Growth Prospects of the Football Industry in Pakistan

Author: Ujala Siddiq

The most popular and electrifying sport in the world today is football with over 40 per cent of the world’s population interested in playing it or engaged with it as viewers. In the recently concluded 20th World Cup Football tournament held in Qatar, 32 international teams competed to win the ultimate trophy in the sport. In these frenzied games and the spectacular final, the 22 players on the field fought tooth and nail for possession of the ball.

Though the Pakistani team did not participate directly in the world cup, Pakistan was in every match of the tournament as the ball used for the greatest tournament of the beautiful game was proudly made in Pakistan. The viewership numbers for the tournament hit around 5 billion – a staggering number. Both Pakistan’s soft image and manufacturing prowess would get a boost if it was more widely known that it is of the world’s best manufacturers of a wide variety of sporting goods, including world cup footballs. The ball used for this world cup has been manufactured by Adidas through a Sialkot-based company, Forward Sports. The same company also made footballs for the 2014 and 2018 World Cups after being selected based on offering the most competitive product.

This consistency in selection remains an impressive feat for both the company and Pakistan. Pakistan produces high-quality hand-stitched footballs with an uncompromised emphasis on the quality of the ball, its price, and its performance. Pakistan’s Small and Medium Development Authority (SMEDA) acknowledged that in the export of sports products, the lion’s share is that of inflatable balls. In 2020, the value of the country’s sporting goods-related exports was US $177 million out of which US $125 million was due to inflatable balls.

Pakistan produces high-quality hand-stitched footballs with an uncompromised emphasis on the quality of the ball, its price, and its performance.

Whereas the selection of Pakistani footballs for three consecutive world cups is a matter of great pride, these export figures have a long way to go in terms of hitting their actual potential. In order to raise the share of football exports in the world market, the challenges faced by the football industry need to be discussed for prompt resolution. One of the major issues of the industry is the absence of notable branding of the product. Pakistan has so far not been able to produce a single global football brand, hence the requirement for collaborating with foreign brands like Adidas. Whereas low profits and the slow growth of the local industry are some plausible reasons, it is well within the ambit of Pakistani manufacturers should put in extra effort to build reputable brands that do not need external help. The other challenge facing local producers is that football-producing companies are infusing innovative technologies into this game whereas Pakistan’s industry lacks the necessary research and capacity to adopt the latest innovations. For example, the football “Al Rihla” used in the current World Cup has a sensor in it, operated by a battery that measures the speed and direction, and allows football tracking to assist offside calls by the Video Assistant Referee (VAR). These gadgets are provided by Adidas utilising the latest technologies. The Pakistani industry is likely to suffer hugely if it fails to compete in the field of technological innovations. It is essential for the government to focus on upgrading the technology of the football and sporting goods industry by collaborating with international manufacturers and by working on the capacity building of its labour and manufacturers.

The other challenge confronting the industry is the lack of availability of sufficient skilled labour and the rising prices of raw materials. Although various government agencies such as SMEDA are conducting training programmes to improve the skills of the workers, there exists a sizeable space for improvement both in content and scale. Also, if locally-produced footballs are to effectively compete internationally as a qualitative yet cost-effective product, the government should reintroduce the export rebate, provide financial support, and cut import duties. This especially includes subsidized rates for Polyurethane (PU) and Thermoplastic Polyurethane (TPU), both considered the best-synthesized materials for high-quality balls. Another essential step is ensuring a respectable minimum wage rate for the workers; an incentive that has a direct bearing on resolving many of the stated challenges. Reportedly, retail prices of top-brand match balls are around the US $130-$160 range. This is higher than the monthly wage of the labour producing the balls. According to a report by Bloomberg, Pakistani workers are paid less than a dollar for manufacturing a single World Cup football, which sells for at least US $130. The government should ensure that the workers are getting their due benefits and are paid a respectable wage.

The football industry of Pakistan has huge potential to create a soft image and generate a significant influx of foreign revenue for the country. It needs government patronage in facilitating the import of the latest technology and manufacturing capabilities to progress and enhance its existing market share globally. Moreover, governmental organizations such as SMEDA can work more efficiently with the industry to optimise and streamline procedures. The assistance will specifically be required to identify, experiment, and induct the latest technologies and make the industry competitive with the leading brands of the world.

The writer is a researcher at the Centre for Aerospace and Security Studies (CASS), Lahore, Pakistan. She
can be reached at casslahore@gmail.com

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