Industrial output continues to stutter

In the cut-throat world of increasingly globalised economies, the competitive advantage that a countrys businesses, have usually decides its ability to convert global opportunities into national benefits. And for a country like Pakistan - which, like other developing nations in the world cannot boast highly specialised products- the one remaining shot at gaining some semblance of competitive advantage could have come in the form of lower cost of operations in the local market.
However, sadly enough, the socio-economic environment in which Pakistans businesses operate remains rife with challenges that are making it increasingly difficult for them to attain any such edge.
As the costs of operating a business in the country rise rapidly- with some elements remaining beyond the scope of a businesss control- local industries today have increasingly become unable to cushion themselves against hard times.
And while the whole brouhaha about the local industries pining away has been sung time and again, there seems to be no respite anywhere in sight. Statistics released by PBS for large-scale manufacturing in the country once again present a bleak picture, managing to scrape together a meager growth of 0.6 percent in July over the same period last year.
The rising consumerism amongst the masses has allowed some leverage to the Tobacco, Food and Beverages sectors, which, with a combined weight of 12.37 managed to edge in some growth; increasing output by 5.8 percent over July last year. However, output statistics for other sectors including Fertilizer, petroleum and leather products continued to remain shaky on their feet.
As the cost of doing business in the country continues to rise, the most frightening statistics however come from the textile sector, once touted as the strongest and most influential local industry. Choking to death on the diesel fumes, the life is slowly being leached from the textile industry, while a large number of Pakistani textile units continue to re-locate to Bangladesh.
With the output dwindling steadily, climbing further down by 0.81 percent during July12; the escalating energy crises and a lack of policies that cuts down on the sectors hidden costs have been the main reason that a large number of manufacturers have set sail for calmer waters.
Moreover, the very fact that Bangladesh, facing some of the same debilitating issues like Pakistan, can manage to maintain an industrial growth rate upwards of seven percent per annum whilst our similarly manpower-rich industry goes to waste brings forth some burning questions.
What are Pakistans policy-makers and industry players doing wrong? Why is it that the Dhakas and Hanois of this world are able to attract the kind of foreign investments that we are not?
Until the answers to these questions are found, Pakistans industrial output is likely to remain slumped, exports are going to remain lackadaisical while the winded economy continues to wheeze through the fumes of the expensive fuel our industry cannot really afford but has to buy nonetheless.