Sector Analysis
Cutlery Industry of Pakistan
Cutlery, in general, refers to all types
of cutting instruments which may be used
for industrial, commercial or domestic
purposes. Cutlery products are generally
classified into two categories namely
kitchenware and non-kitchenware. The
detail of products included in each
category is depicted in table 1.
H S Cod e Des cri p ti on
Ki t ch en w ar e Cu t l er y
S poons , forks , l adl es ,
s ki mm ers , cake- s ervers ,
8215 fi s h- kni ves , but cher- kni ves ,
s ugar t ongs and s im i l ar
ki t chen or t abl eware.
Non K it ch en w ar e C ut l er y
Kni ves and cut t i ng bl ades ,
8208 for m achi nes or for
m echani cal appl i ances .
Kni ves wit h cut t i ng bl ades ,
s errat ed or not (i ncl udi ng
8211 pruni ng kni ves ), ot her t han
kni ves of headi ng 82.08,
and bl ades t hereof.
8212 R azors and razor bl ades .
S ci s s ors , t ai l ors ' s hears and
8213 s i mi l ar s hears , and bl ades
t hereof.
Ot her art i cl es of cut l ery
(hai r cl i ppers , but chers ' or
ki t chen cl eavers , chopp ers
and mi nci ng kni ves , paper
8214
kni ves ); m ani cure or
pedi cure s et s and
i ns t rum ent s (i ncl udi ng nai l
fi l es )
S words , cut l as s es , bayonet s ,
l ances and si m i l ar arm s and
9307
part s thereof and s cabbards
and s heat hs t hereof
Table 1: The Cutlery Products
Located in the traditional metal
workmanship triangle of Punjab, is the
town of Wazirabad where the major part
of the cutlery industry of Pakistan is
clustered. However, some of the cutlery
manufacturers are present in Sialkot,
Lahore, Karachi and Dir (KPK) also. One
important segment of industry (shaving
blades and disposable razors) is entirely
situated outside Wazirabad.
The history of metalworking in the
vicinity of Wazirabad dates back to the
times when Alexander the Great invaded
India but it was in the time of British
when the craftsmen of this area were
recognised for their skills in cutlery. In
its early days the town used to produce
arms and ammunition for British Indian
Army. During the World War II, the
industry in and around Wazirabad, was
manufacturing arms and accessories like
bayonets, karpans, knives, daggers, etc.
for allied forces. After the World War II,
the market for war related products dried
up. Soon after most of the Hindu
businessmen left because of partition of
India and with it a huge sub-continental
market was lost. This industry, therefore,
had to go through restructuring and
diversification. The industry emerged out
of the crises with product diversification
and started manufacturing cutlery, knives
of various kinds, blades, scissors, shears,
daggers, swords, replicas of swords and
knives for decorative purposes and
kitchenware. Ever since, the industry has
grown and has weathered many up & down
swings.
The industry majorly comprises of
SMEs. There are over 400 units directly
associated with the manufacturing of
different cutlery products out of which
15-20 units may be classified as large.
More than 150 cutlery manufacturers are
members of “Pakistan Cutlery and
Stainless Steel Utensils Manufacturers
Association”. The total installed capacity
of the cutlery industry is to the tune of 8
million pieces whereas the production is
4.3 – 4.5 million pieces, according to the
aforementioned association. The direct
and indirect employment of this industry
is estimated to be around 25,000. The
cutlery industry contributes 0.11% to the
country’s GDP and has a share of 0.25%
and 6.5% in total exports and engineering
exports respectively. The industry
occupies the domestic market space (90 %
+) and very few items of cutlery,
kitchenware and blades are imported.
The major raw materials used by this
industry include stainless steel sheet, re-
melted metals, brass sheets, densified
wood, camel bones, steel wire and
plastics. Among different grades of steel
being used for cutlery is Damascus steel
which yields best finish for the products.
All the raw materials used by this
industry, whether produced locally or
imported, are easily available.
Trade Statistics of Cutlery
According to trademap data, the
global imports and exports were US$
10,727 million and US$ 9,571 million
respectively for the year 2009. The
imports and exports of Pakistan were US$
11.83 million and 52.88 million
respectively for the same period. The
details of the trade are given in table 2.
The analysis of the data shows that
Pakistan’s share in global exports is a
mere 0.55% despite the potential.
Strengths, Weaknesses & Need
Assessment
Over the time the industry has
matured and the basic skill set is available
at low cost but the skill set for higher
value addition is unavailable. The
industry also has sufficient production
capacity and basic technologies which are
now outdated. The productive assets are
also outdated. The limited product mix
and varieties in products is also hindering
the growth of this industry.
The manufacturers also lack the
knowledge of potential new markets and
their dynamics. Moreover they have not
yet been able to develop their brands and
are dependent on third parties for
marketing. The internal conflicts of the
industry and the cut throat competition in
prices are also adversely affecting the
industry. Furthermore the industry also
lacks the knowledge about quality
standards and certifications and therefore
quality management systems are almost
nonexistent. Although there are a few
companies who are large enough and have
adequate managerial, technical, financial
strength and sufficient export orientation
and experience but majority fall in SME
and lacks these skills.
Amount in US$ million

Global Trade Pakistan Trade

HS
Code Leading Leading Top
Imports Exports Imports Exports Top Markets
Importers Exporters Suppliers
K it ch en w ar e
USA, China, Hong UAE, N e t h e r l a n d s,
8215 1,809 Germany, 1,949 K o n g, 1.11 Switzerland, 1. 6 0 U S A,
France Germany Netherlands Germany
Non Ki t ch enw ar e
China,
G e r m a n y, Germany, U S A, U A E ,
8208 2,367 USA, 1,907 4.03 0. 4 5
J a p a n, C h i n a China, Italy Brazil
Germany
USA, China, China,
U S A, F r a n c e ,
8211 1,664 Germany, 1,448 G e r m a n y, 0.25 Germany, 9. 2 8
Belgium
Canada Switzerland Korea
USA, P o l a n d, Poland, Saudi
8212 3,729 Germany, 3,162 G e r m a n y, 5.31 Germany, 8. 6 5 Arabia,
UK USA China China, Iran
USA, China,
China, USA, U S A, I t a l y,
8213 454 Germany, 443 G e r m a n y, 0.12 7. 3 2
Germany UAE
Japan Italy
USA, China, China,
U S A, B r a z i l ,
8214 657 Germany, 634 G e r m a n y, 1.01 Germany, 2 5. 0 7
Germany
UK Korea Japan
USA,
G e r m a n y, U S A, U K,
9307 47 Germany, 28 - - 0. 5 1
U S A, T a i p e i Germany
France
Sub
8,918 7,622 10.72 5 1. 2 8
Total
Total 10,727 9,571 11.83 52.88

Table 2: Trade Statistics of Cutlery for year 2009 Source: Trademap

 Thrust product wise studies of potential
markets need to be done in order to assist and
prepare the exporters for venturing into new
markets. Knowledge dissipation about latest
manufacturing practices, technologies,
management practices and quality standards
among the manufacturers need to be
undertaken to enhance their competiveness.
Skill sets both at technical and managerial
levels need to be improved.