Aligning local products and companies with CPEC is a challenge: Navid Ansari

on 21/12/2018

Systek Systek busy designing 4th generation UPS; deploys 400 ‘Made in Sindh’ systems in PPHI units

The head of Systek, one of the leading power solution companies in Pakistan talks on a variety of issues in an interview with Engineering Review

Has the PTI government been successful in givingthe economythe right direction in its first 100 days in power? 100 days is a very short span of time and nothing comes out crystal clear. I think what the government is doing is to make a realistic assessment of the issue. Everything like our economy is doing well, the value of rupees is stable, our stocks are bolstered and other claims were superficial to a great extent. Until and unless the reality is unveiled we shall not be able to address the issues.

Therefore, there are many things which are tantamount to take a bitter pill. There is no production, our fiscal deficit is too high, exports are too low and imports are at the peak. These are realities. We cannot live on subsidies. Yes, the marginalized sections of society are to be taken care of but you cannot give subsidies across the board and damage the economy for getting political mileage. Successive governments took huge loans for maintaining their popularity and taking votes. Now, who will repay such loans? Of course, we have to retire them otherwise our future generations would succeed them.

Was the PTI not prepared that it is assessing the situation after coming into power? Isn’t it surprising? The data is cooked and the governments keep it secret. When you go to the World Bank, the Finance Ministry uses the cooked data. Thus, when you come into the power then only you come to know about the real situation. Even now, maybe all is not known for some reasons. We came to know the things through media. Within how many years would this government be able to signal we are on the right direction now? This is the third party and they should be given sometime when we gave time and chances to its predecessors.

They are assessing the situation and were still doing during their first 100 days. They have also committed mistakes but still, they should be given an allowance. Also, it must be kept in mind that unless basic fundamentals are changed there would not be any change in the economy. They include imports which must be restricted especially luxury items such as ACs, cars and etc as these items are being manufactured in Pakistan. If we do not give a chance to the local industry then all talk about local engineering would go in vain. I think all measures which have been taken are in the right direction. Like, they are increasing duties on certain items. Cigarettes and drinks are being levied with a sin tax.

I think all items which are being made in Pakistan should be restricted. Foreign companies should be asked to manufacture vehicles here and then we shall buy them only. This will bring investment to Pakistan. We should not make Pakistan only a trading ground. It is a deeper wish that all these items should be made here locally. Would this wish ever come true? The government needs to patronize local industry. All this happened in China and India as a strategy. We never pursued such a policy ever after the independence. We kept our doors open for all because we had no independent foreign policy. To be in the good books of the US and Europe, we allowed the west for everything.

We never said no to be their consumption ground and develop on our own. The only recipe now is to patronize local industry. The governmentshould take measures to increase productivity and it would be done only through patronization. Do you think local manufacturing is economically feasible for local marketconceived to be very small? Pakistan’s market is not that small. Had it been so small then why other countries have been pursuing to capture our market. For local companies, our market is enough. Then you need to ban the import of such items which are manufactured in Pakistan. Is it possible in the context of international trade implications? WTO and other agreements cover all countries; not only Pakistan. If others countries are patronizing their products why shouldn’t we do it? It not about going to extremes, we need to protect local products through tariffs and levy of taxes.

Are we protecting our local products and companies in CPEC? I perceive China Pakistan Economic Corridor (CPEC) as a sort of a strategic partnership. It is more strategic than commercial. It ought to be looked at from such a perspective. China needed to reach warm waters and also the shortest possible route for its trade whereas our interest is that it reinforces our security viz-a-viz threats to Pakistan from its neighborhood. It is in the benefit of Pakistan. At present, it focuses on logistics and energy. The infrastructure would benefit us after all but its alignment with local industry is the challenge as to how Chinese technology trickles down into our economy. If Chinese bring everything from material to labor then it would not benefit us. As per plan local input (engineers, labor and material) was supposed to be taken to a certain extent but it did not happen. Many forums including IEEEP have raised their voice. The government should take it up with the Chinese.

It needs to pursue it strictly. Pakistan Engineering Council should also play its due role and ensure Pakistan companies should have their due share. About Systek It’s been a quarter of a century that we are making UPS. We are designing a fourth generation UPS. It contains all the modern features which we have today. You can monitor and control it through an App. Besides, we have a product which is rare in South Asia at the moment. It is Solid State Power Line Conditioner which we make up to 40 KV conditioners. It is basically for ICT industry which uses power sensitive equipment. It is inevitable for them. Many banks have standardized it. Also, it gives you full supply even at low voltages. Even in the case of phase outages, it gives three phases from just one phase. It is very useful for IT and Telecom industries.

We are also working on high voltages also. We are also dealing in solar charge controllers with high power range. We are making Solar Hybrid Systems (SHS). Our controllers provide more energy than Chinese controllers. We are also working with PPHI in Sindh and have deployed almost 400 systems in various dispensaries and health units which were facing power crisis. Now they are working well and these units are benefited with ‘Made in Sindh’ product. All are going on Made in China but we are on Made in Sindh which is an achievement.n