With the completion of CPEC, Pakistan is expected to witness a growth in the manufacturing sector
ISLAMABAD: With the completion of CPEC, Pakistan is expected to witness a growth in the manufacturing sector. Considering that China has already demanded the relocation of its sunset industries to Pakistan, a rise in automated production is evident. Also a recent report indicated a surge in the auto industry, likely to be followed by increased automation of other industries too, including the agro-processing and all those production sectors where the process could be mechanised. The main incentive to relocate and establish new industries in Pakistan is cheap skilled labour with relatively low production costs and tax benefits, compared to their own country of origin.
However, the increased mechanisation of the production processes might not be equally beneficial for Pakistan. In a country, where unskilled labour constitutes the greater part of the workforce, followed by those who receive formal education and are engaged in white-collar jobs, the least are enrolled in vocational and technical training institutes. With such a situation, not only will the industry be unable to have enough supply of skilled and unskilled labour, the initiative could lead to increased unemployment as with the increased mechanisation of the production process the demand for labour will be reduced.
The disadvantages can outnumber the potential benefits.
Fahad Abdullah
Published in The Express Tribune, September 27th, 2017.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
