Our generation grew up listening to fancy slogans of promoting ‘Make in Pakistan’, achieving Self-reliance and hence making our country impregnable. During the last 75 years, however, our country has not been able to convert this desire into a reality and it remains as a dream. Let us admit that we have not been able to perform well. Today there is a huge gap between our nation’s enormous potential and miserable performance. As a result, we as a country are at the mercy of cruel diktats of the IMF, World Bank and other external elements. Time and again, we are forced to ask friendly countries for loans to improve the dwindling foreign exchange reserves of our country. It is a sad story, but a harsh reality. Despite all this, we are not putting our house in order!!
By promoting ‘Make in Pakistan’ in the real sense, we can achieve the desired progress, and there is no doubt in it. For this creating a fair, equitable & conducive ecosystem is most important. In Pakistan there are two types of industries: group one comprises those who are ‘privileged, powerful and successful’ industries of the country. Group two comprise of-all-the-rest of the industries who are made to subsidize those powerful industries who enjoy all kinds of subsidies, encouragements as well as support on the policies side as well as support in resolution of their big or smaller issues. The group that is not privileged enough, and falls under the category of ‘the-rest’ are made to run from pillar to post for even small issues, but they do not get any meaningful and fair support.
Most of us are well aware about some other factors as well that have contributed to this state of affairs and hindered our growth: Inconsistent policies, lack of predictable road-map, political uncertainty and domination of political considerations in economic & industry related matters. Add to this incompetence and absence of spirit of meritocracy in our entire system.
Talking from the point of view of the long steel sector, the melting side of the steel industry is the back-bone of any country's steel industry. Around 20 years or so ago, Pakistan and Vietnam were at the same level of standing in their respective steel industries. However, today Pakistan’s capacity of the entire steel sector hovers around 9 to 10 million MT. In comparison to this, Vietnam’s production of steel has increased to 30 million MT plus annually. Today, the exports of Vietnam’s steel sector are over ten million MT annually. The issue is that Pakistan has progressed incrementally but we have not been able to leapfrog like Vietnam!
We have been listening to a lot of talk about Pakistan’s need to encourage exports so as to win-back our financial independence. However, on the ground, the situation is quite different. During the last few years, some of the steel companies of Pakistan diversified into non-ferrous side and are struggling to export Copper ingots to China. In FY 2022, the exports of copper from Pakistan increased to USD 1350 million and the non-ferrous side of the steel sector emerged as the 5th largest exporting sector of Pakistan in a short span of time. In case of better facilitation, and hand-holding by the government, there is potential to increase these exports several times more to 5 to 10 billion USD in the next few years or so. At this point in time, the exporters of Copper ingots are running from pillar to post for resolution of irritants in the Export Facilitation Scheme (EFS). However, the industry is not getting the much-needed support from the Govt especially from FBR and the issues or irritants that could be resolved in days take months/ year, and still remain unresolved.
In most recent times, whereas the economy of the country has gone from bad to worse, there is one silver lining where we can find hope: the creation of the Special Investment Facilitation Council (SIFC). There is a need to strengthen SIFC by empowering it with upright and capable sectoral experts onboard this newly formed body.
They say, it is never too late to start. Pakistan is a great country and if we can rise above mere sloganeering, there is still time to enable this country to bounce-back in a short span of time. Still, there is time to make ‘Make in Pakistan’ a roaring reality.
Pakistan zindabad.
By promoting ‘Make in Pakistan’ in the real sense of the word, we can achieve the desired progress, and there is no doubt about it.
Syed Wajid I. Bukhari | Secretary General, Pakistan Association of Large Steel Producers
Copyright Business Recorder, 2024
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