Revitalizing declining institutions: President HCSTSI emphasises pivotal role of private sector worldwide

HYDERABAD: Muhammad Farooq Shaikhani, President, Hyderabad Chamber of Small Traders & Small Industry, emphasizes the pivotal role of the private sector worldwide in revitalizing declining institutions through their unwavering commitment, innovation and embrace of new technologies.

Regrettably, in Pakistan, government institutions are failing to adequately support and incentivize the private sector as needed.

He stated that the official rate for a 100 kg sack of wheat has been set at Rs.10,000. However, following this decision, the price of wheat in the open market has subsequently decreased, resulting in direct financial setbacks for farmers.

He emphasized Pakistan's significant position as the fifth-largest wheat cultivating nation globally. However, systemic mismanagement results in the annual burden of wheat shortages and fluctuating flour prices, which ultimately impacts both the public and traders.

Shaikhani stressed the urgency of engaging the private sector in wheat procurement, aligning with Islamic banking principles. Such involvement promises enhanced efficiency in the procurement process, as private enterprises typically boast streamlined operations driven by profit incentives. Moreover, collaboration with the private sector diminishes reliance on government entities, mitigating risks linked to supply chain disruptions and bureaucratic red tape.

He urged that incorporating the private sector would foster improved market integration, aligning wheat procurement with demand and supply dynamics for timely distribution and response to market fluctuations. Private sector engagement will incentivize investment in wheat procurement and storage infrastructure and technology, facilitating modernization of storage facilities, transportation networks, and adoption of contemporary agricultural practices, thereby benefiting the entire wheat supply chain.

Shaikhani emphasized that engaging the private sector would enhance farmers' welfare by enabling them to receive competitive rates from private buyers, thereby improving their livelihoods and fostering increased productivity. He highlighted that collaborating with the private sector would alleviate the government's financial burden linked to wheat procurement. By sharing responsibilities with private entities, the government could allocate resources more efficiently, ensuring food security while also directing attention towards other critical areas such as agricultural development.

Shaikhani emphasized the significance of digitizing the inventory of wheat across all warehouses in Sindh. This would ensure the availability of accurate and comprehensive data on all wheat transactions conducted by both the government and private sectors, accessible through a designated website. He stressed the importance of daily updates to the website to facilitate proactive measures in averting potential food crises.

Copyright Business Recorder, 2024