Magazine article Economic Review

New Industrial Policy: Hard Work Needed for Success

Magazine article Economic Review

New Industrial Policy: Hard Work Needed for Success

Article excerpt

New Industrial Policy: Hard Work Needed for Success

Since independence, the Government of Pakistan have issued a large number of industrial policy statements. In general, these have been liberal toward private investors and the trend toward liberalization has been gathering momentum. Last policy was issued by the Pakistan People's Government in 1989. The industrial policy of the newly elected IJI Government is in the making. However, in a recent press statement December 1990 the Finance Minister and the Industries Minister made public the broad aspects of the New Industrial Policy. Before these aspects are discussed, a few comments are desired to be made in advance. * Before the advent of the new

Government, previous Governments - broadly Muslim League, the PPP or the Military administrations have been under the influence of rural landlords and jagirdars. This is the first Government which is under the influence of the business community although the agricultural community has still a significant share in the administration. So the attitude toward the business community should be most liberal of all the previous Governments; * This is the first time that an effort has been attempted to link the two most important economic sectors - agriculture and manufacturing and the legal cover has been provided to the development of agro-based industries and agro-allied services in villages. However, this will require some prior steps, such as (i) considerable improvement of infrastructure facilities in rural and semi-urban areas, (ii) promotion of agricultural research and its dissemination among farmers. The Central Asia of the USSR might be used as a model where efforts are made to make most economic use of agricultural products. For instance 12 by-products-fibre, fluff, food oil, oilcakes, cotton wool, cellophane, cardboard, photographic film, drying oil, soap, glucose, starch and fuel are obtained from one item Cotton, which is the most important cash crop of Pakistan, (iii) Industrial research suitable to rural areas will have to be promoted and transferred from research laboratories to villages and semi-urban centers, (iv) but the most important pre-condition for all above is universal Education, Science and Technology; * Labour-Management relations will have to be tackled most judiciously. The management should pay most benevolent attention to labour's interests and the workers should give highest productivity. Both should keep national interests in mind besides their own and productivity and high quality of Pakistan Products' should be the target. The country's self-reliance and self-respect cannot afford strikes, lock-outs and industrial riots; and * Maintenance of general peace in the country and protection of industrial and business interests is an important pre-condition. These can be achieved through administrative measures as well as rapid economic development to eliminate poverty and unemployment in urban and rural areas.

New Industrial Policy

Broad aspects of the New Industrial Policy are given below:

[Right arrow] An important improvement over the previous policy is that it has been decided that Government sanction will no longer be required for establishment of new industrial units anywhere, irrespective of their size, sponsor and location. [Right arrow] The Provincial Governments are being requested to terminate the system of clearance for the sponsor and location. However, where zoning regulations are to be enforced (for protection of residential areas for instance) these would be notified for general information, thus dispensing with the need for clearance of individual cases. [Right arrow] In case of security oriented industries, (e.g. arms, ammunition, security printing, high explosives, radio-active substances) the existing policy would continue to ensure that security environment is not jeopardised. Alcoholic beverages would also continue to be banned. …

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