ISLAMABAD: The revival of sick units and promotion of export-oriented industries will help to strengthen the economy of Pakistan on sustainable bases.
Dr. Mahmood Khalid, a senior research economist at the Pakistan Institute of Development Economics, told WealthPK that there was a dire need to establish a strong industrial and manufacturing base in the country to enhance economic growth.
The revival of the sick industries would generate job opportunities, provide a revenue base for the future and enhance Pakistan’s capacity to export different industrial items to other countries.
He said that Small and Medium Enterprises (SMEs) offered massive employment opportunities. “They play a significant role in enhancing economic growth and exports. Regulations need to be revised to ensure greater participation of SME sector in the industrial and economic activities in Pakistan,” said Dr. Mahmood.
According to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country needs to adopt competitive trading trends to increase exports. The goal can be achieved through innovation, cutting-edge technology, research and development.
FPCCI said that Pakistan’s industrial base should be diversified beyond textiles, leather, cement and fertiliser. Industry plays a significant role in the economic development of the country. It is widely considered the backbone of the economy across the globe. However, the government is making efforts to improve the national economy.
The growth of the large-scale manufacturing (LSM) sector manifests the promotion of industrialisation in the country and the implementation of investor-friendly policies.
According to the Quantum Index of Large-Scale Manufacturing Industries (QIM), its output increased by 26.9% in March 2022 compared to March 2021. It witnessed an increase of 8.5% as compared to February 2022.
The slow process of industrialisation in the country is considered one of the main causes of its low export. The robust policies are likely to encourage investment, accelerate industrialisation and boost overall economic activities in the country.
Investment in modern technologies is imperative for economic stability in the modern world. Automation is rapidly increasing and gaining acceptance in the world.
Dr. Mahmood told WealthPK that the economy of any country could not be strengthened without diversifying its industrial production.
