Industrial growth has played a significant role in shaping the world as we see it today. Without it, the world might have been a very different place. Advancements in telecommunications, improved travel and connecting with people through personal computers and the internet have helped countries in commencing economic growth and increasing export-based revenue. It might be correct to say that industrial development has helped countries in moving their economies away from agriculture and more towards industrial growth and productivity. Now is the time for Pakistan, too, to diversify its economic portfolio by focusing equally on commencing sustainable industrial growth along with an increased agricultural productivity. By doing so, Pakistan can exponentially increase its exports and resulting revenue and might even be categorised among the top 15 largest economies in the world by 2050. We have what it takes to make this happen.
According to the United Nations (UN), the share of industry in China’s Gross Domestic Product (GDP) has significantly increased from 35% (in 1965) to 46% (in 2004). During this period, the ratio of export of goods and services to GDP has remarkably jumped from 3% (in 1970) to 34% (in 2004). It is important to note that despite an increase in the share of industry in China’s GDP, a lion’s share of people (around 44% of labour) was still employed in the agricultural sector in 2002. Similarly, South Korea produced 14% of its GDP from manufacturing and 39% from agriculture in 1965. By 1977, both manufacturing and agriculture generated around 24% GDP each. In 2004, manufacturing was responsible for 29% of GDP, and agriculture produced 4% of South Korea’s GDP. As per the United Nations Environment Programme (UNEP), China wants to be carbon neutral by 2060.
Similarly, the United Nations Framework Convention on Climate Change (UNFCC) points out that South Korea aims to achieve carbon neutrality by 2050. Just like China and South Korea, Pakistan too can increase the share of industry and manufacturing in its GDP. Simultaneously, it can achieve carbon neutrality by 2035 and promote resource efficiency in agriculture to generate more crops and revenue per drop of water.
Now is the time for the Government of Pakistan to prioritise sustainable industrial development for the country.
European Commission highlights that the total trade between the European Union (EU) and South Korea skyrocketed from 71.2 billion euros in 2014 to 123.8 billion euros in 2024. EU imported goods and services were worth 33.1 billion euros in 2014, which then exponentially increased to 68.1 billion euros in 2024. Thus, by the end of 2024, the EU relied twice as much on imports from South Korea as it did in 2014.
With the right policy actions implemented in the right direction, so can be the case for Pakistan too. Do you know that the EU imported machinery and transport equipment worth 36.4 billion euros from South Korea in 2024? Similarly, the EU imported machinery and transport equipment worth 30.9 billion euros in 2021, followed by 37.4 billion euros in 2022 and 38.7 billion euros in 2023. Altogether from 2021 – 24, the EU imported 143.4 billion euros’ worth of machinery and transport equipment from South Korea. So can be the case for Pakistan too if we prioritise sustainable industrial development at par with growth in the agricultural sector.
Now is the time for the Government of Pakistan to prioritise sustainable industrial development for the country. The most crucial resource needed for this is electricity. However, how we produce electricity matters a lot. It is a well-known fact that our reliance on fossil fuels is causing our previously stable climate to change. Pakistan must produce 100% electricity from renewable resources like solar PV, wind energy and hydropower technologies. Pakistan can easily produce 100% electricity from renewable resources by deploying its available potential.
World Bank (WB) points out that Pakistan can meet its current electricity demand by deploying solar PV technology on less than 1% geographical area of the country. Similarly, we can closely study South Korea’s machinery and transport equipment manufacturing and can replicate the same in Pakistan. We can empower our unemployed women with the skills and knowledge needed to work in information technology (IT) and manufacturing sectors in Pakistan.
We can offer decent salary and working conditions to our labour force. By producing 100% renewable electricity, making workplaces more inclusive for women and offering decent salary and working conditions, we will certainly boost exports to the EU, North & South Americas, Oceania & Australasia and the rest of the world. We can make it happen. We need to act now.
The writer is a Stockholm-based policy analyst and the Founder / Operations Manager of Project Green Earth (www.projectge.org). He can be reached at aubhameedi @yahoo.com.