‘Comprehensive national industry policy needed’

The country’s growing economic crisis and declining industrial development demand a cogent National Industry Policy with effective implementation frameworks to promote realistic regulation and government-academia-industry collaborations for sustainable growth. This was the crux of a consultative session held Monday by the Revenue Mobilisation Investment and Trade (ReMIT) project and Sustainable Development Policy Institute (SDPI) with the Rawalpindi Chamber of Commerce and Industry (RCCI) to gather key recommendations and expert suggestions for the policy draft.

Chairman, Executive Committee and President RCCI, Saqib Rafique, highlighted the need for alternatives to growing imports and urged policymakers to focus on developing indigenous solutions instead of burdening existing sectors. He stressed that the industry requires consistent policy implementation to achieve optimum results.

Senior Vice President, RCCI, Hamza Sarosh, noted that the consultative meeting aimed to provide policy recommendations to ReMIT and SDPI for the upcoming industry policy draft. He warned that high tax slabs and overregulated regimes hinder the country’s ability to benefit from its strategic location, resulting in declining revenue, business, exports, and employment opportunities. Sarosh pointed out that Vietnam has surpassed China in foreign direct investment (FDI) and business growth, while Pakistan’s industry struggles with narrow and short-sighted policies.

Umar Bhatti, Industrial Policy Consultant at SDPI, presented a detailed discussion on national industrial policy, revealing that Pakistan’s GDP equation from FY2021-23 shows a consumption-driven economy with depleting exports since 2001. He stressed the need for export diversification, product value addition, modern technology, and highly skilled labour to exploit economic opportunities amid regional and international trade rivalries.

Senator Mian Ateeq Shaikh underscored the importance of trust in foreign investors and economic enterprises, which has been eroded due to Pakistan’s violation of agreements and misuse of treaties. He called for modernising industrial policy and governance to address contemporary risks and challenges.