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LSE 2nd session on ‘Towards a strategy for Pakistan as a regional manufacturing hub’ held

LAHORE: Second day of Lahore School of Economic (LSE) conference ‘Regional Manufacturing Hub-Prospects and Challenges’ opened on finance and industrial development.

Dr Mathew MacCartney Director of South Asian Studies University of Oxford chaired the session. The first paper in this session was presented by Dr Shakil Faruqi Professor of Financial Systems at Lahore School of Economics, which focused on how development finance institutions could be used to promote industrial growth in the country.

The second paper in session was presented by Imran Ahmad additional Director of Infrastructure Housing and Small and Medium Enterprises (SMEs) Finance Development at State Bank of Pakistan.

He presented a detailed profile of flow of credit to manufacturing based small and medium enterprises in Pakistan. The study showed flow of financing to manufacturing sector witnessed gradual and steady increase in absolute terms however its share in total industry credit saw a sharp decline over a period of nine years, while financing to manufacturing SMEs after witnessing a declining trend saw an increasing trend over a period of six years.

The second session of day two focused on importance of promoting innovation and building technological capabilities. The chairperson for session was Dr Khalil Hamdani visiting professor at Graduate Institute of Development Studies LSE.

Dr Irfan ul Haque Special Adviser at South Centre Geneva presented his paper exploring ingredients of a coherent industrial development programme for Pakistan.

According to this paper, an effective industry policy should focus on reducing incidence of management failures, creating and strengthening Pakistani firms’ links with global value chains, defining Pakistan’s strategic interests in regional trade and making domestic competition a force for enhancing firm-level productive efficiency.

Dr Rajah Rasiah Professor of Economics at University of Malaya presented a paper jointly written with Nazia Nazeer that argued Pakistan required a dynamic industrial policy that should focus on technological up-gradation of the country’s existing manufacturing sectors and creation of competitive advantage in high value added sectors in order to achieve sustained long term economic growth.

Dr Akbar Noman senior fellow at Columbia University presented final paper in this session for Policy Dialogue. His paper examined implications of recent theoretical and empirical work on leaning, industrial and technology policies for Pakistan’s economic revival.

The third session focused on challenges faced by Pakistan’s manufacturing sector in a global setting. Dr Khalil Hamdani presented first paper in this session. He argued there was a need for Pakistan to be actively engaged in globalisation. The paper presented main features of globalisation and suggested how these could be tapped in ways modernise country’s industrial sector and also integrate economy into international production.

Dr Safdar Sohail Pakistan’s Economic Minister to European Union Brussels in his paper explored reasons and implications of popularity of geo-economic narratives in context of the country’s trade policy.

The paper concluded a successful trade policy should keep a fine balance between geo-strategic environment in the region and market considerations while making regional integration choices.

Dr Hanns Pichler from Vienna University of Economics and Business presented paper of the session. The paper highlighted importance of SMEs and significance of formulating SME-conducive policies.

The chairperson for session was Dr Shahid Amjad Chaudhry Rector LSE. Dr Rashid Amjad, Tariq Saigol and Dr Robert Wade Professor of Political Economy London School of Economics conducted the session jointly.

Dr Rashid Amjad provided an excellent summary of the key messages, which emerged during the two-day conference. Tariq Saigol offered a comprehensive private sector’s perspective on key challenges facing economy along with recommendations for addressing these challenges in medium and long term, while Dr Robert Wade provided an in-depth analysis from an expert’s viewpoint in thinking about appropriate strategies for making Pakistan a regional manufacturing hub in the future.


Courtesy www.dailytimes.com.pk



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