Urgent Industrialization

Europe and America developed through industrialization in the 1950s, 60s, and 70s, and kept their supremacy till date. Japan, developed its industrial base and surpassed many countries in a very short time. China’s rapid development in the last four decades is attributed to its industrialization. India and Bangladesh are also doing te same. Malaysia and Turkey in the Muslim world are quite industrialized. Vietnam is the best example, which learned from China quickly and developed its economy rapidly.

Pakistan is still not industrialized to its full potential. Although the capacity of Pakistan for rapid industrialization is huge, but it is untapped yet. Pakistan is blessed with an abundance of raw materials, agricultural produce or mines, and minerals, which are required for industrialization. Pakistan’s youth, which consists of almost 70% of the population under the age of 40, is a strong workforce, which is a prerequisite for industrialization. Skills and technology are rather backward but can be overcome by hard work and enabling policies. Utility chargers, like electricity, gas, water, etc. are not quite favourable but can be alternate means if the Government introduces attractive policies and confidence in the private sector.

The market is huge, nearly 250 million as a domestic market.A huge international market in the surrounding countries in the region are Pakistan’s traditional markets. New markets can be explored and outreached, if Government support is available.

The current situation of Pakistan’s economy is that it is in dire need of rapid industrialization. The awareness exists in the minds of the people of Pakistan and well as the Government. Yet, the country could not achieve positive results and this a pity. Foreign debt has reached a peak and inflation is hitting hard. Pakistan’s imports are growing faster than its exports. Only Industrialization can narrow down the gap and reduce the dollar pressure on Pakistan’s economy. Industrialization will meet domestic requirements and also reduce imports. All excess production can be exported and the much-needed dollars earned. Industrialization also generates massive jobs and reduces poverty.

Under CPEC, several SEZs were planned, but none of them achieved their goals. The earlier industrials states like Guddoon, Hattar, etc. are also not a success story. Pakistani industrialists moving abroad is worrisome and the government has failed to attract them to invest in Pakistan. The government is trying to attract foreign investors while keeping domestic investors frustrated.

Prime Minister Imran Khan, chairing a meeting on facilitating Chinese investment in SEZs, said Pakistan needs investment to accelerate industrialization. It is a positive sign that the PM is serious about industrialization. However, it requires incentive-based attractive policies, which will attract foreign investors. An investor, irrespective of nationality, ethnicity, race and region, loves his profits, and to maximize profits, he can go to any hostile country too. A recent example is the US-China rivalry; many American companies are still operating in China, because of the profitability of their businesses. In the case of Pakistan, Moeen Qureshi, the late caretaker Prime Mminister of Pakistan, invested in India after taking charge of office, because of better profitability.

Pakistan lacks the capacity, especially the Government sector is facing a lack of capacity more seriously. The nepotism and killing of merit, politicization of bureaucracy and injustice with government servants have made the whole system dysfunctional. Comprehensive reforms are required to change the current situation; merit and relevance for new appointments must be exercised. Relevance and suitability must be prioritized in the Government sector. De-politicization must be initiated, and discrimination must be stopped. A performance-based and incentive-based system must be introduced and nonproductive and dead wood must be rooted out. Over-aged and retired blue-eyed persons must be sent home. A service structure and career plans must be introduced.

Only capable and honest government servants can make the right policies and implementation must take place in letter and spirit.

China is a unique nation, with unique characteristics and cannot be weighed on Western standards. An understanding of Chinese culture, traditions, customs, psyche and ethics is required. It values friendship and is willing to assist Pakistan but we need to engage them positively. The government sector lacks expertise. Most of our bureaucracy is either educated in the West or trained on Western values and mindset. They cannot engage China at all.

Fortunately, around thirty thousand Pakistanis are studying in China, in various specializations and at various levels, including undergraduate, post-graduate, Ph.D. and post-doc., etc. The majority of Pakistani youth studying in China are in engineering disciplines and are urgently required in the industrial sector. There are around twenty thousand Pakistanis who have graduated from China and are available in Pakistan. They can be engaged and consulted for various projects with China. They are assets for the country and must be engaged in policymaking and advisory roles. Having studied in China, they have received good exposure to Chinese culture, traditions, values, and work ethics and can exercise their knowledge in addition to their area of specialization, to make CPEC a success story.

The PM has also stated that all possible steps need to be taken such electricity and gas in the SEZs to populate them with Chinese esperts and attract investment from other sources. The success of SEZs has become very critical for us, hence all obstacles in the way must be removed through a one-window facility for early operation.. To achieve this vision, a strong team is needed, equipped with relevant China knowledge.