Industrial policy

This refers to the news story, ‘Need to analyse situation in cautious manner: Razzak Dawood’ (Mar 10). The adviser to the PM for commerce, textile, industries & production, trade & investment, Abdul Razzak Dawood, promised in 2018 to unveil a comprehensive industrial policy by June 2019 to spur industrialization, promote exports and improve job opportunities. This also blended with PM Imran Khan’s plan to create 10 million jobs. Many months have passed but the much awaited policy has not been announced.

Pakistan’s existing production capacity has saturated and further investment is needed in the manufacturing sector to push up the exports of finished goods or carry out import substitution. Ironically, the advisor is calling for increase in exports without focusing on the need for capacity expansion. New investment in capacity would take place when there is a clear-cut industrial policy which is conspicuous by its absence. Asking for export enhancement without a policy framework is like using a car without wheels or riding a horse without horseshoes. It seems that certain elements do not want fast-paced industrialization in order to derail the economic agenda of the government. The government must weed out such vested elements from key positions that are an obstruction in proceeding forward.

Kulsoom Arif

Karachi