The Engineering Development Board's decision to establish a Certification Authority to maximise standardisation of Pakistan's electrical goods, though rather belated, is a move in the right direction that will allow Pakistani exporters to make significant inroads in the international market.
In another initiative, the EDB has sought European certification for Pakistani electrical goods to rehabilitate the credibility of our products that have been facing increasing competition. There is a vast export prospect for our items like energy meters, transformers, capacitors, and insulators in the world market, which can be tapped through observing international standards as well as pursuit of a more vigorous marketing strategy.
There have been cases where foreign companies have rejected consignments dispatched by our exporters for failing to meet international standards. According to a Recorder Report, an EDB meeting in Islamabad has noted with concern the poor quality of locally manufactured electrical switches that are responsible for over 75 percent of damage sustained by home appliances, as there is no foolproof mechanism to ensure quality standardisation in the country.
The EDB meeting has rightly stressed the importance of establishing a Central Certification Authority with affiliation to world bodies so that requirements of international market can be met.
As gaining certification from international organisations will be very expensive for a majority of local companies, it has been proposed that an indigenous system be evolved and got recognised by international certification companies. In this era of globalisation of trade, market access requires compliance with international standards, to which we have unfortunately paid insufficient attention so far.
Manufacturing industry is the second largest sector of Pakistan's economy in terms of both productivity and employment. It also plays a crucial role in Pakistan's external trade flows, with manufactured and semi-manufactured goods accounting for a large percentage of our exports.
The public and private sectors in the country have reportedly asked for UNIDO's support in a number of fields to help them achieve the target of enhancing the competitiveness and sustainability of the local manufacturing sector. According to experts, standards and technical regulations are essential for trade and commerce and the diffusion of technology, but these can also serve as important non-tariff barriers to trade.
The developing countries in particular are hampered by the absence of certification bodies that are mutually recognised by their overseas counterparts, and consequently the lack of accredited laboratories. Experts believe that effective functioning of the Pakistan Standards and Quality Control Authority (PSQCA) will largely depend on having accredited laboratories and credible ISO 9000 and ISO 14000 certification schemes.
Incidentally, ISO 9000 is being increasingly used in the emerging markets to help raise standards and improve competitiveness of products. The main purpose behind its establishment was to promote international exchange of quality goods and services through improved standards.
Laxity in quality control by regulators in the country over the decades has dented the credibility of our products in the world markets. It is never too late, however, to initiate corrective measures. The purview of the proposed Certification Authority should not be kept restricted to electrical goods only but should also be gradually enlarged to cover all other exports, which will give us a competitive edge. Secondly, a foolproof mechanism should be put in place to ensure faithful implementation of the decision taken by the Engineering Development Board.
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