Pakistan needs to devise a new approach to reduce imports

Engineer Ahmad Hassan, Chairman FCCI standing committees on Research & Development and CPEC, stated that Pakistan must devise a new strategy to reduce imports by developing an import substitution industry on a fast-track basis in order to overcome the negative effects of the Russia-Ukraine conflict on the Pakistani economy.

He told the joint meeting of the two standing committees that world GDP is currently at 84 trillion dollars. “Russia’s part is roughly 3.11 percent,” he said, adding that the war has exacerbated the economy-related concerns of third-world countries by causing convoluted and multiple challenges with inflation and supply chains.

He stated that volatile economies, such as Pakistan’s, will confront huge challenges, but these are unrelated to the war. He stated that Pakistan should reduce its reliance on imports by expanding its mother industry, which includes steel production and machinery manufacturing on a local level.

Engineer Ahmad Hassan stated that Pakistan requires active, innovative, and visionary young entrepreneurs, and that a great business institute such as LUMS is required in this regard (Lahore University of Management Sciences).

He stated that the R&D committee is considering hosting a series of awareness lectures on young entrepreneurs, human resources, LEAN, and solar energy by prominent researchers.

Regarding CPEC, he stated that Chinese investors are hesitant to engage in new hi-tech industrial units in Pakistan under the second phase of the project since the government has failed to pay Chinese power companies’ outstanding debts.

He stated that the government must meet its legal commitments in order for the second phase of the CPEC to be completed on time by 2025.