Engr. Khalid Pervez – CEO KPWS
Engr. Khalid Pervez, CEO KPWS speaks on Governance, Consultancy, and Decline in Pakistan
Improving the Economy and Our Consultants
Engineering consultancy is a very important sector for any country, and in Pakistan it is equally critical. Since I am associated with electrical engineering, and we also work in mechanical engineering, I believe these two sectors are the backbone of industry and major projects.
In Pakistan, we face a situation that is not seen elsewhere—an uneven playing field. What I mean by this is that on one side, competent consultants like us are struggling for survival despite hard work in an unpredictable economy. Maintaining quality standards becomes very difficult. To some extent, contractors face similar issues.
On the other hand, public-sector consultants receive large projects and face no economic pressure. For example, if I expect a 4 percent consultancy fee, it becomes extremely difficult. People talk about 3, 2, or even 1.5 percent, whereas public-sector consultants receive work at 5 or 6 percent. They own buildings in multiple cities, reflecting their financial strength. Naturally, when the government allocates work to them easily, they enjoy a clear advantage.
Although we operate in the private sector, we no longer compete for public-sector projects—we quit them long ago because we simply cannot compete. There are also several other issues associated with working with public-sector departments.
Consultants: Public vs Private
I do not know the exact figures, but the share available for private-sector consultants compared to the public sector is negligible. Large projects naturally remain with the government. Another issue is that if you have a strong public sector, there is at least some realization of the value of consultancy and the need for appropriate fees.
In the private sector, that realization is almost nonexistent. A “seth mentality” prevails—extract as much as possible. There is no percentage-based fee structure; everything is done on a lump-sum basis for a small amount. I have been trying to explain this for 28 years. When my fee was reduced from 4 percent to 2 percent, it meant saving 2 rupees out of 100—but without realizing how much damage that caused to the project itself.
Another major issue is the sheer number of consultants in Pakistan, many of whom are not actually consultants at all.
Do Private Projects Understand the Importance of Consultants?
There has been some realization. For example, in the past, builders did not approach good consultants. Now that luxury and modern buildings are being constructed—with advanced security systems and other requirements—they are turning toward consultants. This is a positive change.
Industry is also moving toward consultants more than before, which is encouraging. However, there is another side to this: many good companies that benefited consultants greatly are leaving Pakistan. This means that the companies remaining will mostly be lower-tier, with different mindsets.
How to Repair the Damage
It is difficult. Those who have left are gone. Anyone coming from outside comes to earn money; leaving one’s country to set up a new operation is not easy, and doing business in Pakistan is especially difficult due to numerous issues.
I recently heard a clip of the Lahore Chamber president saying, “I have 36 wives”—meaning there are 36 departments demanding money. Ultimately, everything comes down to governance.
Frankly, I expected the IMF to enforce discipline. Only when people are pressured does change happen. I often wonder why the IMF does not question the billions of rupees of free electricity, free travel, and overseas medical treatment provided to parliamentarians. The judiciary and the army enjoy privileges that do not exist elsewhere in the world. This country has been left open to plunder.
Why Don’t Professionals Raise Their Voice?
Destroying a country is easy—just destroy its institutions. Look at any institution today; can you honestly say we are proud of it?
I believe change is extremely difficult. Some may disagree with me, but I think we have become a dead nation—dead due to consuming the forbidden. My teachers at NED used to say you cannot imagine how far-reaching the effects of ill-gotten earnings are. Reflect on how many people consume halal earnings today. Even vegetable sellers cheat. Life-saving drugs are adulterated. These things have consequences.
Our character has deteriorated; our moral strength has vanished. A judge’s son can drive recklessly, kill people, without a license or even an identity card—and nothing happens. This reflects the level of our society. If this were a living society, there would have been a massive public outcry. – By Manzoor Shaikh
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