of Awareness for Marble Potential ............................................................................................ 32
Energy Issues ...................................................................................................................................... 32
Research and Development of Marble In Pakistan ..................................................................................... 32
Steps to Reformation ............................................................................................................................ 34
The Future is Bright ..................................................................................................................................... 35
Financial Feasibility .............................................................................................................................. 35
Assumptions........................................................................................................................................... 35
Assumed Cases on Different Scenarios ............................................................................................... 35
CASE – 1 On The Basis of Current Scenario, Production Is Increased @ 8% Annually ................... 35
CASE – 2 Reduction of wastage by 50% ........................................................................................... 36
CASE – 3 Energy Projects under CPEC ............................................................................................. 36
CASE – 4 Other Positive Impact of CPEC ......................................................................................... 37
Financial Pre-Feasibility of Processing Plant ..................................................................................... 39
Financial Pre-Feasibility of Combined Processing and Quarrying Facility .................................... 40
Marble Cities Pakistan ................................................................................................................................ 41
Marble City Karachi............................................................................................................................. 41

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 2
Objectives............................................................................................................................................... 42
Common Facility and Training Center (CFTC) ................................................................................ 42
Warehouse ............................................................................................................................................. 43
Waste Water Treatment Plants / Slurry Management ...................................................................... 43
Mechanical and Electrical Workshops / Services .............................................................................. 43
Support facilities ................................................................................................................................... 43
Research and Development .................................................................................................................. 43
Investment Opportunities .................................................................................................................... 44
Project Benefits ..................................................................................................................................... 44
Socio-Economic Impacts of the Project .............................................................................................. 44
1. Employment Generation ............................................................................................................. 44
2. Environmental Impact ................................................................................................................. 44
3. Education and Skill Development............................................................................................... 44
Sectorial Impact .................................................................................................................................... 45
1. Technology Transfer in Remote Areas ....................................................................................... 45
2. Competitiveness .......................................................................................................................... 45
3. Minimization of Mushrooming ................................................................................................... 45
Important Milestone Achieved: ........................................................................................................... 45
Marble City FATA...................................................................................................................................... 46
Present Status: ..................................................................................................................................... 46
CPEC and Marble Industry ......................................................................................................................... 47
Pakistan’s Advantage ........................................................................................................................... 47
Enhanced Resources ............................................................................................................................. 48
Inland Opportunities ................................................................................................................................... 49
Conclusion .................................................................................................................................................. 49
References ................................................................................................................................................... 50

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 3
Acknowledgement
First of all, we would like to thank Allah for His blessings that enabled us to complete this term
report on time.

Secondly, we would like to thank Sir Naveed Ilyas and Sir Ekhlaque, for providing us all the
assistance required for the completion of this report. Without their guidance and vast knowledge
this report would not have been completed.

Also thanks to the Chairman “All Karachi Marble Association” and owners of Waheed Marble
who shared with us in the insights of the industry.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 4
Letter of Transmittal

January 10, 2017

Mr. Naveed Ilyas,


Faculty,
Institute of Business Management,
Korangi Creek, Karachi.

Dear Sir,
We are pleased to submit our analysis on “Marble Industry o Pakistan”

We deeply acknowledge your help and support for this report and we look forward to discuss this
report with you and having your feedback on our work. We are immensely grateful to you for
providing us the opportunity to understand the theory and concepts of business research by
practically examining and applying them in this research report. We would also like to thank all
the people who directly and indirectly helped us in making this report.

This research report is prepared in accordance with the guidelines approved by you and has
covered all the authentic areas of concern and contains all the relevant information.

Regards,

Maria Mobin– 17675 (Group Lead)


Amin Akhter Mombani – 17242
Muhamamd Ahsan Uddin - 17252
Muhammad Faheem Essani – 17134
Muhammad Owais Rehman – 17317
Umer Farooq Hashmi – 18051

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 5
China Pakistan Economic corridor (CPEC)

The China–Pakistan Economic Corridor is a collection of projects currently under construction,


was at a cost of $46 billion, intended to rapidly expand and upgrade Pakistani infrastructure as
well as deepen and broaden economic links between Pakistan and the People's Republic of China.

The corridor is considered to be an extension of China's ambitious One Belt, One Road
initiative, and the importance of CPEC to China is reflected by its inclusion as part of China's
13th five-year development plan, the importance of CPEC to China is reflected by its inclusion as
part of China's 13th five-year development plan

The Silk Road Economic Belt and the 21st-century Maritime Silk Road, also known as The Belt
and Road is a development strategy and framework, proposed by Chinese that focuses on
connectivity and cooperation among countries primarily between China and the rest of Eurasia,
which consists of two main components, the land-based "Silk Road Economic Belt" (SREB) and
oceangoing "Maritime Silk Road" (MSR). The strategy underlines China's push to take a bigger
role in global affairs, and its need for priority capacity cooperation in areas such as steel
manufacturing

Impact of CPEC is now understood to the World at large. Not even companies but Countries are
trying to participate in this Great Grand Project. CPEC was initially started with $46 Billion
Dollars, however it has been increased to approx. $51 Billion. Main focus is as on the energy
sector, as Pakistan is known to be have many issues which includes the lack of energy that is
required.

It is because of this issue, lately many industries have stopped their production as they were unable
to operate under such circumstances. Majorly, textile industry was smashed by it, as roughly 1/4th
of the day is without electricity in most cities of the cities of the country.

Following industries/sector are targeted under CPEC project with respect to monetization;

Proportion of Investment Break up


2%7%
9%
8%

74%

Energy Railway Roads Gwadar City Others

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 6
The investment and projects are processing on full flesh as this have to be end in 2030. However,
this needs to be understand that it is a time for huge opportunities for local industries and business
as well.

Some companies have taken up the lead and are deploying there concerned projects to convert this
opportunity into an investment of their own. Like Dewaan Group have partnered with KIA motors
and are planning to set up their plant here in Pakistan. Lucky Cement has limited their exports and
are now focusing on the development of this project. Recently they have inaugurated one of their
new plants just to cater the requirement that is essential to develop Gwadar.

Province wise breakup Of Projects

Giving the break-up of CPEC project, Zhao wrote in a series of tweets pasted at Wali Zahid’s blog
that the number of projects included: Balochistan 16, KPK 8, Sindh 13 and Punjab 12.

Zhao said at least 16 projects under


CPEC are related to Balochistan.
These include: Khuzdar-Basima
Highway (N-30), D.I.Khan-Quetta
Highway (N-50), Hubco Coal Power
Plant, Gwadar Power Plant, Gwadar-
Nawabshah LNG Terminal and
Pipeline, Gwadar Eastbay
Expressway, Gwadar New
International Airport, Gwadar Smart
Port City Master Plan, Expansion of
Multi-purpose Terminal including
Breakwater and Dredging
Wastewater, Treatment Plants for
Gwadar City, Gwadar Primary
School, Gwadar Hospital
Upgradation, Gwadar Technical and Vocational College,Gwadar Eastbay Expressway II, Fresh
Water Supply and Gwadar Free Zone.

About Khyber Pakhtunkwa, he said at least eight projects under CPEC relate to KPK: Joint
Feasibility Study for Upgradation of ML1, Establishment of Havelian Dry Port, KKH II (Havelian-
Thakot) Upgradation of ML-1, KKH III (Raikot-Thakot), D.I.Khan-Quetta Highway (N-50), Suki
Kinari Hydropower Project and Optical Fiber Cable from Rawalpindi to Khunjrab.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 7
He said that 13 CPEC projects relate to Sindh: Matiari- Lahore Transmission Line, Matiari-
Faisalabad Transmission Line, Port Qasim Power Plant Engro Thar Power Plant and Surface Mine
in Block II of Thar Coal Field Dawood Wind Farm, Jhimpir Wind Farm, Sachal Wind Farm,China-
Sunec Wind Farm,Upgradation of ML-1, Thar Coal Block I and Mine Mouth Power Plant,Gwadar-
Nawabshah LNG Terminal and Pipeline,Karachi-Lahore Motorway (Sukkur-Multan), Joint
Feasibility Study for Upgradation of ML1.

He said only 12 projects under CPEC relate to Punjab and these are: Optical Fiber Cable from
Rawalpindi to Khunjrab, Haier and Ruba Economic Zone II, Karachi-Lahore Motorway (Sukkur-
Multan), Joint Feasibility Study for Upgradation of ML1, Upgradation of ML-1, Sahiwal Coal-
Fired Power Plant, Rahimyar Khan Coal Power Plant, Karot Hydro-Power Plant, Lahore Orange
Line Metro Train, Matiari-Lahore Transmission Line, Matiari-Faisalabad Transmission Line
Quaid-e-Azam Solar Park in Bahawalpur.

China has already invested $14 billion in 30 early-harvest projects to be completed under CPEC,
a flagship project of the One Belt One Road initiative launched by Chinese President Xi Jinping.
Out of the 30 projects, 16 were under construction, a statement quoted Chinese Embassy Deputy
Chief of Mission Zhao Lijian as saying, blogger Wali Zahid wrote1.

Projected Investment Plan

The ambitious CPEC programme has two main components. It plans to develop a new trade and
transport route from Kashgar in China to the Gwadar Port. The other component envisages
developing special economic zones along the route, including power projects. The first-phase
projects will receive $45.69bn in concessionary and commercial loans, for which financial
facilitation to the Chinese companies is being arranged by the Silk Road Fund.

These include $33.79bn for energy projects, $5.9bn for roads, $3.69bn for railway network, $1.6bn
for Lahore Mass Transit, $66m for Gwadar Port and a fibre optic project worth $4m.

The prioritised, short-term projects involve over $17bn in investment. Apart from Karot, they
include the upgrading of the 1,681km Peshawar-Lahore-Karachi railway line ($3.7bn); Thar coal-
fired power plants worth 1,980MW ($2.8bn); development of two Thar coal mining blocks
($2.2bn); the Gwadar-Nawabshah natural gas pipeline ($2bn); imported coal-based power plants
at Port Qasim worth 1,320MW ($2bn); a solar park in Bahawalpur worth 900MW ($1.3bn); the
Havelian-Islamabad link of the Karakoram Highway ($930m); a wind farm at Jhimpir for 260MW
($260m); and the Gwadar International Airport ($230m).

1
https://www.samaa.tv/economy/2016/10/chinese-embassy-releases-province-wise-share-under-cpec-project/

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 8
The Sindh Engro Coal Mining Company, a joint venture of Engro Powergen Ltd and the Sindh
government, holds the lease of Thar Block-II coalfields, while it’s Thar Power Company will
construct a series of mine-mouth power plants

In May, the PPIB concluded the implementation and the power purchase agreements for two
330MW projects, which are scheduled to begin commercial operations by December 2017. And
the China Development Bank has finalised the terms and conditions for financing a 3.8m tonnes
per annum coal-mining project as well as a power project.

On June 25, the PPIB approved another Thar coal-based mine-mouth power project of 1,320MW
capacity, which is being developed by the Shanghai Electric (Group) Corporation in partnership
with Sino-Sindh Resources, a subsidiary of Global Mining (China) Ltd.

Sino-Sindh Resources will receive $1bn from the Industrial and Commercial Bank of China. The
mine-mouth power project, originally planned to start power generation in 2016, has been
rescheduled for commissioning by 2017-18. A letter of interest from the Chinese banks was issued
in March for 75pc financing of the $2.6bn project, 25pc of which will be equity.

In addition, Chinese banks will provide financing for two 660MW imported coal-fired power
plants at Port Qasim.

A financing cooperation agreement was recently signed by the China Exim Bank and the Port
Qasim Electric Power Company for the under-construction project. The National Electric Power
Regulatory Authority approved the upfront tariff on February 13.

The other 660MW project at Port Qasim is being developed by the Lucky Electric Power
Company. The two projects are scheduled to begin commercial operations within four years. But
they are likely to be delayed as a dedicated jetty for each project has to be constructed for unloading
the imported coal, and the contracts for them have not yet been awarded.

Meanwhile, the Punjab government has leased 4,500 acres of land to Chinese investors for the
development of the second phase of the Quaid-e-Azam Solar Park of 900MW, to be commissioned
in 21 months. The China Development Bank, Exim Bank of China and Zonergy Co Ltd will be
involved in it.

Likewise, the draw-down agreement for the Jhimpir wind project between UEP Wind Power (the
borrower) and the China Development Bank Corporation (the lender) has been concluded. The
project, having achieved financial close, is scheduled to begin commercial operations in 2016.

Given the timeline for completion, these power projects could possibly add reasonable generation
capacity to the national grid by 2017-18, but they would hardly provide any relief to the nation in
terms of the fast-growing demand for electricity. And there is no silver lining for consumers as far
as the cost of the electricity is concerned.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 9
All the Chinese loans will be insured by the China Export and Credit Insurance Corporation
(Sinosure) against non-payment risks, and the security of the loans is guaranteed by the state.

A framework agreement for energy projects under CPEC was recently signed between Sinosure
and the water and power ministry to provide sovereign guarantees.

Sinosure is charging a fee of 7pc for debt servicing, which will be added to the capital cost of a
project. For instance, the capital cost of a 660MW project at Port Qasim is $767.9m. But it goes
up to $956.1m by adding Sinosure’s fee of $63.9m, its financing fee and charges of $21m, and
interest during construction of $72.8m; a 27.2pc return on equity is guaranteed.

Ironically, interest during construction is allowed at the rate of 33.33pc for the first year; 33.33pc
for the second; 13.33pc for the third; and 20pc for the fourth year. The scenario presents a bleak
picture, as the availability of affordable energy will likely remain a pipedream.2

The total volume of China-Pakistan Economic Corridor (CPEC) funded projects has increased to
51 billion dollars after China’s commitment to fund Karachi to Peshawar Railway main line
(ML1).

Federal Minister for Planning, Development and Reform Ahsan Iqbal announced that Pakistan and
China have agreed on upgradation of Karachi to Peshawar Railway main line (ML1) which would
be completed in the next five years with the cost of 8 billion dollars.

“China would provide 5.5 billion dollars while Asian Development Bank (ADB) would contribute
through financing 2.5 billion dollars for upgradation of Pakistan Railway ML1,” he said while
briefing media about his recent visit to China.

The Minister visited China to review the progress of CPEC projects.

He informed that the Chinese side expressed satisfaction over the progress of the early harvest
projects. Earlier the volume of CPEC was $46 billion but with new commitment it has gone up to
$51.5 billion.3

2
http://www.dawn.com/news/1194014

3
http://nation.com.pk/national/30-Sep-2016/china-to-upgrade-pak-railways-ml1-ahsan

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 10
CPEC and its Effects on Marble Industry

Dimension Stones4

Marble, Onyx and Granite belong to the category of building stones widely known as Dimension
Stone. These are natural stones which can be shaped in form of blocks, slabs, tiles, etc and are
mostly used for monumental and decorative purposes since antiquity; various civilizations have
used dimension stone in many ancient buildings and monuments that have survived to the present
day. Although numerous varieties of igneous, metamorphic and sedimentary rocks are used as
dimension stone, the principal rock types used are granite, limestone, marble, sandstone and slate.
The major distinction is made on the basis of their base minerals, which were Calcium compounds
(calcireous) for marbles, Silica compounds (siliceous) for granite and Shale clay for slate.
4
Siliceous stone is composed mainly of silica or quartz-like particles. It tends to be very durable
and relatively easy to clean with mild acidic cleaning solutions. Types of siliceous stone include
granite, slate, sandstone, quartzite, brownstone and bluestone.

Calcareous stone is composed mainly of calcium carbonate. It is sensitive to acidic cleaning


products and frequently requires different cleaning procedures than siliceous stone. Types of
calcareous stone include marble, travertine, limestone and onyx. What may work on siliceous stone
may not be suitable on calcareous surfaces.

Identification of 5Marble, Onyx and 6Granite

Marble and Granite both are quarried from the earth, granite and marble (marble's relatives -
limestone, onyx and travertine) are very different from each other. Granite is formed deep in the
earth's mantle at extremely high temperatures, and is a very hard, resistant stone made of
crystallized minerals. Marble on the other hand begins as sediment; animal skeletons, shells, plant
matter, and silt at the bottom of bodies of water, and after millions of years this solidifies into
stone.

Granites and marbles are quarried throughout the world in a variety of colors with varying mineral
compositions. In most cases, marbles and granites can be identified by visible particles at the
surface of the stone. Marble will normally show "veins" or high concentrations. The minerals in

4
http://www.modernmarble.net/Typeofstone.html
5
http://www.worldatlas.com/articles/marble-facts-geology-of-the-world.html
6
http://www.worldatlas.com/articles/granite-facts-geology-of-the-world.html

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 11
granite will typically appear as small flecks distributed uniformly in the stone. Each type of stone
is unique and will vary in color, texture and marking.

Marble is a crystalline, compact variety of


metamorphosed limestone, consisting
primarily of calcite (CaCO3), dolomite (CaMg
(CO3)6 or a combination of both minerals. Pure
calcite is white, but mineral impurities add
color in variegated patterns. Commercially the
term Marble is extended to include any rock
composed of calcium carbonate that takes
polish including ordinary limestone. The term is further extended in the loose designation of
stones such as alabaster, serpentine and other soft rocks. Specific gravity of Marble ranges between
2.68 to 2.72, determining the density of the stone.

Metamorphic stones originate from a natural form of one type of stone to another type through
the mixture of heat, pressure, and minerals. The change may be a development of a crystalline
formation, a texture change, or a color change.

Marble is classified into three categories:

1. Dolomite: If it has more than 40% magnesium carbonates.


2. Magnesium: If it has between 5% and 40% magnesium
3. Calcite: If it has less than 5% magnesium carbonate.

Onyx: It is a type of quartz, with main constituent silicon. Onyx is actually a type of oxide mineral
that has dominant silica ingredients. The stone itself is famous for beautiful, silky luster that also
looks vitreous if the stone is already treated and polished.

Black colored onyx is of course the most famous and sought out variant, but usually onyx has
colored bands, including the one with red bands called sardonyx. These colored bands make the
onyx stone unique.7

Granite: Primarily made of Quartz (35%), Feldspar (45%) and Potassium. Usually comes in dark
colors and contains very little calcite, if any. Provides a heavy crystalline and granular appearance
with mineral grains. It is a very hard material and easier to maintain than marble. Yet, it is still
porous and will stain. There are different types of granite depending on the percentage mix of
quartz, mica and feldspar. Black granite is known as an Anorthosite. It contains very little quartz
and feldspar and has a different composition than true granite.

7
http://gemstonemeanings.us/what-is-onyx-stone/

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 12
Igneous stones are mainly formed through volcanic material such as magma. Underneath the
Earth's surface, liquid magma cooled and solidified. Mineral gases and liquids penetrated into the
stone and created new crystalline formations with various colors.

Marble and Granite Deposit in the World

Marble deposits can be found in various countries around the globe. Such European countries as
Italy, Ireland, Spain, Greece, Russia, Romania, Sweden, and Germany, in addition to others in
Asia, are among the globe's leading producers of this valuable rock. Extensive deposits are located
in India, Pakistan, China, Afghanistan, Turkey and Great Britain. The United States of America is
also a high level Marble producer, with states such as Alabama and Texas having especially large
deposits to be found within their borders. It is, however, Italy, China, India, and Spain who
dominate global Marble production.

Granite is mined worldwide but the most exotic colors are obtained from granite deposits in Brazil,
India, China, Finland, South Africa and North America. China, Brazil and India are some of the
leading granite producers in the world.

Applications of Marble

Industrial Use

Colorless or light-colored marbles are a very pure source of calcium carbonate, which is used in a
wide variety of industries. Finely ground marble or calcium carbonate powder is a component in
paper, and in consumer products such as toothpaste, plastics, and carbonate can be made from
limestone, chalk, and marble; about three-quarters of the ground calcium carbonate worldwide is
made from marble. Ground calcium carbonate is used as a coating pigment for paper because of
its high brightness and as a paper filler because it strengthens the sheet and imparts high brightness.

Consumer products

Consumer products such as a food additive, in toothpaste, and as an inert filler in pills. It is used
in plastics because it imparts stiffness, impact strength, dimensional stability, and thermal
conductivity. It is used in paints because it is a good filler and extender, has high brightness, and
is weather resistant. However, the growth in demand for ground calcium carbonate in the last
decade has mostly been for a coating pigment in paper Calcium carbonate can also be reduced

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 13
under high heat to calcium oxide (also known as "lime"), which has many applications including
being a primary component of many forms of cement.

Production Sculpture

White marble has been prized for its use in sculptures since classical times. This preference has to
do with its softness, relative isotropy and homogeneity, and a relative resistance to shattering. Also,
the low index of refraction of calcite allows light to penetrate several millimeters into the stone
before being scattered out, resulting in the characteristic waxy look which gives "life" to marble
sculptures of the human body.

Construction marble

Construction marble is a stone which is composed of calcite, dolomite or serpentine which is


capable of taking a polish. More generally in construction, specifically the Dimension stone trade,
the term "marble" is used for any crystalline calcitic rock (and some non-calcitic rocks) useful as
building stone.

Marble Production Process

Introduction

A metamorphic rock with outstanding beauty and variety, marble has been an important building
material for several millennia. Thanks to the precision of modern technology, marble has become
increasingly accessible and affordable for consumers. Improvements in marble manufacturing
(marble "fabrication") include explosives, composite-tipped drills, diamond- studded wire saws,
super-fast saws, epoxy sealing and computer-controlled polishing.

Extraction

During the extraction process, massive cube-like pieces of marble are cut out of the ground and
transported from the quarry. To minimize the risk of cracks, fissures and other aesthetic damage
to the stone, fabricators use a process known as "wire sawing" to gently separate the marble. Two
3-inch wide holes are drilled perpendicularly to each other. Once the holes connect, a heavy-duty
wire embedded with artificial diamonds is fed through and secured to a flywheel, forming a loop.
A powerful engine applies massive torque to the flywheel, which circulates the diamond-

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 14
embedded wire at a very fast rate. Since diamond is much harder than the marble, the friction
quickly wears it away, leaving a smooth cut plane.

After wearing all the way through, another perpendicular hole is drilled and the process is repeated,
cutting away the other vertical plane. For the horizontal plane, the wire saw cuts about 80 percent
of the marble away, leaving a circle in the center remaining. At this point, the wire is removed and
a hydraulic excavator machine forces a wedge into the horizontally-cut planes to break the vertical
plane free. Finally, a crane loads the piece onto a truck or rail car for a transport to the fabrication
shop.

In the fabrication shop, the piece is loaded onto a platform with hydraulic lifts underneath. Above
this platform is the "gang saw," a row of dozens of 10 to 15 feet long steel saw blades connected
to a crankshaft via pistons.

A giant engine turns the flywheel, which turns the crankshaft and moves the saw blade back and
forth horizontally at an incredibly high rate.

Each saw blade is spaced according to the desired thickness of the resulting slabs, usually 3 cm
(although 2 cm is fairly common as well). As the blades saw back and forth, the hydraulic lifts
push the block up into them, cutting the slabs. Once complete, two workers will gently tilt out each
slab, attach a special clamp to it and use a ceiling-mounted winch to lift it into the finishing area.

Polishing and Sealing

The slab is laid face down and a machine with a finely-graded, diamond-encrusted abrasive pad grinds
down the surface of the slab until it is smooth and vaguely reflective. A worker (or machine, depending on
the shop) then sprays on a uniform coat of epoxy sealer onto the surface and leaves it to dry for 48 hours.
Heat lamps can expedite this process. Once dry, the slab is flipped over and the process repeated for the
opposite side. Polished and sealed, the finished slabs then ship out to retailers and distributors.

Water jet Cutting and wet sawing

At the retailer's show room, slabs are displayed in giant, iron oxide-coated easels for customers to view.
After choosing a slab(s), the customer gives the dimensions of his project (kitchen counters, ballroom floor
or bathroom) to the retailer, who maps the shapes onto the slab itself.

To cut these pieces out, fabricators traditionally used a process called "wet sawing" where circular saws
coated with tungsten carbide cut through the slab while continuous streams of water spray on the blades to
keep them from overheating.

Today, most fabricators use a technology called "waterjet cutting" to cut pieces, make holes for appliances
and create beveled edges. In waterjet cutting, water is pressurized to 60,000 psi and allowed to shoot out in
This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 15
a concentrated stream. Traveling at 2.5 times the speed of sound, the stream mixes mid-air with a powdered
abrasive (e.g. aluminum oxide or garnet) before striking the marble. The result is a precise hyper-erosion
that can be used for two-dimensional and three-dimensional applications alike. Due to this degree of
precision (in the micrometer range), a computer controls the entire cutting process.

Granite Production process

Introduction

Granite is formed underground by the cooling of magma. Deep within the earth, beyond the mantle layer,
lies a deep layer of molten rock. As the rock gets closer to the surface, it also cools, creating internal igneous
rocks. One of these such rocks is granite. Granite can be a mixture of mainly quartz and feldspar but also
may contain mica.

Extraction

There are three main ways to extract the stone:

• The most common method is the production by the blast. A deep hole is bored by drilling method
in a rock, where the charge is laid with following blasting. Among the breakaway pieces of rock
the largest boulders are selected, which are then sawn into slabs.

• The second method of granite extraction is the method of breaking off with the air bag. It is
similar to the first method so that the rock is also drilled with insertion of reservoir being inflated
with air under high pressure

• Third, the most expensive method of granite extraction – is the method of stone-cutters - now the
most popular in the West. Quarrying by this method provides the possibility to completely avoid
micro cracks and gives the most rational way to mine the deposit.

Processing

Once blocks of stone reach the processing facility, they are cut down into smaller more manageable
pieces. For tile, this means cutting the stone into billets before polishing. For slab materials, gang
saw is used for further processing. A gang saw works has many adjustable blades that allow for
the thickness of the slabs to be adjusted. The gang saw can cut the entire block of stone into slabs
at one time. More delicate materials may require the use of a diamond wire saw to gently cut one
slab at a time with less trauma to the stone. The most recent technology involves multi-wire gang
saws which have the potential speed production on exotic materials exponentially.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 16
After slabs are cut on the gang saw, they are moved one at a time to the polishing line, where they
are laid horizontally on a large conveyer type line called a polishing line. There, they pass under
polishing heads which begin with very coarse diamond abrasives, and then move to finer and finer
grit abrasives, just like sanding wood. Travertine slabs and some marbles, will receive a
cementicous or epoxy compound to fill the natural voids of the stone. Part of the way through this
line, slabs of granite, marble, and onyx will receive a coating of a resin treatment, which will fill
in any pits or micro fissures which are inherent to the stone in order to make the final surface easier
to clean.

Most of the excess resin is removed by further polishing, with only 1% remaining on the finished
surface. For materials where the final surface is to be honed, the process will stop with a lower grit
abrasive than materials with a polished surface.

Slabs are bundled together and braced with a wooden framework, custom built to ensure the slabs
stay upright during the shipping process. All materials are loaded into standard 20 foot shipping
containers and braced to prevent any shifting or movement which could cause damage to the
material. Due to the immense weight of stone, many containers are not fully packed, but are loaded
to maximum weight limit of 42,000 pounds, or 20 tons.

Possible Product categories after Processing

• Slabs are large semi processed sheets of marble stone with varied sizes and thickness of 2 inches.
They are further processed in the local industry or exported to the international markets. Slabs are
cut on by gang saws from large blocks of marble. This product is used for tabletops, kitchen tops,
This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 17
wall facing, flooring and other allied purposes. Price of slab varies with the quality of material and
the size of the sheet.

• Unpolished tiles: These are processed and sold by units normally lacking machinery to finish
and section the material and are available in different sizes, colors and shades. These tiles are
polished normally after application at the desired surface. Main attraction for the consumer for this
product is its low price. Unpolished tiles are sold comparatively at low prices than the polished
tiles to individuals and other small processing units.

• Polished Tiles: These are the fully processed tiles sold in the market at competitively higher
prices, which depend on size, color and shades.

• Decorative items including, pillars, fire places, railings, sculpture, flower vase, ashtrays,
tabletops, office table sets and many other similar items are produced in many countries of the
world. In the countries where labor cost is high, carving is done with CNC machines. In Pakistan
these items are produced all over the country without the advanced machinery. Major cluster of
these items is in Karachi, where more than 400 units are involved in this activity followed by a
few units at Lahore and Rawalpindi. Prices of these items vary from product to product, the quality
of craftsmanship, and stone used.

• Marble Chips are tiny pieces normally of crushed marble used in flooring and facing in the
construction industry. These are processed on completely different machinery set up that includes
stone crushers of various grades. They vary in size from large grains of 1 inch to 0.5 centimeter,
depending on the choice of the consumer.

Available Marble Extraction Techniques

In all stone quarry situations the extraction phase is based on one or combinations of three
fundamental principles:

 Levering
 Splitting
 Channeling

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 18
Levering expanding open fractures by inserting levers,
crowbars or stones. May be described as the “simplest” way
of extraction, involving the expansion of natural cracks or
other planes of weakness (such as bedding planes) using
various tools.

Levering by inserting levers

Splitting creating fractures, preferable planar, by strokes (i.e. sledge hammer), wedging; heating
or blasting with explosives. May be defined as the act of generating new fractures for extracting
rock. This may be done by percussion (stroke), inserting wedges of some kind in prefabricated
holes or by heat. In a modern context, splitting is mainly done by detonating explosives in drill
holes. Although splitting techniques may be applied on most rock types, it is working best on hard
siliceous (quartz-rich) ones. Partly because they in general display the most brittle behavior, but
also because it is a well-documented fact (and experience among quarrymen) that siliceous rocks
(granite in particular) have well defined preferred splitting
directions defined by micro fractures in quartz. Splitting by
heating is caused by a combination of thermal expansion
properties and brittle behavior. It works best on quartz-rich
rocks due to the well-known but poorly understood change of
mechanical properties of quartz when heated.

Hammering in marble Quarry

Channeling (carving) making channels in the rock by carving with hammer and chisel, pickaxe
or stone tools, heating with fire, sawing or drilling Channeling is the third fundamental principle.
Channels in the rock are made by removing the rock mass by chiseling, picking, sawing or
heating. In most soft stone quarries from the Bronze Age onwards, channeling is the most
important extraction method. In most cases, channeling is combined with other methods. For
instance, channels are made perpendicular to the natural layering of the rocks, and when the
block is free on four sides, it is split with wedges (“trench and
wedge” method) or levers/crowbars inserted in chiseled
grooves (“Minoan technique”) or by inserting wooden wedges
in the channels themselves, creating shear stress along the
block’s bases.

Another method of quarrying called channeling or broaching


involves cutting long, narrow channels into the rock to free up
the sides of large stone blocks. In this process special machines

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 19
called channelers are used. Formerly steam-driven, these self-propelling machines today are
powered by diesel or gasoline engines. They cut the stone with a cutting edge that traverses back
and forth along the seam of the rock bed until a deep cut is made. The cut is deep enough to
allow wedges to be inserted down into the rock until it is split. The cut in the stone is used to
guide the fracture in the rock. The use of channeling is extensive in soft rock quarries such as
those containing limestone, marble, and sandstone.

Marble and Granite Deposit in Pakistan

Known reserves of marble and Granite in Pakistan are 160 Million Tons, while actual reserves
could be manifold. These reserves are mostly concentrated in Khyber Pakhtunkhwa, FATA and
Baluchistan. Estimated reserves of Granite in Pakistan are 2 Billion Metric Ton, out of which 1.5
Billion Metric Tons are in Thar-Sindh.8

“Around 98 percent of these reserves are believed to be in NWFP and FATA. Of late, work at
several marble sites was stopped due to militancy in the area. Explorations in tribal-belt would be
started once the security situation improved there and the figures could further improve. Much of
the potential however hitherto remains to be exploited,” said the official.

He said nearly 30 kinds of marble were found in the province and the adjoining tribal belt. “The
most famous of these are Ziarat marble, super-white, off-white, Badal, Zebra, pink, Nowshera, Jet-
black, Bampokha and golden marble,” he added.

Swat, Buner, Chitral, Kohistan, Mardan, Hazara, Nowshera and Kohat divisions are high potential
areas for quality marble in the province. Mohmand, Khyber, Bajaur, Orakzai and Kurram Agencies
from Federally Administered Tribal Areas (FATA) have huge marble reservoirs.9

In North West Frontier Province(NWFP) the Malakand, Mardan, Hazar, Peshawer and Kohat
divisions are high potential areas where quarrying is already taking place. Mohmand Khyber,
Bajaur, Orakzai, Kurrani agencies in FATA has considerable quantity of marble. Balochistan has
rich confirmed deposits of both marble and granite in Khuzdar and Mianwali. Sindh boasts of gold
(Black Gold) colored stone which is highly priced in the global market. Large deposits of Onyx
are found in Pakistan. According to Geological survey of Pakistan, reserves of green onyx in
Chaghai district, and of other shades in Peshawer region, total about 34 million cubic metres. Huge
deposits of Pakistan’s world famous marble varieties, golden marble and coral marble are available
in province of Sindh in Pakistan. Mines of golden marble are located in Sonda in district Thatta,
situated 125 km from Karachi. The estimated deposits of golden marble amount to over 50 million

8
http://pasdec.com.pk/

9
Marble resources in Pakistan, June 25, 2010, Unused treasures, By Tahir Ali (The News, 25-10-09)

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 20
tonnes. Mines of coral marble are located in Thano Bulla Khan in district Dadu, situated 200 km
from Karachi. The mines contain over 75 million tonnes of coral marble.10

Formalization of PASDEC (Pakistan Stone Development Company) for development Marble and
Granite sector indicates government’s interest in this sector which is a positive and encouraging
gesture for the investors in this industry.

KHYBER
BALOCHIST NORTHERN
SINDH PUNJAB PAKTUNKH FATA
AN AREAS
WA

Mianwali Khuzdar
Sonda Gilgit
(District Kurrani Bela Mohamand
Thatta) Malakand, Agency Chillas
Jhuli
Thano Bulla Mardan Khyber Hunza
Zard Khan
Khan (swabi), Agency Skurdu
(District Lasbela
Hazara, Bajaur Azad
Dadu) Zeh Kashmir
Peshawer, Orakzai
Nagarparke Chaghi
r Kohat South
Zhob divisions Waziristan
Swat, Khurram
Buner, Agency
Chitral,
Kohistan
Nowshera

Sources: Multiple

10 http://www.pcq.com.pk/pakistans-quarry-sector-worlds-largest-marble-reserves-waiting-to-be-extracted/

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 21
Available colors in Pakistan11

These gemstones are occurred in several million carats in these areas. The granite occurs in black,
pink, grey, green, yellow, white, and red colors. Similarly marble and onyx occur in black, pink,
yellow, grey, green, red and white colors.

Area wise breakdown is mentioned in the table below:

Area Black Gold Green Coral Yellow Grayish White White Off White pink Brown

Sindh
Sonda (District Thatta) 
Thano Bulla Khan (District Dadu) 
Thatta  
Punjab
Mianwali  
Balochistan
Khuzdar 
Bela 
Jhuli  
Zard Khan    
Lasbela   
Zeh 
Chaghi 
Kheber Pakhtoonkhua
Malakand, 
Mardan (swabi),     
Peshawer, 
Kohat divisions  
Swat,     
Buner,     
Chitral,  
Nowshera and 
Kohat  
Mohmand Khyber,    
Bajaur,  
South Waziristan  
Khyber Agency      
Gilgit 
Hunza 

11 http://www.pakistaneconomist.com/pagesearch/Search-Engine2010/S.E110.php

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 22
Extraction Technique Pakistan

Lack of quality production and the primitive mining techniques existing in Pakistan obstruct the
extraction of standard blocks of marble. The extraction in Pakistan mainly comprises boring of
holes in the bedrock, filled with explosives to blast the block, resulting in high wastage
substantially reducing the price. Standard wastage in the world is taken at 45% of the gross
produce; however, in Pakistan this reaches up to 85%. There are thus bright prospects of setting
up joint ventures in the Marble Sector of Pakistan.

Explosion in the Chaghi Distric, Pakistan

Modern Extraction Technique

The Helical Wire: A Real Revolution12

The real revolution of the marble extraction techniques took place at the end of the 19th century
with the invention of the helical wire and the penetrating pulley. The technique is based on a 4 to
6 millimeters diameter steel wire combined with the abrasive action of silica sand and an abundant
amount of water as a lubricant.

12
https://www.thebalance.com/different-types-of-detonators-used-in-mining-2367466

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 23
The helical wire is a continuous loop of tensioned steel that moves at a speed of 5 to 6 meters per
second and cut the marble at a rate of 20 centimeters per hour. The use of this new technique
almost completely substituted the use of explosives and determined a visible change in the
landscape.

The mountain begun to be literally cut with precision, creating surreal landscapes made of huge
flights of steps and platforms, called "piazzali di cava".

"Diamond wire cutting was invented in England in the 1950s, initially by diamond electroplated
beads threaded onto a multi-strand steel cable. Over the past 30 years significant development
work (by Diamant Boart, among others) refined the concept until it was commercially accepted in
Carrara marble quarries in Italy," wrote Shane McCarthy in a remarkable paper about diamond
wire cutting (Queensland Roads Technical Journal, March 2011, pp. 29-39).

Diamond wire sawing is still in use today in the marble industry, especially in Carrara. "The
diamond wire sawing requires drilling initially two perpendicular holes (one horizontal at the
base of the bench and a vertical from the top) which meet, according to the block size to cut. Then
the cable is rotated by a machine placed on rails. By turning, the cable saws the rock. The machine
backs progressively on the rails so as to keep the cable tensioned until the end of cutting. This
technique is widely used as it allows for calibrated and easy to rework blocks with sharp edges," as
detailed in my recent article about the dimension stone quarries specifics.

Marble Trade Statistics

World Export Import Data

36,000,000
35,000,000
34,000,000
33,000,000
32,000,000
31,000,000
30,000,000
29,000,000
28,000,000 Exports
27,000,000 Imports
26,000,000
2015 2014 2013 2012 2011
(US$ (US$ (US$ (US$ (US$
000) 000) 000) 000) 000)
Exports 33,338, 34,766, 32,923, 29,877, 29,148,
Imports 31,144, 33,888, 32,244, 29,971, 29,025,
This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 24
World Export Share

China , $ 8,767,205

Italy , $ 2,659,363
28.87% 26.30%
Turkey , $ 2,001,568
7.98%
2.90%
India , $ 1,987,622
3.05%
6.00%
3.62% 4.16% Germany , $ 1,862,572
5.57% 5.59% 5.96%

 Total world exports for the Yr 2015 was $ 33.3 billion.


 China is the world’s biggest exporter of marble with a 26.3% market share.
 Pakistan ranks 43rd in the list of exporting countries.
 The annual international trade for 2015 was approx. $ 64 billion.
 The annual trade is posed to increase at an exponential trade due to construction boom

World Import Share

United States of America ,


$ 4,808,681
China , $ 3,245,303
15.43%
Germany , $ 1,812,590

Korea, Republic of ,
46.25% 10.42% $ 1,185,692
Japan , $ 1,165,840
5.82% India , $ 1,078,385

United Kingdom , $
3.81% 928,952
3.74% Italy , $ 904,211
3.46%
France , $ 816,363
2.56% 2.62% 2.90% 2.98%

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 25
 Total world imports for the Yr 2015 was $ 31.1 billion.
 USA is the biggest importer of marble with a 15.43% market share, followed by China with a
10.42%.
 Pakistan’s export share in World imports is around 0.23 %.
 Pakistan’s handicraft are in demand in the USA.

Pakistan Export Import Data

120,000
100,000
80,000
60,000
40,000 Exports
20,000 Imports
-
2015 2014 2013 2012 2011
(US$ 000) (US$ 000) (US$ 000) (US$ 000) (US$ 000)
Exports 71,889 78,121 97,600 73,996 64,669
Imports 37,792 33,358 22,067 21,745 20,376

Pakistan Export Share

1.29% China , $ 41,808


1.38%
1.52% United States of America
12.54%
1.59% , $ 5,284
2.57% Korea, Republic of , $
3,912
3.08% Saudi Arabia , $ 3,658
5.09% 58.16%
5.44% United Arab Emirates ,
$2,212
7.35% Afghanistan , $ 1,844

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 26
 Pakistan’s total marble exports in Yr 2015 were $ 71.8 million.
 China is the biggest importer of Pakistani marble with a 58.16% share.
 China’s imports include majorly raw marble which it processes into finished marble products and
exports it globally.
 By the end of Yr. 2016 the exports are estimated to touch the $ 100 million benchmark.

Pakistan Import Share

1.23% 0.98%
1.44%
China , $ 18,280
1.79% 1.46% 6.10%
2.12% India , $ 8,824
3.34%
Afghanistan , $ 3,708

9.81% 48.37% Japan , $ 1,264

Germany , $ 801

Vietnam , $ 678
23.35%

Italy , $ 553

 Pakistan’s total marble imports in Yr 2015 was $ 37.7 million.


 China is the biggest importer of marble to Pakistani market.
 Pakistan’s major import products finished and processed marble in the form of marble slabs and
other handicrafts.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 27
Pakistan's Export Share in Top 10 Importers

Import Values Pakistan's Exports


Country Share
(2015) (2015)

World 31,144,355 71,889 0.23%

United States of
4,804,681 5,284 0.11%
America

China 3,245,303 41,808 1.29%

Germany 1,812,590 679 0.04%

Korea, Republic of 1,185,692 3,912 0.33%

Japan 1,165,840 383 0.03%

India 1,078,385 992 0.09%

United Kingdom 928,952 372 0.04%

Italy 904,211 769 0.09%

France 816,363 70 0.01%

Taipei, Chinese 798,821 926 0.12%

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 28
China Export and Import Data

10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000 Exports
2,000,000
Imports
1,000,000
-
2015 2014 2013 2012 2011
(US$ (US$ (US$ (US$ (US$
000) 000) 000) 000) 000)
Exports 8,767,2 7,684,9 6,935,9 5,862,1 5,557,6
Imports 3,245,3 4,009,6 3,843,4 3,445,7 3,345,5

China Export Share

Korea, Republic of , $
1,232,629
14.06% United States of America ,
$ 914,890
Japan , $ 649,588
41.93% 10.44%
7.41% Saudi Arabia , $ 433,568

4.95% Viet Nam , $ 417,575


4.76%
3.11% Taipei, Chinese , $ 306,365
3.49%
3.21% 3.26% 3.39%

 China’s total exports in Yr 2015 was $ 8.7 billion.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 29
China Import Share

Import Share Turkey , $ 656,496

India , $ 649,119

Japan , $ 391,362
21.55% 20.23%
Brazil , $ 145,137
2.57% Italy , $ 135,882
3.33%
20.00% United States of America , $
3.61%
132,557
3.91% Egypt , $ 126,817
4.08% 12.06%
4.19% Korea, Republic of , $
4.47% 117,102

 China’s total imports in Yr 2015 was $ 3.2 billion.


 Pakistan’s export share in Chinese imports is around 1.29 %.

Industry Development Limitation

Since the analysis and financials showed a potential of Marble Industry of Pakistan; yet it’s actual
potential has not been fully utilized. Marble industry has not been that targeted by current
Government or from previous one as well and also old mining hacks is one of the main issue that
has been a hurdle for growth of marble industry.

We have further divided these limitations into following categories;

a. Political Instability
b. Extraction and processing pitfalls
1) Old Mining Hacks
2) Lack of awareness of Marble industry
3) Energy Issues

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 30
Political Instability

It is one of the major factor that have contributed in not exploiting the potential of this industry.
Many Governments have been reformed from time to time, however no immense changes have
been made for this business.

As we have talked earlier, Marble is one of the most preferred stones in all over the world, due to
its different dimensions and more than 100 types of colors and varieties that are available. Their
different appearances with great decorative and functional style offers us great advantage over
many countries. The marble sector comprising marble, granite and onyx; though severely under-
developed, is an important component of Small and Medium Sized Enterprises (SMEs) here in
Pakistan. Marble has tremendous growth potential but has been ignored by successive federal and
provincial government13

Extraction and Processing Pitfalls

Marble has been unable to use it potential to the fullest with respect to extraction and or processing
of it. Following are some of the reasons regarding it;

Old Mining Hacks

Marbles are extracted through different types of processes like; drilling, wedging and the most
outdated is to extract the same via blast of rocks. The extraction method used in Pakistan is totally
opposite to the modern method which consists of drilling holes around the optimal block size and
the use of hydraulic jacks to lift the block out of the bed rock. The block size and shape of the rock
are thus more controlled and the wastage is minimized

Extraction in Pakistan comprises boring of holes in the bed rock which are filled with explosives
to blast the rock. This results not only in a high, wastage, but also in smaller stone size which
eventually reduces the price of Marbles, as it directly proportional to size. In addition, this also
limits to the scope of value addition that marble products (finished products can provide) in certain
high priced products as table tops, flower vases, table lamps, etc.

Since, the use of old mining hack is in play, processing companies, whose product size is
consequently smaller, it deprives the miners for a substantial amount of money which eventually
is an issue for the Country as a whole.

13
http://www.dawn.com/news/1113088

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 31
Lack of Awareness for Marble Potential

Pakistan has been unable to actually understand the impact of this industry in its GDP. With the
availability of different types of Marbles in different provinces of Pakistan, subsequently we are
the 6th largest exporter of Marble in the world, its potential is yet to be fully achieved or to be
utilized.

In lieu to above and with the current extraction process that is being done for quarrying marbles;
a huge waste of marble was experienced which makes it more difficult to export or to be added
value in the same in order to further utilize it.

If mine owners and as well workers are able to get educated on how they can actually save that
wastage and can add value to it, they can easily make a fortune from it.

It is because of this factor that Pakistan’s marble is not being queried in many parts of the world.
As the techniques are outdated and there is a high unavailability of skilled workers that can actually
work on the extraction process to make it better or at least less troublesome to complete the process.
With current quarrying process, blocks of marbles are not being extracted with ease, there is a high
number of wastage that makes it even more difficult for the industry as a whole.

Energy Issues

As we all know the deficit or shortfall of energy in Pakistan has made living very difficult for an
individual and for an industry level as well. Many industries in different provinces had been badly
effected by its deficit and were shut down due to this issue; which eventually have damaged the
country’s GDP in general.

Specifically, for Marble industry and for its processing plants to convert a raw marble into a
finished good product; this process requires huge consumption of energy to process the same. With
this issue, and its effects that have been rendered on this industry is one the major limitation for its
slow growth and even unable to perform to its fullest potential.

Research and Development of Marble In Pakistan

Pakistan has been blessed with some precious stones that has a reserves of more than 1 Billion
Tons of different varieties. Likewise, Marble has some great potential and we have been blessed
with its reserves as well.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 32
An approximation of more than 100 stones are available in Pakistan out of which 70 variants have
been tested for different capacities.

(PASDEC) and subsidiary of Pakistan Industrial Development Corporation, has initiated many
projects to up lift the existing set up of Marble and granite sector. These projects are setup
according to international practices, employ modern technology and focus on detail technical
studies. As per plane about 10 model quarries and a number of marble cities are to be created in
Pakistan.

Pakistan has also collaborated with international partners like Collaboration for Quarry Skill
Development and international accredited training programs with International Institute of marble
(ISIM)-ITALY

Collaboration with international partners like, Progetto Sud, Ipalmi, University of Perugia for
establishment of three Marble Mosaic, Inlay and handmade Development Centre one each in
Quetta, Chaghi and Mansehra to develop this industry.

Recently, Italy has shown a great interest in developing this industry and help Pakistan to expand
its export of marble to a new height14 Although Italy is also one of the major exporters of the
world (coming second after Turkey) however they are very keen in exploiting the real potential of
Marble in Pakistan.

A delegation of 37 businessmen were in Pakistan on December 2016, headed by Italian Deputy


Minister Ivan Scalfarotto, and were on visit for exploring the investment avenues besides joint
ventures in various sectors.

Palestine on the other hand have also shown its interest in Pakistani Sectors which includes Marble
Industry as well. However due to some political instability in Palestine, the trade has not been
started yet but soon, they will develop a plan to start the trade.

These interest have showed in Pakistani Marble by different countries is to help and develop this
industry. These assistances are in the capacities of quarrying techniques or to train the staff in order
for them to fully utilize the potential of Marble industry of Pakistan and to further increase its
export share.

14
http://www.brecorder.com/pakistan/industries-a-sectors/331408-italy-pakistan-to-expand-relations-in-
furniture-industry.html

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 33
Steps to Reformation

 Keeping in view the above discussions and rationales, below are some recommendations that may assist or
help the Marble industry to flourish as a key element in Pakistan’s export.
 Marble industry should be established so that they can deliver a voice of the entire industry to respective
Government Official.

 Upgrade operational and abandoned quarries and processing units. Locally manufactured machinery has
been employed in hundreds of processing units that need to be upgraded and modernized to meet
international quality standards

 Likewise, handling, cutting, storing and transportation must be significantly improved. Production volumes
must be expanded to match the availability of exploitable reserves in line with market demands. For
instance, Pakistan has granite reserves of over 2bn tonnes; however, average annual production is limited
to 6,000 tonnes only that makes roughly 0.0003% of the reserves

 Adopt state-of-the-art mining technologies, as the current blasting practices in Pakistan is causing a huge
loss of precious stone.

 Develop infrastructure in areas where the stone deposits are located. The quarrying sector cannot be
developed and expanded without basic infrastructural facilities such as electricity, road network and
security.

 Market reports indicate that Saudi Arabia is interested in Pakistani marble to build its new cities with an
expenditure of around $260bn. And Italy and some other European countries want to sell their marble
machinery and technology in exchange for Pakistani marble. According to the Pakistan Stone Development
Company, exports of dimension stones could touch $2.5bn within a few years if sustained efforts are made
to overcome bottlenecks

 Introduce business-friendly laws and capacity-building initiatives. The government can help establish
training centers for the workforce and provide a safe and healthy work environment. Skilled manpower
could play a cutting edge role in optimizing quarrying operations and processing units. And local laws for
exploration and exploitation of dimension stones should supplement these efforts.

 Some Rebate may be given to those companies which will export Marble as to incentive wise them and
also TDAP may provide some easy loan facilities to give this industry a boost of its own

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 34
The Future is Bright

Financial Feasibility

Assumptions

 Export & Production projections have been made for the period 2016-2020.
 All the projections from the year 2016-2020 are based on the values of the year 2015 which
is the base Yr.
 All the production & export data are available up to the Year 2015 from valid and authentic
sources.
 On the basis of our research it is assumed that global marble production will increase @
8%.
 It is assumed that export to production ratio is 14% on the basis of past years’ data
 Currently marble wastage is at around 85% which has to be brought down to international
standard of 35%
 It is estimated on the basis of past year data, the value of exports is approx. $180/ton

Assumed Cases on Different Scenarios

Under scenarios of CPEC, we have differentiated 4 cases with respect to their impact on production
and export of Marble which are;

 On The Basis of Current Scenario, Production Is Increased @ 8% Annually


 Reduction of wastage by 50%
 Energy Projects under CPEC
 Other positive impact of CPEC

CASE – 1 On The Basis of Current Scenario, Production Is Increased @ 8% Annually

Years 2015 2016 2017 2018 2019 2020


Production 2,876,283 3,106,386 3,354,896 3,623,288 3,913,151 4,226,203
(tons)
Export (Tons) 402,680 434,894 469,686 507,260 547,841 591,668

Exports ($) 71,889,000 78,280,918 84,543,392 91,306,863 98,611,412 106,500,325

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 35
Notes:

 Based on our research, global annual production of marble will increase @ 8%. But
production in Pakistan will grow at a much higher rate.
 Based on 8% growth rate the marble production & exports growth during 2016 to 2020 is as
follows;

Growth in Production 47%


Growth in Exports (Tons) 47%
Growth in Exports ($) 48%

CASE – 2 Reduction of wastage by 50%

Years 2015 2016 2017 2018 2019 2020


Production 2,876,283 3,394,014 4,004,936 4,725,825 5,576,474 6,580,239
(tons)
Export 402,679.62 475,162 560,691 661,616 780,706 921,233
(Tons)
Exports ($) 71,889,000 85,529,151 100,924,399 119,090,790 140,527,132 165,822,016

Notes:

 Research shows that the standard marble wastage globally is at 35%, while in Pakistan the
wastage rate is 85%
 As a post CPEC effect marble wastage will be brought down to 35% by decreasing 10%
wastage annually.
 The growth of marble production & exports based on waste reduction during 2016 to 2020 is
as follows;
Growth in Production 129%
Growth in Exports (Tons) 129%
Growth in Exports ($) 131%

CASE – 3 Energy Projects under CPEC

 Under CPEC, China plans to invest $34 billion in energy sector, due to which there will
be no power & electricity outages.
 As a result of this the production of marble processing units will double which will
eventually lead to doubling of exports.
This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 36
Years 2015 2016 2017 2018 2019 2020
Production 2,876,283 4,344,338 5,126,319 6,049,056 7,137,886 8,422,706
(tons)
Export 402,680 608,207 717,685 846,868 999,304 1,179,179
(Tons)
Exports ($) 71,889,000 109,477,314 129,183,230 152,436,212 179,874,730 212,252,181

Notes:

 On the basis of our research it is assumed that marble processing industry is performing
at less than 50% of its installed capacity due to electricity & power shortage.
 Impact of growth of power generation is incorporated on an annual 10% basis up to
2020. It is assumed by the end of 2020 there will be no power shortages.
 The growth of marble production & exports including impact of electricity, during 2016
to 2020 is as follows;
Growth in Production 193%
Growth in Exports (Tons) 193%
Growth in Exports ($) 195%

CASE – 4 Other Positive Impact of CPEC

 Pakistan’s trade with China occurs through the sea route: 97pc through sea, 2pc by air
and 1pc by land.
 As a post CPEC effect and the investment of $ 13Billion on infrastructure, maximum
trade is expected to occur through land, thus reducing distance, lowering freight cost and
increasing in exports.
 As an effect of post CPEC and other development in the marble industry, increase in
production of processed and finished handicraft is expected as compared to the raw
marble.
 Completion of Marble city, a project by PASDEC is likely to bring an increase in marble
production as well as increase in exports
 Agreement between USAID and latest processing technologies, and use of skilled labor is
likely to cause an increase in the efficiency at marble processing units
 Pakistan will be able to capture the market share of its competitors (mainly Turkey &
India) due to cheap exports.
As a result of above mentioned factors, exports of marble will increase by at least 10% on an
annual basis

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 37
Years 2015 2016 2017 2018 2019 2020
Export 402,680 839,326 990,405 1,168,678 1,379,040 1,627,267
(Tons)
Exports ($) 71,889,000 151,078,693 178,272,858 210,361,972 248,227,127 292,908,010

Notes

The growth of marble production & exports including impact of other CPEC factors, during
2016 to 2020 is as follows;

Growth in Production 193%


Growth in Exports (Tons) 304%
Growth in Exports ($) 307%

Summary

 The above calculations show the % growth in Production and Exports of marble from 2016 to
2020
 The growth trajectory of marble production & exports is exponential.
 The growth in marble production & exports is based on the growth of CPEC and the
development of other projects aligned with it.
 All the above calculations and projections are hypothetical and based on conservative values.

The feasibility involves three different scenarios i.e. quarrying plant, processing plant and
combined plant with quarrying and processing facilities. The financial data used in this feasibility
is taken from a USAID report.
Quarrying Plant
• Equity IRR of 20.9%
Processing Plant
• Equity IRR 23.7%
Quarrying and Processing (Combined)
• Equity IRR 27.4%
Total Project Outlay
• PKR 302.5 million
• Equity = 40%

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 38
• Debt = 60%

Financial Pre-Feasibility of Quarrying Plant

 The source of revenue for the plant will be the sale of marble blocks.
 Revenues have been estimated on the basis of capacity utilization rates, selling prices, and inflation
rates. Selling price estimates have been made with regard to the prevailing market prices for the
product.

Financial Pre-Feasibility of Processing Plant

The source of revenue for the plant will be the sale of marble tiles/slabs.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 39
 Revenues have been estimated on the basis of capacity utilization rates, selling prices, production
capacity, production mix percentage and inflation rates.
 Selling price estimates have been made with regard to the prevailing market prices for the product.

Financial Pre-Feasibility of Combined Processing and Quarrying Facility

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 40
Marble Cities Pakistan

Marble City Karachi

The Sindh government is setting up a state-of-the-art Marble City in Karachi, spread over 300
acres, in an effort to strengthen marble industry of the province. This zone will provide
entrepreneurs multiple opportunities for value addition and processing of marble based on latest
technology and innovation.
Sindh Board of Investment Chairman Zubair Motiwala stated this while presiding over the fourth
board meeting of the Sindh Stone Development Company at his office here on Thursday.
Marble City is one of the priority projects of the Sindh government and the Sindh Board of
Investment, and the Stone Development Company is committed to its successful development.
The project should be planned and executed based on a detailed feasibility study, he said.
Motiwala pointed out that there was high demand for Pakistani marble in the international market,
but the opportunity could not be seized.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 41
Keeping in view the success of SEZs in developing specific sectors, both in the developed and
industrialized countries, the Government of Sindh is developing a State of the Art Industrial
Enclave on 300 Acres to uplift the marble and granite sector in Sindh. The Marble City project
shall have tremendous investment and growth potential for entrepreneurs being based on cutting
edge stone technology, innovation and services.
The concept is based on cutting edge stone technology and custom facilities to create largest and
most technologically advanced industrial park for Dimension Stone (Marble and Granite) in
Karachi.

Objectives

 Value addition of stone and mineral resources


 Attract Foreign Direct Investment for production and processing
 Better Jobs in terms of working conditions
 Increase income resulting from improved skills imparted by the training.
 Increase direct and secondary job creation, supporting poverty alleviation.
 Enhance exports of marble, granite and others stones.
 Waste reduction and increased productivity in the stone sector.

Common Facility and Training Center (CFTC)

The CFTC will provide training and support to the industry in high tech areas such as water jet
technology, chamfering, cut to size, auto polishing lines etc. provide training and support the
industry, in providing processes, those are not available otherwise in individual units. CFTC will
comprise the following:

 Modern Machinery Production Lines for Cutting, Finishing, Sizing, Polishing, Square Blocks,
Packaging
 Trainings in Mosaics, Inlay, Handicraft and Cutting for semi and skilled manpower.
 Marketing techniques and presentation/ display skills at trade fairs
 Requirement of training in processing of stone to produce better quality products for all the current
product lines such as tiles and introduce new products based on new skills development and market
demand to engage the local inhabitants.
 In addition to the above-mentioned components, the CFTC will also train processors and workers
to:
 Check for the overall quality of the products and improve packaging for the market.
 To develop improved Sales, Purchase and Services skills and to set up a CFTC marketing
Department to handle selling and purchasing of products manufactured at the CFTC and by those
processors using its facilities.
 Select and purchases stone waste and blocks for processing into handicrafts, mosaics and other
products developed by the CFTC.
 Increased direct and secondary job creation supporting poverty alleviation in the area.
This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 42
 Increased investment, production, and higher wages as a result of higher demand and improved
quality products.

Warehouse

 Warehouse shall provide storing, stacking, and cutting/squaring services for irregular shaped
blocks of Marble, Granite and Onyx for their extractors and processors in the country on rental
basis. The warehouse would be used to store raw Marble and Granite blocks on rental basis to
provide single place for all sort of MandG buyers and sellers within and outside the country.
 The warehouse will also add value to the raw blocks by properly squaring them to improve
processing efficiency and exportability at low and affordable charges. The facility will also
produce processed raw material for Marble and Granite handicrafts and chips making industry as
a byproduct by using the wastages left from cutting/squaring the MandG blocks.

Waste Water Treatment Plants / Slurry Management

 In order to address the environmental concerns, water treatment plant / re-cycling unit will be
facilitated that address the effective water utilization and prevent the wastage and pollution.
 Slurry waste will further utilized in the manufacturing of bricks, road construction, in cement and
glass industries and in pharmaceuticals.

Mechanical and Electrical Workshops / Services

 For the provision of mechanical and electrical support at site, local service providers will be
provided commercial land for the erecting, repair and maintenance services within the marble city.

Support facilities

 Establishment of stone testing laboratory


 Marketing Support Services
 Expo Centers/ Display centers
 Collaborating with local and foreign institutions.

Research and Development

 Market and technology research


 Conformity and compliance to international trade requirements regarding Stone Testing and
Branding
 Create a pool of local and international sector experts
 Mapping of stone reserves of Sindh
 Develop Academia Industry Linkages
 Benchmarking industrial processes and procedures with international standards
(Italy/China/Turkey/Brazil/India etc)

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 43
 Conduct research/strategic case studies for quality improvement and environmental concerns with
academia and bodies of international repute.

Investment Opportunities

 Infrastructure development
 Captive power plant
 Quarrying (Mining)
 Training center
 Warehousing
 Machinery pool
 Waste Water Treatment facility

Project Benefits

The program will have the following benefits:

 Product diversification and innovation


 Economies of scale
 Better quality jobs in terms of working conditions and income resulting from improved skills
imparted by the training
 Reduction in processing waste through its utilization in making of better quality and better
designed handicrafts and mosaics
 Poverty alleviation through Skill Development in the area
 Increased direct and secondary job creation
 Increase in the exports of value added products

Socio-Economic Impacts of the Project


1. Employment Generation

The Marble City with all established units will employ around 6000-8000 direct labor and around
15000 indirect labors.

2. Environmental Impact
Various schemes including plantation, sewerage water/waste water treatment plans, slurry
management unit and incentives to the industry for provision of green areas in the units are
proposed.

3. Education and Skill Development


Local inhabitants will be provided the technical and vocational training for modern quarrying and
processing practices. The trainees shall not only serve the needs of the local industry but also serve
the foreign countries.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 44
Sectorial Impact
1. Technology Transfer in Remote Areas

The transfer of technology will dissipate to the under developed region of Sindh where the project
is proposed.

2. Competitiveness

Marble City will support clusters in developing value chains and that too at an organized and well
integrated manner. This will drastically reduce production costs, improve quality and enhance
awareness amongst all units inside the City which will largely make them internationally more
competitive.

3. Minimization of Mushrooming

Various informal clusters of Marble and Granite Industry have been created at various locations,
causing serious threat to residential areas and health of residents besides depriving them with the
benefits of integrated value chain management. This project will help such units reap the benefits
of integrated set ups at the Marble City.

Important Milestone Achieved:

 Formation of Sindh Stone Development Company (SSDC) in collaboration with Mines and
Minerals Department and Industries and Commerce Departments, GOS.
 Representation of Marble and Granite Businessmen on the Board of Directors.
 300 Acres land allotted by Government of Sindh.
 Procurement of the land by SBI through execution of Lease Deed.
 Benchmarking Survey completed for 300 Acres. Topographical Survey initiated.
 Marble City Need Assessment carried out. Conceptual Master Planning initiated.
 The Project is envisaged to be executed either through SSDC platform or under Public Private
Partnership (PPP) mode.
 300 feet wide road from Hub Dam Road is provided to access the marble city.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 45
Marble City FATA

Mohmand, Khyber, Bajaur, Orakzai and Kurram Agencies in FATA are the major zones where
huge quantities of Marble are extracted. These deposits have a great variety of colors and fabrics
and thus have vast potential in international Market. About 7000 million tons of good quality
marble ranging from super white, silky and grey varieties exist in FATA. Currently more than 1.5
million stones of Marble are excavated. In order to process the available marble into products
compatible in the international market, a Marble City is being set-up in Mohmand Agency in
collaboration with Pakistan Stone Development Company Islamabad (PASDEC). An area of 300
Acres has been acquired for Mohmand Marble City (MMC). It is an industrial estate with
tremendous investment and growth opportunities for the entrepreneurs through infrastructure
availability. The Marble City will be equipped with a dedicated infrastructure, regular power and
utilities availability within the same vicinity which will substantially reduce the cost of doing
business besides having a continuity of flow in operations. Following are salient objectives of
MMC:

 Attract new business by providing an integrated infrastructure in one location;


 Provide a conducive environment for the Dimensional Stone Industry of Pakistan;
 Add value to the existing products, enhance exports and to attract local and international
investment in the Dimensional Stone industry
 Address the environmental and health hazards
 Localized environmental controls that are specific to the needs of an industrial area;
 Process innovation according to international standards.

It is estimated that in addition to other economic benefits, Marble City will generate more than
18,000 direct job opportunities in the area where unemployment is rampant.

Present Status:

Work on the Marble City has been accelerated and most of its components are completed.
Acquisition of 310 acres land, construction of 4.5 km access road and Grid station have been
completed.

Component-wise updated status is given below:

S. Cost
Item Status
No. (In million)
1 Acquisition of land (338 acres) 119 Completed
2 Construction of access road from Michni (4.5 km) 58.75 Completed
3 Master Plan by National Industrial Park 12 Completed
4 Supply of power(132KV Grid Station) 390.35 Completed
Construction of Approach road from Ekkaghund to 90%
5 197.719
MMC (10kms) completed

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 46
93%
6 Construction of 9 No. Picquets (35*24.5 Sft) 151.686
completed
7 Construction of boundary wall (11400 Rft) 164.922 Completed
Internal infrastructure development in Phase-1
8
(PASDEC)
100%
a) Road Works (3.9 kms) 41.851
completed
90%
b) Sewerage Line (3900 ft) 36.87
completed
c) Structure Work (Overhead and Underground 100%
20.618
water tanks) completed
85%
d) Internal Electrification (6732 HT Line) 5.437
completed
100%
e) Telephone Line (100 lines of wire) 7.127
completed
95%
f) Drainage System (17682.40 Cft) 1.919
completed
50%
g) Water Supply System (2950 ft pipes) 5.515
completed
h) Price Escalation 4.518
Houses / Land acquisition proceedings completed
9 45 Houses
and being paid
100%
a) Boundary Wall (11300 Rft) 198
completed
50%
b) 4.5 KM Road 157.765
completed
Total 1570.192

CPEC and Marble Industry

As we have discussed earlier about the impact and potential of Marble Industry of Pakistan as well
as it limitations due to certain circumstances, this industry can play an important role in the exports
of Pakistan. Especially if we analyze, China is one the major importers of Marbles. They are also
currently importing Marbles form Pakistan but only as a RAW material, and converting the same
into finished goods.

Pakistan’s Advantage

Now considering the fact that Pakistan Share of Marble is relatively small, we have to foresee how
this can be changed or can be increased. As we believe that first preference of import of Marble
for China should be Pakistan.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 47
With the advent of CPEC, we can witness a superior advantage in terms of the export of Marble
to China. As we have discussed earlier that Turkey is the main exporter of Marble to China; we
can shatter the same if we focus on the time horizon in terms how much distance and time is
required, for a shipment from turkey to be sent to China with respect the same with Pakistan.

If we analyze, distance from Turkey to China through shipment is 16500/- KM which takes approx.
26 days for completion. While Pakistan has not only have option of shipment but also have land
option as well which will provide less time, less cost and less energy for exporting of marble from
Pakistan to China.

Further, with the applicability of newly quarrying techniques, and keeping distance and options
available for exporting marble to China as the biggest advantage, Pakistan Marble exports can be
increased exponentially.

Enhanced Resources

With the change that CPEC will brought to the infrastructure of Pakistan, resources like energy,
communication and transportation will be enhanced and it will provide a direct impact on Marble
industry.

Following are some major shift of resources that will be an advantage;

 Energy Shortfall – with investment of more than 50% of total CPEC project, energy issue may
be resolved and this will bring the positivity for marble sector. As we have discussed earlier the
significance of energy that is required for processing of Marble Raw Material into a finished good;
this shortfall will be met up and hence this industry will run smoothly.

 Cost Efficiency – China’s focus on CPEC is to eventually reduce its cost to deliver its shipment
to designated countries. We can use the same strategy and deliver the marble to China, as Pakistan
will have a bigger advantage of delivery of shipment from 4 different aspects to China and i.e. by
Road, Airline, Sea and Railways.

 Time Efficiency – Since with the number of export options available to China, Pakistan can use
any of the resource that is required to export its shipments.

 Technological Advancement – With investment through CPEC, Pakistan advancement in


technological sector will provide a boost in many industries. Similarly, Marble industry will have
enhancement as well with respect to its extraction and processing techniques. As Pakistan is
currently using old hacks for marble extraction, with improvement in technology sector thanks to
CPEC, Marble industry will become more beneficial.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 48
Inland Opportunities

The Marble industry should not limit themselves for Export only. There has been a huge
development of the whole infrastructure here in Pakistan. From road to cities, everything is under
construction. Hence many international chain of companies, industries are willing to operate in the
country. Like HAYAT, a big name in the hotel industry is willing to open 4 hotels here in Pakistan.

This is a huge opportunity for many industries like; Cement. Steel, Piping, Transportation and off
course Marble industry. This opportunity is knocking on our door step and we just have to open
the door and be able to cater its requirements.

So marble industry in general is beneficial not only for export potential but also for in-land
opportunities as well for Pakistan.

Conclusion

As identified by the above feasibility analysis, we can conclude that it has great potential for export
opportunities and for inland as well. The Marble had been abandoned since long by Govt. and by
businessmen as well and it is one of the key reasons for its slow progress.

The initial impact on Pak-China trade is studied- in the analysis above. However, Exports may not
be limited to China only as One Belt One Road is a great concept that even Pakistan can use to
further export Marbles to other countries as well. Nevertheless, China should be the first priority
of export for Pakistani Marble due to number of factors like ease in transportation, time difference
and a number of options for delivery of Marble.

Also, the inland investment opportunities that are available here is also one of the things that is
foreseen to provide substantial returns from marble industry, if recommendations provided earlier
are used in a positive manner.

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 49
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This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 50
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http://www.aisa.org.af/Content/Media/Documents/Marble-industry-AFG-AISA-
2012112014173236730553325325.pdf

http://www.tdap.gov.pk/doc_reports/tdap_report_on_marble_and_granite.pdf

http://www.tdap.gov.pk/doc_reports/tdap_report_on_marble_and_granite.pdf

http://www.tdap.gov.pk/tdap-statistics.php

https://www.scribd.com/doc/111543491/Industrial-Project-Report-On-GRANITE-MARBLE-CUTTING-
AND-POLISHING-UNIT

http://www.tdap.gov.pk/tdap-statistics.php

http://www.decisiondatabases.com/ip/2931-marble-industry-market-report

http://www.tdap.gov.pk/product_report_presentations.php

http://www.prnewswire.com/news-releases/global-granite-marble-and-stone-industry-300210269.html

https://pk.linkedin.com/in/sanaullah-khan-68636013

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.661.2075&rep=rep1&type=pdf
http://magentagroup.co.za/Solutions/9455/extraction-quarries-stones/

http://anythinghermanus.co.za/Project/marble_quarrying_methods.html

http://www.quarryscapes.no/text/publications/factsheet5.pdf

This research report was prepared for Capstone Project-1 BPR 601-Z, taught by Sir Naveed Ilyas (IoBM) 51

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