Ayesha Saba

Industry can play a crucial role in creating jobs, boosting exports and helping a country secure broad-based economic growth, provided there is a comprehensive policy framework in place for uplifting the export-oriented sectors. Talking to WealthPK in this regard, Chairman of the Engineering Development Board Almas Hyder said that Pakistan is a developing country with a vast potential for economic growth, but its heavy dependence on imports over the past decades has hindered the local industry’s sustainable growth.

He said that Pakistan’s industry has also been affected badly due to the shortage of major energy inputs, including gas and electricity, which are vital for smooth and efficient operation of a plant. “A variety of other factors have also prevented Pakistan from achieving industrialisation goal, including low competitiveness, poor infrastructure, a lack of product innovation, and ineffective marketing of Pakistani products overseas,” he underlined.

“Economic growth can be achieved if export-based industries flourished. Lack of industrial focus is causing Pakistan to lag behind its Asian peers. As a result, over the last decade and a half, Pakistan has lost its share of world exports, whilst Bangladesh’s share doubled and Vietnam’s grew seven-fold in the same period,” noted Almas Hyder.

The Engineering Development Board chairman pointed out that Pakistan continues to be plagued by high unemployment and a low export base as the country continues to focus on intermediate or low-value-added finished products. He said exports are also hindered by the government's ‘irrational’ policies and complex incentives offered to the industry.

Almas Hyder noted that Pakistan currently manufactures a limited array of products locally, and exports even fewer products. “In order for Pakistan to make economic progress, it needs to diversify its exports, and enter new global value chains.” “We must gear our policies towards uplifting the exporting sectors, particularly small and medium-sized enterprises, through technology upgrading to stay profitable and competitive,” he underscored.

Almas Hyder further stressed that a crucial factor that could help boost local products is the development of a skilled workforce. “The government should invest in education and training programmes to create a skilled workforce that can meet the demands of local industry. This will help businesses to innovate and create products that are competitive in the global market.” “Finally, Pakistan needs to create a business-friendly environment to attract foreign investment by devising such policies that promote investment and cut red tape. This will help create a more vibrant business environment leading to the creation of new businesses,” he suggested.

Credit: Independent News Pakistan-WealthPk