Army plans to help grow domestic engineering industry

Pakistan army plans to help domestic engineering industry to grow. And to achieve its goals, the Inspector of Technical Directorate (ITD), which works under the Chief of General Staff, is organising a seminar on "How to enhance user confidence in indigenous products in Islamabad on October 11.
Army's move includes interaction and understanding of the problems of the vendor industry, which could lead to better co-operation in resolving them. Army has been from very beginning targeting meeting requirements through import substitution provided by domestic industry.
ITD is conducting this seminar through Inspectorate of Vehicles and Engineering Equipment (IVEE) which is lead organisation within army to carryout tests and subject the domestic products to performance test. IVEE is providing all the necessary help to the domestic industry in improving skill as well as transfers all the knowledge through drawings and consultations for maximum success of import substitution.
In the given situation of $21 billion trade deficit, it becomes all the more necessary to support domestic industry and help in improving their quality, which further generates employment and economy of the country. The increase in domestic share of the locally produced goods would help in reducing trade deficit.
According to IVEE indigenisation is regarded as the key to achieve self-reliance and self-sufficiency. Growth in automotive industry is considered to be one of the contributing factors in economic growth of Pakistan in the recent years. Though, indigenous manufacturing of spare parts of various kinds is increasing day by day, yet quality aspect of most of the developed parts is still a question mark.
Similarly cost effectiveness is another area where buyers of the locally manufactured parts have not yet succeeded and user confidence has to be enhanced drastically. The seminar would provide an opportunity to interact with indigenous manufacturers of various parts and assemblies for automotive industry in Pakistan. It will provide an opportunity to share their vision, strategies, long-term and short-term objectives in attaining quality assurance and user satisfaction for the manufactured products. This aspect will also cover the services being provided in the shape of response after sales, warranty or any back up support aimed at achieving the confidence of the customer. The vendors will be encouraged to put across their problems they face due to army procedures to address these subsequently.
Engr. M.A.Jabbar, former Vice-President, Federation of Pakistan Chambers of Commerce and Industry who has been invited to address the seminar in his capacity as CEO, Qaim Automotive Manufacturing Pvt Ltd told Business Recorder that a country like Pakistan, which had already been facing fiscal deficit of more than $10 billion, burdened with foreign debt of more than $44 billion and trade deficit of $21 billion may not afford import of some of luxury items, which account for as much as US $8 billion.
Several items of over $1.5 billion including chocolates, candies, (haram and halal ?) canned juices, confectionery items, mineral water, assorted and dry fruits are part of our unchecked liberal imports in the given situation, which may not motivate indigenisation. Should not we consider to share indigenisation through fiscal, monetary and policy measures against the huge import bill of over $1.3 billion in respect of telecom including cellular phones and allied equipment, coupled with electrical home appliances like refrigerators, air conditioners, ovens, geysers, sanitary items, finished plastic goods, etc, accounting for over $2.5 billion? He questioned.
In his opinion standardisation and enforcement is the answer for keeping the quality and the country should not compromise on this. There are several thousand standards of International Standards Organisation adopted by Pakistan Standards and Quality Control Authority, which should be adhered to. The acceptance and enforcement in the country are the way forward for exports.
Agreeing that "indigenisation is regarded as the key to achieve self-reliance and self-sufficieny", Engr. Jabbar said that the present level of trade deficit of $21 billion against the exports of around $19.1 billion itself gives us the idea that had indigenisation been sharing more against competing imports the trade imbalance for meeting our requirements would have been less. We foot the bill of oil for oil fired power generation of billions of dollars while we can generate power through substituting oil by available coal of determined reserves equivalent in amount of 200 years GDP of Pakistan at present rate", he said.