Daily Times

International system of governance has been changing from geopolitics towards geo-economics. In the coming days, economic prosperity will decide the nation’s global prosperity. For smooth running of an economic wheel, exports play a major role in economic prosperity of States while in Pakistan we are facing severe debt burden on our economy with each passing day. The 2019-20 economic survey illustrates that there’s a 9.1 per cent increase in fiscal deficit while GDP growth as per provisional figures is in negative. Data released by State Bank of Pakistan reveals an increase of public debt, around 400 per cent from Rs. 4.8 trillion in 2007 to Rs. 24 trillion in 2018, and now reached to more than Rs. 35 trillion. Debt servicing is the major expenditure for financial year 2020-21, 41 percent of total revenue will go for this purpose. If the situation of the economy goes like this then promises of the PTI government; mainly 10 million jobs, health facilities, education equality and reduction in poverty among many others will be a daunting challenge.

In mere circumstances, out of the box strategies ought to be taken otherwise the contemporary situation is a time-ticking bomb and implications will be more than worse. Auto piloting the system would be an injustice to the nation and end up in an increase of debt, recession, unemployment and poverty. In the extreme scenario that could lead to an economic degradation.

Major reason behind Ghana’s economic failure was settling its industry far from the production area of raw material, in addition it hammered up production size without considering the demand side. To bear the fruits of the latest Strategic Trade Policy, pragmatic measures are needed for an hour. Cotton provides an ample opportunity in this regard because of its production in twenty-one districts of Pakistan. Depending upon production of raw material, its industry must be implanted at minimal distance, the same as the Sialkot model.

Pakistan has the third largest spinning capacity in Asia and contains 5% of global spinning capacity while share of less than 1 per cent in global trade

Small medium enterprises (SMEs) and value addition based economic activities have changed the faith of many states; Germany ranked as the fourth largest economy is an exact example of this. Our eastern neighbour is on the right track in this. India has learnt a lesson from the history of British People. From 1780 to 1800, British exports were doubled, led by textiles. At that time, growth in the textile sector pulled ahead the whole economy. The driving force behind the industrial revolution was British textile industry, in addition to that it also revolutionised the world economy. Organizational and technological innovation supplies the model for economic progress.

Spinning wheel was invented by James Hargreaves in 1764 during the earlier industrial revolution but it came to subcontinent with Mahatma Gandhi and he symbolised it as his weapon as he wore his clothes made by his own hand on spinning wheel. He also spoke about its importance in his entire campaign on his 13 December, 1947 speech. While after independence, with passing time it loses its importance and merely becomes a tool for backward women to feed her family’s belly.

Now the technology transfer has boosted the sector with production and is empowering the backward women through 300 per cent increment in daily wage. The Government of India is harnessing this project as it is eco-friendly due to carbon-cuts and consumes less water during production with larger outputs. Green-fabric has contributed to the creation of 7-8 million jobs in 2017-18 in India and they planned to create 50 million jobs for women in a decade. Solar powered spinning wheels can produce 100 hanks in eight hours as compared to 25 with conventional one and offers less fatiguing job for a worker.

Pakistan has the third largest spinning capacity in Asia and contains 5% of global spinning capacity while share of less than 1 per cent in global trade. Textile contributes nearly 10 per cent in Pakistan’s GDP with 30 percent of the workforce in this sector. New government ought to change the ancient methods of spinning through a drive of change in this field. This will generate solutions to plenty of problems and will create manifold benefits such as women empowerment, employment, eco-friendly industry, preservation of water etcetera. Cost of a single unit solar spinning wheel is around 72,000 Indian rupees and very viable to adopt. Present government could have launched this technology transformation with the uplifting of the socially backward strata of society under Ehsas Program.

Conclusively, for the economic security and prosperity, this is the responsibility of a contemporary government to make a clear policy for enhancement of small medium enterprise and come up with necessary practical steps to launch such kind of initiatives. Rather than resorting to protectionism, issues regarding trade can only be overcome through enhancing exports and using imports in supply chains for diversifying exports. This can be done through adopting technology in fields of existing industry in preference to spending on the creation of new ones. Resultantly, this will increase our economic reserves and bring us to the light from prevailing dark shadows. The policy of switching to solar powered spinning wheels will make the khadi industry an eco-friendly sustainable employment generating sector in the short run while Pakistan in the long run.

The writer is an electrical engineer who is also a CSS aspirant