Another day, another set of news. Newspaper front pages have the latest on terrorism, local polls campaign, corruption scandals and so on. The back pages tell you about the latest claims of good governance or welfare of the people, and mutual accusations by the leading practitioners of spin. An unintended consequence of politics, terrorism and corruption taking the lion’s share of the news is that reports about vital economic problems get pushed to the inner pages. Those who want to know what is really happening to the nation’s economy – particularly to its productive sectors – have to search hard to find, tucked between other business news. There is a statement by the chief coordinator of the Pakistan Ready-made Garments Manufacturers and Exporters Association warning of a slow death of Pakistan’s clothing industry if it is not provided a level playing field vis-a-vis competitors like China, India, Bangladesh. The following day you are treated to a fuller report on the tribulations of the entire textile sector that has been the backbone of our industry and exports since independence. If the federal and provincial leaders in power gave one-tenth of the time and energy they devote to terrorism, law and order issues or endless politicking, they can achieve major gains in boosting agricultural and industrial output. The jobs thus created or saved can have a salutary effect on a burgeoning number of the jobless who end up joining nurseries of terrorist and criminal gangs. The current obsession with the military aspect of the fight against terrorism and extremism is tantamount to abandoning the socio-political means of resolving the problem. Take for instance the latest action against militant hideouts in Tirah resulting in the death of 21 terrorists. It is troubling to know that a year and ahalf after the launch of Pakistan’s most ambitious anti-terror operation, there are still hundreds of militants resisting, hiding and getting killed in North Waziristan. Meanwhile, others continue to hit Karachi, Balochistan, Khyber Pakhtunkhwa and the tribal belt on a daily basis. It would appear Operation Zarb-e-Azb is not that close to a successful completion. While the military and paramilitary operations go ahead, the political track has reached a dead-end. Both civil and military authorities are not saying much about activating contacts with the militants for surrendering arms and pockets of territory. The costs of fighting an internal conflict without recourse to political and psychological means can have long-term negative consequences. It is about time the administration took on economic challenges on a ‘war footing’ as in curbing terrorism and extremism. Is our agriculture doomed to suffer from chronic low productivity forever? The industries remain seriously handicapped due to the lack of a framework to encourage fair practices. Myriad government agencies harass industry owners, forcing most to engage in deceit or fraud to keep their heads above water. All this goes on while smuggled goods are ravaging the country under the watch of the same agencies. Over the past week, I have met two entrepreneurs who had to shut down their garment units after becoming uncompetitive in the export markets. One of them has sought refuge in the real-estate business while the second is focused more on software development. Both have found ways to earn a living. The same cannot be said of their laid-off workers. Similar stories are heard all over the country. According to APTMA’s Punjab chief, another two dozen mills have shut down while a larger number has cut down operations to one or two shifts, rendering thousands of workers jobless. The prime minister and his cabinet members gave assurances last August about the imminent announcement of a comprehensive package to bail out the textile sector. Some helpful steps were taken but the authorities have returned to their usual dilatory mode. Rather than waiting for high-sounding relief packages, government and industry representatives should agree on the modalities of removing the obstacles to proper operation of the textile industry. Ironically, the officialdom has resorted to making claims that the exports of our competitors have declined to an even greater extent. Nobody is oblivious to the slump in global markets and its effect on our textile and garment industry. The authorities are no doubt aware that Pakistan’s textiles are not provided a level playing field in the home market as well, which is flooded by imported or smuggled fabrics and textile items particularly ready-to-rear garments. The ongoing crisis caused by unbearably high costs of inputs and shortages of electricity and gas have resulted in Pakistan’s failure to benefit adequately from the EU’s GSP Plus regime. The textile sector too is responsible for having failed to improve its productivity or ingenuity through product diversification and value addition. The mess in the textile sector cannot be overcome without an intensive and frank dialogue between the industry and the government. One wishes that, keeping in view the number of players involved in this dialogue, a central coordinator is appointed to deal with the crisis in an effective and urgent manner. The federal and provincial governments as well as the powerful civil service should be able to muster the needed resourcefulness and efficiency to pull the textile sector from its existential crisis. Email: saeed.saeedk@gmail.com
