Report on Making Pakistani Engineering Products

Compatible in the World Market

by
Hannan Yusuf Khan

A report submitted on the special request of

Mr. Gulfam Haider
CEO, ICI Paints, Pakistan

19th February 2019

Table of Contents

List of Figures ............................................................................................................................ iii

Acknowledgements ................................................................................................................... iv

Abstract ........................................................................................................................................v

Introduction .................................................................................................................................1

A Brief History of Pakistan’s Economy.................................................................................................... 1

Inflation................................................................................................................................................. 1
Comparing Pakistan with other Asian Countries ....................................................................2

Research Methodology ...............................................................................................................3

Barriers to the Firm Growth .....................................................................................................3

Electrical Crisis ......................................................................................................................................... 3

Corruption ................................................................................................................................................. 4
Political Instability .................................................................................................................................... 4
Macroeconomic Instability ....................................................................................................................... 5
Highly affected Industries ..........................................................................................................5

The Fan Industry ....................................................................................................................................... 5

Overview ............................................................................................................................................... 5
Constraints ............................................................................................................................................ 5
The Sports Goods Industry ....................................................................................................................... 6
Overview ............................................................................................................................................... 6
Constraints ............................................................................................................................................ 6
Recommendations .......................................................................................................................7

Institutional Support ................................................................................................................................. 7

Problem in Registering A Firm ................................................................................................................ 7
Labor Market Issues ................................................................................................................................. 7
Supply of Raw Material and Absence of Ancillary Industry ................................................................... 7
Innovation and Product Diversification ................................................................................................... 7
Conclusions ..................................................................................................................................8

ii
List of Figures

Figure 1: World development indicators online. ....................................................................... 2

Figure 2: The disbalance between the supply chain and the Demand of electricity. ................ 4

iii
Acknowledgements

Being a fresh a Mechanical Engineer, who has just been exposed to the market, I found immense
pleasure to say thanks for hiring me as an Assistant Engineer in ICI Paints, Pakistan. Therefore, I
consider myself a very lucky individual for getting this opportunity.
Bearing in mind previous, I am using this opportunity to express my deepest gratitude and special
thanks to all the Professors of Air University, Islamabad whose untiring efforts and having the zest
to make their students reach the height of glory has made me able to get the first job in one of the
esteemed organization of Pakistan. And it would be quite unfair, if I forget to mention my Parents
and Allah, whose countless blessing have always been a source of getting huge successes in life.
I perceive this opportunity as a big milestone in my career development. I will strive to use gained
skills and knowledge in the best possible way, and I will continue to work on their improvement,
to attain desired career objectives in the future. Hope to continue cooperation with all of you in the
future.

iv
Abstract

This report identifies the constraints and barriers for the growth of Engineering products in the
Worldwide. It mainly targets the important SME (Small to Medium Enterprise) sectors i.e.
Electrical Fans, Sports Goods, Electronic Devices etc. Policy recommendation for the SME sector
include Lack of the Quality Control which plays the pivotal role for our products to remain in the
category of low-tier, then to include is simplifying of the tax regime to encourage transparency,
resolving the energy crisis and rationalize power tariffs, the most importantly; lack of professional
ethics, and above all of these, promoting R & D through linkages with academia locally and
research institutions globally. In addition, more detailed recommendations specific to the fan and
sporting goods sectors are also offered.