New Year is coming. It will bring a lot of challenges for the newly elected government of Pakistan.
Certainly, revitalizing Pakistani economy is the biggest challenge for Imran Khan’s government.
If the new government failed to stabilize the economy, the gigantic task of creating new jobs will remain only a desire. This was the electoral promise of PTI, which appealed the Pakistani youth.
If we see the World Bank statistics for the last few years, the growth rate of Pakistan remains less than 6 percent. In reality, it was even less. With the economic measures the economic team of Imran Khan is taking, it perhaps seems that the growth rate of Pakistan will not go beyond 6 percent. If the situation persisted like that, it will be impossible to create jobs.
At present, it is an admitted fact that government structure has no capacity to incorporate the huge number of unemployed youth. Thus, the government has to formulate the policies, so that, the private sector can produce some jobs, even less than the promised number in election slogan by PTI.
In my view, the only formula to get the economy out of ICU, is the adoption of industrialization, like China did. Pakistan needs an industrial revolution, which will not only normalize the economy but will reduce the unemployment rate in Pakistan. But the million dollar question is; how?
I will try to answer that question in the light of Chinese experience. Do we have to observe that, which sectors cost us big import bills? After petroleum products, the two sectors cause us heavy import bills: one is the cell phone industry, and two the automobile sector. We need to target both sectors. Before moving ahead, an important point for us to understand is that; Pakistan is one of the biggest consumer markets for international companies, like India and China. In Chinese cellphone market, iPhone stands at the second number after Huawei. But iPhone sold in China are not imported from the USA directly, on back of every iPhone one can read; designed in California, assembled in China. Even assembling units of different multinational companies can cause a big impact. Likewise, in the automobile sector, Chinese local companies are giving very tough competition to famous automobile manufacturers like BMW, Mercedes, Audi and Volkswagen. But companies like BMW, Mercedes, Audi and Volkswagen have their assembling units in China.
Pakistani government need to put a complete ban on the import of cell phones and cars. Rather, ask these multinational companies to install their manufacturing units in Pakistan, and talk on the transfer of technology as well. So that, jobs can be created and people can enjoy quality product without giving heavy duties. If Chinese people can enjoy BMW, Mercerize, Audi and Volkswagen at a reasonable price; why not Pakistani’s? Also incentivize the local manufacturer so that, healthy competition can be created, and people can get benefit out of it.
Nothing less than an industrial revolution can produce jobs for Pakistani youth. Job creation will remain, a big challenge for Imran Khan and his government in the coming years