Ayesha Mudassar

Prudent policies that help identify challenges and ensure the application of innovative techniques can significantly improve the performance of the engineering sector, leading to healthy growth in exports. Talking to WealthPK, Engineering Development Board (EDB) Chief Executive Officer Raza Abbas Shah said that Pakistan’s engineering sector had enormous potential. He said implementation of concrete strategies could significantly improve investment in the sector.

Ihsan Mujtaba, Secretary General Pakistan Electric Fan Manufacturing Association, told WealthPK that unproductive workers, lack of innovative technology, and higher borrowing costs were the major factors for the sector’s lack of competitiveness. Moreover, he said galloping inflation and massive rupee devaluation had significantly raised the production costs.

“Identification of inefficient production processes and adoption of emerging trends are necessary to improve the sector’s competitive ability and attain a significant share in exports in the coming years,” he continued. Pakistan’s engineering sector has the largest and most cross-sectoral linkages, employing around three million people, and contributing around 4.8% to the country’s total exports.

The exports of engineering goods increased 10.15% during the first eight months of the current fiscal year 2022-23 (8MFY22) compared to the corresponding period of last year. The exports of engineering goods during the July-February period of FY23 stood at $163.135 million against the exports of $148.099 million during the same months of the fiscal year 2021-22.

Among the engineering goods, exports of transport equipment and other electric machinery increased by 18.9% and 44.4%, respectively, during the 8MFY23 compared to the corresponding period of the previous year. However, on a month-on-month basis, the exports of engineering goods decreased by 19.36% in February 2023 when compared to January 2023.

Credit: Independent News Pakistan-WealthPk