Raza Khan

The business community has urged the government of Pakistan to devise a comprehensive strategy to reduce the impact of the current economic crisis on industry and the private sector, WealthPK reports. Kashif Anwar, president of the Lahore Chamber of Commerce and Industry, said that the government should adopt a ‘charter of the economy’ to devise a long-term policy as a first step to control the current economic crisis.

He was addressing a webinar titled “Challenges Facing Pakistan's Economy - Private Sector's Perspectives” organised by Sustainable Development Policy Institute (SDPI). He said that at the time of increase in utility prices and policy rates, the government needs to increase exports and reduce imports by industrial substitution of the import items to meet the market demand.

Kashif Anwar also asked the government to restart trade with India. “The national market lacks alternative raw materials for industries. It is very important to re-initiate direct trade with India to reduce the cost of import,” he added. He said that an uninterrupted supply of raw materials to the local industries is crucial for increasing exports. The restrictions imposed by the government on the import of raw materials have badly affected the local industries and imports from the country.

“How can an industry be run without raw materials,” he questioned. He said that the availability of raw materials to the export industry should be ensured. “No raw material means no production,” he added. Dr Shehla Javed Akram, founder of the Lahore Women Chamber of Commerce and Industry, said on the occasion that disruption of supply to various industries is exacerbating the challenges of those sectors. She said that the country lags behind in terms of sector-specific policies as compared to other countries in the region. “This has reduced the competitiveness,” she added.

She urged the government to devise and implement effective policies to reduce dependency on the import of raw materials. “We must shift to local raw materials like India. The government should abolish the policy of price fixation,” said Dr Shehla. Anees Mahmood, director of the Mahmood Group of Industries, stressed the need for remodeling the outdated educational system. “The current global textile industry heavily relies on the internet and artificial intelligence. It is something, which workers in Pakistan lag behind in terms of skills and experience,” he added.

He said that there is great potential for sustainability and expansion in the textile sector. “It is also the responsibility of entrepreneurs to introduce new ideas, technologies, skills and minds to support the growth of the sector in the country. The sector can sustain in tough economic conditions as well,” he added.

Anees Mahmood called for the continuity of policies to prevent negative externalities and disruptions from harming the textile sector in the country. Rehan Bharara, chairman of Faisalabad Garment City, said that disruption in the supply chain due to restrictions on imports has negatively impacted the economy of the country. “We rely on the import of raw materials. The export industry cannot flourish and expand in the country unless it has import substitutions,” he told the webinar.

He urged the government to take the stakeholders from industries and other departments on board to develop sustainable solutions and policies for the industrial sector that could minimise the impact of the economic crisis on the private sector and export industry.

Credit: Independent News Pakistan-WealthPk