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ANNUAL REPORT 2017-COMMERCIAL SECTION 1. Overview of the Economy of Italy Italy is the third largest economy in Euro Zone with an annual GDP of 1.834$ trillion dollars, and per capita income of $30,100 is an important player in the global trading and financial system. It accounts for 17% of the euro area GDP. Services sector with 74.1% is the major contributor to the country's GDP followed by 23.9% by industry and 2% by agriculture. Out of 25.28 million labour force, 67.8% is employed in the services sector followed by 28.3% in industry and 3.9% in agriculture sector. The country has a diversified industrial economy, divided into a developed industrial north (75% population resides here), dominated by private companies, and a less-developed highly subsidized agricultural south (25% population resides here), where unemployment rate is higher. However per capita GDP is 60% higher in North. Italian economy is driven in large by the manufacturing of high- quality consumer goods produced by small and medium-sized enterprises (SMEs), many of which are family-owned. Actually, SMEs represent the backbone of the Italian economy since 99.3% of operating companies are SMEs which employ about 80% of total workforce and their share in total exports is around 60%. Another important feature of the Italian economy is the concentration of industrial activity in the 'Industrial Districts' which are defined as territorial area characterised by the presence of a very high number of specialised enterprises (value chain +technological spill-over) working in the same sector of manufacturing activity. Currently, Italy has 200 districts (130 are from textiles) of local system concentrated in the North-East of the country, e.g.: textile and machinery; valves and taps; clothing; sunglasses; metal-mechanical; leather and shoes; furniture; jewellery; agro-business; sporting equipment; marble and granite; etc. Major macroeconomic and trade indicators and forecast are summarized in the table below: Population 60.8 Million 61.2 Million 0.65% GDP 1.64 Trillion Euros 1.67 Trillion Euros 1.8% Per Capita GDP 27048 Euros 27363 Euros 1.6% Imports 370.5 Billion € 365.6 Billion € 1.3% Exports 41213illion € 417 Billion € 1.2% Source- .OECD Italy is recovering after a deep and long recession. Structural reforms, accommodative monetary and fiscal conditions, and low commodity prices have helped the economy to turn the corner. The Jobs Act, part of a wide and ambitious structural reform programme, and social security contribution exemptions have improved the labour market and raised employment.' Yet, the recovery remains weak and productivity continues to decline. Returning the banking system to health will be crucial to revive growth and private investment. More investment in infrastructure will be essential to raise productivity. The government has made significant progress on tackling structural impediments to growth and productivity. Yet public-administration inefficiencies, slow judicial processes, poorly designed regulation and weak competition still make it difficult to do business in Italy. Labour and capital resources are trapped in low-productivity firms, which hold down wages and well-being. Innovative start-ups and SMEs continue to suffer from difficult access to bank and equity finance, curbing incomes for many. 1 OECD 1 Commercial Section Embassy of Pakistan, Rome

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Page 1: ANNUAL REPORT 2017-COMMERCIAL SECTION 1. …tdap.gov.pk/beta/doc_reports/Scan doc.pdf · of a very high number of specialised enterprises (value chain +technological spill-over)

ANNUAL REPORT 2017-COMMERCIAL SECTION

1. Overview of the Economy of Italy Italy is the third largest economy in Euro Zone with an annual GDP of 1.834$ trillion dollars, and per capita income of $30,100 is an important player in the global trading and financial system. It accounts for 17% of the euro area GDP. Services sector with 74.1% is the major contributor to the country's GDP followed by 23.9% by industry and 2% by agriculture. Out of 25.28 million labour force, 67.8% is employed in the services sector followed by 28.3% in industry and 3.9% in agriculture sector.

The country has a diversified industrial economy, divided into a developed industrial north (75% population resides here), dominated by private companies, and a less-developed highly subsidized agricultural south (25% population resides here), where unemployment rate is higher. However per capita GDP is 60% higher in North. Italian economy is driven in large by the manufacturing of high-quality consumer goods produced by small and medium-sized enterprises (SMEs), many of which are family-owned. Actually, SMEs represent the backbone of the Italian economy since 99.3% of operating companies are SMEs which employ about 80% of total workforce and their share in total exports is around 60%. Another important feature of the Italian economy is the concentration of industrial activity in the 'Industrial Districts' which are defined as territorial area characterised by the presence of a very high number of specialised enterprises (value chain +technological spill-over) working in the same sector of manufacturing activity. Currently, Italy has 200 districts (130 are from textiles) of local system concentrated in the North-East of the country, e.g.: textile and machinery; valves and taps; clothing; sunglasses; metal-mechanical; leather and shoes; furniture; jewellery; agro-business; sporting equipment; marble and granite; etc.

Major macroeconomic and trade indicators and forecast are summarized in the table below:

Population 60.8 Million 61.2 Million 0.65%

GDP 1.64 Trillion Euros 1.67 Trillion Euros 1.8%

Per Capita GDP 27048 Euros 27363 Euros 1.6%

Imports 370.5 Billion € 365.6 Billion € 1.3%

Exports 41213illion € 417 Billion € 1.2%

Source-.OECD

Italy is recovering after a deep and long recession. Structural reforms, accommodative monetary and fiscal conditions, and low commodity prices have helped the economy to turn the corner. The Jobs Act, part of a wide and ambitious structural reform programme, and social security contribution exemptions have improved the labour market and raised employment.' Yet, the recovery remains weak and productivity continues to decline. Returning the banking system to health will be crucial to revive growth and private investment. More investment in infrastructure will be essential to raise

productivity.

The government has made significant progress on tackling structural impediments to growth and productivity. Yet public-administration inefficiencies, slow judicial processes, poorly designed regulation and weak competition still make it difficult to do business in Italy. Labour and capital resources are trapped in low-productivity firms, which hold down wages and well-being. Innovative start-ups and SMEs continue to suffer from difficult access to bank and equity finance, curbing incomes for many.

1 OECD

1 Commercial Section Embassy of Pakistan, Rome

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Addressing Italy's economic and social challenges will require raising the public administration's efficiency, improving the business environment and workers' skills, and reducing poverty to deliver inclusive and sustainable economic growth. Changes in the fiscal-policy mix are required to boost investment and productivity and achieve a higher GDP growth rate as prolonged weak growth and low productivity have eroded social inclusion, requiring renewed efforts to raise employment, especially of women and youth, reduce poverty, especially among youths and children, and improve skills.

However recovery is underway. A self-reinforcing cycle between employment, household income and private consumption supported a modest recovery in 2015 and 2016 (above table). The Jobs Act and the temporary exemptions in social security contributions for new permanent contracts, accompanied by accommodative monetary policy, have raised employment and participation rates (above table).

Pakistan-Italy Bilateral trade Relations

In spite of all ails as above, Italy is interesting economyfor Pakistan as still one of the largest ten export partner. The size of Italian market is US $ 417 billion after Germany, Netherlands, UK and France. Italy is the third largest economy in Euro Zone (post Brexit).

Italy is among the top ten trading partners of Pakistan with bilateral trade of approximately $ 1.2 billion annually and now fifth export destination of Pakistan in EU (fourth after brexit). According to the statistics compiled by ISTAT Pak-Italian Trade is as follows:

(Euros Million) Pak- Italian Trade

Year Pakistan's Exports in Pakistan's Imports Total Bilateral % Euros Million in Euros Million Trade in Euros Increase/decrease

Million of bilateral trade

2016 599.35 621.78 1 1221.13 20

2015 578.17 439.64 1,017.81 3.9

Source: ISTAT

FY Exports of Pakistan to Italy In US$ Million

Imports from Italy to Pakistan In US$ Million

FY 2015 732822 346752

FY 2016 642119 409429

FY 2017 665885 547342

Source: SBP

IMPORTS FROM ITALY TO PAKISTAN

Pakistan's main import from Italy includes products like machineries and transport equipment (power-generating machineries, metalworking machineries, electrical machineries, precision apparatus, etc.), chemicals and related products (fertilizers, pharmaceutical products and plastics), iron and steel articles, waste and scarp of copper and aluminium, telecommunication equipment, dental, medical, surgical, veterinary equipment and defence equipment, dyes for tanning (paints), mineral fuels . In

Commercial Section Embassy of Pakistan, Rome

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addition, Pakistan imports from Italy include a considerable quantity of firearms and weapon. The ISTAT data shows increase in category of weapons as;

In Euros

Exports of Exports of Exports of Pakistan Remarks Pakistan from Pakistan from from Italy 2016 Italy 2014 Italy 2015

374091 2749763 8227903 There is an increase of more than 67 %

in 2016 in exports of weapons from

Italy from the year 2015

Source: Istat

Imports to Pakistan from Italy Value in Euros

430297626 421353539 440509592 621782307 Italy's imports to

Pakistan increased over

40% from last year

Source:ISTAT

The analysis reveals that imports from Italy to Pakistan has increased in machinery (mining, textiles,

industrial lab etc) signifying the imports are leading to further production and development of the

country.

Pakistan's exports increased to Italy in categories like woven fabrics, bedlinen, apparel (woven),

sports goods, cotton yarn, fruits, woollen carpets, articles of leather (bags, valets, saddlery etc.) etc.

Our exports declined in categories like cotton cloth, knitwear, leather, cereals, auto parts, marbles, footwear, carpets (hand knotted) and spirits/beverages etc.

It is interesting to note that Italy offers largest market size in EU in products of our interest like woven

fabric, cereals, leather, footwear, MMF.

It may be noted that Italy is not a cotton based economy and it has to support the huge fashion

garments production and its export to EU by importing fabrics. Italy needs fabrics both cotton MMF

and Pakistan can provide these items. These are not only GSP Plus covered but also falls under duty draw back scheme announced by PM (180 billion package).

The categories that are showing decline ( in exports of Pakistan to Italy) are knitwear, footwear,

leather, surgical goods etc. These items will be able to compete more effectively as the assessment is that Pakistan's quality is not the issue but price is the issue. Another interesting new sector not

explored so far is ICT. This sector offers market size of US $ 104 billion. India, Tunisia, Africa is supplying

ICT to Italy. This sector can be interesting for Pakistan.

The target areas to increase trade of Pakistan should be clusters, chain stores, distributors in all

categories.

FDI INFLOWS TO PAKSITAN

The resolution of uncertainties surrounding the banking sector and Brexit could help restore consumer

confidence, leading to faster private consumption growth than expected. Further, China-Pakistan Economic Corridor (CPEC) and decision of MSCI (Emerging Market Index) to upgrade Pakistan from frontier market to Emerging market in 2017 will provide a tremendous impetus to FDI5 in Pakistan. Italy is Pakistan's fifth largest trading partner in the EU. The FDI in July-September 2017 was US $ 15

Commercial Section Embassy of Pakistan, Rome

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Million and in July —September 2018 it is US$ 10.6 Million . Italy remains 3rd largest investor from EU

post brexit (after UK, France and Hungary).

It is interesting to note that Italian Ministry of Economic Development is offering incentives to

Companies to internationalize in countries other than EU. SIMEST is helping companies for that

matter. Following are the incentives;

• Financing of the 85% of the budgeted amount

• Discounted /support in interest rates

• Venture capital fund

• 100% financing in for feasibility studies

• Investment in company risk capital etc.

ITALAIN MEPs

• 73 in total

• 9 MEPs in foreign trade committee

• 7 in women rights and gender equality

• 4 MEPs in human rights

• 7 in Committee on Environment, Public Health and Food Safety

POLITICAL PARTIES IN ITALY

• Political parties in Italy are numerous and there are hundreds of parties which are no longer active. Since World War II, no party has ever gained enough support to govern alone. Parties

thus form political alliances and coalition governments.

• There are 9 major political parties in Italy

• Democratic party (PD) with moderate views and inclined to social justice. They are basically

social democrats . The leader of party is Matteo Renzi

• Five Star Movement (M5S). They are conservative but progressive in fiscal and economic

policies. Its members have diverse viewpoints. The party leader is Beppo Grillo

• Forza Italia (Fl) . They are moderate right politics. The leader is Slvio Berlusconi

• Democratic and Progessive (MDP).

• Popular Alternative ( AP).

• Legal Nord(LN). Their leader Matteo Silvini

• Liberal Popular Alliance (ALA)

• Italian Left (SI)

• Brothers of Italy (FDI)

Mostly MEPs in EU parliament belong to following parties;

• 27 MEPs are from PD

• 13 from 5 star movement

• 10 from Forzia Italia

• 4 from Legal Nord

2. Trade Promotion Activities Trade Promotion Activities can be divided into Exhibitions and Delegations

Exhibitions

• 87th EDITION EXPO RIVA SCHUH, RIVA DEL GARDA HELD FROM JAN 14-17,2017 87th Edition of Expo Riva Schuh (ERS) was held from 14th to 171h January 2017 in Riva del Garda, where

3 Pakistani companies (M/s UE Pvt. Ltd., M/s Shaf Lifestyle Pvt. Ltd. and Paramount Trading Company)

selected by TDAP exhibited. In addition to TDAP's exhibitors, other Pakistani footwear manufacturers

4

Commercial Section Embassy of Pakistan, Rome

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and exporters participated privately (M/s Servis Industries, Firhaj (Pvt) Ltd., Footlib (Pvt) Ltd., Starlet

Innovation (Pvt) Ltd., Bata Pakistan, M/s Elegant, M/s Shafi). Input of exhibitors is as follows;

Trade Location of Pakistan Performance of Rating of the Expo Enquiries/orders Pavilion Commercial Section Riva Fair 2017 Booked During the Fair ( Rating

from Excellent to Poor)

67% of the 100% wanted to retain 80% rated as excellent and All appreciated the

exhibitors received the space and increase 20% rated as very good importance of the fair

trade size of pavilion and ensured their

inquires/orders participation next

booked year

Following is brief review of the fair;

No. of Display area Space Occupied No. of Foreign Visitors Exhibitors in 2016 as Countries Business

Compared to Exhibiting Operators 2015

8.55% Increase 19.6 % 19.6% increase 41 2.4 % Increase 9.38% from 2015 Increase from 2015 from 2015 Increase

from 2015 from

2015

In the 87th edition further improvements were made in terms of designing and construction in the

Pakistan's country Pavilion, but unfortunately the country pavilion's size was really very small and

located in the New Hall C2 stand K12. Only 27 sq. m. was the entire area covered by TDAP's companies and each booth was too tight (9 sq. m.) to host more than three people. The layout clearly marked the

Pakistani booth and the displaying fittings were very well arranged; it was also opted to remove all

the storage areas and keep only the lockable cabinets for personal belongings so that the booths were

apparently bigger and wider.

Ms. Saira Imdad Ali, Commercial Counsellor and Ms. Ester Temperato, Translator (Commercial)

attended the fair for its entire duration with the purpose of facilitating and assisting TDAP's exhibitors

as well as for monitoring the progress of the event and meeting the fair management and new

potential partners. Booths' consignment was done on 13th January in the afternoon (supervision of

booths delivered by Ms Temperato, Translator/Commercial Section) after verification of stands as per arrangement with the exhibitors. Throughout the event, Commercial Section extended fullest support

to all Pakistani exhibitors and courtesy calls were paid to all of them, including those coming privately.

It was ensured that all arrangements were made as per plans / specifications and services like

translation, provision of refreshment and other assistance required was given to the exhibitors.

It is also worth mentioning here that before the fair, Commercial Section made two dedicated

promotions activities: (i) sending invitations to all Italian footwear companies with the specification of

the location pf the Pakistan's Country Pavilion in ERS fair asking them to come and see the Pakistani footwear collections on display; (ii) sending invitations to all Italian footwear, leather and leather garments importers as well as to relevant associations, to visit the Mega Leather Show scheduled to

be held in the Lahore Expo centre at the end of January 2017.

5

Commercial Section Embassy of Pakistan, Rome

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In terms of attendance, the general flow of visitors was lower compared to the summer edition,

particularly on the first day. However, the second and third day, the Pakistani exhibitors saw a larger

number of visitors along with their usual customers. In particular, and according to the comments

made directly by the exhibitors in the evaluation sheets collected by the Commercial Section on last

day, the main visitors came from Europe (Germany, France, Belgium, Poland, UK and naturally Italy). Only few from USA. The situation was very different in other Pakistani booths like M/s Service and

M/s Shafi where since the very first day, many people visited their booths. They both had a very big

booths with wide selection of samples, which generated greater interest for the buyers. As far as TDAP's exhibitors is concerned, the companies had lower range of products and the same item in

different colours rather than having more models. Actually, some of the Pakistani companies need to

improve and diversify their products range, value added samples and fashionable items shall be

brought to attract more visitors and be taken into consideration for business partnerships especially for the Italian market where the customers are very demanding and conscious about the quality.

Conclusions and Suggestions

Employing better marketing/communication tools: TDAP and PFMA should consider wide

dissemination of Pakistan's participation in the fair before and during the exhibition through

better marketing / communication tools. It is very important to have banners and/or other

printed material placed outside the fairground to indicate the location of Pakistan's Country Pavilion as well as have a dedicated space on printed directories to be shared with the local

and international visitors. A dedicated area for the Commercial Section representative should

also be considered where meetings can take place properly (Embassy's' representatives were always standing). For this this office recommend the required budget next year.

Increasing stands' dimension and number of participants: Spacious stands are much more

presentable and appealing for potential customers and project a better image of the

exhibitors. All the exhibitors stated that they were themselves interested in having larger

booths to better attract potential customers.

Largest Fair of Footwear Sector: it is the largest fair of footwear with large quantities and

medium range hence much suited for the manufacturers of Pakistan and continued and more

aggressive participation is required. The size of Pakistan pavilion may be increased by 45 sqm. We have already talked to fair organizers who are willing to give that much space to TDAP but

not to the private participation. In view of what are competitors like India are doing we need

aggressive marketing in this sector in view of GSP Plus and as well as the exporters package

announced by the Government of Pakistan.

• LINEAPELLE FAIR (21-23) FEBURARAY MILAN LINEAPELLE, February 2017 was 92 nd edition of the fair. It was held from 21 to 23rd February, 2017 at

Rho Fair, Milan. Seventeen (17) important leather producers from Pakistan showcased their products

on the area of 268 sqm in the exhibition with the active support of Pakistan Tanners Association (PTA)

In addition, few more major Pakistani companies in the leather sector exhibited privately and benefitted from the PTA's presence and support. List of participation from PTA:

• Sheikh of Sialkot (Pv)Ltd.,

• Leader Tanneries, Kasur

• Abdul Latif Enterprises, Karachi

6

Commercial Section Embassy of Pakistan, Rome

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• Gulf Leather Works (Pvt)Ltd, Karachi

• Shafique Leather Enterprises, Karachi

• Star Leather Industries (Pvt)Ltd.

• Khawaja Tanneries (Pvt)Ltd

• MIMA Leather (Pvt)Ltd)

• Universal Leather (Pvt) Ltd.

• MIMA Apparel, Lahore

• Khas (Pvt)Ltd., Karachi

• U.E. (Pvt)Ltd., Lahore

• HMB Tanneries (Pvt) Lahore

• H.Sadar All Akhtar All (Pvt)Ltd.

• Shah Din Tanneries, Karachi

• Riaz Tanneries, Kasur

• Hub Leather (Pvt)Ltd.,

There were few companies that privately participated as follows:

• Din Leather (Pvt)Ltd., Karachi

• Dada Enterprises (Pvt)ltd., Lahore

• Premium Leather (Pvt)Ltd., Lahore

• Muhammad Shafi Tanneries (Pvt)Ltd., Karachi

• Siddiq Leather Works (Pvt)Ltd., Lahore

Profile of the event is as below;

• 1198 exhibitors exhibited.

• 770 were from Italy

• 428 from 44 foreign countries.

• Most of the exhibitors were from tanneries, accessories & components, synthetic fabrics,

chemicals, designers' schools etc

No. of Exhibitors in Lineapelle Feb Display area in Lineapelle No. of

2017 Feb 2017 Countries Exhibiting in Lineapelle Feb 2017

4% Increase from 2016 (3 % increase is 5 % Increase from 2016 44

of Italian Exhibitors and 5% for foreign)

Almost all the companies had good range of products on display in conformity with the emerging

trends and market requirements. Majority of them were not having only the catalogues and detailed

companies' presentation and brochures, but also some conceptual presentation with good variety of

pieces of leather/samples. Almost all PTA exhibitors have production capacity of several millions sq.

ft. of leather on monthly basis and have established collaboration with leading Italian and/or European producers of chemicals and leather machineries/components as well as agents to look after the local

customers/orders. The study of the profile of the companies representing the country in the exhibition

reveal that some of the companies are in the industry /business for more than hundred years. Over the years, they have invested in value addition to compete at international level.

Embassy of Pakistan in Rome was represented in the fair by the Commercial Counsellor, Ms. Saira Imdad All. The Commercial Counsellor was there for two days and visited all exhibitors and facilitated their meetings. Consul General, Consulate Milan also visited the fair on 22nd February 2017. He visited

Commercial Section Embassy of Pakistan, Rome

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all Pakistani stall and interacted with all businessmen and ensured them that Embassy will help them in all possible way.

During the days of fair another exhibition SIMAC was being held and it was footwear and leather technology fair. This fair was visited by 6 members of PFMA who were sponsored by hA. Commercial

Counsellor also met the delegation.

CONCLUSION AND SUGGESTIONS

LINEAPELLE is an important trade exhibition and serves as an excellent platform for Pakistani companies to gain visibility in the Italian and European markets and to explore new business opportunities. The global scenario of this industry is quite encouraging and despite the recession, the trends are still favourable. Accordingly, continued Pakistani participation in LINEAPELLE is strongly recommended and TDAP should continue to encourage and incentivize PTA's participation.

• COSMOPROF TRADE FAIR, BOLOGNA (17th - 201h MARCH, 2017)

Cosmoprof Worldwide Exhibition Bologna is one of the most important and established international trade fair in the beauty and cosmetic sector. The 50th edition of the Cosmoprof was held from 17th to 201h March at the Bologna fairground where 2,667 exhibitors from 69 countries displayed their products. There were twenty nine country pavilions and an overall increase of 7% in terms of exhibitors compared to last edition. The visitors in 4 days were over 250,000 with an increase of 16% compared to 2016's edition.

Pakistan's Country Pavilion was composed of 12 booths and one representational booth (opened on the two sides) for TDAP/Embassy of Pakistan and raw space for this booth was given to TDAP free of cost. Due to visa issues, one booth remained empty which was later on occupied by the Commercial Section to holds meetings with Pakistan's business community in Italy as well as meetings with local buyers/customers. The list of Pakistani exhibitors participating underTDAP's umbrella is the following:

• Micro Corporation

• Amy Brothers Group

• Developed Technologies

• Adam's Corporation

• A.M. Awan as a replacement of A.M. Neelam Corporation

• Scientific Instruments Co.

• Pak Sadaf

• Shahzad Maher& Co

• Vizra-med Technik

• Walkover Surgical as a replacement of Jurat Surgical Company

• Kaizer Group Response of Exhibitors is as follows;

Trade Location of Country of Performance of Rating of the

Enquiries/orders Pakistan Origin of Commercial COSMOPORF 2017

Booked Pavilion TDAP's Section before and ed.

visitors during the Fair

(from poor to

excellent)

8

Commercial Section Embassy of Pakistan, Rome

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All the exhibitors Pakistani LIE (mainly 80% rated as All appreciated the

received trade Pavilion was Italy, excellent and 20 % importance of the inquires, well located. Germany, rated as very good. fair and all are

Only one France, Spain, strongly willing to

exhibitor Poland, UK); take part in future

Out of 11 wanted to shift Complaints were editions

exhibitors, 4 it in the centre USA' ' raised because of

received orders of of the hall Mexico; refusals of visas by

items during the the Italian Embassy

fair from new Brazil;

customers mainly UAE; coming from EU and USA Albania;

Russia;

Taiwan;

Japan

H. E. the Ambassador of Pakistan in Italy, Mr Nadeem Riyaz accompanied by the Deputy Head of Mission, Mr Tanveer Ahmed visited the Pavilion on 19th March 2017.

The general flow of visitors and business operators in TDAP's booths was really encouraging. Most of the Pakistani exhibitors had a wide selection of samples, which generated a greater interest for the buyers and other business operators. In general, all the TDAP's exhibitors had a good range of products on display in compliance with EU/international standards for such products. The beauty instruments on display attracted large number of potential customers interested in establishing trade relationships with these companies. According to details provided by TDAP's exhibitors, the keenness of customers was really high and everybody met good and reliable potential customers that will place orders in the

near future.

Conclusions and Suggestions

In order to improve its existing level of exports in this important sector, Pakistan needs to increase its presence in this trade fair that can be done through:

• Increasing the number of participants;

• Diversifying the products range involving also cosmetic products ( herbal cosmetic products and companies esp. of Karachi dealing with beauty creams and lipsticks)

• Employing better marketing/communication tools to increase country visibility (better

catalogues, brochures);

• Submitting on time application for business visas to the Italian Embassy with all required documents to avoid visa refusals and thus empty booths and allied problems during the fair.

In view of the potential benefits for the industry articulated in the preceding paragraphs, participation in the future editions of this trade fair is strongly recommended.

• 88th EDITION EXPO RIVA SCHUH 10-13 JUNE 2017

The 88 t edition of Expo Riva Schuh took place from 10th to 13th June 2017, 1,400 exhibitors from 40 different countries participated to display very best products for the 2018 Spring/Summer season to

Commercial Section Embassy of Pakistan, Rome

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an audience of more than11,224 visitors (a figure that is consistent with the data recorded in the June

2016 edition) coming from around 100 countries.

Following exhibitors from TDAP exhibited in space of 45 sqm (9sqm per booth) in hall C2;

1. M/S Paramount ( Mr. Asghar Saganwala)

2. M/3 EPCT (Mr. Rizwan Shahaid)

3. M/S U.E (Mr. Zubair)

4. M/S Shafi Lifestyles ( Mr.Hamza)

The response of the companies is given below;

TRADE INQUIERS LOCATION OF PERFORMANCE OF RATING OF EXPO RIVA FAIR RECEIVED APKISTAN PAVILION COMMERCIAL SECTION AND RECOMMENDATION FOR

DURING THE FAIR (RATING FUTURE PARTICIPATION FROM POOR TO EXCELLENT)

90% received new Good but all wanted 100% rated excellent All rated the fair as excellent

trade inquiries lobbying of Mission for this category of the product to change the and recommended continuous location participation

All exhibitors confirmed that they have received buyers from countries like Spain, Germany, UK,

Norway, Hong Kong, France, Poland, Greece and Italy. They also informed that they are getting better

response as compared to the last year as now buyers are willing to travel to Pakistan as the image of

Pakistan has improved as a secure place, which was not the case in past. They also pointed out that

market of India is saturated and cannot take new orders hence buyers are now coming back to

Pakistan. They also said that off course the 180 billion package will bear fruit once Government release

funds so far no funds have been released to them.

COMPETITORS REVIEW

India as usual was participating in the pavilion of leather council with a group of more than 89

companies. If we include private participation the size of participation comes to 252. It was observed India was heavily subsidizing the coming exhibitors. India was displaying khusa and kolapuri chapels.

They have done some modifications in Khusa style and did conversion to sandals and these products

have found market in EU boutique business.

Srilanka was displaying with one company and product was no match to Pakistani quality .However

they were promoting their recently granted GSP Plus status.

Chine was participating with more than 600 companies and were displaying kid, ladies, men's, sport

shoes etc . Their product ranges from casual to high fashion end products and the prices are very

reasonable.

Commercial Counsellor also met with Mr. Pucci of ASSOMAC (the Association that has assigned M0U

with PFMA by the efforts of Mission in Rome) and discussed the Euro 200,000 footwear cluster. During

the conversation Mr. Wasim Zakaraiya was present and Mr, Pucci handed over the project proposal

to him for his recommendations. The incoming footwear delegation to Italy was also discussed and

Mr. Pucci agreed to facilitate.

RECOMMENDATIONS

1. Pakistan may consider to bring some companies capable of manufacturing kids shoes and

khusa etc as they are in demand( that can be done in June edition of 2018 only)

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• TheOne Milan Fair, 22 25th September 2017 The One Milan fair, September 2017 Edition, was held in Fiera Milano City from 22 nd to 251h September, 2017. This is the first time participation to this event with a group of 6 Pakistani women entrepreneurs

who exhibited their collection in a Pakistan's Country Pavilion with an open space of 70 sq. m. The

Pakistani participation was planned in the month of February 2017 when a women fashion designers from the Lahore Chamber of Commerce, women department, visited Italy and a specific meeting was

arranged in Milan with the Fair Director, Ms Elena Salvaneschi. The fair management offered

participation to Pakistani Mission in Italy free of cost.

TheOne Milan represents an important international exhibition entirely dedicated to Haut-à-Porter",

in Milan during the Milan Fashion Week. It is a focused fair where only business operators can enter.

As matter of fact, selected brands, high-profile buyers and a tailor-made projects are involved for 13213.

60% of the buyers come from Europe, Russia, Japan, China, Korea and USA. From Pakistan the below

women entrepreneurs participated:

• Ms Aasia Saail Khan (leader of the delegation) and representing her brand

• Ms Madiha Latif and Kinza Latif representing Zuria Dor

• Ms Talat Hafeez Khan representing Tania's Collection

• Ms Anam Qazi representing Parand

• Ms Uzma Nawaz representing Zara's & Myra's

• Ms Humaira Batool representing Meenakari

• Ms Meherrunisa Ahmed representing LCCI women department

TheOne Milan provided international exposure to Pakistani women entrepreneurs especially because

a specific marketing campaign and booth construction took place. Actually, the booth was very open

without any partition wall and on the back side was built an entire video wall 6 meter x 2 meter

continuously projecting the stories of each of the six exhibitors. The video was exclusively prepared

for this event and specific leaflets were also arranged by UNIDO Rome office with pictures and

information of each exhibiting lady. The Commercial Counsellor and the Translator/Commercial

attended the fair for the entire duration to assist the ladies and promote Pakistani women entrepreneurship as well as to market the forthcoming event in Pakistan, Expo Pakistan 2017.

Commercial Section arranged an inauguration ceremony on the first day of the exhibition attended by President of the Fair, Mr Roberto Scarpella, CWA from Pakistani Consulate in Milan, Mr Rizwan

Salabat, Expert at UNIDO office, Mr Dino Fortunato, Director at CNA, Mr Antonio Franceschini, Director of the Fair, Ms Elena Salvaneschi and naturally all women entrepreneurs, staff of the fair and

some visitors. After ribbon cutting and few speeches, a small refreshment took place in the booth. In

addition, in the evening, the Commercial Counsellor hosted a dinner for 18 people in honour of the

women entrepreneurs.

Side line activities were also arranged for the women entrepreneurs in order to provide them an

exposure and, at the same time, see what the current trends in Europe are. In particular, on Sunday 24th September, the women entrepreneurs attended Stella Jean fashion show at Royal Palace in Milan

city centre. Stella Jean is an upcoming fashion designer that gets inspiration from different countries around the world. Her show was mainly focused on Bolivia reproducing the colour and style of local

people but with a different touch. After the show, the Commercial Counsellor also met her to extend the invitation to attend Expo Pakistan 2017 and learn more about the fashion in Pakistan. In addition,

in the same evening, a visit to a luxury show room was also arranged in the fashion street of Milan. The women entrepreneurs visited 'The Luxury Distribution' a multi-brand show room (17 brands) of

top/luxury products only for ladies (bags, shoes, bed-wear, accessories, bridal dresses and formal

dresses). The Luxury distribution is owned by two ladies strongly interested in identifying new and unique products from all over the world to be sold to their rich customers (mainly from Emirates,

Russia and USA). One of the partner, also came to visit Pakistani collection in the fair.

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19. Prime Tanning Industries (Pvt)Ltd., Sheikhupura

20. Hafeez Shafi Tanneries (Pvt)Ltd., Lahore

21. Elegant Private Limited, Lahore

22. Hub Leather (Pvt)Ltd., Karachi

Besides above, some of our leading members have also taken part individually/Private participants as below in this vital event of Leather Sector in Hall # 11,09, 13 & 15, which was certainly termed to the

immense value for the promotion of country's exports by yielding the sizeable foreign exchange for

the national exchequer. Private Participants

1. Din Leather (Pvt)Ltd., Karachi

2. Dada Enterprises (Pvt)ltd., Lahore

3. Premium Leather (Pvt)Ltd., Lahore

4. Muhammad Shafi Tanneries (Pvt)Ltd., Karachi

5. Siddiq Leather Works (Pvt)Ltd., Lahore

6. Leathertex Tanneries (Pvt)Ltd., Lahore

Facts of the fairs are as below;

No. of Display area Space Occupied in No. of Countries Foreign Business Exhibitors 2016 as Compared Exhibiting Operators s

to 2015

3.5 % Increase 47500 sqm 3.5% increase from 48 countries 2% Increase from

from 2016 September 2016 from September 113

2016 ( Total

number :1285)

Commercial Counsellor visited all stalls and took feedback of the exhibitors. Overall they expressed

satisfaction on stalls however some complained that this time stalls were constructed a bit late due

to certain logistic reasons of the stand construction company.

Generally the businessmen were dissatisfied with Government intervention in leather sector. They

said that many tanneries have closed down due to unfriendly policies of Government. They did not get the benefit of PM Package as they do not qualify the criteria therein. They said they are taking up

their case with Secretary Commerce and after the fair they will see him. They also said now foreign

buyers' are requesting environmental standards to be complied with and small tanneries do not have

money to fulfil the requirement. Hence Government should try to form cluster of leather tanneries and provide the plant to the cluster. Bigger companies have money they are already compliant but

Government should hold hands of smaller companies.

They said business is in slump due to recession however the prices are falling down in international

market and this will definitely increase sales.

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The chairman of the PTA was also displaying and exhibited keeness to visit Italy in delegation to increase business in this market. Commercial Counsellor welcomed the decision.

Recommendation

• This the most important fair of leather in EU and this Mission recommends continuous

participation

• Overall PTA is doing a good job in managing this fair

• PTA may consider forming a delegation to Italy

• ECIMA FAIR (07-12 NOVEMBER) 2017 This year the dates of the fair were colliding with Expo-Pakistan 2017 hence the Commercial Counsellor could not participate in the Fair. In view of facilitating the exhibitors a local translator was

hired after approval of TDAP and Mr. Yasir Mahmood ( Driver-Comm) went to the fair to see whether

the construction company has done the work appropriately and to trouble shoot all issues of the

exhibitors on the spot. There was also a significant increase in the number of exhibitors present who,

counting both direct and indirect, numbered 1,713, with +20% compared to 2015, from 42 countries.

No less than 61% of the exhibiting companies came from abroad. This is also confirmed by an increase

in the net occupied area of +15%. Participation by trade professionals recorded an important double-

digit increase of foreign professionals (+28%).

Following companies participated in Ecima Fair from Pakistan;

1. Pakzaib International, Sialkot. This company deals in Gloves, Leather Garments, sportswear( Mr. Kabir Hussain Director of the company was there in the fair)

2. Euro De Links ,Sialkot. This company deals in Gloves, Leather Jackets, Leather Pants, Leather

Bags and accessories ( Mr. Waqas Naeem Partner of the company was there)

3. Goodluck Traders, Sialkot . They are manufacturers of Gloves, Waterproof textiles, Bike wears

(Mr. Muhammad Anwar CEO of the company and Mr. Kashif Anwar Director of the company

were)

4. Road Runner Sialkot. This company manufactures gloves, custom leather suits, leather jackets, accessories (Mr. Haroon Partner of the company was there in the fair)

5. Adler Wears and NEXTEK participated jointly . Both companies manufacture Gloves and

Motorbike Garments (Mr. Rehman Javed CEO Oof NEXTEK and Mr. Wahid Mugall from Adler

participated in the fair)

TRADE CONTACTS ESTABLISHED LOCATION OF PERFORMANCE OF RATING OF ECIMA FAIR AND INQUIERS DURING THE FAIR APKISTAN COMMERCIAL SECTION RECOMMENDATION FOR RECEIVED PAVILION DURING THE FAIR FUTURE PARTICIPATION

(RATING FROM POOR TO EXCELLENT)

100% France, Italy, UK, Switzerland, Exhibitors A representative of All rated the fair as excellent

received Spain ,South America, India, wanted better Commercial Section was for this category of the product

new trade Malaysia, Argentina Greece, location there and they and recommended continuous

inquiries ( Turkey appreciated the efforts participation

All of Mr, Yasir Mahmood

exhibitors

reported 6-7 trade inquires)

Recommendations

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• TDAP may decide participation the fair as early as possible. For 2018 edition it is

recommended that in February 2018 Mission may be allowed to reserve the space by

making advance payments.

• This fair is recommended for the next year participation

Delegations Following delegations were organized;

• Study Tour -Visit of Women Entrepreneurs (Upcoming Fashion Designers) to Rome,

Florence, Prato & Milan (29th January / 3d February 2017)

Commercial Section in its endeavour to promote Pakistan's Fashion Industry arranged WE delegation

for upcoming fashion designers. The Commercial Section was successful in getting sponsorship of the

delegation. The delegates were from the Lahore Chamber of Commerce & Industry (Women

Entrepreneurs' Committee). UNIDO financially supported the study tour for a group of 6 women

fashion designers. The local transport and accommodation was provided free of cost. The study tour has been organised with the purpose of providing main inputs and trends of the Italian fashion industry to the Pakistani fashion designers though workshops, visits to main fashion institutes in Italy

and fashion studios, and last but not least, business interactions with local entrepreneurs and fashion

consultants (List of Delegates attached).

Besides focused events organized in Rome, the group of women delegation also had meetings in

Florence, Prato and the visit concluded in Milan. The Commercial Counsellor accompanied the

delegation.

VISIT TO ROME Visit of Alta Roma Fashion Show

On arrival in Rome, a visit to the fashion show 'Alta Roma' was arranged on Sunday, 29th January 2017

where the Pakistani designers had the opportunity to see the fall/winter collection 2017/18 made by

two young Italian designers for women. There Fashion designers from Paksitan were able to go

backstage to see fabrics and designers' garments from close quarters. On the evening, the

Ambassador hosted a dinner for the women entrepreneurs.

Workshop with CNA

On Monday 301h January, the entire day was spend at the Confederation of SMEs and artisans (CNA)

headquarter in Rome and they conducted full day workshop. During the morning session, the DG of International Unit, Mr Antonio Franceschini, who was also part of the Italian delegation to Pakistan

last December 2016, welcomed the group of women entrepreneurs and briefed them about the CNA

mandate and main activities all around Italy as well as some of their projects implemented

internationally. Thereafter, Mr Roberto Corbelli, a fashion consultant appointed by CNA, made a

focused presentation for the delegates highlighting the future fashion trends in terms of colors and

collections.

The discussion aimed at the possibility of creating joint collaboration between the LCCI women

committee and CNA women unit. Different project proposals were discussed among the participants. Commercial Counsellor proposed that there is a possibility of devising a specific project for product development of WE5 in fashion industry. However, the main issue which was raised both by UNIDO

and CNA is the funding. The project shall be tailor-made in a way that there is a win-win situation for

Italian as well as Pakistani companies and submitted for approval and funding to Italian government.

It was agreed that Ms. Aasia the leader of delegation will devise a project with a win win situation that

will be submitted to Italian Government for funding.

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The Commercial Counsellor proposed the signing of a M0U between CNA and LCCI that can provide

the possibility to further interact in future initiatives. It was agreed that a draft of M0U will be shared

by Mr Franceschini for amendments and approval by LCd. In addition, Ms Alderighi proposed an

activity in Vicenza that is taking place next month for the first time. She said that in a private area

(hotel) they are arranging a showcasing for products of small Italian boutiques. The local entrepreneurs will display their products and focused buyers and business operators will be invited

by CNA to visit them. Something similar could be thought and arranged also for Pakistan.

In the evening of Monday 301h January the Commercial Counsellor hosted a dinner for the women

delegation at her residence where local key partners participated.

Visit of Fashion Studio of Francesca Libertaore

On Tuesday 315t January, the delegation started the study tour with a visit to the fashion studio of Ms Francesca Liberatore, a young Italian designer who launched her first collection in 2009. She currently

teaches in different fashion institutes in Italy (i.e. Accademia Belle Arti di Brera, NABA Milan,

aIlAccademia Belle Arti in Rome) and takes part to different international projects in Amman (Giordania), Ho Chi Minh e Hanoi (Vietnam), Lima (Peru) and Eravan (Armenia). Ms Liberatore

welcomed the delegates and showed them her studios and lab. She briefed the entrepreneurs about

her work: she normally starts from an idea that inspires her and then she makes the drawings with

her staff, selects the fabrics, prepares the cuts and collection and finally selects the models for her

collections. The women entrepreneurs were impressed by her experience and made many questions.

She also showed her sketch book to the delegates and she advised WEs not to forget important market

of Middle East. She said that Lebanon is her major market.

Visit to Accademia Costume & Moda Roma

Thereafter, a visit at the Accademia Costume & Moda (Fashion and costume academy) was also arranged. The delegates were welcomed by the CEO, Mr Furio Francini who accompanied and guided the delegates in a tour in the Academy. The Academia was founded in 1964 and today offers high-

level education for masters, short term courses and vocational trainings in the fashion industry:

fashion communication, pattern making, accessories and bijoux, media design, styling, etc. Mr Francini

also guided the delegates in the fashion library (which has thousands of magazines and books on the

fashion industry), in the fabric room (where samples of different fabrics from all over where on

display), in the pattern room, footwear and accessories rooms. The academia boasts of many prizes

and the professors as well as the consultants teaching there are very popular and well-known in the international fashion world. Finally, the CEO also informed that in the past they had a Pakistani student

who really performed well in her collections and she is currently working with a famous Italian brand

Ferragamo.

Visit to Camina Campus

In addition, an interesting meeting at the Re(f)use shop and brand Carrnina Campus was arranged

where Ms Simonetta Gianfelici, fashion consultant and current President at Alta Roma took part. The

delegates were briefed about a project that re(f)use implemented in collaboration with some

organisations in Africa aiming at developing local capabilities and utilising waste items that can be

recycled and used for making fashion items like bags, jewels, accessories, etc. The project also saw the

support of Fendi's relatives involved in social responsibilities activities. After this introduction, each

delegate showed her samples to Ms Simonetta Gianfelici who was really impressed and surprised to see Pakistani fabrics, hand-made embroidery, etc. She looked at all the articles with great care and

she was asking a lot about Pakistani fabrics and hand-crafted. In particular, she appreciated all the unique hand painted scarfs and kaftans made with silk, the dresses and shawls hand made in velvet

and silk, the Pakistani cotton fabric used for shirts, etc. According to Ms Gianfelici, there are

possibilities for entering the Italian market, but it is very important to pay attention to details/finishing

since the local market is very demanding. She said that the finishing touch for hems, reverse sides,

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near the zips, etc. must improve. Also for her, the presence of the Pakistani touch should be lighten

and closer to the western taste if they intend to export. In addition, Ms Gianfelici was asking about

the prices of each product and according to her, if the final product is well finished and upgraded, the

final price can be higher than the current one. Finally, she gave another important input to all fashion designers: each product is so unique and peculiar that should have its own story to tell. She

recommended to prepare a proper packaging of the product including also a small sheet explaining

that the products is 100% hand-made, with natural fabric, with a certain number of hours involved to

make it, the main concept how it has been conceived and so on and so forth.

Commercial Counsellor requested Ms Simonetta Gianfelici to guide WEs regarding the cost of

participation in Alta Roma (fashion show). She said that the cost is more than 7000 Euros. Commercial

Counsellor requested her to look into possibility of group participation with a subsidized cost as it will

be promoting WE fashion designer doing work with handmade items. She said that she will look into

the possibility of sort of group participation of Women Fashion Designers from Paksitan.

Afterward the delegates travelled to Florence on 31 January.

VISIT TO FLORENCE

Visit to lED, Florence

On V February the delegates visited the European School of fashion design in Florence. For almost 50

years the Instituto Eurpeo di Design has been operating in the field of education and research in the disciplines of design, fashion, visual arts, communication and management. lED is constantly

expanding international network. Here Mr. Gabriele Goretli, Fashion Programme Coordinator of lED

welcomed the delegates and gave a presentation on significance and meaning of fashion designing.

He explained that fashion designers now a days are going back to history and doing innovation using

history and old cultures. Almost all brands are doing this. He said 'made in Italy is brand in itself. He

said all fashion designers draw their inspiration and develop their collection displaying the one basic

theme. He also said that a fashion designers cannot be cut off from her culture but local culture is

drop and the final product should be according to the requirements and tastes of the customers where

you want to sell the product. He also briefed about lED. He said that the design matrix takes the form

of the four lED Schools: Design, Fashion, Visual Arts and lED Management. Each lED location houses

four completely independent schools: what unites them is the common denominator of design culture

and shared inspiring principles. He also informed that per year there is one student from Pakistan he

is always excellent.

Later some WEs showed their products and sought advice. Mr. Gabriele was impressed by hand

painted and hand embroidered fabric.

Visit to Concept Store Luisa

This is a multiband store and a concept store. It houses products of fashion designers, a meeting place

(with availability of food), book shop and a place of photo shoot. This stores does its business through

direct sales and also through online store.

Afterwards the delegates left Florence for Prato.

VISIT TO PRATO Visit to Museo del Tessuto (textile museum)

In Prato the delegates visited Museo del Tessuto (Textile Museum). The visit was conducted by Ms. Silvia Fiaschi who is responsible for Commercial activities at the museum. She showed the history of

textiles and fashion. She said that the museum is situated at an actual site of factory. She said that he

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building housing the Museum, the historic "Cimatoria Campolmi Leopoldo e C.," is a monument of industrial archaeology and the only large nineteenth-century factory built within Prato's medieval city walls. The architectural complex constitute the city's main cultural centre; the Museum occupies half of the space, about 4000 square metres, while the other half houses the "A. Lazzerini" Municipal Library. The former Campolmi Textile Mill is perhaps the most important example of industrial archaeology within the Province of Prato. The large 8500 square metre complex located within the historic centre had been a site of textile manufacture since the Middle Ages. At the end of the nineteenth century, the building was a double storey quadrilateral shape around a rectangular courtyard, featuring a large tank for water collection and a 40-metre high brick chimney at the centre. The factory only reached the current size and conformation in the middle of the twentieth century thanks to modifications and expansions, such as the construction of the beautiful vaulted arched dye-works, which now houses the entrance to the library. Textile production ceased in 1994.

Visit to Manteco Factory of Fabrics for Fashion Designers The delegates were received by the Mr. Simone Calamai Deputy Mayor of The Municipality of Montemurolo. The press officer of the Mayor's office was also there and did the press coverage. The Deputy Mayor was present throughout the meeting. The CEO of company Mr. Franco Mantellassi was present and conducted the briefing. He said that they are leader in fabric production and produce 17 billion meters per year. They produce cotton, linen all types of mixes. They have a well-developed R&D Department and are continuously doing innovations in fabrics as per the needs of the brands that are their customers. They are also exporting fabrics to EU, USA and Asia (India and China). They concentrate in large scale orders. Range of price is 9-15 Euros per meter. WE5 fashion designers showed interest in the new innovative fabric and one WE also showed intention of placing the order. Commercial Counsellor also extended invitation to the CEO to participate in Expo 2017 and Texpo 2018 and it was accepted. VISIT TO MILAN

Meeting with SAE Comunicazione Integrate SRL. On 2'' of February the delegates with fashion designing communication company. Ms. Elena Salvaneschi briefed about the importance effective communication for fashion designers. She told that communication in fashion design has a practical history of 40 years. However it is a new discipline. The communication company plans material to communicate and also plan fashion shows. Till 1980s when pre-a-porter started there was no academy for communication but now it is full-fledged subject in fashion schools. Communication comprise of press tours, social media, press kit pitch letter, fact sheet of the company, biography of the designer, look book etc. All these things are to be managed effectively. Each fashion designer has to develop a story of the product. She then reviewed the products of the Pakistani delegates. She explained that for example the hand painted fabric has to be marketed with a story of how the final product is made and why it is special. She said for getting models the fashion designers can get very cheap models from the students of the fashion schools in their country. She offered free of cost space of 60 meters to delegates in Milano pret-a-porter September edition and she said that she will send a proposal to the Commercial Counsellor as they can offer space free of cost to countries and not for commercial activities. Commercial Counsellor requested her to give free slot in fashion show as well. She said that in September edition there is no fashion show but she will look into it.

Visit to Office of Vogue Magazine

The Director of the Magazine conducted the tour and showed al sections dealing with upcoming talent hunt, photography, fashion shows, news, trend section etc. He said that the circulation of the magazine is I billion copies per month.

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Visit to CNMI (Camera Nazionale della Moda Italiana) Delegates visited the Hqs of the CNMI the sole association of fashion industry. Here briefing was conducted by Ms. Francesca. She briefed about the association and informed that the association was founded in 1958 and it represents all fashion brand and its members are 200 in number. They represent garments, footwear and accessories and whereas the accessories sector is the largest in volume and turnover. Their objective is to promote fashion brands abroad and in Italy. They organize Milan Fashion Week 4 times a year, they are organize Fashion Hub Market (it is for emerging brands in which there is foreign participation as well), Fashion Lab (an event only for Italians and it includes workshops, lessons on management of business, e-commerce), Milan Moda Graduate (it is to accelerate fashion academies and includes shows of the best students). Other pillars of the association is the sustainability project which is supported by Gucci, Valentino, Versace, Prada and Gorgio Armani.

Visit of Milano Unica Fieramilano Rho The delegates were given a guided tour of the fair on 3rd of February. Here they saw innovations in fabric, accessories, shirts etc. At the moment this exhibition is not open for Paksitan but is suitable for visiting by fashion industry.

Way Forward

The study tour was very successful and feedback of WE fashion designers was very positive they were impressed at the quality of the meetings and said that they have learnt a lot. Following are some the positive outcomes of the delegation;

1. CNA will sign a M0U with LCCI and there will be few clauses dealing with WEs of fashion sector. Commercial Section will follow up with CNA

2. There is possibility of getting funding for training in product development of WEs. Leader of delegation will initiate a proposal and send to UNIDO/CNA and Commercial Section will follow up so that concrete proposal with win-win situation is drafted so that funding could be acquired from Italian Government

3. The organizers of Alto Roma (Fashion show in Rome) has also shown their desire to work for the group participation of Pakistani fashion designers. Commercial section will follow up so that special rates are offered for the group participation of WE fashion designers.

4. Another positive outcome is the offer of free of cost space to Mission of Paksitan in Fashion exhibition in Milan. Commercial Section will coordinate for the effective participation and will also coordinate with UNIDO so that at least free of cost accommodation is offered to the upcoming fashion designers.

Details of LCCI Women Members for Delegation to Italy

Name: Ms. Aasia Saail Khan (Leader of the Delegation) Passport No: RX4106443M/S Bspoke Fashion

Name: Ms. Amna Nadeem Designer of Ombre Brand

Name: Ms. Madiha Latif M/S Zuria Dor

Name: Ms. Mubarka Fazal Elahi M/S Silk Enterprises

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Name: Ms. Zahra Fatima Zaka

M/SAlmas

Name: Ms. Mehrunnisa Ahmed

Secretary to the Committee of LCCI WE Committee

• Visit of Islamabad Women Chamber of Commerce & Industry (IWCCI) to Florence and

Rome, 1-5 May 2017

A nine member women delegation belonging to the Islamabad Women Chamber of Commerce &

Industry (IWCCI) led by its Founder President Ms. Samina Fazil Italy 1-5 May 2017. The delegation visited Florence and Rome. Commercial Counsellor and translator accompanied the delegation.

VISIT TO FLORENCE HANDICRAFT FAIR - 1St MAY 2017 On Monday, 111 May the delegates accompanied by the Commercial Counsellor and

Translator/Commercial visited the 81" International artisans fair in Florence. This fair represents the

oldest exhibition of handicrafts in Italy. The fair is attended by 800 exhibitors coming from 54 different countries and displaying their hand-made products.

Ms Simona Tosi, Manager of International Pavilions welcomed the delegates. Ms Tosi briefed the delegates about the main sectors represented in the fair (like hand-made jewellery, furniture, natural

cosmetics, hand-made apparel and accessories) and she also said that every year they select an

exhibiting country as the Honour Country which, in 2017 edition is USA. In addition, she explained that

the selected country has at least 300 sq. m. space with main theme that can be developed jointly and

should cover culture, food and traditions.

She also said that the size of the fair is increasing in size in terms of number of exhibiters and visitors

and if we compare 2015 to 2016 the increase is by about 10%. She said that this is a market exhibition

and people do spot selling. However, wholesaler and agents also visit this fair. Over 140,000 visitors attended 2016 edition and many of them were also business operators. The standard size for

participation in the fair is 10 sqm and cost is Euros 185 per sqm and registration fee of Euros 250.

Ms Tosi guided the delegates in the fair. It was very interesting to meet local companies because they were showing hand-made jewellery both of high end as well as medium quality. In addition, there was

interesting meetings with a Tuscan company making crocket works whose prices were really expensive

compared to the Pakistani ones. Contacts were exchanged to evaluate possible avenues of

cooperation with some Pakistani companies. The owner of the company said she will exchange emails

and will seek samples as per their specifications.

The delegates also visited the Lazio Region Pavilion where companies from Rome and its vicinity were

displaying their products. Interesting conversation took place and contacts were exchanged among

them and the company showed interest in visiting them in Rome. During the fair on the spot b2b

generated good number of enquiries. WEs also accessed the importance of this fair and were keen to participate provided some subsidy is given.

MEETINGS WITH FAIR DIRECTOR AND VISIT TO SAN LORENZO MARKET - 2nd MAY 2017 On the next day, the fair Director, Ms Diana Salvetti met WEs. The purpose of the meetings was to get guidance as to the product development and to discuss WEs' participation in next edition of the fair.

Fair organizers agreed to submit the project of WEs participation in the fair with the Commercial

Counsellor. The delegates showed their products and the Director gave them inputs and ideas on how

to improve the product range and colour scheme of each products according to the local demand.

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Subsequently, the delegates visited the San Lorenzo market in the centre of Florence for a couple of

hours and had meetings on the spot. San Lorenzo market is an historical market where many shops

also have their own stands on the street market. The market in Florence is one of the oldest in Italy and it is a real attraction for purchasing and selling hand-made products. The sector mostly

represented in the market were hand-made leather bags, accessories and leather jackets. Only few

had suitable items for the delegates like shawls, pashminas, jewels and hand- made accessories/bags,

accordingly only few meetings were considered successful.

After the visit and meeting in Florence, the delegation travelled towards Rome where other activities

were organised for them

DISPLAYING AREA IN THE EMBASSY OF PAKISTAN-0 MAY 2017 The Commercial Section has arranged in the morning of 4th May a displaying area for the IWCCI

delegates in the Hall at the Embassy where local businessmen and Pakistani diaspora were invited to attend the event. The women entrepreneurs displayed their hand-made clothes, painted scarfs, hand-

made traditional/antique jewellerys with natural stones, embroidered shawls, etc. for a couple of

hours and business interactions took place. There were different tables for each product category with

brochures and visiting cards for every company. The Ambassador and other officers at the Embassy

visited the display and interacted with the women entrepreneurs. During the meeting, the

Ambassador offered full support for future initiatives aiming at promoting Pakistani handicrafts also

with the purpose of arranging a wider displaying area and another dedicated event open to public.

Among different meeting, the focal ones were the following:

-

Mr Ishtiaq Hussain from Global Handicrafts, importer and exporter of hand-made items and

apparel from India, Pakistan, Thailand, Indonesia and Africa. Mr lshtiaq was very interested in

the silk shawls and hand-made bags. Contacts were exchanged and also some verbal

commitment for future orders.

Mr Abdul Ali Khan from A.E. Enterprises, importers of hand-made jewels and traditional cloths

Mr Haji Akbar from Haji Akbar & Co, importer and exporter of ethnic jewellery, summer cloths,

gift items/bags.

Ms Ilenia Mancini from Gira BIu. She is manufacturer and buyer of jewels and pieces/accessories used for making jewels, scarfs and bags.

Ms Ilenia discussed with all the women entrepreneurs and she got some quotation for jewels,

painted shawls and bags. During the meetings, Ms Ilenia gave useful inputs to all the ladies on

how to improve the quality of the final product as well as the colour scheme pattern more

used in the Italian as well as in Europe. In addition, important information were provided to

those ladies making jewels, recommending them to use for the metal part, nickel free high

quality material to avoid allergy reactions since in the Italian market is forbidden to use certain

material.

After these interactions at the Embassy a small refreshment was hosted by the Commercial Counsellor. Later on, the delegation along with Commercial Counsellor and Translator/Commercial

moved for the meetings with two famous Roman based companies manufacturing hand-made shirts

and jewels: DAN Camice and CilIa Bijoux.

Meetings with the CEO and owner of three shops in Rome for hand-made shirts: DAN Camice for man, ladies and kids. Ms Barbara briefed the delegates about the history of their shop and the passion that her father has for the fabrics and for the hand-made shirts. The company currently has three shops,

two factory and one where tailor-made shirts are stitched. DAN camice mainly utilises in its collection natural fabrics like cotton, silk and cashmere for the jumpers. In addition, she explained that they currently satin import cotton from Egypt. They send specifications to suppliers and they make their

own colour shades. Commercial Counsellor briefed them about the high-quality cotton Pakistan has

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and the advantage that the GSP+ scheme can offer to Italian and European importers. In addition, the

women entrepreneurs were also informing Barbara about their products and it was interesting for the

DAN Camice owner to see some of the hand-made products that can be used for buttons, accessories

to decorate the shirts. A lot of interest was generated and there will be a scope in considering

importing of natural fabric from Pakistan as well as to develop specific/tailor-made accessories for DAN Camice. The tour concluded with the visit to the DAN Camice laboratory, where the owner

showed how the shirts are totally hand-made and even the pattern they use are not computerised but

are all pieces of fabrics.

In the evening, Commercial Counsellor hosted a dinner in honour of the delegates where local

entrepreneurs also attended.

On the afternoon of 5th May 2017 Pakistani Community hosted lunch for WEs and they coordinated

and conducted the tour in Vittoria market where they conducted b2b with their contacts. Some

interesting trade queries were generated. It was pointed by Pakistani Community that in matter to

Asian clothes/bridal/formal wear there is a scope of establishing contacts with locals and doing

business as is going on in UK.

Way Forward

Following are some the positive outcomes of the delegation:

5. Florence Fair Management will send a project proposal for Pakistan's Pavilion in the fair with

a focus on women entrepreneurship and Commercial Section will follow up with TDAP for the

group participation of women from Pakistan

6. Another positive outcome is the establishment of contacts with local entrepreneurs having their own shops that could require from Pakistan fabrics, tailor-made accessories and natural

stones for making jewellery

7. Useful contacts with Italian companies were also established interested in accessories,

buttons etc.

• Visit of Lahore Chamber of Commerce & Industry (LCd) to Rome, Carrara and Milan,

14-18 May 2017

A nine member delegation belonging to the Lahore Chamber of Commerce & Industry (LCCI) led by

Executive Committee Member, Mr. Khadim Hussain, visited Italy from 14th to 181h May 2017. The

delegation visited Rome, Carrara and Milan. It was a multisector delegation however majority of the businessmen belonged to the marble sector.

The composition of the delegation was mainly of marble and granite, with two members belonging to

food, one for plastic moulding compound and one for fasteners. The Commercial Section extended

full support in managing logistics, hotel bookings, arranging institutional meetings, company's visits,

translation, etc. The Commercial Counsellor accompanied the delegation in all its visits and meetings.

The list of delegates and their sectors are given below;

LIST OF DELEGATION MEMBERS

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1. Khadim Hussain M/s. Hussain Trading Co

Executive Address:216-Main Ferozpur Road Near Wapda

Committee Hospital Lahore

Member,

Leader of the Delegation

2. Uzair Majeed M/s. Ezra and Company

Former Executive Address: Gulistan House, 1st Floor, 4 Montgomry

Committee Road, Lahore, Pakistan

Member, LCCI Ph: +92 42 36283729

Fax: +92 42 36283730

Mob: +92 321 4250786

E-mail: [email protected]

3. Muhammad M/s. Faisal Granites and Marbles

Amer Saeed Address: 8-E Ghazi Road Defence, Lahore,

Chief Executive Pakistan

4. Wasim Farooq M/s. S Wasim Stone

Chief Executive Address: 98 Ferozpur Road, lchra Lahore,

Pakistan

5. Muhammad

Mubin M/s. Irshad Saeed Packaging Pvt. Ltd

Chief Executive Address: Lahore, Pakistan

6. Mustaq

AhmadChief M/s. Zafar Banquet HallAddress: 56-N Industrial

Executive Area Gulberg II, Lahore, Pakistan.

7. Mr. Tahir

Mansoor , EC

Member Lever Group of Companies

8. Azhar Ahmad M/s. Gulistan Marble and Granite

Chief Executive

9. lmran Dar Secretary of the delegation from LCCI

VISIT TO ROME -15th/16th May 2017

The meetings in Rome started at UNIDO ITPO office, where the Director, Ms Diana Battaggia,

welcomed the delegation and briefed them about the long-lasting cooperation with the Embassy of

Pakistan, in particular with the Commercial Section, and how important Pakistan is for UNIDO,

Ministry of Industries is interested in opening an office of investment in Pakistan.

An important result of the visit of the LCCI delegation has been achieved by - and celebrated at- the

Embassy of Pakistan is the signing of the M0U between LCCI and CNA (the Italian Confederation of

artisans and SM Es). The ceremony was attended by the LCCI delegates, CNA representatives and the Embassy's officers. It was highlighted by the Commercial Counsellor during the inaugural addresses at

the ceremony arranged at the Embassy of Pakistan in the afternoon of 15t) May 2017, that this MoU

is the result of mutual exchange of delegations between Italy and Pakistan and closer cooperation

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between the institutes of Pakistan and Italy. On behalf of LCCI Mr. Khadim Hussain said that LCCI is

willing to increase the business interactions with Italy. The Vice President of CNA, Mr Giorgio Aguzzi,

in his speech expressed his desire to strengthen relationships between LCCI and CNA. The concluding

remarks were of the Ambassador of Pakistan in Italy, who showed his satisfaction on this important

achievement and once again stressed that Pakistan and Italy has important business relations since

1948 and through more of similar interactions business can be generated. Thereafter, the signing of

the MoU took place followed by presentation of shields and pleasantries.

On 16th May 2017, the meetings started at Confcommercio where Ms Stefania Foresi, from the

internationalisation department, welcomed the delegation and briefed them about Confcommercio activities, the size of the represented companies, main figures/data in their represented sectors like

food/restaurant, services, transport, insurance, etc. In addition, while talking about Confcommercio

organisation at national level, she focused on the Italian Association for Foreign Trade (AICE) with

whom LCCI already signed the MoU last December 2016 in Pakistan. Before concluding the meeting,

the Director of SMEs department, Mr Fabio Fulvio also came to meet the delegates as a manifestation

that Confcommercio fully support Pakistan and the Embassy for any future initiative that could directly

involve them. Confcommercio and LCCI expressed the desire to work together and Confcommercila

agreed to look into the possibility of organization of joint exhibition.

A well-structured institutional meeting was arranged at the Italian Trade Agency (ITA). The senior

Director at the International Department, Mr Filippo Lanciotti welcomed the delegation and expressed

full support to the Embassy of Pakistan for any other business/investment activities that can be

organised in the near future. Mr Lanciotti expressed his idea of re-opening an ITA office in Pakistan

being an important as well as a strategic country for Italy. In addition, he also highlighted the great

importance attached by the Italian Government to the Italian delegation to Pakistan of the December 2016. He said that the Italian are interested in machinery/technology in all sectors of interest in

Pakistani economy. . The panel of the speaker at ITA was composed of all directors of the sectors

represented by the delegation: food, marble, stone machineries, plastic and packaging machinery. The

presentation started with a video of ITA on the Italian excellences followed by the explanation of their website and the availability of the contacts.

The last meeting of Rome Section took place in Lazio lnnova, the special agency of Lazio Region and

Chamber of Commerce of Rome for internationalisation, start-ups and SMEs innovation. The

delegation was welcomed by Ms Patrizia de Vincenzi, from the Internationalisation Dept. who briefed,

through a power point presentation, the delegates and the other Italian counterparts about the Lazio

Region, its strategic location in the centre of Italy, its main sectors of the economy, the strengths of

training centres and technical institutes, as well as the main activities and tools provided to SMEs to

enter new markets. Considered the short available time, the floor was immediately given to the

Pakistani companies who introduced themselves, their area of expertise and area of business interest with Italy. Thereafter 5 Italian companies invited for the 13213 meetings, introduced their

companies/consortium and bilateral meetings immediately started. More specifically, the Pakistani

delegates interacted with the businessman operating in the travertine sector; Mr Gabriele Felice

representing a consortium called 'save Italy' including companies belonging to automotive, textile and

garments, agro-food and furniture; Ms Letizia D'Antoni a company producing cookies with specific

variety of flavour (organic, vegan gluten free, etc.) with the brand name 'Kissaró'; Mr Stefano Albano managing director at 1-Tradex, Italian trading export, a consulting firm that support SMEs to enter new

markets though feasibility studies, fairs, focused meetings, etc. The Pakistani delegates were divided into different tables to facilitate B2B meetings and they could exchange their visiting cards, company's profiles and business requirements for future cooperation.

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Afterwards the delegation, accompanied by the Commercial Counsellor and Translator/Commercial,

travelled towards Carrara.

VISIT TO CARRARA: 17th May 2017

Carrara is one of the two main marble and stone hubs in Italy along with Verona. The white Carrara

marble is famous all over the world for its uniqueness and natural characteristics and the entire marble

industry is really very well developed in that city and its suburbs. Carrara is the oldest and most famous

industrial stone district in the world, recognised as the hotbed of historical technical and product

innovations. For this reason, the Commercial Section decided to include one-day activity in Carrara, to

give the opportunity to the delegates to see and learn more about the local industry and establish

new contacts with local companies. A key role in the Carrara stone industry is played by the

International Marble Machinery (1MM) and Architect Marcantonio Ragone in charge for international

relations is a strategic partner in 1MM. Arch. Ragone welcomed the delegation and started by

introducing 1MM as a private entity with public shareholders and operates in the entire field of marble and stones both at national and international level. 1MM provides entire range of services: analysis,

promotions (delegations and exhibitions), trainings, publications and specialised services for marble

and stone industry. After this general presentation, Arch. Ragone briefed about the exhibition they

organise every two years, Carrara Marmo Tech as well as the forthcoming initiative called White

Carrara Downtown, which will be held in forthcoming June 2017. Arch. Ragone also showed the

marble testing laboratory that is owned and managed by 1MM. In the lab the tests are carried out to

verify the quality and characteristics of stone materials according to the main international technical

standards (EN and ASTM). This lab tests samples not only for Italy but for clients from Japan, USA,

Russia and other countries where the stone samples undergo different steps and tests to verify their technical strengths to high or low temperature, shocks, skid resistance, etc. Before leaving for the quarry visit, the delegates visited the marble library, where pieces of marble with certain characteristic

coming from different regions of Italy as well as from the world, are constantly on display. This place

is visited by many architects that before starting some works, go there for selecting the kind of marble

or granite they want to use. Mr. Ragone offered Pakistan a place to display their marble It was agreed

that a proposal will be soon sent to the Commercial Section containing the technical specifications for

displaying the finished marble slabs in that library.

After a quick lunch break, two meetings followed one with the sales director at M/S Marmi Carrara, Mr Carlo Colobi and one with Import/Export Manager at M/s ItalMarble Pocai, Mr Agostino Pocai. Marmi Carrara is one of the biggest company in Carrara that processes capacity of 100 ton of marble

per day. VISIT TO MILAN: 181h May 2017 In Milan the delegation have a briefing at International Trade Agency (AICE) where they have

organized some b2b for them. LCCI delegates were happy to meet again the organization with which they concluded a M0U by the help of good offices of Commercial Section, Rome in December 2016.

Mr. Pierantonio Cantoni briefed about the organization and informed that he can introduce Pakistani

companies to Italian companies according to their requirements. The LCCI delegates were happy at this service and some of the LCCI delegates put forth their specific queries that he committed to find

a suitable Italian Companies. One LCCI delegate was looking for franchise in food and he promised to

place before them appropriate options. Leader of the delegation invited AICE to visit their Chamber in Lahore and also give a presentation there. Prientonio Cantoni said he will come during his tour of

Pakistan.

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The last meeting of the LCCI delegation was held in Marble Machine Association (Assomaromacchine).

Here Engineer Lovati briefed about the Association and it was followed by b2b meeting.

All the meetings and business interactions went well and the level of satisfaction was high, however

there were few issues related with the unprofessional attitude of the visiting delegates.

Way Forward

Following are some the positive outcomes of the delegation:

8. Signing of the M0U between LCCI and CNA was the immediate tangible outcome which can

lead to enhancement of trade cooperation between Pakistan and Italy

9. Useful contacts with Italian companies were established particularly for food and marble. Normally the results of b2b are not immediate and are not communicated by the companies to the Embassy.

10. 1MM Carrara offered the opportunity to display Pakistani slabs in the marble library. It may be

noted that this is a library were architects come to select marbles for their buildings. It will

provide good opportunity to the companies for continuous exposure and marketing.

11. Confcommercio agreed to conduct a joint delegation if appropriate proposal is provided by

LCCI. Commercial Counsellor on the willingness of LCCI agreed to do follow up.

12. ITA agreed to do some training sessions for LCCI office bearers and LCCI agreed to follow up

with ITA.

13. ITA agreed to form a delegation during the days of marmoamc fair, Verona 2017 which will

comprise of companies from LCCI

14. Discussion with UNIDO to organize seminars, workshops and/or other activities at LCCI headquarters

• Footwear delegation To Italy, 9/13 October 2017

Commercial Counsellor recommended to TDAP and to the Pakistan's Footwear Manufactures and

Exporters Association (PFMA) to sponsor the organisation of a footwear delegation of prominent shoe

manufacturers in Pakistan willing to enhance their business cooperation with Italy.

The delegation was composed of 8 members representing the following 7 companies:

• Mr Nasir Anwer Sheikh, representing Elegant Pvt. Ltd and leader of the delegation

• Mr Raja Muhammad Rafiq, representing New Long Life Shoes

• Mr Javed lqbal Siddiqui, representing Stylo

• Mr lmran Khaliq, representing Firhaj Footwear

• Brig. Abdul Rehman Raza Khan and Mr Wajid All, representing Askari shoes

• Mr Zahid Ahmed Khan, representing Sartaj Shoes Industries

• Mr Rizwan Shahid, representing EPCT Pvt. Ltd The Commercial Counsellor and Translator/Commercial accompanied the delegates in their visits and

meetings in footwear (and leather) cluster in Marche Region, in the provinces of Fermo and Macerata

on 101h and 11th October 2017, in Vigevano on 12th October 2017 for the machineries and equipment

and finally in Padova on 13th October 2017.

Meeting at the Chamber of Commerce of Fermo on 10th October 2017 The activities and interactions started at the Chamber of Commerce of Fermo where a small

presentation on Pakistan's footwear sector was arranged in collaboration with Confindustria Fermo.

The President of the Chamber of Commerce of Fermo, Mr Di Battista Graziano welcomed the delegates and expressed his satisfaction in hosting this business delegation. Then, the leader of the footwear delegation, Mr. Nasir Anwer Sheikh briefly introduced the footwear industry in Pakistan, its

immense potential and areas of cooperation with Italian companies, especially those in Marche Region. Then, a brief introduction of all the delegates was provided. The Commercial Counsellor also

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highlighted the big consumer population of the country and the possibility of establishing strong ties

with the local association for footwear as it has been already done with other associations in Italy

through the signing of MoUs. In addition, the leader of the delegation invited everyone to attend the

Mega Leather Show which will be held in Lahore forthcoming January 2018. It was ensured that

genuine companies and commercial designers will get full sponsorship from PFMEA.

The closing remarks were made by Mr Ciccola, President of the Footwear Association in Fermo and

CEO of the well-established company M/s Romit.

Company visit: M/s Romit The company was founded in 1978 and currently produces high luxury man shoe for French and Chines

brands. In addition, the company sells in the Italian market with Valentino shoes and Romit shoe

brands. During the visit, the CEO, Mr Ciccola showed to the delegates that the company is adopting a special

feature while manufacturing shoes: machine sewing - at the same time, with single or double thread

- upper, insole and sole. This kind of working binds the inter-sole and the sole together and it is

achieved by means of a sewing machine called Rapid. This machine, with needles and curved awls, is

normally used also in the Goodyear method to sew the welt with the sole. It is the combination of the two seam stitching procedures in the production of a single shoe. The delegates were impressed by

new technologies of the factory.

The visit concluded in the show rooms for spring/summer and fall/winter collection of all the brands

they produced. The delegates appreciated the work, knowledge and expertise of the owner and once

again invited him to visit Pakistan on the occasion of the mega leather show and then visit some

factories so that they can see the actual potential and develop something together.

Company visit: M/s T-Progetto Sri The company T-Progetto sri is specialized in lady shoes which are currently designed in Italy and

manufactured abroad in Albania, Kosovo and India. The company buys also leather since the entire

collections are made with genuine leather. The CEO of the company, Mr. Giuseppe Torresi, welcomed

the delegates and showed them some of their products of their recent collections and explained their

main requirements. The company was established in 1979 and initially, some production was also

made in Italy, but later, due to increase in production cost, they opted to relocate the manufacturing

part in other countries just providing from Italy the pattern, the technical specifications and then they

follow the national and international sales.

The Pakistani delegates producing lady shoes, showed him their shoe and leather samples. Few

samples were selected from the company EPCT, Elegant and Stylo and price quotes were exchanged.

In addition, Mr. Torresi mentioned that there could be a real interest in visiting Pakistan and explore

eventual cooperation with big factories since they often travel to India where they are currently

producing leather boots. Moreover, Mr. Torresi also promised to visit the Pakistani Country Pavilion

in the forthcoming edition of the footwear exhibition Expo Riva Schuh in Riva del Garda, January 2018

to see their entire collections. All delegates had an interaction with Mr Torresi and exchanged visiting

cards.

Company visit M/s Elitron In the afternoon session, the delegates visited the company M/s Elitron SrI and met Ms. Valeria Perrotta and Mr. Giambattista Mele, from the commercial department. Elitron is a well-established company founded over 30 years ago which is currently present in more than 50 countries and owns 12 patents. Elitron is among the leading players in Italy in the Computerized Designing and in CNC

Automatic Cutting Systems for leather used for footwear, accessories, upholstery also in CAD and CAM

technology etc. Through constant investments in technical innovations, the company started to

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diversify the sectors and the material used, so in 2001, they started manufacturing other machineries

used for the cutting systems of cardboard, visual communication, gaskets and composites, rubber and

foam, furniture and automotive.

The manufacturing part is all in Italy and they sell abroad through local partners and they also have 2

commercial branches in USA and Colombia. They do train staff and can do some remote control on

the machineries, but the physical presence is obviously required. The company's representatives are

naturally interested in the Pakistani market and they would like to find a reliable partner, since they

are also working in that area with activities both in China and India.

After the meeting, the representatives made a guided tour showing also simulations of their machineries and how the leather can be immediately cut for making shoe uppers.

Company visit M/s Euro Suole The last company visit arranged was at Euro Suole, an Italian company founded in 1976 specialized in the production of soles in rubber, polyurethane for man, ladies, kids, for flat and/or heel shoes, sport,

casual, formal, shoes, etc. Actually, the company has a wide selection of soles for all needs.

Eurosuole is manufacturing in Italy and exports all over the world and the company is constantly doing

R&D of its products. Euro Suole is naturally very interested in the Pakistani market, being a big market

both as footwear producer and as consumer.

Mr Ercoli, CEO of 2 companies (Euro Suole and Goden Plast) received the delegates and showed the

soles collections both those made in scale production and the one made on specific request. All the

delegates selected sole samples and asked for the quotation.

Networking Dinner at Cosmopolitan Business Hotel

The Commercial Counsellor hosted a dinner at Cosmopolitan business hotel on lOthe October in

honour of the delegates. The dinner was attended by 23 guests, including hosts, delegates, local

businessman (big brands like Fabi, Spernanzoni,), shoe agents (like Villa Florio), shoe machineries and accessories (like Macsenior, Goldenplast, etc.) as well as institutions' representatives (like

Confindustria Fermo, Confindustria Macerata, Marche Region Int. Dept.). The Commercial Counsellor

and all the delegates had the opportunity interact with the attendees and talk about the immense

opportunities available in Pakistan for Italian entrepreneurs. During the networking dinner Pakistani businessmen exchanged the contacts.

Meeting on 111h October at CONFINDUSTRIA Macerata

In the morning of 111h October, the commercial organized a b2b meeting of delegates manufacturing

ladies shoes with company Annabella. The meeting was good and there appeared to be a possibility

of future business interaction.

On the 11th October in Confindustria Macerata a small presentation of the Pakistan footwear industry and 13213 meetings took place. The President of the Footwear Association of Macerata, Ms. Salina

Ferretti (also VP at the National Footwear Association and General Manager At FaIc) opened with

welcome addresses to the audience and expressed her satisfaction to host the Pakistani business delegation. After her brief speech, the leader of the delegation introduced the footwear sector in

Pakistan, showed a short video on Pakistani shoe industry and introduced the delegates. After this

opening remarks, 7 tables were set for the 13213 meeting/matchmaking to give the possibility to the Pakistani companies to display their goods and directly interact with local companies. Confindustria

Macerata engaged important companies like M/s Camerlengo Sri, M/s Galizio Torresi, M/s

Calzaturificio Omeda SrI, M/s Polimond e Mondial Suole, M/s Spernanzoni (brand ii gergo), M/s

Fustellificio Bico SrI, M/s Formificio Spreca Zengarini, M/s Pelletteria Orlandi, M/s Montebove and

many other who specifically came to meet the delegates and their samples.

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After the meetings, the President of Confindustrai Macerata invited the delegates to visit her

company: M/s FaIc Spa. Faic is a very well established company, an Italian world leader in the field of

footwear, and manufacturer of the Naturino children's shoe brand and the Voile Blanche brand for men and women's shoes. The company only deals with high quality shoes and in 1989 acquired the

licence for the Moschino Baby Kid Teen shoe line, followed in 2005 with the launch of the Moschino

Men's collection. This collaboration with the world famous Italian fashion Maison still continues today

and takes products manufactured under the Moschino brand all over the world. In addition, FaIc also

owns the children brands Falcotto and Fonte Zoppa. CEO of Stylo and Ms. Salina both were favaourably

inclined for a JV whose negotiations will take place later on.

After the visit, Confindustria Macerata hosted the lunch for the delegation that in the afternoon

departed for Vigevano.

Meeting at ASSOMAC

The meeting at the Italian Association for machineries and equipment for leather and footwear

(ASSOMAC) started in the morning of 12th October 2017 with the inaugural addresses of the President

of Assomac, Ms Gabriella Marchioni Bocca (also owner of the company Lamebo SrI, splitting band

knives).

She welcomed the delegates and expressed her fullest support to further increase the cooperation

between the two associations especially in view of the technical centre that will be established in

Pakistan. The meeting was also attended by Italian companies producing and exporting technologies.

After a first interaction around the table and a brief introduction of each delegate, the 13213 meetings

took place in different rooms of the Association. All delegates met the Italian companies and

exchanged their views. Before lunch, a quick visit was arranged at M/s Torielli Sri, a company

producing leather cutting machineries already operating in Pakistan. Actually, the Pakistani delegates

wanted to go and see the state-of-art technologies that Torielli research centre has developed. None

of the Pakistani has this technologies yet, but they are looking forward to making these investments

which are very important for the improvement of their production efficiency and quality of their final

products.

In the afternoon session, there was a restricted meeting with ASSOMAC representatives only attended

by the leader of the delegation the PFMEA past president (M/s Stylo) and the Commercial Counsellor.

During the meeting it was decided that technological training centre will be set up in couple of months

and PFMA will rent out the building.

The meetings at ASSOMAC ended with the agent Mr Angelo Caserio, a very experienced and

professional footwear agent well connected with Italian and Spanish companies.

All delegates had bilateral meeting with the agent and showed him the samples they brought. Few

samples from the company Stylo and Elegant were taken by Mr Caserio and he immediately called

some of his contacts/buyers to arrange the meetings in the forthcoming weeks and show them the

Pakistani samples. He provided precious advices to the Pakistani entrepreneurs who were all

appreciating his recommendations and inputs on how to improve shoe finishing.

The delegates invited him to take part to the Mega Leather Show in Lahore and they also requested

him bring along 4/5 Italian big and reliable buyers so that they can also visit the production premises

and give them more opportunities to start business cooperation. It was also agreed that Mr. Caserio

will visit Pakistan's country pavilion to the forthcoming edition of the Expo Riva Schuh where he also participate and he will bring some customers.

The activities in Vigevano concluded with the dinner hosted by ASSOMAC.

Meeting at COMPAR SPA (Bata Brand)

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In the morning of 13th October, the delegates departed from Vigevano to reach Padova for a meeting

at Compar Spa, owing Bata brand. The delegates were welcomed by Mr Roberto Tiramani and Mr

Stefano Cerello from the International Footwear Investment at Bata. They met all delegates and saw

their samples. The meeting was much focused and short also because there was no interest in lady

shoes. They selected few samples of the company EPCT and asked some prices from Elegant.

The commercial section has also tied up the meeting another big distributor Pittarelo but he was only

available for the leader of the delegation since other delegates were not happy so meeting was

cancelled. However the contacts Mr. Pittarelo were shared for future business callobotartion and

individual meetings if tied up.

Way Forward

• All the meetings were very fruitful and considered useful and interesting for all the delegates.

Company visits were very educational for the delegates. The possibility of interacting and

exchanging contacts/vies were provided to all the delegates, but naturally not all had products

considered suitable for the Italian market. Good business scope could be achieved by

companies like Elegant, EPCT, Firaj and Stylo. Very different was the target of Askari shoes (military, combat and industrial shoes), however there is a definite market for askari in safety

shoes.

TDAP may consider another delegation in two other cluster of footwear in Italy that are

identified by us and may be fruitful

• TEXTILES DELEGATION TO ITALY (10-15 DECEMBER 2017)

Commercial Counsellor in coordination with TDAP planned a delegation of textiles to Italy in December 2017. The main focus was on the categories of Knitwear and denim garments. TDAP on the

recommendation of the report submitted to them on textiles by Commercial Counsellor approved a

7-8 member delegation. Following was the composition of the delegation;

1. Mr. Riaz Ahmed DG TDAP, Lahore ( Leader of the delegation)

2. Mr Rashid Shafique (managing Partner of M/S Hala Industries Faisalabad

3. Mr. Amir Nawaz of M/S Faisal Mustafa Textiles Faisalabad

4. Mr. Rana Riasat Ali of M/S Executive Apparel, Lahore

5. Mr. Fahim Muhammad Akram of M/S Balitex, Lahore

6. Mr. Imtiaz Bhatti of M/S Rajput Enterprises

7. Mr. Tariq Mahmood Bhatti of M/S NASA Corporation, Sialkot

8. Mr. Zain Aziz Kapur of M/S DK Industries Sialkot

MEETING AT CIS, NOLA

The delegates were received by CIS management viz Mr. Guida, Marketing & Trade Director and Ms.

Sara Alfano, Expert in Marketing & Trade . A video was shown as to the constitution, inception and

management of industrial district. The Director expressed his willingness to collaborate with Pakistan

in hosting future delegation and even to manage Pakistan specific exhibition in the industrial district

after identifying products of Mutual interest. They also informed none of the Embassy (that is Embassy

of India or Bangladesh) has collaborated with them the way Commercial Counsellor is collaborating with them. Hence Nola offers a unique opportunity for Pakistan to promote its exports of textiles by

building steady relationship and arranging more activities.

MEETING WITH MICHELANGEO SRI

The company Michelangelo Maglieria srI is working since 1991 and it operates in the field of fashion and especially in the knitwear sector. It deals in production and distribution of medium-fine women's clothing products. The company supplies to stores and points of sale throughout the Italian territory,

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not disdaining the distribution of its products also internationally.

Delegates conducted b2b with the CEO of the company Mr. Michele Carillo . He also saw the samples

of the companies. Since Commercial Counsellor was in the meeting the opinion of the CEO was that

Pakistani knitwear are high priced in comparison to other suppliers from whom he was getting

sourcing.

MEETING WITH M/S ANTICA SARTORIA POSITANO

It is a company owned by a stylist and works in beachwear for ladies. They make 90% of their

procurement from India, Bangladesh and China with India as a major supplier. The brand was developed by stylist during 60ies, together with Hippie Look, in Positano was born the famous "Moda

Positano". The original traders from Positano, feeling the good business in the air, began to design and produce a particular and new fashion using linen hand-embroidered towels and sheet from the

traditional wedding kit, with crochet and bobbing application they finished elegant evening gowns

Today, together with Riccardo Ruggiti, first antique dealer, they runs the Antica Sartoria, a company

present in Positano in the city center and on the main beach with two shops where the guests on

holiday use to renew their holiday's wardrobe. The company owned 60 shops in main tourist points in EU. The owner of the company Giacomo Cinque

was interested in placing order with Pakistan in clothes and fabrics as per his design as they were not

getting appropriate supply from India. Some delegates expressed interest in supplying printed fabrics

The CEO of the company said that he will first like Pakistan to supply fabrics and later garments if the

relationship goes well.

Mr. Zain of DK Industries collected samples of fabrics and showed interested in supplying the printed

fabrics. MEETING WITH MERALD

Sony Bono is a big brand of Italy dealing with knitwear. The CEO of the company Mr. Alessandro Del

Giudice of Sonny Bono brand held b2b with the companies.

He selected many samples of Balitex and of DK industries for price quotes. The meeting was productive

here.

NETWORKING DINNER HOSTED BY COMMERCAIL COUNSELLOR/TDAP Commercial Counsellor

hosted networking dinner in which 30 companies were invited (list attached). The purpose of the

dinner to maximize from the tour and bring delegates in contact with textile companies, agents etc.

During the dinner CIS administration was also there. Companies as far as from Turin also joined. The

delegates exchanged contacts and some buyers later on also visited them in hotel in morning and also

committed to place orders after they got some samples.

MEETING WITH M/S ARTIGLIThe brand is nowadays one of the major national realities in the fast

fashion segment. The ARTIGLI collections are characterized by a clear and especially contemporary

style, in step with the international trend.

Designed for women aware of value of femininity, who always love seek new inspiration for their own image. The Artigli's concept of fashion is directed to a very demanding and at the same time transversal target of women with curious and energetic attitude. The delegates had a b2b meeting

with the CEO of the company who informed that they are in fashion wear and some of their items are procured from Bangladesh and if Pakistan offers cheaper rates they are willing to switch to Pakistan.

The delegates informed Commercial Counsellor that Paksitan does not have the fabric as desired by the CEO and hence if they manufacture the product it will not be competitive.

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MEETING WITH MILK & HONEY

Milk and Honey is a brand of Galtex S.P.A., company leader in the Italian market for sleepwear and

household linen. Quality, trend and convenience are the keywords to the success of their brand, which

aims to ensure a high quality product at a low price and always in line with the trends. This company

already is doing business with Pakistan. Their product range includes sleepwear, household linen,

accessories and swimwear.

All companies held b2b meetings that were also attended by Commercial Counsellor. The meeting of the company with Mr. Amir Nawaz dealing in home textiles went very well and the company was willing to place immediate order if confirmed prices are given.

As for the meeting with knitwear companies Mr. Sergio Gallone the CEO of the company told that

quoted prices of Pakistan are higher than that of the Bangladesh.

Companies like Balitex and Executive apparel said that they will send some revise quotes by email for

some of the samples show by CEO.

MEETING WITH M/S Angelo Carillo

Angelo Carillo & C. was founded in 1952 by its forward-looking businessman of the same name, and today it represents excellence in Campania's textile industry.

The company's success is based on the wide range of products and their innovation, style and design,

as well as the concept and the image of the brand and the relationship between price and quality. The

company produce with three brands and own about and they have three big shops for distribution as well as selling.

Here too since the company is of home textiles Mr. Amir Nawaz did a good business and anticipated

that he could supply to the company.

MEETING WITH AMBASSADOR PAKISTAN IN ITALY The delegation paid a courtesy call on Ambassador of Pakistan and briefly introduced themselves.

Ambassador welcomed them and said that Mission is all out to facilitate them. The leader of

delegation said that the delegates have experienced visa issues and they need help from the Mission

to resolve these future issues. The Ambassador that the Mission is aware of the problem and this

issues was highlighted by Secretary Foreign Affairs in secretary level talks in Italy.

MEETING WITH OVS GROUP.OVS S.p.A. is Italy's leading group in the clothing market, creating,

developing and marketing menswear, womenswear and childrens'wear under the OVS and UPIM

brands.

The OVS brand was created as part of the Coin Group in 1972. As the network expanded, it has

successfully developed great mutual trust with customers, achieving brand awareness on the Italian

market equal to 97% in 2013 (source: Doxa). OVS S.p.A. also owns the UPIM brand, which is positioned

in the value segment of the men's women's and children's clothing market in Italy and mainly targets

families. UPIM has been operating in Italy since 1928 and was acquired in 2009.

The Group's business model is typical of vertically-integrated retailers and involves the following activities: product development entrusted to a team of product managers, designers and

merchandisers who - by relying on a group structure that is highly specialised in sourcing and has a

major presence in key geographical areas - designs, develops and creates the merchandise mix

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through external suppliers, under the artistic guidance of fashion coordinators and under the

organisational leadership of category managers. OVS S.p.A. operates through its own sales network

throughout the national territory, with stores of different sizes and different management methods (directly-owned or franchised stores).

The Group is also the Italian market leader in children's clothing and has received the "Retailer of the

Year" award in the last four years for certain product categories.

All delegates displayed their samples to the sourcing manager of Knitwear Mr. Mario Zambon of

OVS/Opium.

Mr. Mario explained that they will select samples and will request for price quotes and they will also

do factory audit from their buying house in Pakistan.

Mr. Zambon selected many samples of all Pakistani companies dealing with knitwear. Here meetings

of all were very positive.

MEETING/VISIT OF UNITED COLORS OF BENETTON It is a global fashion brand, based in Ponzano Veneto, Italy. The name comes from the Benetton

family who founded the company in 1965. Benetton has a network of about 5,000 stores in the main

international markets.

Company has no manufacturing in Italy and is sourcing its garments from India, Mayanmar, China,

Bangladesh and some African countries. Eng. Marisa Biasutto SC planning Outsourcing, Emanuele Varotto , Global Sourcing Manager, Mr. Andrea Bressan, head of supply Chain, were there in the

meeting.

The company said that presently Pakistan is an interesting country for them and may be they will visit

Pakistan in 2018 after completing the work of some improvements in set up their stores to further

differentiate their brand from others.

They also said that they do the company audits themselves and have stricter standards of compliances

and they are interested in vertically integrated units. Unfortunately none of the companies were

vertically integrated in the delegation. However they said that it does not mean that they do not

procure from other companies who are not vertically integrated but who are complying their requirements/standards and they have agreement with Greenpeace hence their work with eco

friendly companies. DG TDAP, Lahore explained that their main companies are eco friendly and they

must visit Pakistan as seeing is believing. The delegates visited the distribution, marketing and creative

section of the company.

MEETING WITH ACIMIT The president of ACIMIT Alex Zucchi received the delegation and explained that members of ACIMIT

are already doing business with Pakistan. Some of the delegates from Pakistan are already working on

Italian machines. The president also explained that price wise their machines are quite competitive

with Chinese machines but their technology is far better than that of China. He also said that ACIMIT

is trying to strengthen its links with Pakistan and is trying to establish training centre with their machines free of cost. The meeting concluded with exchange of gifts and group photo.

VISIT OF SANTONI

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The last visit of the delegation was with the company Santoni dealing with knitting machines. Mr.

Gianpiero Valsecchi explained that they are supplying to Interloop (Pakistani company) machines of seamless garments.

The exposure of the new technology impressed the delegates and afterwards the company hosted lunch at the local restaurant.

Apart from these meetings all delegates have tied their personal meetings with their buyers.

RECOMMENDATION

• The delegation comprised of knitwear /sportswear and home textile people. Resultantly there was problem in arranging b2b. As in some companies the home textile people had good

meeting whereas other sat free. Hence it is recommended that sector specific delegation

should be organized to avoid heart burning among the delegates. However, overall the

delegation was quite successful as it will generate new order and establish new contacts.

• It Is also recommended that some vertically integrated big companies should have been there

as it creates good image of the country and makes meetings with groups more meaningful

• During the travel from Rome to Venice the assistant of the Commercial Section shouted with the delegates and left work. Resultantly as per needs/importance of the meeting external

translator was hired by the Commercial Counsellor. Mission may provide more appropriate

assistance to the Commercial Section as similar episodes may be averted and appropriate assistance is given to Pakistani companies.

• The frequency of such delegations should increase as in my view Italy is a good market for

Pakistani textiles. Further it may be noted that all companies got definite interest in their

products from Italian companies.

• Nola management was interested in planning an exhibition in different products that is

Pakistani specific. TDAP may follow it up as it is big opportunity.

• Nola administration is also interested in having MoUs with textiles associations of Pakistan

and these MoUs will facilitate conducting delegation independently of the Mission by Pakistan

textile associations. DG TDAP has to follow up in conclusion of these MoUs so that they are

signed in coming JEC in January 2018.

• PARTICIPATION OF ITALIAN DELEGATION IN EXPO-PAKISTAN (9-12) NOVEMBER

2017 Marketing of the Event by the Mission

Commercial started marketing of Expo-Pakistan 2017 in February 2017 .Following were the marketing

activities done by the Mission for Expo-Pakistan 2017;

• Putting up advertisement of Expo Pakistan along with buyers' form on the websites and in

newsletters of UNIDO, Frosinone Chamber of Commerce, IIM Carrara, Modena Chamber of

Commerce, Chamber of Commerce of Marche Region, Chamber of Commerce of Rome, CNA,

Lazio In nova, Rome etc.

• Sending through mail brochures and buyers forms of Expo to important Association like

Agents associations of footwear, ICT Association in Milano, Jewellery Association Milano,

buyers Association footwear, Marbles Association in Milan, etc

• Emails were sent to more than 3.500 contacts developed by the Commercial Section

• Emails sent to data got from the visa section of Italian having business interests in Pakistan

• Emails sent to data base extracted from Kompass ( of products of interest to Pakistan)

• [mails sent to data base of Confindustria delegation to Pakistan 2016

• Important businessmen of Diaspora were also contacted

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• Visit to Milan, Vento and Palermo was done to target important institutions/companies; 1. Milan

a. Camera di Commercio Milano (Promos) b. Camera Moda (Fashion brands Association)

2. Veneto a. Visit to Chamber of Commerce Veneto b. Visit to clusters of textiles, jewellery, furniture of Veneto c. Visit of OVS Venice d. Visit to United Colours of Benetton, Treviso

3. Sicily ( Palermo and Catania) a. Presentation in Confindustrai, Palermo b. Networking lunch with businessmen of Palermo/Catania

Number of Application Received

Intensive lobbying resulted in more than 40 application that Mission kept on sending to TDAP as and when they were received

Selection Procedure in Expo-Pakistan

As in past TDAP adopted the selection procedure as follows;

1. Providing airfare and hotel accommodation to companies having turnover of US $ 5 Million and Exports of US $ 3 Million

2. Hotel accommodation were offered to companies with turnover of US$ 2 Million and imports of IMillion

3. Press persons were granted hotel stay and airfare Specific Issues of Italy

The Commercial Section experienced following issues;

• It may be noted that 99.9% of the firms in this country are micro/SME (with number of employees 0-249). Eurostat standards, the Italian National Institute of Statistics defines small and medium enterprises as firms with fewer than 250 employees. In detail, micro-enterprises and small firms have, respectively, less than 10 and 10-49 employees, while medium-sized enterprises are defined as those with 50-249 employees.

• The Bank of Italy classifies data on business lending by firm size: small firms are defined as limited partnerships, general partnerships, informal partnerships, de facto companies and sole proprietorships with fewer than 20 workers.

• Large enterprises in Italy are only 0.2%. Micro/SME who internationalize (involve in trade) in Italy are 14.9% higher than in EU of 9.86% implying that micro/SME sector of Italy is more innovative and enterprising.

• .Micro/SME turnover start from less than Euro 200,000/- according to EU definition. However, for Italy this turnover can be less as per literature and for micro firms it can be Euros 0.16 Million and for small firms Euro 3 Million and for medium firms till Euro 24 Million.

• The number of firms in Italy in category of micro are more than 4 Million, Small are 201 thousand and Medium are 21 thousand only.

• As a result of economic peculiarities of Italy as pointed our above, many of the applications for participation in Expo-Pakistan were from Micro/SME sector. Resultantly they did not qualify the criteria of turnover of US$ 5 M and Imports of US $ 3 M.

• The Commercial Section gave recommendations to approve some of the SMEs as their interaction with Pakistani SME sector would be beneficial. However our recommendations

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were not kept in view and TDAP mechanically applied the criteria of selection on our buyers to Italian buyers.

Resultantly many goods companies that have potential for increasing business with Pakistan were not selected.

Companies who participated in EXPO-Pakistan

Following companies participated in Expo-Pakistan 2017

TDAP ref# NAME OF THE DELEGATE NAME OF THE COMPANY

49/17 Massimo Cipolloni MPA SrI, Via del Commercio, 46 - Buccinasco (Ml) - Tel. +39 0239197555 - Cell. +39 3346642270

- E-mail: [email protected] - website: www.mpastyle.it

61/17 Shahid Muhammad Ajmal Impresa Service Soc. Coop. S.R.L., Via

d'Ambrosi, 6 - Pesaro (PU) - Tel. +39

0721417581 - Cell. +39 3341827451

- Fax +39 0721417581 - E-mail:

infoimpresa-service.com

51/17 Antonio Franceschini CNA, Piazza M. Armellini, 9A - Roma

(RM) - Tel. +39 0644188271 - Cell.

+39 3482502461 - Fax +39 0644249515 - E-mail:

[email protected] - website:

www.cna.it www.gentex.eu

909/17 Marcantonio Ragone 1MM Carara

63/17 Francesca Liberatore FrancescaLiberatore Srls, Via del

Vantaggio, 7 - Roma (RM) - Cell. +39

3313761987 - E-mail:

[email protected]

200/17 Maurizio Arduini 0 & N S.p.A

Via Leonardo da Vinci, 49 -

Nonantola (Modena) 41015 - Tel.

+39 059 881836 / +39 3358018610 -

Fax +39 059 881890

email:[email protected] am www.oengroup.com

VAT 00987980364

1037/17 Faisal Mahmood Owner of Star Group SAS

917/17 Francesco Fontana 0 & N S.p.A

Via Leonardo da Vinci, 49 -

Nonantola (Modena) 41015 - Tel.

+39 059 881836 / +39 3358018610 -

Fax +39 059 881890

email: [email protected] am www.oengroup.com VAT 00987980364

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202/17 Catello Russo Stravaganze Sri, Via Trentola ii, 114 - Ercolano (NA), 80056 - Tel. +39 0817776607 - Fax +39 0817778429

1038/17 Nunzio Laveque Owner of Ditta Leaveque

1617/17 Giuseppe Ascione Stravaganze Sri, Via Trentoia II, 114 -

Ercolano (NA), 80056 - Tel. +39 0817776607 - Fax +39 0817778429

/TDAP has to Gianiuca Bozzia Cooperation Mnager of Altomecarto assign Consotium 203/17 Sohail Mahmood Samtex Italia Sr, Via Prenestina, 1184

(Operation Unit) - Roma (RM) - Tel. +39 0622148502 - Cell. +39 3804747541 - E-mail:

[email protected] - website:

facebook --> Samtex Italia

B2113 MEETINGS AND ORDERS ACTUALIZED IN EXPO PAKISTAN-2017

Italian delegation conducted more than 250 b2b as they themselves mentioned in their feedback

forms and orders actualized were as of US $ 1666000/- ( some buyers gave the figures themselves

others were reluctant to provide figures). Some Joint ventures were also done.

Following were other benefits;

1. Francesca Liberatore was willing to do procurement for her next collection from Pakistan

(Fabrics and Embroidery)

2. Mr. Antonio Franceschini from CNA agreed to send proposal of Pakistan Fashion show in

Altroroma to ITA (fully sponsored)

3. Mr. Luca from Altomercato will propose a project for Sialkot Soccer ball industry label of 'fair

trade' and funding will be taken from EU

Recommendations

1. Work on Expo-Pakistan may be initiated in March if Expo is going to take place in November.

All the publicity material and subsidy procedure should be communicate by TDAP at the end

of February

2. TDAP may form timeline for conducting expo and should follow it strictly

3. List of the exhibitors may be sent to Commercial Sections in first week of August. As without

this list marketing is out of question

4. Commercial Sections should provide list of buyers by first week of September and TDAP may communicate approval in mid of September. This is very important as the buyer's has to make

travel decisions and early approvals is of paramount importance so that quality buyers come

in Expo

5. I think that airfare subsidy may be abolished this time so that only those people come who

are really interested in doing business with Pakistan.

6. Again the important question is whether TDAP has to take this ventures like Expo Pakistan in

view of the fact that now many sector association are doing their sector specific expos inside Pakistan. As per economic principles government intervention is required where private sector is reluctant to endeavour to correct market imperfections. It is right time that Ministry of Commerce may decide that expo may well be organized by concerned sector associations.

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4. Investment Promotion Activities

• Establishment of Investment Forum 21 Jan 2017

The Commercial Counsellor discussed with Pakistani business community about establishment of Pakistan-Italy Business Forum and they showed willingness

• Meeting at the Embassy with Mr Masud Akhtar and Mr Alfonso Sciotti 20 Jan 2017

The Commercial Counsellor met in her office Mr Masud Akhtar, Chairman at the Italian Development

Committee and Mr Alfonso Sciotti, Managing Director at Medexport Italy a well-established pharmaceutical company also operating in Pakistan. Mr. Masud Akhtar introduced Mr Alfanso as a company interested in bringing investments in Pakistan.

• Meeting at Confindustria (Rome office) 14th Feb 2017 The Commercial Counsellor and the Translator met Mr Giovanni Maresca, from Confindustria

International Department to discuss the activities of incoming business delegations from Pakistan to

Italy in the forthcoming months. Actually, after the huge event organised in Pakistan last 4/7 December 2017, a number of delegations are expected as a follow up of meetings and plans discussed on that occasion. More specifically and related to Confindustria would be the incoming of BOl and

FPCCI delegation. Mr Maresca strongly recommended to have a single delegation coming from both

Pakistani institutions and gather in a single and more fruitful occasion local businessmen. The idea is

to have one full day of activity: a plenary session in the morning and 13213 meetings in the afternoon.

In addition, during the meeting is was also discussed the possibility of signing a M0U between

confindustria and FPCCI. But, Mr Maresca was more of the view that, according to Confindustria policy,

a task force could be implemented for Pakistan which comprises a board of members both from

Pakistan and from Italian business environment for the implementation of trade & investment

activities.

• Meeting at the Embassy with Pakistani diaspora 12th Mar 2017

Commercial Counsellor organized a meeting with the business community of diaspora on 12th March

2017 at the Embassy. The purpose of the meeting was the organization of a non-for profit making

association composed of local as well as Pakistani overseas businessmen. During the meeting, among other things, were discussed number of people part of the board, main purpose of the association,

main activities to be implemented and the inauguration through a proper forum at the Embassy in the

forthcoming months.

• Meeting with Ricardo Farinelli in Embassy on 6th April 2017 Meeting at the Embassy with Mr. Riccardo Farinelli. The project of Italian food tasting in Pakistan was

discussed and tapping big fashion brands and bringing them to Pakistan

• Meeting at the Embassy with the consultant Mr Luciano Chiodi

The Commercial Counsellor met Mr Luciano Chiodi a local consultant who is providing assistance for

the establishment of a non-profit making organization composed of Pakistani businessmen based ion

Italy (diaspora) and Italian entrepreneurs. The purpose of the meeting was to define the main aspects

that The Statue of the Association should consider since it aims at enhancing trade and investment

relations between the two countries.

• Meeting at ENI headquarters in Rome 5 May 2017 ENI informed of their interest in LNG projects and off shore activities. They informed that their IGA is

pending in Ministry of Petroleum and if it is done their investment in Pakistan will increase

tremendously

• Meeting at Confindustria Rome office 11 May 2017

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The Commercial Counsellor met Mr Giovanni Maresca to discuss appropriate time for planning Bol delegation to Italy

Meeting with CEA-Coop in August 2017

A meeting was held with big construction company CEA at the Embassy to invite them to come and invest in Pakistan. They showed willingness to work with a partner in Pakistan.

During the month of Oct-Nov 2017, Commercial Section is coordinating with Bol and FPCCI, for the

investment business delegation to Italy due, most probably, beginning on sidelines of JEC 2018.

Facilitating JV between 0MM and Jamal Pipes

Project going on well

Facilitating OVS SPA in Opening Buying House in Pakistan

Approval from Bol got in oct/nov and now buying house is working in Pakistan

M0U with Italy

Following three M0U were negotiated;

1. M0U between PFMA and ASSOMAC (Italy will fund Euros 200,000)

2. MoU between ACIMIT and Faisalabad University of Textiles ( Euros 700,000 on 50:50 basis)

3. M0U between PASDEC and Marble Machinery Association of Italy (Italy will fund Euros

200,000)

5. Market Information and Intelligence Mangoes Show with Todis

Pakistani mango show has become a permanent phenomenon in Italy. Last year two mango shows

were organized one in July and other in August 2016. This year TDAP took a very proactive approach

and offered mangoes to the Embassy of Pakistan as per the business plan of Commercial Counsellor

that specially mentioned Auchan mango promotion programme which was done in first week of June 2017 and an exporters from Pakistan not only sold mangoes to Auchan but also sent mangoes for

tasting. This project was in pipeline since August 2016. Commercial Counsellor was able to convince supermarket Auchan to procure mangoes from Pakistan and in 2017 for the first time Pakistani

mangoes become available in supermarket of Italy.

This year TDAP, Lahore sent 1000 kgs of mangoes to do mango promotion/tasting in Italy. Two

activities were planned by the Mission one at Roma Termini and other with PAC2000.

After last year's mango shows the Mission came to a very solid conclusion that the lucrative market

of Italy is ready for a dynamic enterprise and is willing to open up for the sweet, juicy low fiber variety

with greater shelf life provided given in good packing with good cosmetic outlook like Chaunsa /white

Chaunsa. In this regard focused continuous mangoes shows are beneficial

44 During the event it was observed that general public has taste of Pakistani mangoes and there

is desire to purchase it from the market if available 46 The event built soft image of Pakistan among the general public and businesses

46 There is a need to organize such activities on annual basis The businesses in Italy are slow to respond in general , hence there is a need building

momentum in such efforts

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TDAP may take proposals of mangoes shows early in the early so that event maybe planned

in a timely manner

Market Intelligence reports were made and sent to relevant quarters on following sectors;

1. Knitted & Woven Garments Sector

2. Surgical Goods

3. Dates

4. Sports Goods

5. Auto parts

6. NTMs

7. Mangoes

6. Business Networking /Field Visits Following field visits/networking was done

V TOUR OF NOLA AND SALRNO 5TH JAN URARY 2017

Commercial Counsellor conducted day trip to Nola and Salerno on 4th January 2017. The purpose of

the visit was to visit following Companies:

1. Royal Trophy Salerno Sri (sport garments)

2. Piazza Italia( garments)

3. Goeldlin Sri (fabric and textile items)

V Visit to Milan 16-17 Feb 2017 Commercial Section Embassy of Pakistan planned a tour to Milan to visit key headquarters of different

Trade Associations of sectors important for Pakistan. The tour was one night stay at Milan and meetings were scheduled for the days of 1611 and 17th February 2017.

Commercial Counsellor was accompanied by Translator/Commercial as some trade bodies have shown their inability to conduct meetings in English language. Following were the key

Associations/Companies visited:

4. ANITEC (ITC association)

5. Auchan Italy (food and no-food items) followed by a dinner hosted by the Commercial

Counsellor

6. AICE (Italian Association for foreign Trade)

7. FEDERORAFI (Italian Federation for gold and jewellery)

8. ASSOMARMOMACCI-IINE (Italian Association for marble, granite and other stones)

V DAY TRIP TO HQS OF CONAD HYPERMARKET IN BOLOGNA ON 27TH FEBURARY 2017 Commercial Counsellor took a day tour of Bologna to visit Hqs of Conad . The purpose of the visit was

to:

1. To develop business connection with the procurement people of the 2'' biggest retail business in Italy

2. To look into options of inviting their investment in retail sector in Pakistan 3. To identify the products that Pakistan can supply to Conad 4. To extend invitation to procurement people visit EXPO Pakistan 2017

A meeting was held with Mr. Roberto Mengozzi Manager import/export. Mr Roberto explained that

Conad is the second biggest retail business after Coop and there 2000 stores throughout Italy. Most

of them are in South and are supplying goods to villagers as well.

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He said that keeping in view the structure of the business Conad is not interested in opening any setup

of retail business anywhere internationally as they are basically supplying Italian goods to Italian

people. Further they are not multinational as Carrefour or Auchan and they are running business on

the idea of neighbourhood stores. They give the label of Conad too anyone who has a required Sqm

of space and can sell the Conard label. This idea will not be of much utility in international markets.

He explained that they do not do direct procurement or get the goods at FOB rather they have a long

term relationship with big international suppliers that is supplying to Conad and in turn supply to all

other stores. Commercial Counsellor requested the list of big supplier that are supplying to Conad and

he promised to provide the list.

He also pointed out that Conad is being run in a type of pyramid and decision making to list a new

product is not with the Hqs of Conad rather it is with 8 cooperatives in different regions. He also

promised to facilitate the meeting of the Commercial Counsellor with the Cooperatives.

As for the visiting EXPO 2017 he said once he will get the invitation he will talk with management.

Way Forward

Meeting to be scheduled with 8 cooperatives of Conad seeking help from HQs of

Conad

Suppliers of Conad to be tapped for diverting them to Pakistan

I VISIT TO MARBLE CLUSTER IN CARRARA- 21st MARCH 2017

Commercial Section Embassy of Pakistan planned a tour in Carrara (Marble District) to visit the headquarters of International Marble Machinery (1MM) as well as other local companies on 21" March 2017.

Commercial Counsellor accompanied by Translator/Commercial conducted the following meetings:

9. 10.00hrs Meeting at 1MM

10. 11.30hrs Visit to Michelangelo Quarry 11. 12.30hrs Visit to Marble sculpture lab

12. 13.30-14.30hrs Light lunch

13. 15.00hrs Visit to the company M/s Dazzini (marble technologies) 14. 15.30hrs Visit to Marble Testing Lab

Meeting at 1MM

The meeting at 1MM took place with the Director, Mr. Luca Figari, DG at 1MM, Ms. Laura Malavolta,

Head of Communication and Marketing and Architect Marcantonio Ragone in charge for international

relations. Arch. Ragone started by introducing 1MM which is a private entity with public shareholders

and operates in the entire field of marble and stones both at national and international level. 1MM

provides entire range of services: analysis, promotions (delegations and exhibitions), trainings,

publications and specialised services for marble and stone industry. 1MM is located in the oldest and

most famous industrial stone district in the world, recognised as the hotbed of historical technical and

product innovations. After this general presentation, Arch Ragone briefed about the exhibition they organise every two years, Carrara Marmo Tech, with has totally 100,000 sq. m. space, half of which is occupied by exhibitors both national and international. In the forthcoming edition, they have decided to change the format of the fair, to be more innovative and engage new business operators by arranging new events in the city center as well.

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Arch. Ragone also presented the projects that have been implemented in the last 10 years at

international level, showing the strengths and expertise that this centre has gained with the passage

of time. Most interesting was the project that they are currently implementing with Iran which is a

private project in collaboration with Chambers of Commerce of Iran and also funded by private

companies and partially supported by the Government. The Iranian project has been divided in short-

term activities and in long-term activities. Some activates to be jointly implemented are:

1. Three day courses/seminars on stone panels and its installations on new buildings façades

2. Setting up a bigger and well-structured exhibition in Iran on May 2018. The idea is take free

space in Iranian exhibition grounds and to take about thirty Italian companies to Iran to exhibit

and in return 1MM will provide free space for Iranian companies to exhibit in Carrara

3. organize and Italian delegations to Iran

Ms. Laura Malavolta also explained that the entire project has financial implications which are very high that is over 1.2 billion.

After their presentation, the Commercial Counsellor introduced the stone industry in Pakistan

explaining them the different varieties of marble, number of quarries, their locations and more

interestingly, the new marble cities. All the representatives were very much interested in Pakistani stone industry and when the Commercial Counsellor invited them to visit Pakistan in order to explore

the market and start the cooperation with the new management at PASDEC, they were very keen and

they also said that between 101h and 301h April a scouting visit could be arranged. In addition, Ms

Malavolta invited some Pakistani companies to participate in the event that they are organising in

Carrara from 101h to 18th June 2017. This is a sort of international buyers' program 1MM is

implementing to facilitate the business interactions between local operators and the international

ones. Commercial Counsellor asked if some incentives could be provided to CEO and another senior

officer from PASDEC if they come to Italy during the event. 1MM informed that they will try to provide

2-night accommodation as well as 13213 meetings and visits can be arranged also for other companies

if they are willing to come as buyers (almost 10 in number).

The Commercial Counsellor informed them that Government of Pakistan is currently pushing the

growth of stone industry, accordingly new avenues of cooperation are more than welcome in Pakistan.

Visit to Michelangelo Quarry

After the meeting, Arch Ragone gave a guided visit to the one of the biggest quarry currently operating

in Carrara: 'Michelangelo Quarry'. The Arch. showed the main equipment employed by the staff

working in the quarry and explained the technique for marble extraction by using wire diamonds,

vertical saws etc. He was also referring to the different blocks that can be extracted and those that

are mainly used for commercial purposes (commercial blocks with specific dimensions) and those used

for sculpture of much bigger size than that used in buildings. In addition, he also informed that if the

marble quarry is not fit for extraction of marble in specified sizes fit for buildings it is converted into

marble scarps which has use in cosmetic, poultry feed, paints, pharmaceutical, chemicals industry etc.

After this visit, a short visit was made at an architectural lab connected to the school of Architect and Sculpture in Carrara. The is used for training of the emerging artists to make famous sculpture like The

David, The Piety and other famous marble statues.

After these visits, a lunch was hosted by DG at IM M.

Visit to the company M/s Dazzini A meeting and visit to the local company M/s Dazzini was also done in the early afternoon. M/s Dazzini is one of the biggest company manufacturing exclusively quarry machineries with diamonds wires.

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Eng. Claudia Dazzini (CEO of the company) and Mr Carlo Scaletti welcomed Commercial Counsellor and presented their products. The company exports 85% of its production all over the world and they

are also doing the work of overhauling the machinery for second hand use and also providing 3

months guarantees on sale of second hand machineries. They informed that PASDEC till 2014 was also

importing quarrying machinery from them.

Marble Laboratory The trip to Carrara district ended with a visit to the marble testing laboratory that is owned and managed by 1MM. In the lab the tests are carried out to verify the quality and characteristics of stone

materials according to the main international technical standards (EN and ASTM). This lab tests

samples not only for Italy but for clients from USA etc.

Way Forward

1. Commercial Counsellor will introduce and link 1MM and their activities to PASDEC

2. A scouting delegation to Pakistan to explore marble industry will be proposed to 1MM

representatives and hopefully will soon take place in coordination with PASDEC (CC has

already sent the proposal to CEO PASDEC). After the visit 1MM will propose a project suitable for marble sector development to PASDEC.

3. Commercial Counsellor will invite PASDEC and private companies from Pakistan to attend IM event in Carrara, on June 2017( proposal sent to PASDEC)

4. On the occasion of the visit of LCCI delegation in May 2017, a day tour and meetings thereof

will be arranged for the delegates belonging to marble and stone industry with the main local

stakeholders and companies with help of 1MM.

V VISIT TO TEXTILE/KNITWEAR CLUSTER IN MODENA - 3rd /4th APRIL 2017

Commercial Section Embassy of Pakistan planned a two-day (one night) tour in Modena in order to

meet some institutional partners as well as local companies operating in knitwear and textile industry.

Commercial Counsellor accompanied by Translator/Commercial (for language issues) conducted the following meetings in official vehicle:

15. Luncheon Meeting with Director Confimi Industria

16. Company visit M/s Spruzzi SrI at Campogalliano (in Modena)

17. Meeting at O&N Group (in Nanontola)

18. Meeting at M/s Batte il Cuore SrI in Modena

19. Meeting at the Chamber of Commerce of Modena

20. Meeting at M/s S.E.A. SrI in Carpi

21. Meeting at M/s Kaos in Bologna

Meeting at CON FIMI INDUSTRIA The Director of foreign affairs Mr. Walter Zampolini .met the Commercial Counsellor. The director hosted a lunch during which he introduced the main industrial sectors of Reggio Emilia Region.

Modena is known internationally for the production of Ferrari, Maserati and its allied sectors of auto-

parts; food excellences like Parmesan cheese, balsamic vinegar and huge production of fruits and vegetables; biomedical sectors which involves 40 well-structured companies operating in medical devices and surgery equipment for kidney, heart, and a bigger portion of associated members at

Confimi is represented by engineering companies both involved in energy (renewable energy) and

construction. He said that before the earth quake a few years back, Modena was 4th largest regional

economy in Italy and now it is ranked 81h The Commercial Counselor informed him about different

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sectors of the economy of Pakistan like agriculture , textiles , marble & granite , fashion

,footwear/leather, auto parts . She also introduced investment opportunities available in Pakistan in

auto sector, energy, construction, infrastructure, agri-food etc. During the meeting it was realized that

there is possibility of Confimi and Pakistan to collaborate with each other in the sectors of agri-food

(starting from soil to packaging) and energy and hence Commercial Counsellor proposed to Mr. Zimpolini to form a delegation for Pakistan. it was greed that Confimi will form a delegation of 30-40

Italian businessmen from agro food and energy for Pakistan and the proposed dates of the delegation

will be November 2017 and Commercial Counsellor will coordinate good b2b meetings and will

develop institutional linkages. The Director also stressed the importance of the agro-food sector in

economy of Pakistan and the need of Italian expertise and machineries for the cool chain as well as

for food processing and packaging. Same is with the interest in increasing soil fertility, R&D in seeds'

development, harvesting, etc. Further, the energy deficiency in Paksiatn can be met by technology of

Italian companies.

Visit to Spruzzi Sri Spruzzi Sri with the brand DDP is a company that manufactures and sells ladies wear both casual and

smart. The company was established over 20 years ago is currently outsourcing its production in Italy

to local companies operating in Carpi fashion system with 100% Made in Italy. They are currently

producing are approximately 100 piece each style for an approximate annual quantity for the collection of 60,000 pieces. Mr. De Paolo, the CEO of the company said that their company wants to

outsource. He also showed interest in franchising in Pakistan. Commercial Counsellor said as soon she

will find an adequate partner she will revert back to him. The Commercial Counsellor informed the

CEO about the cheaper labour cost in Pakistan and the availability of raw material as well as the

competitive advantage provided by the GSP+. The company said that they are thinking to some

expansion in future.

Meeting at O&N Group A meeting and visit of the warehouse of the company O&N group was also arranged. Actually, O&N is

a very big company (listed company) that manufactures and exports bedlinen and home wear. The

company is already working with Pakistani companies like Gulahmed etc. Mr Arduini, the sourcing

manager reaffirmed the strong interest of O&N to buy form Pakistan especially 100% cotton items

because Pakistan is the best compared to India, China and Bangladesh in cotton. Unfortunately,

Pakistan is not so strong in mixed fibre like poly-cotton and polyester where India and China are

performing better. He also shared that from India they are purchasing rugs (handmade) and curtains which could not be made in in Pakistan. After this interaction, Mr Arduini showed the warehouse

which was really impressive. He also said that many containers are arriving from Pakistan to Genoa or Ancona port for them.

Before leaving, the President of the company, Mrs Nicoletta Rosi, also came for a quick visit to the Commercial Counsellor. Commercial Counsellor extended invitation to them for Expo-Pakistan 2017

as they also showed interest in procuring rice and some other items from Pakistan.

Meeting at M/S Batte ii Cuore Sri

On 4th April a meeting was held with Mr Antonio Piccinini and Mrs Monica Bergonzoni, owners of the

brand Batte ii Cuore at their show room in the city of Modena. Batte ii cuore srI was established in

2002, as a manufacturer of clothes, belts, t-shirts, jeans, shoes and bags and is successfully supplying retailers, wholesalers, with the finest quality of "Made in Italy". Although the company is small, it is

very dynamic since it is working with other local brands (like Moschino, Trussardi, etc.) and outsourcing the production. The company deals mainly with ladies wear and recently they are also thinking to produce man's clothes, which according to them are easier to be made. The company also

exhibits in some national fairs and visit fairs abroad. The Commercial Counsellor briefed them about

Pakistan, the GSP+ scheme, the production capacity of many companies and then spoke about the

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great capabilities that upcoming fashion designers have also for embroidery and painting works, which

are part of their daily activities. The CEO showed some embroidery badges that they want to produce

either in India and Pakistan. This brand was also interested in franchise or opening their shop in

Pakistan. They also expressed their desire to visit Pakistan. Hence, CC extended invitation either on

TEXPO and Expo Pakistan.

Meeting at the Chamber of Commerce of Modena The Commercial Counsellor accompanied by the Translator had a fruitful interaction at the Chamber

of Commerce of Modena. The meeting was arranged with Ms Anna Daniela Mazzali from Promec

agency, the special agency for Internationalisation activities created by the Chamber of Commerce;

Ms Elena Sacchi from the Enterprise development Dept. at the Chamber of Commerce of Modena and

with Ms Norma Patelli, Manager of the project Carpi Fashion System. The three ladies made a very

detailed presentation on the specific sectors (agro-food, automotive, biomedical, ceramics) and their trends and performances; briefed about the activities of incoming/outgoing delegations with some

partners like Vietnam, Japan, USA, Turkey, Russia, China, etc. introduced the planned activities for

2017 and lastly provided insights and views about the peculiarities of the fashion system in Modena

and the focus on the Made in Italy seen as a strength point for the local economy. After their

presentation, the Commercial Counsellor also made a power point presentation to show them the

available opportunities in Pakistan for the key sectors which are common with the Province of Modena

and thus of interest for the Chamber of Commerce. It was felt that there are opportunities in sectors

food sector, agricultural mechanics/tractors, construction, etc. and some joint activities with Promec

could be soon arranged on the occasion of some incoming delegation. The Chamber of Commerce

also invited two Pakistani company to be part of the international buyer program that they are

organising twice a year (May and November) where 100 international buyers from 4/5 different

countries are invited to visit and meet companies part of the network of Carpi Fashion System. The Commercial Counsellor appreciated the invitation extended from the Chamber of Commerce of

Modena to Pakistani entrepreneurs since it could be of great interest for them. Commercial Counsellor

also expressed the desire of Pakistani auto companies to visit auto parts cluster in Modena. It was

agreed that Pakistan will bring a delegation of auto parts and PROMEC will arrange their b2b meetings.

Meeting at MIs S.E.A. Sri in Carpi

The Commercial Counsellor, Translator, Norma Patelli met the President of the company SEA SrI of the brands Bellwood, Wise Guy and She Wise. Mr Carretti also represents CNA Modena being the local

President of the institution. Mr Carretti welcomed and briefly presented his company and showed the

collections of the different brands. Mr Carretti said that in the past they used to work with China and

India but that for the last 6 years they stopped their international outsourcing to be focused on the

made in Italy. The Commercial Counsellor asked him about this change in the policy and he said that

this was mainly due to some problems they faced with their suppliers for quality issues. Both China

and India sent some consignments which were not in compliance with their quality standards and that

affected their market shares since many customers were lost. After that experience, they decided to

work only with companies located in the satellite area since interaction with them was very easier and they closed they import department. In addition, being the President of the CNA Modena province,

he also said that many local companies opted for this solution and/or have their agents or middlemen

that follow foreign markets.

Meeting at M/S Kaos in Bologna On the way back to Rome, another meeting was arranged in Bologna at Kaos with Mr Achille Gelsomini and Ms Sara Bevilaqua both sales managers. Kaos is a medium quality brand which is production only

few items out of Italy, in China and Turkey. The main purpose of the meeting was to brief them about Pakistan, GSP+ and naturally the competitive advantage this company may have if they decide to

relocate part of their production also in Pakistan. Mr Gelsomini appreciated a lot the visit and the

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interaction with the Pakistani entrepreneur and promised to share all the details with the owner of

the company and do consider Pakistan in case of change of their policy in future.

Way Forward

The visit was very fruitful in establishing direct contact with the companies and institutions.

5. Commercial Section will work with Confimi for the formulation of the delegation of 30-40

Italian businessmen to Pakistan in the month of November 2017.

6. The proposal of the Chamber of Commerce for buyers program will be shared with focal

Chambers in Pakistan and Commercial Section will invite two representative of retailers from

Pakistan to Italy (total cost of the trip will sponsored)

7. Commercial Counsellor will share the information of auto cluster in Modena with PAAPAM

and will ask them to form a delegation for Italy.

8. Commercial Counsellor will invite some of the important companies visited during the tour to

visit to TEXPO Pakistan in Karachi.

V Visit of Commerce Minister Visit to Milan (29th /301h April 2017)

Commerce Minister, Eng. Khurram Dastgir Khan visited Milan on 29-30 April 2017. The Commercial

Counsellor and staff travelled to Milan by official car on Friday 28" April and stayed in Milan till

departure of the Minister Commerce.

The presence of the Commercial Section's representatives was essential to ensure proper protocol

during their stay in Italy (at hotel, restaurants, airports, etc.) and manage the short visit/meetings.

Commercial Counsellor also briefed the Minister about the current trade and investment projects

between Italy and Pakistan as well as some the achievements.

/ MEETINGS IN FROSINONE, 29TH MAY 2017 Commercial Counsellor, accompanied by Translator/Commercial and Driver conducted a day trip to

Frosinone on 29th May 2017, a city in the vicinity of Rome. The purpose of the trip was

1. To establish interactions with local institutions and companies 2. To market Expo Pakistan 2017 and to extend invitation to important companies/Chambers

Visit to Klopman International Sri

Klopman is a big and well-established company with over 400 employees, 140,000 sq. m. production

plant with 65 looms and 120miIIion Euro sales. The company was founded 50 years ago and on

December 2016 has been partially acquired by a French group. Klopman is specialised in the

production/finishing of different kinds of fabrics, mainly the technical ones which are normally used

for uniforms, in hospitals, multi-functional fabrics, non-clothing fabrics, fabric used for furniture, hotel staff, chefs, etc. The meeting was arranged with the Purchasing Manager, Mr Manlio Ferragni, who

briefed the Commercial Counsellor about the companies and its current strategy. In particular, he said that the annual production of fabrics exceeds 40 million meters of which 3.5 million are produced in

the Frosinone plant. They import grey fabrics mainly from India, Thailand, Indonesia and Pakistan.

Currently, Pakistan represents the 10% of annual imports. Their imports are mainly composed of

fabrics with mixed fibres (like a poli-cotton with different percentages, 35% and 65%; 40% and 60%; 25% and 75%) and only a minimum percentage is 100% cotton.

The Commercial Counsellor asked about their strategy abroad and she wanted to know more about

their activities in foreign countries. Mr Ferragni informed that 3 years ago they established a JV with an Indonesian partner near Jakarta. The JV is equally shared (50%-50%) and they have a finishing

plants also there to serve Middle East market. Actually, the plant in Frosinone mainly serves the EU

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market (main partners are Germany, France, Austria, Switzerland, Belgium and Scandinavia which

totally represents almost the 90% of their trade. Italy only represent 5% of their total sales.

The Commercial Counsellor asked the reasons why Indonesia has been selected and why Pakistan only

represents 10% of the total imports. Mr Ferragni explained that they selected the potential partners

for a iv on the basis of the fact that the majority of the required fabrics for their finishing activities

were available in Indonesia. He also said that in Serbia they have a spinning and weaving plant, but

very small and serves Eastern Europe countries. As far as the imports from Pakistan is concerned, Mr

Ferragni said that Pakistan has some difficulties in following the technical specifications the company

requires. In particular, they are working with Pakistan for the last 20 years with companies like Nishat,

Colony, Faizal, Ghazy, etc. but there are technical constraints for Klopman requirements like for the

open-end yarn (poli-cotton) and for the ring-yarn (twist). Particularly for the ring-yarn Pakistan is

unable to supply the required items, so that they buy these items from India.

The Commercial Counsellor informed Mr Ferragni about the increased capabilities of Pakistan in this

sector and the further incentives that GSP+ can generate. In addition, Commercial Counsellor

extended thye invitation to Expo Pakistan, multi-sectoral fair which will be held in Karachi on

November 2017, where an established company like Klopman would have been easily accommodated

and full package provided.

After the meeting, Mr Ferragni guided the Commercial Counsellor and Translator in the premises

showing all different steps of their production/finishing.

Meeting at Gemar Sri and ASPIIN representatives

Meeting was conducted with the Mr Genesio Rocca, President at ASPIIN agency and CEO of Gemar SrI

and with Ms Maria Panaccia, Director at ASPIIN agency.

The Director, Ms Paniccia, briefed the Commercial Counsellor about ASPIIN, which is the main agency

at the Chamber of Commerce of Frosinone which aims at supporting local companies to

internationalize though exchange of delegations, international seminars, collective participation to trade fairs and exhibitions, technical assistance to enter foreign markets, etc. The Commercial

Counsellor requested to understand the strategic areas of the province of Frosinone and what are the

main sectors where local companies belong. Ms Paniccia explained that at the Chamber of Commerce

of Frosinone there are over 60,000 companies (including micro ones) and that 40% of these belong to

agro-food industry. Then, other key sectors are automotive (including after-markets) and motorcycle;

Transports and buildings; Marble and stone (particularly the type called 'Perlato Royal' in the area of

Corano); pharmaceutical (which also has a big representation of multinationals); Jewelry and Fashion

accessories and small representation of Furniture and Id.

In 2016, the agency has provided technical support to over 400 companies and they host many

delegations and arranged companies' visits. ASPIIN facilitates the business interactions among

companies and they promote business opportunities. The Commercial Counsellor gave a brief

overview on Pakistan and briefed them about the immense opportunities in the main sectors which

are also of interest for Frosinone: Automotive, Food, Marble and Jewelry. In particular, she briefed

about recent visits of delegates and that in the near future other delegations may come and some

activities could be arranged and developed with them as well.

The Commercial Counsellor provided few data about the increasing trends of business exchange between Pakistan and Italy and the immense opportunity that Italian companies have in Pakistan both for trade and Investment. In addition, the invitation to EXPO Pakistan 2017 was extended to ASPIIN representatives and in particular to the President not only as an officer but also as a businessman who

can find suitable opportunities in Pakistan.

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Thereafter, Mr Rocca briefed about his company, Gemar Sri a well-settle company, established in 1902

by his grand-grandfather in the small garage of his house. Mr Rocca represents the fourth generation

and his a family-owned company which currently counts 104 employees. The company produces

balloons of different shapes and colors (regular balloons, shape balloons, figures balloons, etc.

including the tailor-made balloons). It is the biggest company in Italy which makes 100% production in Italy and exports in 51 countries. Mr Rocca explained that they import the rubbers form from

Indonesia and Malaysia because in Italy there are no rubber trees but all the processes are made in

his premises. The company produces 7.5million balloons daily and 75% are exported in Europe (like

Portugal, Spain, Germany, France, Austria, etc.) in Turkey, Russia, Emirates, Iran, and Israel. The

company does not have any Italian competitor, the main competitors are from Mexico, USA and China.

The company has many quality certifications especially because balloons are items mainly used by

children and quality standards must be very high according to the EU rules and regulations. The

company is currently in expansion process with the construction of new establishments. Their main

strength as the CEO was mention, are the machineries which have been 100% developed and

manufactured by themselves. The parts have been assembled based on their requirements (they have developed 14 different machines). The CEO guided the Commercial Counsellor and Translator in a visit

of the companies and it showed one phase of the production process and the packaging process. The meeting concluded at the Balloons Academy (Accademia del Palloncino Italiano) an area dedicated to

seminars and trainings provided for those who want to professionally approach balloons for

decorations, theatre, conventions, gala dinner, etc. but also for shops and final customers.

Way Forward

The meetings were very fruitful particularly to understand the area of Frosinone and how to further

develop contacts and implement activities with local institutions. It was agreed on the following:

- Invitation for Expo Pakistan 2017 formally sent to ASPIIN and Chamber of Commerce officials - Dissemination through the web page of the event Expo Pakistan 2017 with the possibility of

forming a trade delegation from Frosinone - Hosting an automotive delegation from PAPAAM

- Sharing contacts and information related to agro-food, particularly cheese and cheese machineries

- New visit will be soon arranged for meeting companies in the cheese and jewelry sectors

V' MEETINGS IN MARCHE REGION, 19-20 JUNE 2017

Commercial Counsellor, accompanied by Translator/Commercial visited the footwear (and leather) cluster in the Marche Region on 191h and 201h June 2017. The main purposes of the trip were:

3. To establish interactions with local institutions and companies

4. To market Pakistan among Chambers/Associations and explore business opportunities

5. To plan footwear delegation to Marche

6. To fully understand the dynamics of the footwear cluster in this Region

7. To market Expo Pakistan 2017 and to extend invitations to important companies and trade bodies

Meeting at CON FINDUSTRIA Fermo. The Commercial Counsellor paid a courtesy call to the Director in Confindustria Fermo, Mr Giuseppe Tosi. The provincial confederation of SMEs is very active in the area especially for the main

represented sector: footwear. MrTosi welcomed the Embassy's representatives and was very willing

to learn more about Pakistan and business opportunities for local companies. The Commercial Counsellor made a brief presentation on trade and investment opportunities in the country. She

highlighted the big consumer population of the country dominated by middle class with good

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purchasing power. The economy of Pakistan is growing and GDP growth rate is 4.71% and expected

to rise in 2017-18. She also highlighted to investment friendly regime of the country allowing 100

equity with full repatriation of profits and low corporate taxes for foreign companies. She explained

different investment friendly policies like energy policy, auto policy etc. She said GSP Plus allows duty

free status to products of Pakistan coming to EU which companies in Italy can avail. Some of the

sectors of mutual interest were highlighted like footwear, textiles/fashion, machinery, agro-food. The Director also briefed the Commercial Counsellor about the main sectors available in his province and

specifically he pointed out the following:

• Footwear that includes all the industry that is leather, shoe production, accessories used for

manufacturing footwear, machineries, chemicals, etc.

• Jewellery (like Bross in artificial jewellery)

• He also said many of the footwear companies are already importing shoe especially sneakers from Pakistan

• Fashion accessories including an important portion of headgear and hats

• Mechanics and electronics (including those for households)

• He also explained that all companies are SMEs with only 3% as bigger companies

During the discussion, the commercial counsellor informed the Director that in the forthcoming

months a PFMA delegation will visit Italy. The Director showed fullest support in hosting and

facilitating 13213 meeting and, in order to make a complete and fruitful visit, he recommended that the

visit of the delegation in Marche Region should at least be of three days.

Before concluding the meeting, the Commercial Counsellor briefed the Director about the Expo Pakistan 2017 Ed. and extended invitation to him as well as to their member. In this regard, it was also

agreed that they will circulate advertisement of Expo-Pakistan. The Commercial Counsellor invited

Director and requested to form a small delegation of buyers and he may lead the delegation.

Company visit: M/s Fabi Spa The Commercial Counsellor met the owner of a very well established company in the area: Mr Elisio

Fabi at M/s Fabi SpA. Fabi is a company established 50 years ago. It is a family owned business with

more than 250 employees with a daily production capacity of 500 pairs of shoes. The company

manufactures ladies and men shoes from medium to high quality. Mr. Fabi gave a guided tour of the factory. The company is exporting shoes to Russia, France, Germany, Austria, Japan, Saudi Arabia and

their products are available both in flagship shops as well as in multi-brands shops.

The Commercial Counsellor asked if he has ever thought of moving part of his production abroad or if

they are interested in some franchise activity where the production for instance could be made in

Pakistan for the local markets. He said that for the time being the production is still there, as far as the

franchise is concerned he said that if a reliable partner is interested they can evaluate. He introduced

Commercial Counsellor to Mr. Elia Moretti, commercial manager to discuss franchise prospects.

Commercial Counsellor said there are some shoe manufacturers in Pakistan with their outlets who

have shown interest in franchise with Italian brands and she will introduce them to Fabi.

Company visit: M/s il Spernanzoni Sri The Commercial Counsellor met Mr Roby Spernanzoni, General Manager and Ms. Rose Chen, from

Sales Dept. at Spernanzoni SrI. established by Roby's father in the '60, the company mainly

manufactures men shoe from classic to formal including men accessories (bags, belts, wallet, etc.). The company has divided the production into two main parts: one for medium quality with the brand

il Gergo and the other one with high quality, with the brand Vittorio Spernanzoni. The company is an SME with 100% production made in Italy, with a daily production capacity of 100/120pairs per day. Their price range is from Euros 100/120 for the brand Gergo and Euros 120/230 for Spernanzoni. The

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company is also specialised in complete hand stitching and hand colouring and these products are

mainly exported to Japan, Russia and China.

Dinner at Cosmopolitan Business Hotel The businessman Mr. Ajmal Shahed, of Pakistani origin and owner of the company Service 2000 Sri, hosted a dinner in the evening in honour of the Commercial Counsellor. The dinner was attended by

local businessman as well as institutions' representatives. It is worth mentioning here that, among the

guests, there was also the Senator Marco Morgoni, representing PD party along with his spouse. The Commercial Counsellor took the opportunity to talk about the GSP+ and the implementation 27

conventions. She briefed him about recent amendments that Paksitan is doing in CCP and PPC to make

it compliant with these Conventions. She said that first review of GSP Plus remained positive and

sought his support in forthcoming review due in September 2017. The Senator expressed full support

for the lobbying activities and he also promised to facilitate linkages with Italian MEPs. He also asked

Commercial Counsellor to draft a letter that he will circulate among his contacts among Italian MEPs

and he also ensured that he will use his contacts to tie up meetings with important MEPs. It was also

agreed that Commercial Counsellor will host a lunch for Senator on 28 1h June in Rome.

Company visit M/s Elitron

On 20th June, the Commercial Counsellor accompanied by the Translator met Ms. Valeria Perrotta and

Mr. Giambattista Mele, from the commercial department at M/s Elitron Sri.

Elitron is a well-established company founded over 30 years ago which is currently present in more

than 50 countries and owns 12 patents. Elitron is among the leading players in Italy in the Computerized Designing and in CNC Automatic Cutting Systems for leather used for footwear,

accessories, upholstery also in CAD and CAM technology etc. Through constant investments in

technical innovations, the company started to diversify the sectors and the material used, so in 2001,

they started manufacturing other machineries used for the cutting systems of cardboard, visual

communication, gaskets and composites, rubber and foam, furniture and automotive.

The manufacturing part is all in Italy and they sell abroad through local partners and they also have 2

commercial branches in USA and Colombia. The Commercial Counsellor asked them why they are not

yet in Pakistan, their answer was that they need to find a reliable partner able to offer not only the

commercial support, but also the technical support, meant as the after sale services. They do train

staff and can do some remote control on the machineries, but the physical presence is obviously

required. The company's representatives are naturally interested in the Pakistani market and they

would like to find a reliable partner, since they are also working in that area with activities both in

China and India. The Commercial Counsellor asked them whether they are interested in collaborating

with leather training institutes and they showed keenness. It was agreed that Commercial Counsellor

will look into feasibility of such a collaboration. She also requested them to share their collaboration

documents on similar projects with India.

After the meeting, the representatives made a guided tour showing also simulations of their

machineries.

Company visit: M/s Vittorio Virgili The Commercial Counsellor and Translator met Ms. Monica Virgili from the company M/s Vittorio

Virgili Sri. The company is exclusively specialized in ladies shoe, particularly boots. The manufacturing

activities is all made in the province of Fermo and the majority of the footwear collections are hand-

stitched and hand-painted. The company produces high quality shoe for the French brand Channel

and Sartore. They have the license to manufacture for them and the items are directly sent either in France or Belgium. In addition, they also have some other exclusive agreements with few other EU brands and even the production made with their own brand (Vittorio Virgili) is quite expensive. Ms. Monica accompanied gave a guided tour of the factory and she explained that their factory has a

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company is also specialised in complete hand stitching and hand colouring and these products are

mainly exported to Japan, Russia and China.

Dinner at Cosmopolitan Business Hotel The businessman Mr. Ajmal Shahed, of Pakistani origin and owner of the company Service 2000 Sri,

hosted a dinner in the evening in honour of the Commercial Counsellor. The dinner was attended by

local businessman as well as institutions' representatives. It is worth mentioning here that, among the

guests, there was also the Senator Marco Morgoni, representing PD party along with his spouse. The Commercial Counsellor took the opportunity to talk about the GSP+ and the implementation 27

conventions. She briefed him about recent amendments that Paksitan is doing in CCP and PPC to make

it compliant with these Conventions. She said that first review of GSP Plus remained positive and

sought his support in forthcoming review due in September 2017. The Senator expressed full support for the lobbying activities and he also promised to facilitate linkages with Italian MEPs. He also asked

Commercial Counsellor to draft a letter that he will circulate among his contacts among Italian MEPs

and he also ensured that he will use his contacts to tie up meetings with important MEPs. It was also

agreed that Commercial Counsellor will host a lunch for Senator on 28th June in Rome.

Company visit M/s Elitron

On 201h June, the Commercial Counsellor accompanied by the Translator met Ms. Valeria Perrotta and

Mr. Giambattista Mele, from the commercial department at M/s Elitron Sri.

Elitron is a well-established company founded over 30 years ago which is currently present in more

than 50 countries and owns 12 patents. Elitron is among the leading players in Italy in the Computerized Designing and in CNC Automatic Cutting Systems for leather used for footwear,

accessories, upholstery also in CAD and CAM technology etc. Through constant investments in

technical innovations, the company started to diversify the sectors and the material used, so in 2001,

they started manufacturing other machineries used for the cutting systems of cardboard, visual communication, gaskets and composites, rubber and foam, furniture and automotive.

The manufacturing part is all in Italy and they sell abroad through local partners and they also have 2

commercial branches in USA and Colombia. The Commercial Counsellor asked them why they are not

yet in Pakistan, their answer was that they need to find a reliable partner able to offer not only the

commercial support, but also the technical support, meant as the after sale services. They do train

staff and can do some remote control on the machineries, but the physical presence is obviously

required. The company's representatives are naturally interested in the Pakistani market and they

would like to find a reliable partner, since they are also working in that area with activities both in

China and India. The Commercial Counsellor asked them whether they are interested in collaborating

with leather training institutes and they showed keenness. It was agreed that Commercial Counsellor

will look into feasibility of such a collaboration. She also requested them to share their collaboration

documents on similar projects with India.

After the meeting, the representatives made a guided tour showing also simulations of their

machineries.

Company visit: M/s Vittorio Virgili The Commercial Counsellor and Translator met Ms. Monica Virgili from the company M/s Vittorio

Virgili Sri. The company is exclusively specialized in ladies shoe, particularly boots. The manufacturing

activities is all made in the province of Fermo and the majority of the footwear collections are hand-stitched and hand-painted. The company produces high quality shoe for the French brand Channel and Sartore. They have the license to manufacture for them and the items are directly sent either in

France or Belgium. In addition, they also have some other exclusive agreements with few other EU

brands and even the production made with their own brand (Vittorio Virgili) is quite expensive. Ms.

Monica accompanied gave a guided tour of the factory and she explained that their factory has a

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production capacity of 200 pairs per day and they cannot enlarge the production because of the high

quality standards that they have to maintain considering how expensive is the final price of these

shoes. In addition, she specified that the company is exposed to three different audits: one in Tuscany,

one in France and one in Belgium. Accordingly, they do prefer to keep in Italy their production so they

can directly control.

Meeting at CONFINDUSTRIA Macerata

The Commercial Counsellor paid a courtesy call to the Director in Confindustria Macerata, Mr. Giovanni Niccolô. During the meeting Mr. Cipriani, international department of Confindustrai

Macerata and the Vice President of ConfindustriaFermo were also present apart from few

representatives of the local companies like Mr. Gianni Scoponi form the company M/s Macsenior (in

footwear and leather machineries) and Mr. Gianluca Gagliardini from M/s Vismap (kitchen and house

furniture).

The Commercial Counsellor made a brief presentation on the trade potential of Pakistan and identified sectors of mutual interest. In addition, the Commercial Counsellor mentioned the main raw materials

exported from Pakistan to Italy like cotton, yarn, fabrics ( both cotton and MMF), agro food, plastics,

ethanol, leather ( both raw and finished), shoe uppers ( both leather and plastics) etc. During the

discussion, Commercial Counsellor also briefed about Expo-Pakistan 2017 and extended invitation to Confindustrai and participating companies.

In addition delegation from PFMA to Italy was also discussed. The Director showed fullest support in

hosting and facilitating B2B meeting. Possibility of organising few hour of training session/workshop

for the delegates was also discussed as the association offer these services.

Meeting at the Chamber of Commerce of Macerata

The tour concluded at the Chamber of Commerce of Macerata, with the President at Ex.it agency of the Chamber of Commerce, Mr Luciano Ramadori and Ms Francesca Baleani, Int. Dept. attended the

meeting.

The President briefed the Commercial Counsellor about the agency which aims at supporting local

companies to internationalize though exchange of delegations, international seminars, collective

participation to trade fairs and exhibitions, technical assistance to enter foreign markets, etc. The Commercial Counsellor briefed the representatives about the opportunities in Pakistan. The chamber

represent small companies, however, few big companies were identified and it was agreed that a list

would have been shared. It was also agreed that Advertisement of Exp-Pakistan 2017 will be published

in their newsletter and uploaded on the website of the Chamber.

Way Forward

The meetings were very fruitful particularly to understand the area of Marche Region and how to further develop contacts and implement activities with local institutions and companies. Agreement

was reached on the following:

• Invitations for Expo Pakistan 2017 extended to everyone and promotional support got from

local institutions (through website and news letter to the associated members)

• Possibility of forming a trade delegation from Marche Region to travel to Pakistan

• Hosting a footwear delegation from PFMA to Italy

• Sharing contacts and information related to key sectors like construction, agro-food and

machineries, jewellery, etc.

• Support from the Senator Morgoni for the GSP+ lobbying activity

Marketing of Expo Pakistan in Venice

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Commercial Counsellor conducted a day trip of Venice to market Expo-Pakistan among important

companies on 11th November 2017. Following Companies were visited:

• OVS(Coin Group)

• Metalgalante SPA

• Apart from that a brief interaction took place with event organizer Company called wedding

Mela that specialize in wedding planning on Pakistani and Indian style in Italy.

During the meeting with OVS the Commercial Counsellor extended invitation for visiting Expo-Pakistan

2017 to procurement team of OVS. The meeting from OVS was attended by following important

people from OVS;

1. Antonio Margotti, Director Sourcing

2. Manuel Castaldo, Business Sourcing operation Manager

3. 3. Paolo Lezza , Sourcing Developing

During the meeting OVS management told that they are planning to increase their business with

Pakistan from present US$ 20 million. Commercial Counsellor suggested that increase in business is

indispensable as China is getting expensive in textiles and lead times for Bangladesh are higher as they import fabrics, yarn and cotton. A suggestion was made of opening buying house in Pakistan like that

of Zara. OVS showed intentions of opening buying house ASAP. They requested facilitation. They also

showed willingness to participate in Expo Pakistan. They also discussed their visa problems in

Consulate of Milan. Commercial Counsellor asked them to directly approach her in Rome Embassy for

all visa facilitation and she is there to help them.

A brief interaction also took place with a start-up Wedding Mela an event organizer company that

deals with Indian and Pakistani style weddings with same decor and food etc. The company is owned

by Mr. Zolli and Ms. Manuela. Both showed interest in Expo —Pakistan as they wanted to purchase wedding dresses, handicrafts, jewellery etc.

A detailed meeting was held at a company Metalgalante SPA that is manufacturing concrete mixers.

They are already supplying concrete mixers to Pakistan basically to FW and Pakistan Army. They

informed that total world market of concrete mixers 6000 units annually and normally they sell 5 or 7

units to Pakistan annually. They are part of company VPL ( Volvo) that is their distributor and is also present in Pakistan. They expressed dissatisfaction with Pakistani tenders in which technical

requirements are not clear. They said that actually the engineers who draft these requirements have

no technical knowledge of the concrete mixes and their characteristics .They requested Commercial Counsellor that they are willing to provide free of cost training to engineers of FW if a training session

can be managed. Commercial counsellor said she will send a formal request to FW.

After the meeting a tour was conducted of manufacturing of mixers. It was informed that engines of Carmix is of company Caterpiller and all testing of the mixer is with computer and the company has

developed new technology that with the help of software mixer can be instructed to mix a desired

amount of cement, gravel etc . This technology will curtail stealing of cement and ensure that mixer

does work as per specifications. This type of technology is not available in other mixers manufactured

by other countries like China. China is no doubt a cheaper option but their mixers are normally are

not tested properly and do not fulfil all certifications. It was informed that Carmix fulfil all ISO

standards and all standards of EU. Commercial Counsellor asked the company to start Assembly of mixers in Pakistan as they are doing in India. They said that annual demand of mixer of the world is

3500 and of India is 2500 hence assembly plant was required in India. In coming years if because CPEC

the constructions and mining work increase in Pakistan then the company will establish an assembly plant.

V EXPO-PAKISTAN 2017 MARKETING VISIT OF PALERMO ON 19-09-2017

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Commercial Section organized one day visit of Palermo to market Expo-Pakistan 2017.

Following is the brief overview of the activities of the Commercial Counsellor: (during all meetings Mr.

Angelo, Honorary Consul of Pakistan to Sicily accompanied the Commercial Counsellor):

MEETING AT CONFINDUSTRIA PALERMO

A meeting was organized at Confindustria Palermo with the leading businessmen of Palermo. About

22-25 businessmen from Palermo were present in the meeting. The Vice President of Confindustria

inaugurated the session and welcomed Commercial Counsellor to Palermo. Afterwards all the

businessmen introduced themselves and specified their sector of interest in Pakistan. It was encouraging to note that many of the businessmen had already travelled to Pakistan and played the

role of spokesperson advocating business friendly environment of Pakistan. Main sectors of businessmen who were there in the meeting were, agriculture, mining/marbles, gems/jewellery,

energy, waste management, electricity generation from waste, footwear/leather, food, chemicals etc.

Commercial Counsellor thanked Confindustria for organizing a meeting at a very short notice and gave

a presentation in the Confindustria. The presentation dealt with business/investment opportunities

of Pakistan. It also briefed them about incentives that Government of Pakistan is offering to different

sector as per different policies. Afterwards she reviewed of Expo-Pakistan 2015 where it was emphasised that last expo 2015 generated business of US $ 1.2 billion, 70+MOUs were signed ,1100

foreign buyers from 77 countries visited expo, more than 20,000 business visitors visited the event,

570 exhibitors exhibited items of Textiles (fabrics , cotton & cotton yarn, readymade garments,

knitwear, bed linen, kitchen linen, socks, sport wear, uniforms and safety dresses, tent & canvas,

handloom, towels, bathrobes, embroidered dresses and fashion textiles, Leather (tanned leather,

leather garments, leather accessories, gloves and footwear), Surgical/Pharmaceutical ( surgical instruments, diagnostic equipment, beauty care items etc), Sports goods, Auto parts, Services,

Mineral/marble, Gems & jewellery, Home decor, Handicrafts etc.

A short video of TDAP of Expo Pakistan was also played.

After the meeting all the businessmen were very interested to join Expo-Pakistan 2017 and asked

different questions. On the spot 3-4 companies committed to send their applications. Few of the

businessmen interested in selling in Pakistan asked about the cost of 3X3 space in Expo-Pakistan 2017.

They were informed that cost for shell scheme is US$ 187 per sqm.

Meeting was concluded with thanks from the sides of Commercial Consellor and Confindustria. It was

also decided that Confindustrai will publish expo-Pakistan Advertisement at their website and will also

disseminate the information to all their members.

MEETING/VISIT OF FINCANTIERI In evening a meeting was held with Director of big Italian shipping Company Fincantieri. They are

already doing business with Pakistan in naval ships and were interested in investing in Pakistan after

CPEC kick off and projects starts unrolling and ship construction industry and market for ships

increases in Pakistan. A short visit was also done of dockyards and manufacturing facilities of the

company.

V Visit of United Colours of Benetton on 18th October 2017

Commercial Counsellor with an objective to introduce textiles sector of Pakistan to the group

arranged a meeting on 18th October 2017 with Chief Operating Officer.

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The group is not manufacturing garments in Italy and have no manufacturing facilities in Italy but are

sourcing clothing from other countries mainly Eastern Europe, India and Bangladesh and Pakistan does

not exist in their sourcing environment.

The Chief Operating Officer along with his team is willing to visit Pakistan on my invitation in next

couple of months to investigate Pakistan. They will be happy if the Mission organize their focussed

meetings with garment manufacturers ( denim and knitwear) in Pakistan. I have proposed them to

visit Karachi, Lahore and Faisalabad.

The company is keen to investigate Pakistan and is quality conscious as well conscious about social,

environmental and human rights awareness of companies and will also do their audit if they select

them.

V VIST TO MILAN DATED 03-11-2017

In Milan following two meetings were coordinated for a day trip, also may be noted that these

meetings were planned in September and early October 2017;

1. Meeting with ACIMIT (Association of Textile Machinery)

2. Meeting with Camera Moda ( Fashion Designers' Association)

In ACIMIT Commercial Counsellor met with Director General ACIMIT Mr. Federico Pellegata. The

forthcoming Knitwear delegation from Pakistan in December 2017 was discussed and facilitation was

requested. ACIMIT agreed to give a feel of latest technology to the delegates in their sector provided

the profiles of delegates are communicated as soon as possible. ACIMIT also discussed the

collaboration that they will be doing with Pakistan for the technological centre in Pakistan. Tentatively

the project will be worth Euros 200,000/- and will include provision of machinery and experts free of

cost and Pakistan will arrange the space for the centre and will provide all facilitation to the experts

including their boarding and lodging and will also organize custom clearance and payment of custom

duties if applicable. However, it was informed that Italian Ambassador in Pakistan is considering

Karachi University of Textiles and Textile University Faisalabad Textile Universality that was visited by

Ex-President of ACIMIT during the Italian delegation that visited Pakistan in December 2016. He also

informed that there is more inclination on National University of Textiles in Karachi. However it was

discussed that Faisalabad University is far better as such project requires Government patronage and

whereas National University of Textiles in Karachi is a private entity and more inclined to marketing

rather than on technology promotion/upgradation in Pakistan in textile sector as Faisalabad Textile

University is doing. Commercial Counsellor also informed DG that Secretary Commerce, Government

of Pakistan visited Italy from 24-25 October 2017 and he had a meeting with ICE/IA in Rome and they

have requested to indicate something from their side for collaboration with ACIMIT. Commercial

Counsellor informed that Government of Pakistan is maintaining many textile institutes as well and

DG ACIMIT requested Commercial Counsellor to provide list of textiles institutes operating in Pakistan as they will get in touch with them for providing them updated information on teaching and

technology. He also showed booklets that ACIMIT has published for training in yarn, fabrics, woven

textiles and knitted textiles.

A meeting was held in Camera Moda with Ms. Paola Arosio dealing with Institutional and new brands.

The Commercial Counsellor discussed following items in a short meeting in order to develop synergies

with Camera Moda;

1. Forthcoming knitwear delegation and type of facilitation that they can extend

2. TEXPO Pakistan proposed to be held in May 2018 Commercial Counsellor informed Ms. Paola that in in Expo-2017 she has invited Stella Jeans and Francesca Liberatore to Pakistan and both were

interested to visit Pakistan. Francesca Liberatore is visiting Pakistan now and she will invite Stella Jeans

at another time as professionally speaking she could not conduct the tour of two designers together. She also said that Pakistan is an interesting country for fashion designers and they are interested in hand embroidery and embellishment of garments prepared there. Commercial Counsellor requested

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Ms. Paola to organize b2b meeting of knitwear delegation that is due in December 2017. Ms. Paola said that it is very difficult to organize anything with established brands in fashion as they work on

their own dynamics however, she can arrange a meeting in Camera Moda with the emerging brands

provided profiles of delegates is provided to her. But these brands are small and it is possible that in

future some synergies could be developed with them. Commercial Counsellor proposed to her to visit

TEXPO-2018 and she agreed to bring a delegation of emerging brands to Pakistan provided

Government of Pakistan do sponsorship. Commercial Counsellor said normally Government of

Pakistan offer sponsorship during these exhibitions. Ms. Paola said that the composition of the delegation will be as follows;

LI Chairman of the Association

Ll 2 fashion journalists

LJ 6-7 fashion brands

8. Trade Diplomacy For GSP Plus following activities were done

•. Meeting with INGOS in June 2017 The Commercial Counsellor met representatives of the NGO ISCOS with headquarters in Rome.

With the view to lobby with important INGOs in Italy undersigned arranged a meeting with ISCOS with

headquarters in Roma on 1 of June 2017. This INGO is active in Pakistan since 1998 and has worked

with Sialkot industry in surgical goods, sportswear and garments and presently they are launching an ILO funded project in brick kiln in Sialkot.

Meeting took place with the President of ISCOS Mr. Mario Arca, Gemma Arpaia (Development and

Relations Manager) and Mr. Paula Pozzo Officer dealing with projects in Pakistan at CISL.

Commercial Counsellor briefed them about 2N0 GSP Plus review that has started and Pakistan has

already responded to the observations of EU on the scorecards on 301h April 2017. It was informed

that GSP Plus is mutually beneficial as not only exports of Pakistan increased in three year by 38% but

also imports from EU increased by same percentage from year 2014 to 2016. In case of Italy Imports to Pakistan from Italy increased by 40 % (in machinery, mines, chemicals etc.) in one year from 2015

to 2016. It was also informed that big Italian Companies are operating in Pakistan like ENI, Angelini,

Italtec etc. exhibiting confidence of Italy in Pakistan. They were briefed about 27 Conventions and

recently formulated Action Plan on HR (2016). They were informed that TIC is working at both Federal

and Provincial level. The President of ISCOS agreed to collaborate with Embassy on the issue related

to GSP Plus.

ISCOS informed that their organization deals with labour rights and child rights and normally are in

contact with Italian Government high ups as well as at times with politicians and expressed satisfaction with the progress of Pakistan regarding 27 conventions.

With the view to lobby with important INGOs in Italy undersigned arranged a meeting with CESVI with

headquarters in Roma on 7th of June 2017. This INGO is active in Pakistan since 2005 after floods in Pakistan. Their main focus is on projects related to emergencies like flood, temporary displacement

situations, water/sanitation, cash support to displaced people. They have done projects funded by EU,

UNO, American Cooperation, USAID. They have run projects in FATA and Bannu.

Meeting took place with Ms. Daniela Balin dealing with projects of Pakistan in the office of Ambassador. Commercial Counsellor briefed her about the GSP Plus and the review going to take place in September 2017. She informed that Pakistan has established a Commission on HR, Commission on the status of Women, Commission on Minorities and Pakistan has changed a lot of

administrative procedures and laws of land to bring them in compliance with 27 conventions

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associated with GSP Plus. Treaty Implementation Cell is working at both Federal and Provincial level and there is proper coordination between provinces and Centre.

Ambassador discussed the problems of CESVI that they are experiencing with Ministry of Interior Pakistan and visa issues with the Consulate in Milano and assured to look into these issues. He also asked them to initiate project related to environment.

Ms. Daniella assured of her support to Pakistan whenever required. She agreed that the main issue with Pakistan is paucity of resources and Government of Pakistan is doing well in matter of human rights.

+ Lunch with Senator Morgani on 28 th June 2017 The Commercial Counsellor hosted a lunch on 28 1h June 2017 with the Senator Mario Morgoni representing the PD party in Italy. The main purpose of this luncheon meeting was to directly brief the Senator about the current status of the GSP+ in Pakistan and all the improvements Government of Pakistan has made in compliance with the 27 international conventions. It was agreed that a communication from the Commercial Section should have been sent to the Senator summarizing the current situation of Pakistan and when the review will take place. The Senator promised to put the Commercial Counsellor in touch with few Italian MEPs for the relevant commissions so that direct meetings can take place.

•:. VISIT OF SECRETARY COMMERCE TO ROME 24-25 OCTOBER 2017 European Union is a unique economic and political union between 28 European Countries that together cover much of the continent. The EU is governed by the principle of representative democracy, with citizens directly represented at Union level in the European Parliament and member states represented in European Council and Council of the EU.

EU granted Pakistan GSP Plus for good Governance in 2014. However EU will monitor GSP plus and compliance with 27 Conventions related with Human rights/labour rights/women rights. The monitoring of GSP Plus is 1. Biennial Monitoring and 2. Mid Term Review of GSP Plus.

The Biennial Review focuses on implementation and reporting on 27 core conventions. The monitoring reports are jointly prepared by the EC and European External Action Service (EEAS) and submitted to the European Parliament (EP) and European Council (EC) after two years. The Mid-term Review is prepared every 5 years on GSP scheme and cover the specific developments during the second GSP Plus reporting cycle. It reviews detailed impact of GSP Plus scheme on trade and EU tariffs income. Implication of the scheme for development, trade and financial need of the beneficiaries.

The single or internal market is the EU's main economic engine, enabling most goods, services, money and people to move freely. Ministry of Commerce planned a visit to Italy the purpose of the visit was Lobbying for GSP Plus and meeting with main stakeholders both politicians/ trade bodies. This year both review were due and hence the lobbying with EU was crucial

The visit of Secretary Commerce took place in back ground of these two reviews. The visit was scheduled from 23-26 October 2017. Arrival was at the night of 23rd October and departure was early in morning of 26th October, hence there were full 2 days for networking in Italy.

The Commercial Section in coordination with Ambassador tied up the plan of the visit. The final programme is attached. The same programme was sent to Secretary Commerce before his arrival in Rome for his perusal. Mr. Ahmad Fasih, Deputy Secretary (EU) Ministry of Commerce accompanied Secretary Commerce.

Following meetings were held 20 of October 2017:

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1. Meeting with Mr Amedeo Teti, DG International Trade Policy at Ministry of Economic Development

The meeting was attended by Mr. Younas Dagha, Secretary Ministry of Commerce, Mr. Nadeem Riyaz Ambassador of Pakistan in Italy. Ms. Saira Imdad Au, Commercial Counsellor of Pakistan in Italy, Mr. Ahmad Fasih, Deputy Secretary, Ministry of Commerce and Ms Ester Temperato Translator/Commercial Section from the side of Pakistan. From the side of Ministry of Economic Development, Mr. Amedeo Teti, DG International Trade Policy, Mr. Paolo Quattrocchi and Ms Antonella Maria, Managers of International Trade Policy Wing were present.

Secretary Commerce highlighted the efforts of Pakistan done for the Compliance of the Conventions

and also informed them that from 2014 the situation in matter of compliance has improved a lot.

Secretary Commerce also presented a short video to the DG in this regard. The DG highlighted some of issues in way of enhancing bilateral trade between Italy and Pakistan as follows;

• High level of taxation on the importation of goods in Pakistan is impairing investment and exports from Italy to Pakistan

• ENI is interested in projects in Pakistan especially upstream exploration and in 15MW solar plants and policy support is required from Government

• Recently there is a change in tendering procedure in Pakistan and now they require letter of

credit (confirmed) from Pakistani banks and do not accept guarantees of Italian foreign banks.

If Pakistani Government accepts the warranty issued by foreign banks then the investment

can be increased. The Ministry of Economic Development also recommended a meeting of

Secretary Commerce with Ambassador of Italy in Pakistan for these issues.

• Tariffs and taxes in Pakistan are too high. Piaggio want to do investment to make bikes but

high taxation is hindering ( now they have started working with Vietnam)

• EU should know what Pakistan is doing and what are the best practices regarding GSP plus

and other business matters. Pakistan should also follow benchmarks for GSP plus in regard to

27 conventions

Secretary Commerce ensured to look into the issues and it was decided Ambassador of Italy in

Pakistan will discuss tendering issue so that Italian companies may participate in tenders. He also

pointed out that Pakistan-Italy bilateral trade has increase with the grant of GSP Plus and Italy has

also benefited from this scheme as their imports to Pakistan has increased. The Ministry of

Economic Development assured full support for GSP Plus and informed Secretary that Pakistan

will be hearing good news from Italy soon.

The Ministry also committed full support for the forthcoming JEC in 2018 and the accompanying

delegation to Italy. Meeting ended with presentation of gifts by Secretary Commerce to DG.

2. Meeting with Ambassador Massimo Gaiani, DG for Globalization, Ministry of Foreign Affairs

& International Cooperation The meeting was attended by Mr. Younas Dagha, Secretary Ministry of Commerce, Mr Nadeem

Riyaz Ambassador of Pakistan in Italy. Ms. Saira lmdad Ali, Commercial Counsellor of Pakistan in

Italy, Mr. Ahmad Fasih, Deputy Secretary, Ministry of Commerce from the side of Pakistan. From

Italian side the DG was assisted by his staff.

The DG highlighted following issues:

• Issue of higher taxation hampering investment was highlighted.

• And due to this higher taxation investment and trade relationship of two countries is

underutilized Secretary Commerce said that Pakistan intends to remove hurdles in way of trade and investment so that bilateral relations are strengthened. Secretary Commerce also presented the short video

on GSP Plus and compliance of 27 Convention from benchmark of 2014, he also presented gifts

57

Commercial Section Embassy of Pakistan, Rome

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