INDUSTRIAL STRATEGY
WITH PARTICULAR REFERENCE TO
CONDITIONS IN SINDH
BY
NAZIM F. HAJI
                                 (Chairman: SITE ASSOCIATION OF INDUSTRY)

Gentlemen:
It is a proud-privilege to be here addressing fellow Rotarians as a representative of SITE Association of Industry and speaking on a theme which is the prime concern for developing our province.

PREAMBLE
There is an imperative need for changing the economic structure of Sindh by laying a firm foundation of industrial development. This is our cherished goal. We are continuously acquiring sufficient technical know-how to create a viable industrial base to develop Sindh.

We, the industrialists of SITE Association of Industry, which represents the largest industrial estate in Pakistan, are and have been in the forefront to promote, project and propagate the need for massive industrialization. I would now like to present strategy for industrialization of Sindh.

SETTING UP INDUSTRIES

We advocate a proliferation of mini, small and medium sized industries all over Sindh. Development of rural areas for these industries is a significant feature for industrial development. The advantages of small scale industry are enumerated as follows:

    1. It plays a key role in our planned economic development.
    2. It is labor intensive.
    3. It is capital saving.
    4. It provides high employment potential.
    5. It requires small investment.
    6. It has less need for sophisticated machines or modern technology.
    7. It is adaptable to semi-urban and rural environment where infra-structure is under-developed.
    8. It attracts small savings and diverts them into productive channels.
    9. It is instrumental in removing regional disparities and economic backwardness in the rural/less developed areas.
    10. It is based within an entrepreneurs locality or in close proximity to his abode, and thus better managed.
There is a need for co-operation, progressive attitudes and fewer bureaucratic controls if these small entrepreneurs are to succeed. They should be provided accounting and technical services, marketing outlets, workshop facilities, transport systems to increase production and productivity. At the same time, I would also underline the need to set up high tech. Industries, especially in large cities. Since these will be capital intensive and not labor intensive, transfer of technology and joint ventures should be encouraged and given favourable considerations.
  GOVERNMENT'S ROLE IN INDUSTRIALIZATION

We believe and advocate the immortal words of John F. Kennedy, that is, "Ask not what your country can do for you. Ask what you can do for your country". The sad fact is that pragmatic schemes were never adhered to. The country is running on dogmatic schemes and rhetorics. It is hurting us and has always hurt us.

The Government should with all sincerity sit with us; industrialists to chalk out a comprehensive policy to achieve the objectives of industrialization. We believe in more exports, less imports, and more employment. It is that simple. I, therefore, suggest the following measures for the Sindh Government to adopt it to make feasible and profitable the small and medium sized industries.

    1. The Government should build industrial sheds in the various industrial estates operated by the Sindh Small Industries Corporation, and should give it at subsidized rates to the upcoming industrialists.
    2. Infra-structure be provided at subsidized rates to rural industries. This can be offset by an increase in rates for urban industries.
    3. Liberal loans be provided at nominal rates.
    4. Machinery be allowed to be procured on hire-purchase basis.
    5. Cash subsidy be provided. I propose an one time only amount of Rs. 12000 per registered worker if continuously employed for one year. This will be a motivation to go for labor intensive industries.
    6. Certain industries should only be allowed in the small sector. For example, poultry feed, bread, leather gloves, garments, safety matches etc.
    7. Certain Government purchases should be exclusively procured from the small sector. Event he Armed Forces, P.I.A. Pak Steel etc. should adopt this scheme. I propose a 15% price preference to these small sectors.
    8. Liberal, radical and free-handed incentives be provided for more industrialization.
    9. Social infra-structure be provided in rural areas, such as hospitals, schools, libraries, industrial homes, parks etc.
    10. Easy availability of loans for house building.
    11. Accessibility to power, gas, and water.
    12. Adequate roads network.
    13. Availability of intra-city and inter-city transportation.
    14. Accessibility to cargo handling companies
    15. Shopping centres and wholesale markets.
    16. Other necessary, obligatory, and vital facilities.
LAW AND ORDER SITUATION

The security and stability of Sindh is essential. The dangerous situation prevailing in Sindh is alarming. There can never be any advancement industrially or otherwise if the volatile situation is not checked. There will be no transfer of technology from urban areas to the rural areas if instances of arson, killing, dacoity and kidnappings are continued unabated. Industrialists require guarantees of safety and security before they venture towards rural industrialization.

BUREAUCRACY

Unfortunately, the dawn of democracy has not yet been able to shine its shimmering lights into the citadels of the bureaucrats who still follow a long cultivated policy of arrogant, dictatorial, or arbitrary attitudes. It is high time private sector is brought into decision making. In fact, I propose that the heads of all major public sector corporations and agencies should be from the private sector. There has always been an indifferent attitude by the bureaucrats regarding the industrialization of Pakistan. The case against them is solid. They have played havoc with the country. The time to change is now! Attitudes must change. Thinking must change. Rules must change.

CHAMBER OF INDUSTRIES

We need our own forum to advocate our point of view. We have applied for our own Chamber of Industry. It is long overdue. Unfortunately, the bureaucrats do not subscribe to our view. Thus it has been strangulated in the corridors of the Directorate of Trade Organization. Unless we get our own Chamber, we will never be able to speak from one solid unified platform with zeal, fervent, and enthusiasm.

PHILOSOPHY OF THE INDUSTRIALISTS

On the basis of industrialization and ensuing advancement, strength by security, stability and unity, we can build the edifice of material progress and prosperity. Progress, prosperity and strength are the only ways to solve the problems of Sindh. To do that, we have to set our house in order. We need wide-scale and radical reforms. We need social justice, awareness, and discipline-cynicism be replaced by hope. The economic gulf between haves and have-nots be narrowed. Selfishness, suspicion and greed must give away to goodwill, trust, self help and sacrifice.

Fortunately, the people of Sindh can deliver the goods. Much, however, depends on the politics in this province. The past has taught us bitter lessons. We cannot and should not commit mistakes. Democracy can show us the straight path. I would strongly advise you all to have patience with democracy. Miracles cannot be achieved overnight. Let democracy flourish. Let us have good attitude. Let us not be cowards or defeatists. Let us not talk about leaving Sindh or leaving Pakistan. Let us emphasize the need for sacrifice even on the part of our elected representatives. Let us be optimists. The survival depends on that.

CONCLUSION
I have presented before you this strategy to make Sindh the industrial base of Pakistan. I quote the memorable words of Prime Minister Mohtarama Benazir Bhutto who said the following to a Delegation of SITE Association of Industry on September 9, 1988, at 70, Clifton:
"My dream is to make Pakistan the manufacturing centre of the world" (Unquote)
Gentlemen: Let's make it a reality soon. Thank you.
PAKISTAN PAINDABAD.
 
(Written by MAJYD AZIZ, Vice Chairman, SITE Association of Industry.   1989) 1