Analyst stresses need for growth of manufacturing sector

KARACHI: Time is running out fast as efforts aimed at expanding the country’s manufacturing industry is continuing slowly, if at all. The country is far from establishing brands internationally, except for a few of them.

It is high time that non-serious attitude of policymakers as well as industrialists is replaced by focused and determined efforts to make amends as quickly as possible, said economic and financial analyst Ateeq-ur-Rahman on Sunday.

“To improve our manufacturing activities, we have to promote competition in this sector by enhancing the potentials, whether skilled or unskilled,” he said.

“Government needs to allow imports by reducing tariff and non-tariff barriers, especially on raw materials, plant and machinery, processing units, pre-engineered goods, spare parts of various manufacturing units or accessories, and necessary components of motorcycles, etc,” he said.

He was of the view that exports items, like textiles, sports goods, carpets, leather goods, food, rice, fish, fruits and vegetables, sugar and cement, are showing a mixed trend due to foreign exchange restrictions and depreciation of the rupee.

Depreciation of the rupee played a major role in showing an increase in exports in rupee terms. The growth of manufacturing sector will serve to grow exports of the country and improve the economy of the country as a whole.

“What is necessary is the simplification of the taxation systems and reduction in the rates of taxes,” he said.

“Government needs to reduce borrowing from commercial banks, ensuring the availability of capital necessary for the private sector to enhance manufacturing activities,” remarked Ateeq-ur-Rahman.

The loss-making state-owned enterprises should be privatised at all costs. Similarly, the policy rate as well as the number of holidays should be reduced, he added.

Copyright Business Recorder, 2023