You know how you have in Pakistan a 'darzi' at every street corner sat cross legged, yanking a old style sewing machine, needle in one hand, thread in the other and scissors near his feet working in one room. Making clothes to order and chrning out dress or two per day. That is Pakistan car industry. Darzi [rent seekers like Premier Motors] on every street corner making few cars.
Then have garment plants that produce million units of clothing every month ~ mile of long rows of sewing machines with army of workers working non stop over three 8 hour shifts? These units supply the world market and have turnover of $10s of billions. That is the Moroccon Renault plant. Most of what it makes is exported. So it is not rent seeking as it's products are sold on open markets across the globe. Note it is a Renault plant. There is no local Moroccon rent seeker.
What we need is just one or two plants in Pakistan tied to Chinese car companies. The empasis being few models but mass production ~ in excess of 500,000 with target of 50% exports.
There is but the tragic reality is this. The interface between 200 million Pakistan and the 7 billion global market is decided by
geography. Fact is majority of global trade is moved by ships which use the oceans as highways. The 200 million Pakistan is hostage to geography as the only natural outlet and opening to the ocean of the Indus Valley is one port - Karachi. This means anything 200 million might import or export will go to Karachi as it is the interface with the world. There is much talk about developing Gwadar but that will take decades to get the required rail/road linkages to 200 million Pakistan. As of now Gwadar is almost disconnected from 'mainland' Pakistan.
So for now international trade is going to ge limited to as has been for over 100 years to Karachi. The problem is how is the country supposed tp progress when this is the state of affairs in that city. MQM, a party that continously was elected by people of Karachi for decades, was ruling Karachi, at one point was even part of the federal government under President Musharaf. Well read this.
The Rangers special public prosecutor, Sajid Mehbood Shaikh, had produced two witnesses for recording their statements before the ATC-VI judge in the 2012 Baldia factory fire case today: a former manager of M/s Ali Enterprises and a judicial magistrate.
The first witness testified that he used to work as a manager at the M/s Ali Enterprises in July 2012 when Rehman — who was the then in-charge of the Muttahida Qaumi Movement's Baldia Town sector — and Majid Baig visited the factory and also met with its owners.
https://www.dawn.com/news/1474971/r...-didnt-pay-rs250m-extortion-witness-tells-atc
Yes, 252 people were burned alive in this factory by MQM gangsters. And they wanted Rs250 million from the factory owners. Is this how business thrive? Is it wonder our exports are so stunted? I keep using the term 'rent seeling'. This is ultimate form of rent seeking involving extortion and murder. 250 people burned alive and all I hear people here is 'PTM, PTM, PTM'.