Speakers at a seminar on Wednesday observed that there is an acute dearth of technical institutes in the country which is putting negative impact on the small and medium industrial growth.
SME sector is providing over 70 percent employment as a non-agriculture sector in the country, they said at the seminar on "SMEs under the era of globalisation" organised jointly by Japan External Trade Organisation (JETRO), FPCCI and KCCI at a local hotel.
Speaking on the occasion, JETRO expert at FPCCI, Haruki Shimzu, highlighted the Pak-Japan trade, saying that in 2005 Japan's exports to Pakistan were $1.5 billion and imports from it were $140 million, a trade balance of $1.3 billion tilting in Japan's favour.
In 2006, imports from Pakistan increased to $210 million and exports to it exceeded $1.7 billion, with a trade balance of 1.5 billion again in favour of Japan, he said, adding that during the same period, Foreign Direct Investment from Japan was 57 million and 47 million respectively. Japan exported transport machines and general machinery and metal and metal products, and imported textiles, mineral fuels and raw materials from Pakistan.
In the context of employment through SMEs in both the countries, he said that employment in Pakistan is 78 percent and in Japan it is 70 percent. The number of enterprises is 90 percent in Pakistan and 99.7 percent in Japan. Contribution to Gross Domestic Product in Pakistan is 30 percent and 51 percent in Japan. He observed that SMEs create new business and jobs, promote entrepreneurship and it is the primary mover of the economy. However, there is a need for further consultation for its development.
He said at present Japan is facing problems in its recovery. He said that more manufacturing units have moved to other countries along with technologies and management expertise. Similarly, jobs also moved with them. There is less difference of Japan's manufacturing with the overseas factories as the common technologies have already been exported.
The new generation has less interest in working at the manufacturing sector, resulting in discontinuation of technical skills. While closure-rate is higher than the start-up rate, that needs improvement, Haruki Shimzu pointed out. Zubair Tufail, Vice President of FPCCI and President of KCCI Anjum Nisar also spoke on the occasion.