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DEVELOPMENT ECONOMICSSports goods

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OUTLINE

Sports

Type of sports

Sports goods

Sports industry in Pakistan

Pakistan major exports

Sports goods export trend

Football production in Pakistan

Sports industry in Sialkot city

Major exporters of sports goods in

Sialkot

Global soccer ball industry

Major importers of sports goods

Sialkot dry port exports table for 2010

Sports industry and child labor

Sports industry and enviourment

Sports industry and electricity

Conclusion

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SPORTS

A sport is commonly defined as an organized, competitive, and skillful

physical activity requiring commitment and fair play. It is governed by a set

of rules or customs. In a sport the key factors are the physical capabilities

and skills of the competitor when determining the outcome (winning or

losing).

The physical activity involves the movement of people, animals and/or a

variety of objects such as balls and machines

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TYPE OF SPORTS

Stacking

Wall-and-ball

Water sports

Ball Sports

Weightlifting

Card Games

Athletics (track and field)

Bat-and-ball

Bowling

Climbing

Gymnastics

Hockey

Motorcycle racing

Olympic Sports

Polo

Cricket

Cycling

Fishing

Football

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SPORTS GOODS

Sports equipment is a general term for any object used for sport or exercise

Sports goods include

Balls

Goals

Flying Discs

Sticks, Bats and Clubs

Wickets and Bases

Nets

Rods and Tackle

Protective Equipment

Footwear

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SPORT INDUSTRY IN PAKISTAN

Pakistan is a giant exporter of sports goods".

Most of the well-known sports companies like,

Adidas

Nike

get sports equipment prepared in Pakistan.

In Pakistan, Sialkot is the sports industrial hub. About 99% of sports goods,

exported by Pakistan, are prepared in Sialkot

Pakistan, once, was one of the biggest exporters of footballs. Even, Pakistan

supplied footballs for FIFA world cup as well.

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PAKISTAN'S MAJOR EXPORTS (JUL-MAR) [%

SHARE}

Cotton

61.5% 61.3%

Others22.8% 15.6%

Sports Goods

1.6% 3.7%

Synthetic Textiles

3.0% 6.1%

Rice6.6% 5.6%

Leather

4.5% 7.7%

2006-07 1996-97

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SPORTS GOODSSPORTS GOODSValue in 000 US$

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$231,956$229,225

$211,766

$193,901

$170,000

$180,000

$190,000

$200,000

$210,000

$220,000

$230,000

$240,000

JULY-MAR 03-04 JULY-MAR 04-05 JULY-MAR 05-06 JULY-MAR 06-07

Valu (' ')

SPORTS GOODS(JUL-MAR 03-04 TO JUL-MAR 06-07)

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Spo

rtsGoods

Spo

rtsGoods

050

100

150

200

250

300

350

400

Jul-Jun 03-04

Sep-Aug 03-04

Nov-Oct 03-04

Jan-Dec 04

Mar-Feb 04-05

May-Apr 04-05

Jul-Jun 04-05

Sep-Aug 04-05

Nov-Oct 04-05

Jan-Dec 05

Mar-Feb 05-06

May-Apr 05-06

July-June 05-06

Sep-Aug 05-06

Nov-Oct 05-06

Value"000"$

Line2

MOVINGANNUALCH

ARTUPTO

M

ARCH

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PAKISTAN EXPORTS PRODUCTS

8

P KIST NS EXPORTS

OTHER

OPPORTUNITI

ES

7%

OTHERS

16%

SURGICAL

2%

CARPETS

3%

SPORTS

3%

EATHER

7%

Rice

5%

Textile

67%

ProductsIT

Engineeringgoods

Fisheries

Fruit and Veg

Marble and

Granite

Gems and

Jewellery

Pharmaceuticals

Chemicals

Poultry

Services

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MAJOR EXPORTS SHARE

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MAJOR EXPORTS SHARE

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FOOT BALL PRODUCTION IN PAKISTAN

1970/71 1980/81 1990/91 2000/01 2003/04

Footballs

produced, in

millions

1,4 5,2 19,7 40-43 33-35

Number of

Football

stitchers

1.500-

2.000

5.000-

7.000

21.000-

25.000

50.000-

54.000

41.000-

44.000

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SPORTS INDUSTRY IN SIALKOT

Sialkot, Pakistan's export capital represents an economy and a breed of

entrepreneurs quite different from that nurtured by the state apparatus over

the years. Though Sialkot's roads and other infrastructure are

Primitive and choked, yet the culture of enterprise sported by this city and

its contribution to the national economy is unmatched by another city in the

country

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SIALKOT EXPORTS

years Sports goods Surgical goods Leather goods Total exports

1991-92 2,276 1826 1851 8695

1992-93 2475 2263 3920 10205

1993-94 4329 2382 4144 12837

1994-95 4718 2860 5769 16984

1995-96 5860 4196 7243 20428

1996-97 7261 4498 8745 24455

Source: Sialkot Dry Port Trust

Sialkot exports (in s. millions)

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SIALKOT EXPORTS

01000

2000

3000

4000

5000

60007000

8000

year 1991-

92

year 1992-

93

year 1993-

94

year 1994-

95

year 1995-

96

year 1996-

97

year 1991-92

year 1992-93

year 1993-94

year 1994-95

year 1995-96

year 1996-97

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SIALKOT AND SPORTS INDUSTRY

1994 is remembered in Sialkot as the year the city was selected for supplying the

official ball to the Football World Cup in the United States. It culminated a year of

frenetic activity as Sialkot's

Industry turned out over 20 million footballs to cater to the excitement created by the

publicity surrounding the event.

Exports of footballs doubled from Rs. 1.6 billion in 1992-93 to Rs. 3.2

billion in 1993-94.

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In addition to top brands such as Adidas and Puma, major sports clubs

around the world sourced footballs from Sialkot

In 1998 Sialkot city again select for the supply of the footballs to the FIFA

world cup.

On the eve of the FIFA

Football World Cup 2006 to be held in Germanyfrom June 9, Sialkot has so far exported over 55.8 million footballs worth

more than Rs 8.5 billion.

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According to business sources here, over 85 percent of the total production

of soccer balls in the world comes from Sialkot,

while all international brands are sourcing their supply of footballs from this

export-oriented city and nucleus of cottage industry In the country

Over 40 million balls worth US $ 210 million are produced annually by

some 60,000 highly skilled male and female workforce of Sialkot, a city

which enjoys a unique position in global trade with reference to sports

goods.

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o There are over 3,000 small and medium sized sports goods

industrial units, and some 50 well established industries

functioning in and around Sialkot.

o The sports goods industry of Sialkot, producing quality goods

mainly for foreign markets, has over a century old history.

o

It is a labor-intensive industry providing direct and indirect job

opportunities to about 60,000 workers, while sub-contracting of

work on piece rate is a common practice, resulting in more jobs for

people.

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In 2002, sports goods export from Sialkot worth to Rs 11,039

million, indicating a 16.91 percent increase in foreign exchange

earnings as compared to the previous year.

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MAJOR SPORTS INDUSTRIES IN SIALKOT

Saga Sports Pvt. Limited

Best way Industries

Roomaif

International

CA sports

AIA International

Ishaan sports

Malik sports

3DS TRADERS

5-ONE SPORTS

4CS SPORTS

3K SPORT INDUSTRIES

12X GARE SPORTS

2 GOOD SPORTS

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GLOBAL SOCCER BALL INDUSTRY TotalGlobal Trade US$ 817m (2005)

6 Brands Dominate (incl. Nike,Adidas,Asics,Mizuno,Mitre)

Four major producers:

y China (US$ 273M), Pakistan (US$ 186M), Thailand (US$ 60M), India

(US$23M)

y Clustering extensive

Pakistan Sialkot cluster

India Jalandhar cluster

China Dongguan, Shenzhen, Nanjing cluster, Wuxi cluster

Labour Standards Challengesy Pakistan, India Child Labour

y China overtime, migrant labour, working conditions, TUs

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THE CLUSTERS

Cluster Features Sialkot Jalandhar

Soccer Ball Producers 20 (Large)

50 (Medium)

400 (Small/Micro)

10 (Medium)

140 (Small/Micro)

Scale: Workers 30.000 Stitchers

2400 Subcontractors

12000 Stitchers 1000

Subcontractors

25.000 Stitchers

Exports (2005) $185 m $22 m

Types of Hand Stitched

Balls

High Quality Premium

Match

Medium Quality

Low Quality

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THE CLUSTERS


Key Buyers Mega Brands

(Nike and Adidas)

NoMega Brands

(Mitre/Pentland,Gilbert)

History ofJoint Action Extensive Limited

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COMPARATIVE WORKING CONDITIONS I


No. of Stitchers 30,000 12,000

Average Daily/Monthly Income

US$ 2.66/79.80 US$ 1.84/55.20

Working Hours Flexible Flexible

Compliance withNational Labour

Legislation

No (Outsourcing toAvoid Regulation)

No (Outsourcing toAvoid Regulation)

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COMPARATIVE WORKING CONDITIONS IICluster Features Sialkot Jalandhar

Compliance with

Core Labour

Standards

No

(FOA, Collective

Bargaining, CL?)

No

(FOA, Collective

Bargaining, CL?)

Access to Work Factory-based: Male

Dominated

Home-based:

Greater FemaleParticipation

Home-based:

Greater Female

Participation

Particular

Challenges

Womens

Access to Work

Caste-Based

Discrimination

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EXPORTS TO MAJOR COUNTRIES

Brazil

Description Rank as a

Supplier

Country

Suppliers Share in total

imports

2001

Share in total

imports

2002

Inflatable

Balls

1.

2.

4.

5.

6.

7.

China

Pakistan

S.Korea

Taiwan

India

Indonesia

15.99

45.44

-

12.7

1.73

8.75

37.34*

35.36*

5.66*

4.7*

3.46

3.35*

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EXPORTS TO MAJOR COUNTRIES

Description Rank as a

Supplier

Country

Suppliers Share in total

imports

2001

Share in total

impors

2002

Balls , golf,

tennis &

inflatable balls

1.

2.

34.

5.

China

Taiwan

PakistanSpain

U.S.A

36.45

9.7

9.944.52

22.01

31.46

19.99*

15.84*12.6*

10.02*

Brazil

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JAPAN

1. China

2. United States

3. Saudi Arabia

4. UAE

5. Pakistan

20.5%

12%

6.4%

5.5%

0.02%

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JAPAN

Commodity

Description

03-04 04-05 06-07 07-08 07-08

Cotton yarn

& woven

fabrics

68.27 68.89 70.87 60.745 68.82

Leather and

leather

manufactures

15.73 15.41 17.92 16.491 25.88

Sport goods 6.26 5.54 7.943 8.057 17.81

Fish & Fish

product

14.45 8.51 10.5 10.272 9.95

Petroleum &

oil

5.28 5.753 16.65 - -

US$ illion)Source: WTO Trade data base, World Development Indicators, Federal Bureau of Statistics

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LAOS

Location: Southeastern Asia, northeast of Thailand, west of Vietnam

Laos principal import sources 2007

Thailand 68.5%

China 9.3%

Vietnam 5.5%

Pakistan 0.03%

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LAOS

Commodity

Description

03-04 04-05 05-06 07-08

Cotton yarn &

woven

fabrics

0.039 0.058 0.189 0.043

Sugar & sugar

confectioners

0.032 0.021 0.106 0.027

Sports goods 0.004 0.003 0.005 0.003

Source: WTO Trade data base, World Development Indicators, FederalBureau ofStatistics, Pakistan evenue utomation Pvt. Ltd. (P L)

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SIALKOT DRYPORT TRUST

The Sialkot Dry Port Trust handled the Export and Import cargo in March,2010

as under

EXPORT

The Sialkot Dry Port Trust handled 2814 Consignments weighing 6267 Tons worth4217 million in the

Export sector. This cargo was transported from Dry Port to Lahore, Islamabad,

Karachi and Peshawar

Airports, KPT & Port Qasim Sea Port.

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D DESCRIPTION

No.OFCONSIGNMENTS WEIGHT IN TONS

VALUE INMILLION

RUPEES

Mar,10 % Feb,10

Mar,0

9 Mar,10 % Feb,10

Mar,0

9 Mar,10 % Feb,10

Mar,0

9SPORTS 73 2.6 74 67 96 1.5 110 91 69 1.6 79 53

SPORTS BALL 403 14.3 314 279 1018 16.2 779 649 619 14.7 462 399

GLOVES 133 4.7 122 138 558 8.9 495 591 253 6.0 221 270

LEATHERGOODS 744 26.4 684 798 1065 17.0 978 940 1312 31.1 1190 1231

SURGICAL 688 24.4 683 809 560 8.9 573 543 995 23.6 965 875

CATTONGOODS 79 2.8 88 103 123 2.0 192 165 93 2.2 150 101

NYLONGOODS 274 9.7 298 306 250 4.0 310 286 248 5.9 322 274

KNIVES 32 1.1 21 27 52 0.8 40 45 47 1.1 68 41

FURNATURE 8 0.3 6 5 41 0.7 21 11 8 0.2 5 7

RICE 1 0.0 2 1 5 0.1 35 24 1 0.0 4 1

MACHINERY 14 0.5 9 7 63 1.0 8 38 6 0.2 1 4

ELECTRICAPP 45 1.6 44 27 577 9.2 583 370 123 2.9 125 74

MARSHALARTS 96 3.4 85 107 292 4.7 202 347 153 3.6 139 138

CUTLERYGOODS 61 2.2 55 37 472 7.5 446 306 103 2.5 106 99

CERAMIC 9 0.3 16 9 57 0.9 100 104 21 0.5 34 31

FOOD STUFF 1 0.0 2 3 17 0.3 18 12 1 0.0 2 2

MUSICAL ITEMS 26 0.9 17 20 26 0.4 15 15 23 0.5 12 9

BADGES 4 0.1 3 0 0 0.0 0 0 1 0.0 2 0

MISCELLANEOUS 123 4.4 94 100 996 15.9 823 195 140 3.3 109 93

Total 2814 100 2617 2843 6267 100 5728 4732 4217 100 3996 3702

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CHILD LABOR IN THE SPORTING GOODS

INDUSTRY

In Pakistan, 40.5% of the country's 145 million people are less than 14 years

old and well over 3 million of them are believed to be involved in child labor.

Children are involved in various types of work including carpet weaving,

sporting goods production, street Vending, and domestic child labor.

The existence of child labor in Pakistan's football Stitching industry received

international attention in the mid-90's when activist groups and the mediareported that there was extensive use of child labour in the sporting goods

Industry.

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INDUSTRY

Tehsil Deska (Sub-District of Sialkot)

One 14 year-old boy, Nasser, was taken away from his Coca Cola ball when we

found him working in the house. There were also a number of other adults present

who had been stitching footballs since they were young children.

Mohamed Imran Ijaz, who was working in a dark room of one of the houses in

Ikbal, is 22 years old and has been stitching for 10 years; Mohamed Sarvar is 26

years old and has been stitching for 14 years; and, Mohammed Zafar is 24 years old

and has been stitching for 15 years. On that day they were stitching no name

footballs which they claimed were provided by SAGA Sports

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INDUSTRY

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INDUSTRY

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SPORTS INDUSTRYAND ENVIORMENT

Manufacturers of sporting goods are becoming increasingly aware of the

imperative of Corporate social responsibility, including environmental

Sustainability. Initiatives to avoid manufacturing processes that are harmful

to the environment include material selection policies, research intosustainable cotton,

use of recycled rubber,

eliminating PVC

and controlling and monitoring restricted substances.

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SPORTS INDUSTRYAND ENVIORMENT

Adidas and Mizuno

Adidas has made a commitment to environmental protection

through the International Standards Organizations ISO 14001

rules. It has established internal environmental policies and

encourages contractors and suppliers to establish environmental

management systems

E

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ELECTRICITY PROBLEM AND SPORT

INDUSTRY

SIALKOT, August 30, 2009: A record 14 percent decline in exports of

sports goods from Sialkot has been observed due to the recent power

outages in export-oriented Sialkot city and the rising POL prices.

Former Chairman Pakistan Sports Goods Manufacturers & Exporters

Association (PSGMEA) Arif Mehmood Sheikh disclosed this while talking

to the newsmen. He said that the sport goods (worth of Rs.1.72 billion) were

exported to the world from Sialkot-Pakistan during July 2009 including the

soccer balls (worth US $ 10 million). He said that these exports have shown

decline to a great extant as compared to these exports in 2008,

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REGRESSION EQUATION

E=5174.61+42.388a-587.66b+71.21z

E=exports

A

=electricity consumption

B=availability of leather

Z=exchange rate in dollars

C=constant

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CONCLUSION

Sialkot is the hub for the exports of sports good in the whole world but now

the overall production is very low as compared to the previous years.

Exports of sports goods badly suffer from electricity shortage

Child labor is another major factor which cause a fall in the production of

sports goods

Government should make some policies to save the sports industry.

Electricity should be provided to the industries continuously during working

hours.

Child labor should be banned

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IAPPRECIATE YOUR PATIENT

LISNINGThank you

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