IPR's brief unveiled: Dr Atta stresses need for focusing on science & technology for economic growth

"Sustained growth of Pakistan economy is possible only with export of higher value-added goods", says a policy brief issued here on Saturday by the Institute for Policy Reforms. To achieve this, Pakistan must increase its focus on science and technology.
IPR's Brief written by former federal minister and former chairman Higher Education Commission Dr Attaur Rahman recommends that the country must commit in earnest to a science and technology strategy. This is critical for the country's future or else "Pakistan risks being left behind permanently".
Pakistan's main export product is textiles. While textile constitutes 60 percent of Pakistan's exports, it has a mere six percent share in world exports. Overall, manufactured goods are 67 percent of world trade. Resultantly, Pakistan's role in world trade is limited because it does not have the value-added products to participate in bulk of the world market. That is the main reason that its exports do not increase.
No economy grows on a long-term basis without a dynamic and continually modernizing manufacturing sector. The share of manufacturing in Pakistan's GDP is under 14 percent, whereas it ranges between 37 percent to 43 percent of GDP in middle income East Asian economies. India and Bangladesh have a share of 30 and 28 percent of GDP respectively.
The brief recommends that to boost the manufacturing and economic growth, the Science and Technology (S&T) strategy must integrate with all aspects of the economy which includes industry, agriculture, Sustainable Development Goals and government. It also recommends that for effective implementation, it must be led at the highest government level, by the Prime Minister. Support through S&T is the only way for the private sector to productively use the external and internal knowledge needed to manufacture and export value added goods.
IPR's S&T strategy has several components. It focuses on education, technical training, R&D, setting up of specialized technology institutions, and effective enforcement of standards and testing. As its starting point, the Brief refers to the weak state of education in Pakistan and emphasizes need for immediate declaration of a National Education Emergency. War footing focus on education is necessary for improving quality of managerial and line level workforce.
Another key component of the strategy is setting up of specialized training and research institutions. The Brief recommends such institutions in a wide range of specialties in order to build industrial and agricultural competitiveness. As a third component, the strategy advocates incentives for development of knowledge industry. Proposed incentives include public sector R & D support, tax incentives, risk sharing for new industries, Funds for venture capital and for innovation, and creating knowledge hubs by linking industrial clusters. To ensure consistent quality of goods produced in the country, the strategy also recommends establishment of standards and testing institutions.