PBC Slams Industrial Policy Consultation Lack

Pakistan Business Council Voices Concern Over New Industrial Policy Approval

Karachi-The Pakistan business Council (PBC) has voiced its surprise After the federal government approved a new industrial policy without first consulting with key players in the nation’s industrial sector.

The policy, designed to breathe life back into the struggling manufacturing sector, was completed friday during a meeting held by The Prime Minister’s Committee on Industrial Policy. The decision underscores the pressing need for reforms as the country wrestles with an extended period of industrial decline.

PBC Seeks Inclusion and Policy Details

In a dialog addressed to Haroon Akhtar khan, Special Assistant to the Prime Minister on industries and Production, on Saturday, Ehsan Malik, CEO of the PBC, acknowledged that the government had heeded the council’s longstanding call to create an industrial policy.This policy aims to channel investments into sectors where Pakistan either has or can cultivate a competitive edge.

Mr. Malik Reminded that during Mr. Khan’s recent visit to the PBC office, both sides engaged in detailed discussions about the necessity of such a policy, with the council offering its full support in its formulation.However,Mr. Malik said that the PBC has yet to review the approved policy and has requested that Mr. Khan share it with the council for their input.

Urges Inclusion In Implementation Committees.

Emphasis on Strategic Alignment

referencing press reports, Mr. Malik noted that the industrial policy seems to heavily emphasize reviving struggling industries and providing credit to small and medium enterprises (SMEs). While these efforts could be beneficial, he cautioned That such support should be strategically aligned with sectors identified as possessing a comparative advantage within the newly announced policy.

The PBC has consistently advocated for government policies across all ministries to be aligned to ensure sustainable business growth and increased tax revenues. Mr. Malik welcomed the separation of fiscal policy from tax collection, calling it a crucial move toward growth-oriented policymaking.

He asserted that a higher tax-to-GDP ratio should stem from well-coordinated,pro-growth fiscal policies,rather than simply increasing the burden on already taxed segments of the economy.

Did You Know? The manufacturing sector contributes approximately 13% to Pakistan’s GDP as of 2024, highlighting its importance to the national economy.

The PBC’s Role and Concerns

Highlighting the PBC’s importance, Mr. Malik stated that the council includes nearly 100 leading local and multinational companies, responsible for 40% of the country’s exports and employing millions across extended value chains. A significant number of its members operate within the manufacturing sector, and the council has conducted extensive research under its “Make-in-Pakistan” initiative to foster industrial development and exports.

Mr. malik expressed his disappointment that the PBC was excluded from most of the sub-committees formed to advance the objectives of The Ministry of Industries and Production. He noted that many of the nominated bodies are largely composed of traders, and said, “We are therefore surprised at the exclusion of PBC from most of the sub-committees that you announced.”

Mr. Malik urged Mr. Khan to reconsider the composition of these committees to ensure broader representation from the industrial policy sector, particularly from organizations actively involved in policy research and manufacturing development.

Key Highlights of the PBC’s Stance

Issue	PBC’s Position
Industrial Policy Approval	Surprised by lack of consultation.
Policy Focus	Supports strategic investment in competitive sectors.
Committee inclusion	Urges broader representation from industrial sector.
Fiscal Policy	Advocates for growth-oriented, aligned policies.

Do you think including diverse voices in policy formation leads to better outcomes? How can Pakistan further leverage its manufacturing sector for economic growth?

The Path Forward for Pakistan’s Industrial Sector

The situation highlights a crucial juncture for Pakistan’s industrial policy. The government’s commitment to revitalizing the manufacturing sector is evident, but the path to success requires inclusive dialogue and strategic alignment. By incorporating the expertise of bodies like the PBC, the government can ensure that new policies are practical, effective, and conducive to sustainable growth.

Pro Tip: Stay informed on policy changes and engage in industry forums to contribute your insights and help shape the future of Pakistan’s industrial landscape.

Moreover, focusing on sectors where Pakistan has a genuine competitive advantage – be it textiles, agriculture, or emerging technologies – will drive long-term prosperity. The integration of SMEs into global value chains, supported by tailored credit facilities and training programs, is also vital. Ultimately,a collaborative approach,where the government and industry work hand-in-hand,will unlock the full potential of the “Make-in-Pakistan” initiative.

Frequently Asked Questions About Pakistan’s Industrial Policy

• why is the Pakistan Business Council (PBC) concerned about the new industrial policy?

  The PBC is concerned because the federal government approved the industrial policy without prior consultation with key industrial stakeholders.

• What is the primary goal of the new industrial policy?

  The new industrial policy aims to revitalize Pakistan’s ailing manufacturing sector through reform measures and strategic investments.

• What recommendation did the PBC make regarding industrial policy formulation?

  The PBC recommended formulating an industrial policy that channels investment into sectors where Pakistan has or can develop a comparative advantage.

• What does the PBC emphasize regarding tax revenue and economic policy?

  The PBC emphasizes that a higher tax-to-GDP ratio should result from well-aligned, pro-growth fiscal policies rather than increased burden on already taxed segments.

• Why does the PBC want inclusion in the industrial policy’s sub-committees?

  The PBC seeks inclusion to ensure broader representation from the industrial sector, particularly from organizations actively contributing to policy research and manufacturing development, in the industrial policy implementation.

• what sectors are likely to benefit MOST from the new industrial policy?

  Sectors where Pakistan has, or can develop, a comparative advantage are most likely to benefit, although the PBC cautions against prioritizing sick industries without strategic alignment.

Share your thoughts on this developing story and join the conversation in the comments below!

Here are some potential PAA (Problem, Action, and Assessment) questions derived from the provided article. Note that PAA is a framework, and the following questions are designed to fit the structure:

PBC slams Industrial Policy Consultation Lack: A critical Analysis

The phrase “PBC slams Industrial Policy Consultation Lack” highlights a important concern: the absence of adequate consultation processes in the formulation and implementation of industrial policies.This article delves into the ramifications of this deficiency, exploring its impact on various facets of the industrial landscape, along with offering potential solutions.

Understanding the Core Issue: Lack of Consultation

At the heart of the issue lies inadequate stakeholder consultation. Industrial policies, designed to shape the economic future of a nation, are often crafted without sufficient input from those most affected: businesses, industry experts, labor representatives, and other key stakeholders. This often leads to policies that are ineffective or even counterproductive.

The Impact of Limited Consultation

The consequences of insufficient consultation are manifold:

• Ineffective Policy Design: Policies might not accurately reflect the realities and complexities of the industry.
• Reduced Industry Buy-In: Lack of participation can lead to resistance and non-compliance.
• Missed opportunities: Valuable insights and innovative ideas from industry players may be disregarded.
• Policy Implementation Challenges: Without stakeholder support, implementation becomes more difficult and costly.

Analyzing the Role of PBC (Personal Business Commitment)

While the core issue is the lack of consultation in industrial policy, understanding related concepts is crucial. The document [1] defines PBC (Personal Business Commitment) as a performance management system used for strategy execution, originating from IBM. It emphasizes employee self-directed effort towards achieving strategic goals. While not directly related to the creation of industrial policy, PBC helps ensure that, within organizations, strategies are executed after policies are formed. Thus, it is critical for understanding the success of an association in a framework that takes industrial policy into consideration.

Case study in understanding the process

Imagine an initiative to drive a successful adoption of new technologies

Aspect	Description
Initial Consultation (Lacking)	Government announces a new technology grant lacking consultation regarding specific industry needs or compatibility.
PBC Implementation	Individual companies use internally assigned PBC to try to make the given goals by the government in line.
Observed Outcomes	Inefficient adoption of new technologies as the needs have not been considered.

The Need for Enhanced Consultation Processes

Addressing the lack of consultation requires a multifaceted approach that emphasizes inclusivity and transparency.

Practical Tips for improved Consultation

1. Establish Clear Communication Channels: Create obvious channels for stakeholders to provide feedback.
2. Conduct Regular Stakeholder Meetings: Organize forums where industry representatives can voice their concerns and suggestions.
3. Utilize Diverse Engagement Methods: Employ surveys, workshops, and online platforms to gather input.
4. Prioritize Feedback: Seriously consider and incorporate stakeholder input into policy progress.

Policy Recommendations

To improve the consultation process, policymakers should consider:

• Legislating mandatory stakeholder consultation for all industrial policy proposals
• Creating public-private advisory boards that include industry experts and stakeholders
• Establishing feedback loops to evaluate the effectiveness of consultations

By embracing these changes, governments can develop industrial policies that are not only more effective but also better aligned with the needs and aspirations of the industries they are designed to serve.