Today, as we celebrate 77 years of independence, we find ourselves in a critical economic and industrial situation.
Mashood Khan
As we celebrate 77 years of independence this month, we find ourselves struggling to overcome economic challenges. Comparing our progress with that of countries that gained independence around the same time, it becomes evident that we have fallen short in many areas.
We have a talented youth population, excelling in education, sports, and various skills by own self, yet we are not providing them with the necessary health, education, and skill development opportunities. Many are willing to leave the country.
Why? This is a question our government must address.
The South Korean automobile industry began in 1958 with the assembly of a car using a U.S. military jeep-style body and other parts. Local companies soon entered the automobile manufacturing business, collaborating with foreign companies for technical cooperation. Automobile production in Korea began in 1962 with CKD (Complete Knock Down) kits imported from Japan. Production grew tenfold from 9,069 cars in 1974 to 112,314 in 1979. In 2023, South Korea manufactured around 4.24 million vehicles.
The most significant policy for the Korean automotive industry was developing a Korean car model and promoting auto parts. The ‘long-term automotive industry promotion plan,’ adopted in May 1974, laid the foundation for independent development.
Since 1962, South Korea has recognized the motor vehicle industry as crucial for economic development. The government’s involvement helped the industry grow from infancy to its current position among the top five motor vehicle producers in the world. Early on, the industry gained technological know-how through licensing agreements rather than heavy investment in R&D.
Vietnam’s automobile industry began in 1991 with two FDI companies, Mekong Auto and Vietnam Motors Corporation (VMC). After 20 years, the country has about 100 enterprises, including 17 assemblers and nearly 80 suppliers. In 2023, Vietnam produced over 300,000 vehicles.
Pakistan produced its first vehicle in 1953 at the National Motors plant in Karachi. This plant, in collaboration with General Motors, produced Vauxhall cars and Bedford trucks. Ford trucks partnered with Ali Automobiles the same year, introducing the Ford Anglia, Ford pickups, and the Ford Kombi. Exide Pakistan began producing car batteries domestically in 1953, and Haroon Industries partnered with Dodge Motors in 1956.
In 1961, Allwin Engineering introduced precision auto parts to the Pakistani market. The following year, Lambretta partnered with Wazir Ali Engineering to produce the Lambretta TV200 scooter, and Kandawala Industries introduced the CJ 5, CJ 6, and CJ 7 series Jeeps. In 1963, General Tyre Pakistan began production in Karachi, and Hye Sons started producing Mack Trucks. Rana Tractors began producing Massey Ferguson Tractors in 1964, while Raja Auto Cars introduced the Vespa scooter and rickshaw. Jaffer Industries and Mannoo Motors started operations in 1965.
Despite gaining independence around the same time as South Korea and Vietnam, Pakistan missed the opportunity to advance its automotive industry due to a lack of vision, long-term policies short of sustainability and political instability. We have failed to respect and prioritize talented individuals and merit-based practices.
The 1970s saw the nationalization of many companies, resulting in the formation of the Pakistan Automobile Corporation (PACO). This led to mergers and buyouts that caused a decline in industrial growth.
The government lacked the capability to manage these industries effectively and continues to struggle, often selling shares to private sectors. Poor decisions from the past persist in affecting the nation, and we have yet to learn from these mistakes.
Today, as we celebrate 77 years of independence, we find ourselves in a critical economic and industrial situation. In the coming 23 years, we will celebrate our 100th Independence Day. If we do not establish a comprehensive 23-year economic and industrial policy now, our youth will rightfully question what we have done for their future.
The Special Investment Facilitation Council (SIFC) and Operation Azm-e-Istehkam are pivotal initiatives aimed at fostering peace, safety, security, foreign investment, and economic development in Pakistan. The SIFC serves as a strategic body designed to streamline investment processes and create a conducive environment for both local and international investors. By reducing bureaucratic hurdles and ensuring policy consistency, the SIFC aims to attract substantial foreign investment, which is crucial for economic growth and job creation.
Operation Azm-e-Istehkam, a comprehensive security initiative, complements these economic efforts by addressing the country’s internal security challenges. Through targeted actions against terrorism and criminal networks, this operation seeks to restore and maintain peace and order. A secure environment is essential for economic activities to flourish, as it builds investor confidence and promotes stability.
Together, these initiatives are instrumental in transforming Pakistan’s economic landscape. The SIFC’s focus on investment facilitation coupled with Operation Azm-e-Istehkam’s emphasis on security creates a synergistic effect. This dual approach not only enhances the country’s image as a safe and attractive investment destination but also stimulates sustainable economic development. In turn, this leads to improved socio-economic conditions, increased employment opportunities, and a higher standard of living for the Pakistani population.
The time to act is now. We must come together to develop a unified national policy, setting aside personal differences. Government officials, bureaucrats, the military, politicians, businesspeople, doctors, engineers, teachers, and workers must join hands to save the country, each taking responsibility for their roles and performing their best in their respective capacities. Let’s not wear other hats but excel in our own roles and build trust in each other.
The writer is Director –
Mehran Commercial Enterprises /
Expert Auto Sector /
Former Chairman PAAPAM
Pakistan Rupee Exchange Rate