Sialkot, a city known for its world-class surgical instrument industry, is set to witness a significant transformation and rapid growth with the establishment of a surgical city.

"The establishment of a modern and dedicated surgical city is aimed at boosting this industry’s exports, and crossing the billion-dollar mark from the current $420 million," Chairman of Surgical Instruments Manufacturing Association of Pakistan (SIMAP) Yousaf Hassan Bajwa told WealthPK. 

The proposal, given by the SIMAP in 2017, to set up a surgical city, has been embraced by the government and is now on track for implementation. "The allocated land, situated on Sialkot-Daska Road, is currently being acquired," Bajwa said. This initiative basically aims to address the challenges faced by some 4,000 scattered and unorganised surgical units.

Asked how the small firm owners will pay for the new units, Bajwa said they would be provided with land at the deputy commissioner’s valuation rates, payable over three to four years in instalments.

The existing workforce in each unit ranges from 15 to 700, depending on the size of the unit. "The surgical city will offer plots of various sizes, ranging from 5 marla to four kanals, accommodating both small and large-scale units," he said.

With approximately 4,000 units in operation, including 2,000 export-oriented ones, Sialkot manufactures around 25,000 surgical instruments, catering to various sectors. "It is a joint industry of surgical instruments, veterinary care, and personal care, which includes medicare and pedicure instruments," the SIMAP chairman said.

The current surgical industry in Sialkot mostly comprises small units lacking proper organisation and waste management systems, which has posed environmental concerns, particularly for meeting the regulatory requirements of the European Union (EU), a major trading partner. The EU mandates that surgical instrument manufacturing units adhere to specific standards, including proper infrastructure, waste management, and organisation. "By creating a centralised hub, the association aims to improve the industry's compliance with international standards to facilitate growth and expansion," Yousaf Bajwa said.

This purpose-built city will also enhance Sialkot's credibility and reliability in the global market, reducing reliance on intermediaries and allowing manufacturers to obtain better prices. "By showcasing the city as a manufacturing hub, Sialkot aims to build trust and establish direct trade relationships, bypassing intermediaries and securing better market prices," he said. 

“Currently, the industry's exports predominantly go to the European Union, from where they are re-exported to other countries due to compliance certificates. People rely more on European companies,” Bajwa said. "If Pakistan can show to the world how the surgical instruments are built, they will start trusting us too," he said.

Although Sialkot's surgical instruments are exported worldwide, the United States and the EU serve as the primary export destinations. "The establishment of the surgical city will open up opportunities to explore new and bigger markets as well," he said.

Gradually Pakistan will move to mechanised production at the surgical city to cater to its diverse needs, besides ensuring proper road connectivity and facilitating efficient business operations. 

Bajwa suggested, "Businessmen should be given access to sufficient funds so that they can develop high-tech instruments after carrying out research and development.”

He said in order to support the growth of the industry, it is crucial to align skill development programmes with the specific needs of the surgical instruments sector. 

Currently, Technical Education and Vocational Training Authority (TEVTA) offers general programmes such as plumbing and machining, which fall short of addressing the industry's requirements. "SIMAP has requested TEVTA redesign its programmes in consultation with the surgical instruments industry, integrating practical training and on-the-job experience," Bajwa said.

Pakistan’s surgical industry has so far stayed away from producing plastic instruments introduced some 10 years ago, due to their environmental impact. Stainless steel has remained the preferred material for manufacturing surgical instruments in Pakistan. "Sialkot imports stainless-steel from various countries, including Japan, France, China, South Korea, and also utilises local steel; nevertheless, the imported steel is mostly used for its superior quality, for producing world-class surgical instruments," he said.

Sialkot's surgical instruments industry, with a rich history of a century, stands as a unique player in the market though internationally countries such as Germany had remained its competitor. "Presently the industry faces competition from among its own producers. Pakistan is also witnessing emerging competition from India," Bajwa said.

Bajwa has urged the government to expedite the land acquisition process for the surgical city and initiate civil work promptly to secure rapid export growth as soon as possible. Timely execution will enable establishment of factories within a year, ensuring the realisation of the project's objectives.

The government department concerned must immediately release the funds allocated for the project, which has been pending for a year. Delayed payments to landowners have hindered the acquisition process and subsequently slowed down the project. "By addressing these issues promptly, the government can minimise project delays, control costs, and drive the development of a modern surgical city that will revolutionise Sialkot's surgical instruments industry," he stressed.