Pakistan must think competitively. Future economic growth and prosperity will predominantly come from Pakistan firms / businesses taking the lead in exploiting opportunities domestically as well as overseas whether on their own, as clusters or through joint ventures and linkages that expand market horizons and knowledge; upgrading their workforce; bringing in new technology(s); fostering innovation and working with academia and the public sector to create a knowledge based economy. For Pakistan’s firms and investors to chose Pakistan as their investment and production destination, and to succeed, they need government and its related agencies to facilitate them and is able to create and maintain a policy and regulatory framework that is dependable, flexible and both responsive to and consistent with market realities and requirements balanced by social responsibility. For this it is extremely important to improve the capacities of the government and common interest agencies so that service delivery improves along with strong governance and monitoring systems put in place.
Enhancing economic integration of Pakistan into the global and the regional economy and to stimulate decent work and employment creation will depend on the public and private sectors working as a team with academia to attract and capture the best the local and global markets have to offer in the way of information, technology, logistics, investors, buyers and suppliers. Success will depend on strengthening supply and value chains to position Pakistan as a preferred if not priority partner and a competitive location for investors. The Government and its related agencies must work at helping the private sector and academia to collectively create an innovative and knowledge based economy that will attract opportunities as well as position Pakistan to take advantage of those that arise in the global and domestic market.
The EU TRTA II programme is working with the Government of Pakistan to support development and poverty reduction in Pakistan. Under the programme a key component will be to work with the key industrial sectors to provide technical assistance focusing value addition, productivity and compliance.
It is hoped that the efforts of the TRTA II will assist in rolling a set of broad parameters and will indicate micro-economic “drivers” for success over a period of 4 years that are necessary for competitiveness, job and wealth creation resulting in poverty alleviation. Economic studies on the population trend and labour force analysis of Pakistan suggest a clear bulge in the young working population. This trend in data presents a contingent opportunity that must be addressed to avoid the population bulge becoming a major threat to the economy and stability of Pakistan. The government will have to create enough jobs to absorb this bulge in working age population to avoid a growing pool of unemployed youth who risk becoming disenchanted with the system and turn to crime and/or extremism. There is a clear understanding that these jobs will have to be created by the private sector and more so the one involved in industry and manufacturing.