Uzair bin Farid

Pakistan won’t be able to attain the level of indigenous productive capacity that it needs to boost exports unless it gets modern technology employed by its trading partners in the developed world. Talking to WealthPK, Dr Shamraiz Ali Bhatti, a professor of economics at the University of Sahiwal, said Pakistan had been unable to establish an indigenous productive base to help increase exports.

“This is the fundamental reason that over the years, Pakistan has consistently found itself struggling to finance its imports from money generated through trade and transactional economic activity,” he noted. He said that Pakistan could not put in place effective policies to develop its productive capacity through establishing an industrial base.

He said globalisation has changed the dynamics of economies worldwide, and the world is more interconnected today than ever before. “If we do not produce anything, we will still be able to find goods in our markets which have been manufactured in distant corners of the globe.”

“These changing dynamics of trade have made it extremely important that Pakistan builds its own industrial base to produce state-of-the-art and modern consumer goods. This, however, will not be possible unless Pakistan has the necessary capital to produce them.”

Shamraiz Bhatti said that resource acquisition in itself was a very difficult process. “You cannot produce high-end consumer goods unless you have the manufacturing plants installed in your country. All we do here is just assemble the spare parts like in a Lego toy.”

He continued, “For Pakistan to build its industrial base and develop its productive capacity, it needs to get technology from the developed countries. China, Japan, Germany, the United States, and the broader European Union can help Pakistan with the provision of technological know-how.”

“When Pakistan can acquire technology, it will be able to train its workforce and produce goods which are in high demand around the world. Historical evidence suggests that technology transfer is a first step in attaining the competitive edge that is so important to get ahead economically,” he said.

“The process of technology transfer occurs in many ways. It can be done on a state-to-state level, business-to-business level or even more academic level. The best way for reaping over-the-horizon dividends from technology transfer is through academic excellence.”

The economics professor said that Pakistan needed to reach out to its partner nations to help develop productive capacity. “Pakistan needs to understand that it cannot keep trading in outdated technology.” “Pakistan needs to be provided with technology which is latest in terms of global standards and where the productivity is very high so as to match the scale requirements,” he noted.

Credit: Independent News Pakistan-WealthPk