80% of sick units paralyze the main sector

80% of sick units paralyze the main sector

The total toll from more than 80% of sick units has had a significant impact on all major sectors across the country. The increasing closure of these units has rendered millions of skilled and semi-skilled workers, along with professionals, unemployed due to the high cost of doing business, including high gas and electricity tariffs.

The proliferation of sick units has stunted industrial growth and eroded the quality of life of workers, especially in Karachi, an important economic hub. This situation has contributed to a surge in street crime and deterioration of law and order, worsening unemployment, especially among the people of Karachi.

Public organizations have failed to initiate mega projects, while the private sector has struggled with soaring energy tariffs, making it less globally competitive than neighboring countries such as Bangladesh and India.

The high cost of doing business has left entrepreneurs and investors frustrated, as they struggle to prevent the closure of thousands of Small and Medium Enterprises (SMEs), which are vital to local job creation. Meanwhile, large manufacturing units have cut shifts and laid off workers.

Workers and professionals from all corners of the country migrate to Karachi to earn a decent living, often referring to it as the “mother” of the less fortunate. However, these economic forces seem to be powerless in today’s times.

Seven industrial zones in the port city, struggling with the severe economic downturn, include the Site Industry Association (SAI), Site Highway Industry Association (SSHAI), Korangi Trade and Industry Association (KATI), Landhi Trade and Industry Association (LATI), Association Federal Area B Trade and Industry (FBATI), North Karachi Association of Trade and Industry (NKATI), and Bin Qasim Association of Trade and Industry (BQATI).

There are three types of sick units. First, some industrialists usually get loans for sick and mismanaged units. Second, inefficient management fails to sustain operations, while businesses continue to produce products for which demand has declined in the market. For example, with the banning of polythene bags, factories manufacturing such items face closure unless given alternative business opportunities.

When considering government organizations, Pakistan Railways (PR), Pakistan Steel Mill (PSM), Pakistan International Airlines (PIA), along with the country’s research and development institutions, are all struggling entities.

The railway was initially established by the East India Company (EIC) to provide cargo transport services, with a small portion for passenger travel. Following the creation of Pakistan, railways were divided between Pakistan and India. However, successive governments have prioritized revenue generation from passenger trains, neglecting improvements in freight services. Addressing this would require hiring 50,000 additional staff, which the department considers redundant.

Overloaded trailers and trucks aggravate road infrastructure, which is a costly affair. Railroad tracks, on the other hand, can last for centuries with minimal maintenance. About 50,000 people die in road accidents in the country, while another 0.5 million receive various injuries throughout the year. Since one engine can pull 72 carriages, increased rail traffic can reduce road accidents, reduce air pollution, and reduce import bills for gasoline, spare parts, tires, Completely Built-Up units (CBU) or Completely Knocked Down (CKD) kits goods and passenger vehicles.

PSM’s land assets can help reduce the national debt significantly. In addition, by focusing on exporting fresh horticulture and floriculture products to Gulf Cooperation Council (GCC) countries, such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates (UAE), Iran, Iraq and others. per day, along with enhancing local cargo services, PIA’s cargo traffic could see a significant increase, possibly up to 40%. If PIA is unable to provide this service, the country can explore the option of chartered aircraft.

In the health care sector, instead of just focusing on building hospitals, the government should prioritize preventive health care measures such as ensuring access to clean water and sanitation. With over 75% of Pakistan’s population lacking access to clean drinking water, implementing a proper water system can reduce the need for healthcare professionals and reduce overcrowding in clinics and hospitals. Currently, there are more medical stores than grocery stores in the country.

With regard to the education sector, the country’s reliance on expensive foreign testing systems such as the Cambridge system and the International English Language Testing System (IELTS) is unsustainable for developing countries. Pakistan has a robust network of public universities and colleges, although they often operate for limited hours compared to universities around the world. There is a need to develop an authentic testing and education system while implementing a continuous shift to produce skilled manpower and fully utilize faculty resources in each institution.

“Nearly 70% to 80% of units across the country remain closed, reflecting the widespread economic recession. The Korangi Trade and Industry Association (KATI) alone houses over 5,000 industrial units, with about 65% of them currently non-operational. A similar situation is observed in industrial zones like Faisalabad, Lahore, Gujrat, Gujranwala, Rawalpindi and Nooriabad. However, some sectors such as textiles and various manufacturing units in Sialkot, including surgical, leather and hosiery industries, continue to operate despite the current challenges. In Karachi, rampant lawlessness exacerbated unemployment, leading to a spike in street crime. New graduates struggle to find work, and thousands of workers have been laid off, with those lucky enough to find new jobs often receiving significantly lower wages than their previous positions. This economic instability creates severe psychological stress on individuals, families, and even children due to financial hardship,” said Tahir Mahmood Chaudhry, Founding President of the Rehabilitation Management Association (TMA) Pakistan Chapter and sole accredited member of TMA Chicago USA in Pakistan.

Chaudhry emphasized that his team has successfully addressed important issues in about 100 industries across the country. However, the prevalence of struggling units is still a pervasive issue.

He proposed a dual solution to address two pressing concerns: First, by exporting raw food products on time, the country could reduce food waste by 40%, the highest in the world, while simultaneously increasing foreign exchange earnings through the struggling PIA .

Moreover, despite large annual allocations, the country’s research and development institutions have failed to deliver significant innovation, demonstrating systemic inefficiency.

“We must focus on packaging, selling and exporting products that have already been produced,” he stressed. “As the saying goes, ‘Har Shaakh Pe Ullu Baitha Hai Anjaam Gulistan Kya Hoga’ (An owl perched on every branch, what are the consequences for the garden),” he added while underlining the importance of addressing existing challenges.

He suggested that industrial operators can compensate for high energy prices by reducing unit costs, increasing production and diversifying their product offerings. In addition, efforts should be directed towards modernizing the agricultural sector, raising awareness, and fostering engagement with commercial attachés and chambers of commerce at home and abroad. Hiring competent retired officers, establishing cooperative bodies like TMA, and forming dedicated think tanks to revive struggling units are also important strategies for industry growth.

About Kepala Bergetar

Kepala Bergetar Kbergetar Live dfm2u Melayu Tonton dan Download Video Drama, Rindu Awak Separuh Nyawa, Pencuri Movie, Layan Drama Online.

Leave a Reply

Your email address will not be published. Required fields are marked *