Report highlights need to formulate comprehensive industrial policy
Study on LSM sector conducted by FPCCI, Institute of Business Management.
KARACHI:
Revealing a study on large-scale manufacturing in Pakistan, Sultan Chawla, the president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that large-scale manufacturing presents a gloomy picture with persistent problems of high interest rates, energy crisis and security issues.
The FPCCI has published a joint study on the large-scale manufacturing sector in collaboration with the Business Support Centre of the Institute of Business Management, Karachi.
The ‘Review of Pakistan’s large-scale manufacturing sector – diagnosis and way forward’ is mainly focused on five major sectors - textiles, automobile, fertiliser, engineering and pharmaceuticals while it also presents some recommendations for the overall manufacturing sector.
It said that the recent growth in economy has been dominated by an increased momentum in the services sector particularly in telecommunications and finance. Investment in the manufacturing sector has remained concentrated in textiles, while other sectors remain neglected.
The report said that to revive investment in manufacturing there is a need to formulate a comprehensive industrial policy that promotes investment in public infrastructure, stimulates entrepreneurship and streamlines regulatory mechanisms and procedures.
Dr Javed Ansari of the Business Support Centre, who supervised the study, said that Pakistan had stopped industrial planning in 1988 and resultantly there has been no big industrial project erected since. “Before 1988, all respective governments had brought their own policies with them. Later, in the absence of policies, Pakistan started following the policies of the International Monetary Fund and the trend continues,” he said.
Published in The Express Tribune, December 10th, 2010.
Revealing a study on large-scale manufacturing in Pakistan, Sultan Chawla, the president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that large-scale manufacturing presents a gloomy picture with persistent problems of high interest rates, energy crisis and security issues.
The FPCCI has published a joint study on the large-scale manufacturing sector in collaboration with the Business Support Centre of the Institute of Business Management, Karachi.
The ‘Review of Pakistan’s large-scale manufacturing sector – diagnosis and way forward’ is mainly focused on five major sectors - textiles, automobile, fertiliser, engineering and pharmaceuticals while it also presents some recommendations for the overall manufacturing sector.
It said that the recent growth in economy has been dominated by an increased momentum in the services sector particularly in telecommunications and finance. Investment in the manufacturing sector has remained concentrated in textiles, while other sectors remain neglected.
The report said that to revive investment in manufacturing there is a need to formulate a comprehensive industrial policy that promotes investment in public infrastructure, stimulates entrepreneurship and streamlines regulatory mechanisms and procedures.
Dr Javed Ansari of the Business Support Centre, who supervised the study, said that Pakistan had stopped industrial planning in 1988 and resultantly there has been no big industrial project erected since. “Before 1988, all respective governments had brought their own policies with them. Later, in the absence of policies, Pakistan started following the policies of the International Monetary Fund and the trend continues,” he said.
Published in The Express Tribune, December 10th, 2010.