Ahmed Khan Malik

The Sindh Small Industries Corporation (SSIC) has embarked upon a comprehensive plan for promotion of the cottage industry in the province, reports WealthPK. “Cottage industry is an integral part of every big industry, as they are directly connected with the large scale manufacturers,” Director General SSIC Shahid Shah said. “The cottage industry in Sindh already has a sizeable presence. Only two small industrial estates — Small Industrial Estate Sukkur and Larkana — were inherited from the defunct West Pakistan Small Industries and Handicrafts Development Corporation (WPSIC). Afterwards, the SSIC established 19 small industrial estates (SIEs) and three industrial parks (IPs) almost in all district headquarters of the province. “In order to facilitate the poor craftspeople and to provide them with marketing opportunities, seven handicrafts shops/display centers have been set up at different places in Sindh and the federal capital (Islamabad),” he said.

Continuing, Shahid said, “The SSIC’s key objectives are to promote small industries, provide them with the necessary infrastructure, impart training to the youth in various crafts/trades, motivate and encourage rural people for setting up small industries, assist the craftspeople in designing and adaptation in accordance with the market demand, provide marketing facilities to the craftspeople through the SSIC’s handicrafts shops, participation in  fairs and exhibitions in local and foreign markets and undertake such other functions, measures or steps under the directives of the government.” The SSIC director general said the development of small-scale industries has a strong socio–economic base imperative for the country. “It needs smaller amounts of capital, generates greater employment opportunities, disseminates the benefit of economic growth to a larger number, has short gestation period and carries the fruit of industrialization to the rural areas,” he said. Talking to WealthPK, Yawar Hussain, an official of Cottage Industry Association, said that the small industries have shown a remarkable resilience even in adversity.

It is envisaged that they will accelerate export-led growth of the economy. “However, these industries face some challenges despite their significant contribution. The main issues are low profits that barely cover the owners’ living costs and insufficient funds for their growth,” he said. Yawar said the lack of economies of scale increases the production cost and makes the small-scale industries uncompetitive in the market. The wholesaler exploits the owners of small scale industry and takes most of the profits. In some cases, goods are sold to the wholesalers at the cost price, which discourages the owners and they reduce the quality and quantity of their products. “In rural areas lacking electricity, it is difficult to establish small scale industries. Voltage fluctuation and power breakdowns also damage the motors. The commercial rates of electricity have also increased hindering growth. The craftsmen and artisans learn their skills and production methods from their elders. Provision of technical advice and further training is limited,” he said.

Credit: INP-WealthPk