I struggle these days whenever someone asks me for my political affiliation. I would rather describe myself as an “Industrial Democrat”, meaning “we the people who are looking at basic survival and to reinvent the Pakistani industry anew”. Why I am suddenly so concerned about this today is because the average Pakistani struggles for jobs and for his survival in an honest way, whereas the primary sector — manufacturing — to address this is eroding at a fast pace (Pakistan is de-industrialising). All this while our economic managers invariably keep coming up with the wrong answers to the right questions. The present economic strategy surely seems headed in the wrong direction: looking outwards instead of inwards; no clear vision on building a sustainable supply chain; inflation out of control; loss of competitiveness; absence of focus on shoring up ease of doing business; poorly negotiated trade deals compounded by corruption, smuggling and conflict of interest; an expanding footprint of the state in the markets; unhealthily high governmental oversight; shifting policies and lack of policy uniformity within the national economic canvas; a top-heavy governmental structure; closing down SMEs; high utilities; and excessive taxation to the point of being unproductive.

So, then, what is the right answer? I admire the rise in stature of our globe-trotting political and establishment leaders as regional or perhaps world peacemakers — truly necessary as well — but if they are to really win the hearts and minds of the people, then their economic strategy pundits will need to start thinking around expanding the pie of work by building new industries, not just protecting the pie of their own benefits and power. All efforts should be to push and advance manufacturing, not destroy it. And this is the only right answer to the right questions: how can Pakistan create more good jobs by competing within the global manufacturing environment? Broadly, three initiatives can go a long way in addressing this.

First, to link academia and academic institutions with industry. This combination will find innovative ways to support each other and create opportunities that streamline growth and industrial investment in sync with global technological development in robotics and AI, leading not only to enhanced competitiveness but also to removing bottlenecks in the way of sustainably reaching economies of scale. At the same time, it will provide an evolving educational infrastructure that produces productive and well-equipped youth with a ready platform to apply their skills.

Second, as I have written numerous times, if you want to partner China, then learn its skills of manufacturing, not just the art of using its products. Chinese industrial companies do not just foray into limited areas, but instead create synergies to move in tandem as a nation, ensuring employment across all sectors — from engineers and AI researchers to blue-collar workers and agricultural labour — to support holistic industrial growth.

Finally, there cannot be a more obvious direction to succeed than the export-led path. Practically, there is no economic success in the world without sustainably growing national exports. Ironically, this is the main sphere of the economy which has been dismantled by poor policy. Whenever you build exports, you end up creating industries that solve multiple problems. But when you extract capital through excessive and coercive taxation, you destroy platforms that may have taken decades to build. No wonder, then, with the recently announced lockdown measures, one must ask what playbook the government has for an already struggling Pakistani industry and its exports.

Dr Kamal MonnooThe writer is an entrepreneur and economic analyst. Email: kamal.monnoo@gmail.com

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