session viii jahangir
TRANSCRIPT
-
7/28/2019 Session VIII Jahangir
1/28
Towards a Prosperous Pakistan:Towards a Prosperous Pakistan:A Strategy for Rapid Industrial GrowthA Strategy for Rapid Industrial Growth
Pakistan Development ForumPakistan Development Forum
Federal Minister Industries, Production & SpecialFederal Minister Industries, Production & SpecialInitiativesInitiatives
2626ththApril 2005April 2005
-
7/28/2019 Session VIII Jahangir
2/28
22
Strategy for IndustrializationStrategy for Industrialization
Where are we today?Where are we today?
An assessment of our Industrial performanceAn assessment of our Industrial performance
so farso far
99Share of Manufacturing in GDPShare of Manufacturing in GDP
99Export performanceExport performance99Consistency of GrowthConsistency of Growth
99Private Investment performancePrivate Investment performance
99Comparison of Job CreationComparison of Job Creation
99Manufacturing Technology levelManufacturing Technology level
-
7/28/2019 Session VIII Jahangir
3/28
33
Share of Manufacturing in GDP (%age)
0
5
10
15
20
25
30
35
40
45
1960 1965 1970 1977 1980 1985 2000 2001
PercentageShare
Pakistan Indonesia Malaysia Korea
Source: World Bank - World Development Reports
-
7/28/2019 Session VIII Jahangir
4/28
44
Export of manufactures 1990 2002World % %
China 1.85 6.21Mexico 1.06 2.88
Malaysia 0.66 1.57Thailand 0.61 1.1
India 0.52 0.70Pakistan 0.18 0.18
Source: WTO, Sherani (2004)
Pakistans Share of World Exports
-
7/28/2019 Session VIII Jahangir
5/28
55TRADE BREAKUP World Vs PakistanTRADE BREAKUP World Vs Pakistan--20032003
World Trade Breakup
Manuf & Eng
Goods,
69.50%
Misc, 3%
Textile &
clothing,5.60%
Mining &Fuel, 10.80%
Non-Ferrous
Metals, 1.80%
AgriProducts,
9.30%
Pakistan Trade Breakup
Textiles,66.1%
Chemical,
1.7% Carpets, 2.4%
Others 5.6%
Marble
Granite , 0.4%
Engineering
goods, 3.9%
Petroleum,
2.2%
Sports
Goods, 2.7%
Leather, 6.3%
Agri
Products,
8.8%
-
7/28/2019 Session VIII Jahangir
6/28
66Industrial Performance of Pakistan : Growth Rate of
Manufacturing
0
2
4
6
8
10
12
1950s 1960s 1970s 1980s 1990s 2000-01 2001-02 2002-03
%
age
Total
Source: 50 Years of Pakistan Volume I Summary, Statistical Supplement of Economic Survey, 2002-03 and
Economic Survey 2003-04.
-
7/28/2019 Session VIII Jahangir
7/28
77
Source: World Development Indicators 2004, Pakistan Economic Surveys 1987-88,
1992-93, 2003-04
Figure 2.2: Trends in Private Investment (% of GDP)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
1
98
0
-81
1
98
1
-82
1
98
2
-83
1
98
3
-84
1
98
4
-85
1
98
5
-86
1
98
6
-87
1
98
7
-88
1
98
8
-89
1
98
9
-90
1
99
0
-91
1
99
1
-92
1
99
2
-93
1
99
3
-94
1
99
4
-95
1
99
5
-96
1
99
6
-97
1
99
7
-98
1
99
8
-99
1
99
9
-00
2
00
0
-01
2
00
1
-02
2
00
2
-03
India
Pakistan
Bangladesh
-
7/28/2019 Session VIII Jahangir
8/28
88Employment in industry (% of total employment)
20.3
13.8
24.4
12.9
17.118.4
31.7
13.6
0
5
10
15
20
25
30
35
Pakistan Thailand Malaysia India
1982 1999
Source: World Development Indicators, Various years
-
7/28/2019 Session VIII Jahangir
9/28
99
Source: 50 Years of Pakistan Volume I Summary, Statistical Supplement of Economic Survey, 2002-03 and Economic Survey 2003-04.
Industrial Performance of Pakistan: Manufacturing Share of Pakistan in GDP
0
2
4
6
8
10
12
14
16
18
20
1950s 1960s 1970s 1980s 2000-01 2001-02 2002-03 2003-04
%
ageshare
Total Large Scale Small Scale
Source: 50 Years of Pakistan Volume I Summary, Statistical Supplement of Economic Survey, 2002-03 and Economic Survey 2003-04.
-
7/28/2019 Session VIII Jahangir
10/28
1010
0%10%20%30%40%50%60%70%80%90%
1981 2000 1981 2000 1981 2000 1981 2000Resource Low Technology Medium Technology High Technology
Pakistan India China Malaysia Thailand
Technology Intensity in Manufactured Exports (%)
0%10%20%30%40%50
60%70%
80%90%
1981 2000 1981 2000 1981 2000 1981 2000Resource Based Low Technology Medium Technology High Technology
Pakistan India China Malaysia Thailand
Technology Intensity in Manufactured Exports (%)Fig 1. 5 Technology Intensity in Manufactured Exports
Source: Lall, 2003
-
7/28/2019 Session VIII Jahangir
11/28
1111
Our VisionOur Vision
ReRe--position the Ministry of Industries,position the Ministry of Industries,
Production & Special Initiatives to play aProduction & Special Initiatives to play a
leadership roleleadership role in formulating andin formulating and
implementing a comprehensive strategyimplementing a comprehensive strategyforfor rapid industrializationrapid industrialization of Pakistanof Pakistan
which aims at maximizingwhich aims at maximizing job creationjob creationand enhancing Pakistanand enhancing Pakistanss internationalinternational
competitiveness.competitiveness.
-
7/28/2019 Session VIII Jahangir
12/28
1212
Our MissionOur Mission
To increase the share of Manufacturing inTo increase the share of Manufacturing in
GDP to 25% in 2010 and 30% in 2015GDP to 25% in 2010 and 30% in 2015..To achieve this throughTo achieve this through
99value addition in Textile sectorvalue addition in Textile sector99focus on the engineering sectorfocus on the engineering sector
99making holistic interventions across themaking holistic interventions across theentire value chain in key SME clustersentire value chain in key SME clusters
99directly improving living conditions for Labourdirectly improving living conditions for Labour
-
7/28/2019 Session VIII Jahangir
13/28
1313
Our MissionOur Mission
99reducing the cost of doing businessreducing the cost of doing business
99creating a strategic partnership betweencreating a strategic partnership betweenthe Public and Private sectorsthe Public and Private sectors
99fostering ownership of Industrialisationfostering ownership of Industrialisation
policy by the public at largepolicy by the public at large
99creating an institutional framework forcreating an institutional framework for
interinter--ministerial coordination forministerial coordination forindustrializationindustrialization
-
7/28/2019 Session VIII Jahangir
14/28
1414
Value addition in Textile sectorValue addition in Textile sector
Upgrading ginning sectorUpgrading ginning sectorContamination free cottonContamination free cotton
Upgrading productivity of garmentUpgrading productivity of garmentsectorsector
Investing heavily in Fashion designInvesting heavily in Fashion design
Creating International brand namesCreating International brand names
-
7/28/2019 Session VIII Jahangir
15/28
1515
Focus on Engineering SectorFocus on Engineering Sector
Engineering Development Board (EDB) as focalEngineering Development Board (EDB) as focalinstitutioninstitution
99Chairman & CEO both from private sectorChairman & CEO both from private sector
EDB Role enhanced to createEDB Role enhanced to create
99Link with International value chainLink with International value chain
99Link with Engineering academicsLink with Engineering academics99Bridge between Defence HiBridge between Defence Hi--Tech sector and PrivateTech sector and Private
sectorsector
99Bringing an International Vision to existing industryBringing an International Vision to existing industrysectorssectors
Component manufacturing SectorComponent manufacturing Sector
GinningGinning
Metal ReMetal Re--rollingrolling
-
7/28/2019 Session VIII Jahangir
16/28
1616
Focus on Engineering & SME SectorsFocus on Engineering & SME Sectors
Creation of Technology UpCreation of Technology Up--gradation & Skillgradation & SkillDevelopment Company (TUSDEC)Development Company (TUSDEC)
99PublicPublic--Private PartnershipPrivate Partnership CEO from private sectorCEO from private sector
99PITAC to function under TUSDECPITAC to function under TUSDEC
99Role of TUSDECRole of TUSDEC Intervene to Upgrade Technology and skills in key SMEIntervene to Upgrade Technology and skills in key SME
Industrial clustersIndustrial clusters
Common facility centres / Skill development centres /Common facility centres / Skill development centres /technicaltechnical upgradationupgradation centrescentres
Demand drivenDemand driven
All to be managed by the private stakeholders of eachAll to be managed by the private stakeholders of eachparticular clusterparticular cluster
1717
-
7/28/2019 Session VIII Jahangir
17/28
1717
Focus on SME SectorFocus on SME Sector
Formation of Strategy Working GroupsFormation of Strategy Working Groups
((SWOGsSWOGs))
99SWOGS bring together the Industrial ClusterSWOGS bring together the Industrial Cluster
on a common platform and all relevanton a common platform and all relevant
Ministries and Provincial Governments whichMinistries and Provincial Governments which
impact on that sectorimpact on that sector
Foreign experts brought in with help of US A.I.DForeign experts brought in with help of US A.I.D
Pilot new projects with Holistic approachPilot new projects with Holistic approach
zz Island of ExcellenceIsland of Excellence strategystrategy
1818
-
7/28/2019 Session VIII Jahangir
18/28
1818
Focus on SME SectorFocus on SME Sector
Priority SectorsPriority Sectors
PhasePhase II
Action Plan readyAction Plan ready
by 15by 15thth MayMay 0505
99Gem & JewelleryGem & Jewellery
99Marble and GraniteMarble and Granite
99Dairy
PhasePhase IIII
Action plan by 15Action plan by 15thth
AugustAugust 0505
99FansFans
99Sports GoodsSports Goods
99SurgicalSurgical
99FisheriesFisheries
99Furniture
Dairy
Furniture
1919Focus on Knowledge Based SMEFocus on Knowledge Based SME
-
7/28/2019 Session VIII Jahangir
19/28
1919Focus on Knowledge Based SMEFocus on Knowledge Based SME
EntrepreneurshipEntrepreneurshipEnterprise Competitiveness Support FundEnterprise Competitiveness Support Fund
Objective:Objective:
To upgrade the competitiveness of PakistaniTo upgrade the competitiveness of PakistaniIndustry to respond to the new challenges andIndustry to respond to the new challenges andopportunities in the knowledge based and highopportunities in the knowledge based and high
tech economytech economyActivities proposedActivities proposed
99Venture CapitalVenture Capital99Business Incubators in collaboration withBusiness Incubators in collaboration with
UniversitiesUniversities
99Enterprise development fundEnterprise development fund MatchMatch--making grantsmaking grants yy Credit guaranteeCredit guarantee yy Equity financingEquity financing
-
7/28/2019 Session VIII Jahangir
20/28
2121
-
7/28/2019 Session VIII Jahangir
21/28
2121
Reducing Cost of Doing BusinessReducing Cost of Doing Business
The Unemployment challengeThe Unemployment challenge
99Lopsided job creationLopsided job creation
99Lahore, Karachi, Faisalabad and the Central PunjabLahore, Karachi, Faisalabad and the Central PunjabEngineering triangleEngineering triangle
99Entire rural hinterland of Sindh and Punjab missingEntire rural hinterland of Sindh and Punjab missing
outout
99Balochistan Province and large parts of NWFP alsoBalochistan Province and large parts of NWFP also
missing outmissing outMust evolve strategy of successful IndustrialMust evolve strategy of successful Industrial
Parks in rural areasParks in rural areas
-
7/28/2019 Session VIII Jahangir
22/28
ChallengesChallenges
2323
C
-
7/28/2019 Session VIII Jahangir
23/28
2323
The Main ChallengeThe Main Challenge
If we are to follow the path of rapidIf we are to follow the path of rapid
industrialization and take Manufacturingindustrialization and take Manufacturing
share of GDP from 18% to 30% thenshare of GDP from 18% to 30% then
99Every Ministry involved and ProvincialEvery Ministry involved and Provincial
governments have to work with a singlegovernments have to work with a single--
minded, focussed visionminded, focussed vision
99A new Institutional framework has to beA new Institutional framework has to be
developed which dovetails with the world as itdeveloped which dovetails with the world as it
is todayis today
2424
-
7/28/2019 Session VIII Jahangir
24/28
24
Ministries that Impact IndustrializationMinistries that Impact Industrialization
MOIP&SIMOIP&SI
Petroleum / Water and PowerPetroleum / Water and Power
Science and Tech / Higher EducationScience and Tech / Higher Education
LabourLabour
EducationEducation Federal and ProvincialFederal and Provincial
CommerceCommerce
Communication / Ports and Shipping / RailwaysCommunication / Ports and Shipping / Railways
Finance / State Bank of PakistanFinance / State Bank of Pakistan
ProvincesProvinces
2525
F t Ch llF t Ch ll
-
7/28/2019 Session VIII Jahangir
25/28
Future ChallengesFuture Challenges
EnergyEnergy
Most critical for IndustrialisationMost critical for Industrialisation
99Plentiful energy required at most efficient possiblePlentiful energy required at most efficient possibleprice.price.
LabourLabourSimplifying the complex web of regulation.Simplifying the complex web of regulation.
Enhancing Labour SkillsEnhancing Labour SkillsLabour WelfareLabour Welfare
EducationEducationRaising basic education levelsRaising basic education levels
2626
F t Ch llF t Ch ll
-
7/28/2019 Session VIII Jahangir
26/28
Future ChallengesFuture Challenges
Transport SectorTransport Sector
An efficient, secure and costAn efficient, secure and cost--effective logisticseffective logistics
chain, Northchain, North--South through Pakistan isSouth through Pakistan isessentialessential
99Target 48 hrs from Peshawar to KarachiTarget 48 hrs from Peshawar to Karachi
99Increase Railway for FreightIncrease Railway for Freight
Port PerformancePort Performance
99Reduce Container dwell time from 12 to 4 daysReduce Container dwell time from 12 to 4 daysScience and TechnologyScience and Technology
Institutions which set Standards for IndustryInstitutions which set Standards for Industrymust have Industry focusmust have Industry focus
2727
F t Ch llF t Ch ll
-
7/28/2019 Session VIII Jahangir
27/28
Future ChallengesFuture Challenges
Provincial GovernanceProvincial Governance
Labour regulationLabour regulationInspection regimesInspection regimes
Skill trainingSkill training
LivabilityLivability of Citiesof CitiesLaw and OrderLaw and Order
Land Record problemsLand Record problems
-
7/28/2019 Session VIII Jahangir
28/28
Thank YouThank You