The week in focus

The government and industry have started working together in order to compete in the international market.

The government and industry have started working together with the aim of introducing high technology in manufacturing processes in order to slash costs, improve quality and make products competitive in the international market.

The initiative seems encouraging and is in line with international trends as many countries, particularly China, spend on science and technology and adopt the latest techniques to make manufacturing processes smarter and produce quality goods.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the ministry of science and technology signed a memorandum of understanding last week for encouraging collaboration between state-run science and technology organisations and industry to promote and support technology-based industrialisation in the country.

Efforts in this direction will certainly enhance production and exports since those lagging behind may be sidelined in today’s world of fierce competition.

According to the ministry, commercialisation of research output is one of the most effective means to encourage innovation. Though financial and human resources are limited, the country needs joint and concerted efforts in the technological field.

In the United States, experts have voiced apprehension over proposals to slash spending by five to ten per cent on research and development due to financial constraints, which threatens economic growth. On the other hand, its competitors like China, India and South Korea are boosting spending on science and technology.

According to the US National Academy of Sciences, over the past 15 years China has moved from the 14th place in number of studies published to its current standing at the second place – just behind the US.

No think-tank

Vice President of leading software developer InfoTech Private Limited Nadeem A Malik underlined the need for encouraging research and development in the industry with the objective of improving existing processes and rationalising cost. “Although new machinery is coming, there is no think-tank for research and development in the country. Besides, meaningful cooperation between different organisations is also lacking,” he said.

First, the most useful industries and those which serve niche markets should be focused on research and development work. These include textiles, food processing, milk production, agriculture and cattle farming.

He suggested that companies should set aside at least 10 per cent of their profits for research and development activities, but cautioned the amount is not enough, it is just a step in the right direction. The government had launched a fund in 2005 for providing money for research and development activities in the textile sector but after three years the programme was scrapped.

Creating linkages

An official of the ministry of science and technology said the government is creating linkages between organisations to promote science and technology which will develop industry and boost economic growth. “In the present age of globalisation, the ministry is underscoring the need of promoting research and development for exploiting the vast indigenous resources.”

The official said the ministry is paying attention to human resource development in the field of science and technology and state institutions are producing engineers and technicians in addition to training graduates.

Moreover, the Pakistan Standards Quality Control Authority (PSQCA) is engaged in developing standards for the industry to help it compete under the World Trade Organisation regime, he added.

the writer is incharge Business desk for the Express tribune and can be contacted at [e-mail]

Published in The Express Tribune, January 3^rd, 2011.