Enhancing the Export Competitiveness of Pakistan’s Aluminum Utensils Sector
This study, “Enhancing the Export Competitiveness of Pakistan’s Aluminum Utensils Sector” is based not only on secondary research, but more...
This study, “Enhancing the Export Competitiveness of Pakistan’s Aluminum Utensils Sector” is based not only on secondary research, but more importantly on insights gained from extensive interviews conducted with industry participants by the Pakistan Business Council (PBC) in collaboration with the All-Pakistan Aluminum Utensils Manufacturers Association (APAUMA) and the Engineering Development Board (EDB).
The Study is part of the PBC’s SME outreach program in which it works in collaboration with the EDB & respective sector associations in the engineering sectors which have some export footprint. The major opportunities and challenges in export markets are identified and policy recommendations developed to help each sector achieve its export potential.
This study, analyzes the competitiveness of Pakistan’s aluminum utensils sector across the production, trade, and export value chains. The study evaluates market dynamics, the product mix, labor and raw material dependencies, and export potential in key international markets. It further seeks to identify structural and policy-related challenges faced by the industry and recommends measures to improve quality standards, promote technology upgradation, support SMEs, and facilitate a shift towards value-added and an export-oriented growth.
According to the All-Pakistan Aluminum Utensils Manufacturers Association (APAUMA), the total number of units engaged in the manufacture of aluminum utensils is estimated at between 500 & 600 with an annual production of 140,000 tons. The sector is estimated to provide employment to about 25,000 workers. Most units are medium to small sized with only a few units employing between 500 – 600 employees.
Top 10 Global Exporters of Aluminum Utensils
The global exports of aluminum utensils increased from $4.53 billion in 2015 to $6.40 billion in 2024, recording a CAGR of 0.04 percent during this period. China ranks first, with its exports rising from $2.32 billion in 2015 to $3.91 billion in 2024. Meanwhile, Pakistan was ranked 23rd, with exports increasing from $25.97 million in 2015 to $26.76 million in 2024.
Top Global Exporters of Aluminum Utensils
| Rank | Country | Export value 2015 (US$ in Million) | Export value 2024 (US$ in Million) | Quantity Exported 2024 (Tons) | CAGR (%) (2015-2024) |
|---|---|---|---|---|---|
| — | World | 4,530.38 | 6,400.06 | — | 0.04 |
| 1 | China | 2,324.28 | 3,906.90 | 697,478.00 | 0.06 |
| 2 | France | 263.76 | 327.08 | 25,520.00 | 0.02 |
| 3 | Italy | 320.85 | 317.06 | 29,777.00 | 0.00 |
| 4 | Germany | 131.45 | 168.37 | 13,458.00 | 0.03 |
| 5 | Turkey | 114.64 | 140.28 | 26,266.00 | 0.02 |
| 6 | Viet Nam | 39.42 | 130.76 | *11,469.00 | 0.14 |
| 7 | Brazil | 45.24 | 125.62 | 17,923.00 | 0.12 |
| 8 | India | 74.29 | 122.92 | 25,354.00 | 0.06 |
| 9 | Thailand | 229.36 | 109.95 | 16,446.00 | -0.08 |
| 10 | USA | 122.27 | 103.59 | — | -0.02 |
| 23 | Pakistan | 25.97 | 26.76 | 7,881.00 | 0.00 |
| Source: ITC, Note: Viet Nam 2023* | |||||
Opportunities for Enhancing Exports
Based on industry discussions and review of secondary data, the aluminum utensils sector in Pakistan presents several important opportunities, primarily driven by export presence, and unmet international demand for specialized aluminum utensil products.
- Current exports include aluminum cookware, anodized products, and metal-finished utensils.
- Key export markets are the UAE, Saudia Arabia, the UK, Belgium, France, the USA, Afghanistan, and some European countries.
- There is potential to expand into regional markets such as Bangladesh, Sri Lanka, and selected Central Asian countries.
Challenges
1. Limited Access to Technology and Finance:
Most firms lack affordable financing for machinery and automation, keeping production labor-intensive; reducing productivity, and leading to increasing quality inconsistencies. Manufacturers are also hesitant to use bank financing due to religious considerations and collateral issues. This limits access to support programs like the SBP’s TERF.
2. A Developing shortage of Skilled Labor:
The sector suffers from a growing shortage of skilled labor. Existing workers rely on outdated machinery and traditional methods, while younger workers avoid the physically demanding work, leading to a gradual loss of critical skills.
3. Limited Research & Development (R&D):
R&D receives minimal attention, with only 5–6% of manufacturers investing in innovation or monitoring global demand patterns. Most firms prioritize operational costs over product development, resulting in low innovation and reliance on copying large firms’ designs.
4. Weak Institutional Support and Service Delivery:
Despite contributions to social security schemes; healthcare and welfare services for workers remain inadequate, increasing operational costs and weakening trust between industry and government.
Recommendations
1. Enhancing Product Variety and Innovation: Industry needs to modify existing products and introduce advanced varieties of pressure cookers, anodized, and die-cast aluminum utensils to meet global demand for healthier and more durable products.
2. Encouraging Technological Upgradation: Promote automation in family-owned businesses, replace old machinery with environmentally friendly equipment, and improve production efficiency.
3. Promoting Export-Focused Growth: Focus on innovation aligned with international demand and increase the share of production dedicated to exports.
4. Limit Export of Recycled Aluminum Ingots: Restrict export of aluminum ingots in primary form to ensure availability for domestic manufacturers while allowing imports intended for re-export.
5. Upgrading Common Facility Centers (CFCs): Improve technology and machinery at CFCs, introduce circle-cutting facilities, and provide access to advanced tools for standardized production.
6. Skilled Labor Development: Establish vocational and technical training programs focused on modern production techniques, machinery operations, and safety standards.
7. Market Access and International Exhibitions: Support participation in TDAP and single-country exhibitions, organize B2B meetings, and provide guidance for visas and marketing in international markets.
The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk
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