Key Points
- Shifting focus to the tech industry for sustainable growth is crucial for Pakistan.
- Pakistan’s economic potential in technology-driven ventures surpasses traditional sectors like oil.
- Infrastructure deficit hampers Pakistan’s appeal for tech giants as an investment hub.
- Embracing a tech-centric future is key to Pakistan’s global relevance and innovation.
Dr. Qamar Cheema, in his recent podcast, delved into the evolving trajectory of business between India and Pakistan, shedding light on their differing approaches to technological advancement. His thought-provoking analysis underscores the critical need for Pakistan to shift its focus towards the tech industry for sustainable growth and global relevance.
He highlighted a pivotal shift in the global tech landscape, exemplified by Apple’s strategic move to diversify its production away from China. Notably, approximately 20% of Apple’s production now transpires in India, a shift that marks a significant departure from the company’s longstanding dependence on China. This transformation is underscored by the export of 15 million iPhones from India to global markets this year alone.
Comparatively, China remains a central hub for iPhone production, hosting a staggering 95% of global manufacturing. The symbiotic relationship between Apple and China has been an instrumental driver of progress since Apple’s launch in 2007. However, the recent diversification signals a growing trend of reduced dependency on China.
In contrast, Dr. Cheema laments Pakistan’s continued emphasis on traditional sectors like oil and refining, echoing a sentiment that greater potential lies in technology-driven ventures. Notably, Pakistan recently signed an MOU agreement with Saudi company Aramco for a $10 billion oil refinery project in Gwadar, signalling a significant stride in the oil sector. While such initiatives are undoubtedly important, He underscored that the true economic windfall lies in the technology sector.
The tech industry’s allure is multifaceted; India’s prowess in seizing this opportunity. India’s embrace of technology-driven growth is evident in the impressive collaboration between the government and industry giants like Apple. The ‘Make in India initiative has facilitated the establishment of production facilities, attracting suppliers from Apple’s vast network. This strategic manoeuvre capitalizes on India’s vast market, affordable labour, and government incentives.
He emphasized that Pakistan’s current trajectory is less favourable. While Pakistan’s business connections are predominantly aligned with authoritarian regimes, India’s strategic approach encompasses both authoritarian and democratic partners. This diverse engagement fosters a dynamic business environment, conducive to sustainable growth.
Crucially, the infrastructure deficit becomes evident in Apple’s preference for India over Pakistan. The absence of robust infrastructure in Pakistan hampers its potential as an attractive investment destination. Apple’s expansion underscores the importance of fostering an environment that encourages technology giants to establish a presence.
Dr. Cheema urged Pakistan to recalibrate its focus. The Saudi-Iran rapprochement presents a unique opportunity for Pakistan in the energy market, a sector that holds significant promise. Leveraging support from Saudi Arabia and the UAE can provide the impetus for technological advancement.
He stated that Pakistan needs to reassess its economic priorities. The global landscape is evolving rapidly, with technology emerging as a central driver of growth. Pakistan must heed the call to transition from conventional sectors towards a tech-centric future. By doing so, Pakistan can harness its vast potential, attracting global investments, fostering innovation, and propelling itself onto the world stage. The time for Pakistan to embrace technological investment and IT is now – a pivotal step towards securing a prosperous and influential future.