'Hardware sector can be strengthened through infrastructure uplift'

Pakistan Hardware Merchants Association's Chairman Sardar Usman Ghani has called for establishing linkage between the industry and academia for preparing skilled workforce. Talking to Business Recorder, he said "The linkage between trade and industry is necessary to help grow the industry with trained human resource."
He said the hardware sector's contribution to national economy has not yet been recognised and the government is aware of the economic potential of the local hardware sector. The academia is not properly linked with the industry to help prepare skilled workforce. Construction industry, which is very much based on hardware sector is recognised separately in the national economic accounts but official economic accounts and statistics do not recognise the hardware sector separately.
Giving example of China, he said the hardware potential can be evident from its export figures. China alone exported hardware worth over US $57 billion in 2010 showing an increase of over 31 percent as compared to 2009. China's hardware exports remained 300 percent more than that of Pakistan during the same period. Unfortunately, confirmed data regarding the hardware exports is not available due to lacking recognition of this sector at the official level. The local hardware sector can further be strengthened through infrastructure development including housing industry, which is most vital for spurring economic growth. Moreover, the sector has huge potential to generate employment, he added. In the absence of separate recognition in the economic structure, little will be understood about the hardware sector's ability to contribute to investment, employment and economic growth. Resultantly, it will remain a big policy black hole. Despite having a large hardware economy that has the potential to become one of top three foreign exchange earners within this decade, no clear estimates are available to shed light on its real worth, he said.
According the Association's research Pakistan's hardware economy is worth around US $10 billion while hardware imports stand between US $3-4 billion. He claimed that the local hardware sector provides over 3 million direct and indirect jobs and contributed around 7-percent to tax revenue in 2010. He was of the view that with the government assistance in term of training, the hardware sector can become a leading export sector in the country. A better understanding regarding the sector and government's strategic approach will not only help increase its share in employment but also give a boost to the exports and economic growth, he added. These objectives can be achieved by adopting appropriate policy and establishing an effective collaborative network between the industry and academia for providing training, he maintained.