In the wake of global economic shifts and technological advancements, Pakistan finds itself at a critical juncture, where embracing innovation and enhancing productivity are imperative for sustainable growth. Speaking to WealthPK, Chairman Coordination of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Malik Sohail Hussain said China’s transformation from a predominantly agrarian society to an economic powerhouse within a few decades offers invaluable lessons for countries like Pakistan. China's ascent in innovation is evident in its impressive rankings on the global indices such as the Global Innovation Index (GII), where it consistently ranks among the top performers. “Several key factors have contributed to China's success in fostering innovation and productivity. These include significant investments in research and development (R&D) such as automation and artificial intelligence, establishment of innovation hubs and industrial parks, strategic collaborations among the government, academia, and industry, as well as a focus on developing a skilled workforce capable of driving technological advancements,” he added.

"Pakistan must invest in upgrading its manufacturing capabilities to remain relevant in the global market. Similarly, the country can benefit from engaging with international partners, tapping into global supply chains, and attracting foreign direct investment," he suggested. M Alamgir Chaudhry, CEO of the National Productivity Organization, underscored the pivotal role of productivity, quality, and innovation as the cornerstone of a strong economy. He emphasized that productivity growth drives economic expansion. He lamented Pakistan's slow output growth rates, attributing them to deficiencies in innovation, inadequate investment, technological inefficiencies, and lack of emphasis on R&D. These factors collectively hinder Pakistan's productivity levels, undermining its global competitiveness. He said that it was important to encourage joint ventures, potentially with the assistance of partners such as China, to address such challenges.

This approach fosters collaborative efforts aimed at overcoming obstacles and achieving favourable outcomes. According to him, the NPO has put some real efforts to achieve the maximum with a more focused approach in which the main objective is to enhance total factor productivity (TFP) through human resource development (HRD), technology demonstration, and improved practices, processes, and procedures in the country to support the cause of competing effectively in the local and global markets. “The NPO is working on Productivity Vision 2025, which will increase industrial efficiency in the country. We are currently spearheading a productivity drive in collaboration with the chambers of commerce and industry, colleges, and universities. The private sector is fully engaged, and we are also actively shaping our future vision,” he added.

Credit: Independent News Pakistan