As the Pakistani industry is striving hard to survive and grow in a very challenging environment, the regulators need to take robust measures for progress and industrial growth. The most critical factor that can ensure the survival and growth of Pakistan’s industry is the government’s ability to implement the National Power Policy 2014, which should ensure regular supply of electricity to enable the industry to compete in today’s cut-throat global competition.
The President of All Pakistan Business Forum (APBF) – Mr. Ibrahim Quraishi stated that; “Despite being the most important pillar of the economy, the industrial sector is not getting the attention it deserves. The continuous Power Crisis all over the country is having a major negative impact on progress. The decline in performance is caused by factors like; non-supply of electricity, gas and water, excessive litigation practices and lack of developmental funds, etc.”
“The business community has repeatedly urged the government to implement a fair and effective National Power Policy, for ensuring uninterrupted power supply to the industrial and commercial sectors. The new Power Policy should be enriched with a reliable contingency plan.” Mr. Ibrahim added.
The electricity crisis in Pakistan has had a debilitating impact on the industry, which is a major contributor to the country’s total GDP. Over the past 5 years, a significant portion of the employment opportunities in Pakistan were created by the industrial sector. Currently, this sector alone employs millions of the workforce in the country.
Some industries of Pakistan are already making sizeable contributions in the global trade. With a little more support and facilitation from the government, many more industrial sectors of Pakistan can optimize their performance to emerge as leading exporters on a global scale. Just the textile industry in Pakistan is exporting goods worth $10.2 Billion annually. Pakistan is also the 4th largest producer of cotton (~12mln bales/yr), Pakistan also has the third largest spinning capacity in Asia, after China and India.
Although, the government of Pakistan is claiming to have its focus on resolving these issues, a lot more work needs to be done to overcome the current challenges. The government needs to adopt a multi-pronged strategy including; budgetary supports, policy interventions, marketing, Workforce training, revitalization projects, and capacity building of each high-potential sector. A plan should be designed to enhance effectiveness, competitiveness and sustainability.
The relevant Government departments must facilitate the foreign and local investors, inspiring them to expand and enrich their existing ventures, while contemplating new projects. Proliferation and advancement of technology and modern management practices, is also the need of the hour. More focus on the development of SME sector to enhance growth in value-added products can also help in accelerating economic growth and productivity.
