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. 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 progressive state; however, the bloodshed by the state of Israel against Palestinian citizens in Gaza witnessed an overwhelming shift in consumers’ choices all over the Islamic world and in Pakistan as well, who now in majority 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 of foreign products by introducing a financing scheme, encouraging local industries to expand their local footprint to produce alternate products for domestic as well as export markets, he 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 many items in the local retail markets, such as 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 a rationally adjusted interest rate financing scheme is introduced to facilitate local industries. He pointed out that the increasing preference of local products over imported foreign brands across the country is always favourable 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 stands 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 100% in its import bill, it would save over $5.5 billion in a year. On the other hand, millions of dollars foreign exchange will also be 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. At the same time, Raza Hussain also urged industrialists’ community to cash in on the present demand upsurge in local brands, focusing on the enhancement of quality and standards of their products to win the customers’ choice permanently against foreign imported brands.
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 per cent 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 would 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 will generate employment for hundreds of skilled laborers for a longer period, promoting the expansion and growth of the local industries, and the government will also get additional revenues from taxes, President FBATI said.