Efficiency in manufacturing has to be achieved through cost management
Pakistan’s manufacturing and industrial sector finds itself at a pivotal moment. For decades, the industry thrived under generous government support through tax incentives, subsidized energy, and concessional financing. These enablers allowed many firms to grow in both domestic and export markets, often without needing to address deeper structural inefficiencies.
As a result, many industrialists focused more on lobbying for favorable policies from Islamabad than on improving their internal operations. But the economic tide has turned. Government support is no longer guaranteed, and the “Islamabad well” has run dry. Manufacturers must now learn to stand on their own feet.
In today’s environment, the survival of Pakistani manufacturing businesses depends on internal efficiency and resilience. With little external support left to count on, organizations must rigorously examine their operations, identify inefficiencies, and optimize processes across the board.
Traditional cost-cutting measures are no longer enough. Instead, a comprehensive and strategic approach to cost management is required—one that can deliver savings of 15–30% when implemented effectively.
Why Manufacturing Still Matters
Manufacturing remains a backbone of Pakistan’s economy, providing employment and contributing significantly to tax revenues. Yet the industry faces mounting pressure from both external and internal forces.
Externally, inflation, energy price volatility, and increasing ESG and compliance obligations are squeezing margins. Internally, outdated infrastructure, organizational inefficiencies, and bloated overheads further erode competitiveness.
To survive and thrive,........
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