Pakistan to encourage import substitution

ISLAMABAD — Pakistan government has decided to encourage import substitution by extensively upgrading indigenous industrial and manufacturing capabilities.

By From A Correspondent

Published: Mon 22 May 2006, 10:50 AM

Last updated: Sat 4 Apr 2015, 3:46 PM

As a first step, informed sources said, the ministry of industries and production has sought special funding to initiate modernisation and technology upgrdation of Pakistan Industrial Technical Assistance Centre (PITAC), Lahore.

Beside helping in import substitution, the new venture is also aimed at poverty alleviation and job creation which will be considered a step forward for future industrialisation and enhanced competitiveness of exports.

The objective is to acquire and disseminate the latest technological know how and advanced technology to the industry and to provide training to engineers, managers, supervisors, technicians and workers to improve their capabilities and skills for better productivity and performance.

It is said that there is no other institution/organisation which addresses various vital issues hampering the real growth of the industrial and the manufacturing sectors.

The benefits of the proposed technology upgrdation will be multi-dimensional and several fold for needed based human resource development, industry demanded advisory services and the manufacturing sector requirement in technological backup support.

The expertise and services made available due to the proposed upgrdation of PITAC will be shared by the industry as a whole without any preference and its effect shall be catalytic and facilitative in technological development of engineering industry of the country.

It is understood that in view of the government's future vision of economic development and self reliance, the requirements of training, advisory and technological support to the industries will increase to a large extent, particularly in terms of the services for SMEs.

The industry is moving to the next stage, therefore, the existing facilities at PITAC are considered insufficient to fulfil such needs. Imports of production tools like dies, moulds, jigs, fixture, gauges and precision parts etc. have two different inherent problems, i.e. huge foreign exchange costs and longer

lead time, which are not affordable for industries in general. The upgradation plan will not only develop the human resources but will also prove to be successful venture for import substitution. Pakistan, sources said, has reached a stage of economic development where production of intermediary goods cab be undertaken.