Fixing Pakistan's Drug Addition to Imports and Raising Tax Collection

[Muhammad Omar]

1. Machinery including computers: $6.9 billion (11.9%)
2. Electrical machinery, equipment: $4.7 billion (8.3%)
3. Iron, steel: $3.4 billion (6%)
4. Vehicles: $2.7 billion (4.6%)
5. Organic chemicals: $2.4 billion (4.1%)
6. Animal/vegetable fats, oils, waxes: $2.4 billion (4.1%)
7. Plastics, plastic articles: $2.3 billion (4%)
8. Oil seeds: $1.4 billion (2.4%)
9. Vegetables: $981.2 million (1.7%)

All these can be produced here by investing in industry not only it'll save money but will also generate jobs

 

[Nothing]

1. Machinery including computers: $6.9 billion (11.9%)
2. Electrical machinery, equipment: $4.7 billion (8.3%)
3. Iron, steel: $3.4 billion (6%)
4. Vehicles: $2.7 billion (4.6%)
5. Organic chemicals: $2.4 billion (4.1%)
6. Animal/vegetable fats, oils, waxes: $2.4 billion (4.1%)
7. Plastics, plastic articles: $2.3 billion (4%)
8. Oil seeds: $1.4 billion (2.4%)
9. Vegetables: $981.2 million (1.7%)

All these can be produced here by investing in industry not only it'll save money but will also generate jobs

Not really. It does not make sense for foreign companies to shift product in Pakistan unless Pakistan offers bigger market (multiple times than current) or has export potential. For exporting #1,#2 and #7 on your list is difficult because of China and few other countries has the stronghold on it. You can till start manufacturing few items like generators but local industries are not interested in capital investment. #3 you can develop local industry to reduce import for certain type of steel but still needs to import specialty steel. For #4 Pakistan is medium size market with major ups and downs in demand along with Government policies. so big players don't come with manufacturing plants but with assembly units. good trade relation with India may reduce import bill for #4 as most of the automakers have to manufacture India along with homegrown companies. #7 has everything with FTA with China. Very less scope to improve the situation here due to FTA. #8 and #9 if you don't grow you need to import it or change people's food habits.

 

[Shahzaz ud din]

Not really. It does not make sense for foreign companies to shift product in Pakistan unless Pakistan offers bigger market (multiple times than current) or has export potential. For exporting #1,#2 and #7 on your list is difficult because of China and few other countries has the stronghold on it. You can till start manufacturing few items like generators but local industries are not interested in capital investment. #3 you can develop local industry to reduce import for certain type of steel but still needs to import specialty steel. For #4 Pakistan is medium size market with major ups and downs in demand along with Government policies. so big players don't come with manufacturing plants but with assembly units. good trade relation with India may reduce import bill for #4 as most of the automakers have to manufacture India along with homegrown companies. #7 has everything with FTA with China. Very less scope to improve the situation here due to FTA. #8 and #9 if you don't grow you need to import it or change people's food habits.

Kindly look carefully or better use eye glasses.The amount is in billions not in millions.if a company doing billion dollar business.Is this a small company or small business ?.

1. Machinery including computers: $6.9 billion (11.9%)
2. Electrical machinery, equipment: $4.7 billion (8.3%)
3. Plastics, plastic articles: $2.3 billion (4%

 

[Nothing]

Kindly look carefully or better use eye glasses.The amount is in billions not in millions.if a company doing billion dollar business.Is this a small company or small business ?.

1. Machinery including computers: $6.9 billion (11.9%)
2. Electrical machinery, equipment: $4.7 billion (8.3%)
3. Plastics, plastic articles: $2.3 billion (4%

If it is machinery, it is 1000 of different types. For e.g. for textiles, there are few dozens of different types of machines same applies to power generators and heavy machinery. If you divide them into different categories you will see there are few hundred suppliers if not thousands. Most of them get divided into much smaller figures $$$ wise. So it will become difficult to establish a plant in the country. Take an example of electricity generation, Pakistan imported few turbines worth Billion of USD in last 3 years but still, it is very difficult to justify to set up manufacturing for it. It needs high entry cost in terms of static resources and manpower (including training).
Why are you not setting up a plant for buses or metro coaches? There will gonna be demand for next 5 years in Pakistan. No industry will do that due to high set up cost. Only GOP has to take initiative and put own money to start it. For e.g. in 1970s Indian government invested money to start car manufacturing in India i.e. Maruti. That seed created ecosystem over 3 decades for the auto industry and today India is one of the top 10 places for it. Same applies to any other industry, either government support to start it with capital and solid policies or country should provide big enough market to companies so they get self-motivated. With advancement in technology, it is becoming difficult to take someone else share. Entry cost is high due to advance technology both in terms of capital and skilled labor. GOP needs to start from today with right policies, to see good result in next 5 to 10 years