Ayesha Saba

As the international markets shift towards digital transformation, automation, and artificial intelligence-driven processes, Pakistan must embrace these advancements to remain competitive in manufacturing, services, and exports.

Talking with WealthPk, Khan Muhammad Wazir, former director, Ministry of Science and Technology, said Pakistan’s industries still relied heavily on conventional production methods, limiting their ability to compete in a rapidly evolving global market. According to him, this lag stems from multiple challenges, including inadequate infrastructure, limited investment in research and development, and lack of a skilled workforce trained in digital and automated technologies.

Without addressing these issues, the country risks being left behind in the global race for innovation and productivity. One of the key barriers to the Industry 4.0 Adoption in Pakistan is the reluctance of traditional industries to shift towards automation due to the perceived high costs and uncertainty surrounding return on investment, he said. He argued that while the initial costs might be significant, the long-term benefits far outweigh them.

The adoption of smart manufacturing and digital supply chains can help improve efficiency, reduce wastage, and raise profit margins. Moreover, automation can increase Pakistan’s export competitiveness by ensuring that its products meet the global standards in precision, quality, and efficiency. Countries such as China, India, and Vietnam have already leveraged these technologies to enhance industrial output, making it imperative for Pakistan to follow suit.

He stressed that government intervention was crucial to facilitate this transition. A well-structured policy framework, including incentives for technology adoption, investment in digital infrastructure, and collaboration with foreign tech firms, can help accelerate the shift. Wazir said Pakistan should establish special economic zones (SEZs) dedicated to high-tech industries and provide tax breaks for the businesses willing to invest in automation.

Additionally, partnerships with global tech leaders could play a crucial role in technology transfer, equipping local industries with the expertise needed to adopt advanced manufacturing techniques. He emphasized the need for comprehensive training programs to upskill the labor force in artificial intelligence, robotics, cybersecurity, and data analytics. Pakistan’s technical and vocational education sector must be restructured to align with the demands of digital economy.

Without a skilled workforce, even best technological advancements may remain underutilized, limiting their potential to drive economic growth. To remain competitive in the international markets, Pakistan must actively participate in this technological revolution. By fostering an ecosystem that supports digitalization, research, and development, the country can unlock new economic opportunities, drive industrial modernization, and position itself as a key player in the global digital economy, he suggested.

Credit: INP-WealthPk