Incentive policy for Made-in-Pakistan brands growth: FBATI President
New industrial units: SBP should introduce low-cost financing scheme: FBATI
December 29, 2023
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The banking regulator should introduce a low-cost financing scheme under an incentivized policy to support the expansion of made-in-Pakistan brands for substituting the inflows of imported foreign products at a local level, said President Federal B Area Association of Trade and Industry (FBATI) Syed Raza Hussain.
Discouraging the consumption of foreign brands is always on the national agenda of any progressing state; however, the bloodshed by the state of Israel against Palestinian citizens in Gaza witnessed an overwhelming shift in consumers’ choices in Pakistan, who prefer national brands over imported foreign items, he mentioned.
He remarked that the promotion of national brands is not only a global trend in Muslim countries, but it is also a religious duty and national responsibility for all Pakistanis.
The policymakers should cash in on the trend of masses boycotting foreign products by introducing a policy and a financing scheme, encouraging local industries to expand their local footprint to produce alternate products for domestic markets, he said and added. This policy will significantly save the foreign exchange of the country, which is tantamount to a proverb: a penny saved is a penny earned.
President FBATI pointed out that various local brands have reached their maximum production capacity in recent weeks, with a shortage being reported of selected items in the local retail markets, including beverages, soap, dairy products, snacks, confectionaries, detergent, cosmetics, biscuits, and various edible and wearable products, etc.
The production of these segments could be enhanced on a medium to large scale in a short span of time, provided an incentivized scheme is introduced to facilitate local industries against foreign brands.
He pointed out that the increasing preference of local products over imported foreign brands across the country is always favorable for macroeconomic indicators, especially when it comes to the import bill and current account deficit of the country.
According to the Pakistan Bureau of Statistics, the country’s import bill of commodities increased to $55.3 billion in the last financial year (2022–23), which represented more than 100% of our export values.
It is high time that policymakers and relevant authorities chalk out a five-year import substitution plan in consultation with stakeholders’ various sectors, including businessmen and industrialists, for the crucial initiative of promoting local brands under the theme of “Be Pakistani, buy Pakistani,” Syed Raza Hussain added.
If the country could cut down the imported trade brands by 10% in its import bill, it would cost over $5.5 billion in a year. On the other hand, million-dollar foreign exchange is also pocketed as a result of lower profit repartition, he further said.
Besides, a national-level business forum comprising various stakeholders should create awareness among the public about the importance of utilizing local brands in Pakistan. In this regard, the demand for local products will maintain stable growth in the future, and the macroeconomic goals could be significantly achieved along with fruitful and sustainable outcomes on a long-term basis.
The State Bank of Pakistan (SBP) should come up with a low-cost financing scheme for the construction of small, medium, and medium-large industries at 3–4 percent for a period of 20 years. This scheme will encourage local business units to expand industrial units to produce alternate products for the consumption of local markets.
He predicted that the low-cost financing scheme will develop construction activities in the industrial zones, generating economic activity, small to medium-sized businesses, jobs, and revenues for the government through direct and indirect taxes.
The construction activities will also revive growth in different allied sectors, including cement, steel, marble, paint, furniture, etc. On the other hand, it generates employment for hundreds of skilled laborers for a longer period, promotes the expansion and growth of the local industries, and the government will also get additional revenues from taxes, President FBATI said.
“Several industrial zones such as SITE, Nooriabad, National Industrial Park, and Dahabaji are wearing a deserted look, as many owners of the industrial plots are not able to construct buildings for their production units,” he said and added. Once a low-cost financing scheme is available for the construction of production units, the machinery or equipment can easily be purchased by industries for the expansion of their industrial activities.”
Source: Pakistan Observer, The Nation, Daily Times
https://pakobserver.net/incentive-policy-for-made-in-pakistan-brands-growth-fbati-president/
