CEO, Fahim, Nanji & deSouza (Pvt.) Ltd. (FND) Consulting Engineers says offering shareholding to bright employees of company is a secret to grow rapidly 

Economy and Future Prospects
We hear numerous pieces of news that are promising. As consultants, we do not have a barometer for the economy like you can observe in the stock markets; we require 6 to 8 months to determine the results. Businesses in Pakistan have largely divorced themselves from politics and are operating according to their strategies and growing. Over the last one and a half years, we have observed that the projects have not declined to the extent that was feared during the crisis in the country. I realized at the start of this year that a slight improvement has surely come. Our company is doing very well, and by the Grace of God, we are working on around 150 projects at various stages of progress. We have not encountered any issues with bidding so far. We hope for better conditions, and they will come. I believe we are a nation of 250 million people; it’s a huge economy from a global perspective, regardless of our current economic challenges due to poor economic policies. We shall come out of this situation, as I feel, but conversely, economic experts say it is a difficult task.

Impact of Negative Propaganda
Better sense prevails in business circles, and the people who run their companies analyze the situation in an appropriate way and do not get swayed by propaganda. In the world of social media, one cannot hide the truth—it approaches you one way or another. I don’t think the propaganda from electronic media has much impact, as businesspeople are quite discerning.

Make in Pakistan
Making products in Pakistan is possible. It is connected with a shift in thinking. What is necessary are the right policies from the government. If any entrepreneur invests to produce exportable goods, they should be offered incentives so that the industry can earn profits in return for their hard work. People will establish industries if they are given such benefits. I feel that importing goods and selling them here is an easy way to earn money, but this model started decades ago and continues to this day. However, it doesn’t add value, and it drains our foreign exchange resources. Markets are flooded with imported goods. We should focus on making the goods we need in large quantities. The government, with its data, is in the best position to facilitate people on what to make locally in Pakistan. We have the Export Promotion Bureau, but I don’t know how much information it provides to entrepreneurs in the country.

Local Products and Consultants
A significant number of clients set standards when investing, and if the budget is low, only then does the use of local products become an option. Consultants can play a role as mediators by informing clients about locally made products that can be used. It involves taking responsibility for using local products, but consultants often don’t know about the standards and certifications required. Therefore, it is neither the consultant’s responsibility nor do they have the resources to ensure compliance with these standards. This is why third-party certifications are used. If these certifications meet the necessary standards, only then will the consultant advise the client to use the product. Many products are made in Pakistan, but they lack certifications.

In the HVACR industry, obtaining third-party certifications is a difficult task. I have been advocating for locally manufactured HVACR products that meet international standards, not only to serve the local market but also to build the capacity to export them.

Case Study
Turkey can be taken as a case study regarding local manufacturing. Twenty years ago, Turkey was where we are today. What they did was create strong policies and ensured enforcement. We should follow the same path, with the government offering incentives to local manufacturers. All the big names in manufacturing started from small workshops, and their governments supported them fully. Acquiring technology is not a big issue—it can be done through joint ventures. We need to approach all of this with an open mind.

Export of Consultancy Services
In the IT sector, software houses receive projects from around the world and earn foreign exchange upon completing them. This model is already in practice, but on a small scale. I do not have data on it, so I can’t provide much detail.
In the engineering sector, we are facing tough competition from India. I recently visited Saudi Arabia to explore work opportunities for our company. I found that all the big consultancy firms working there have their offices in India, with two to three thousand people working for them. In this situation, we can capture small opportunities, but for larger projects, we would need significant investments in registration and certification processes within that country. We have concluded that we will need to collaborate with others to work abroad. There are two reasons for this: one, for example, F&D is an MEP specialist, but clients often need a one-window service provider who can handle architecture, structure, etc. This can be done through collaboration, allowing us to share investment. This formula should be used by other consultants in Pakistan. We need to work at competitive rates locally and deliver quality overseas. Pakistan’s ambassador in Riyadh has been extremely helpful in this regard. He is making efforts to introduce Pakistani consultants, but beyond that, we must do the rest. Apart from this, I don’t see much effort at the government level.

Where FND is Standing
We started our journey in 1987. Three young engineers—Fahim, Nanji, and deSouza (FND)— with degrees in Mechanical, Structural, and Electrical engineering—decided to form a company offering complete engineering solutions under one roof. We also wanted the company to continue its legacy after us. While we see century-old companies in other countries, it hasn’t been that way in Pakistan. We did good work and earned a strong reputation. In 2011, we registered as a private limited company and added five directors with a 30% shareholding. I observed how people who had been with us for a long time had transformed into different personalities, and I thought to myself, “I wish I had done this earlier.” It is imperative to share responsibility if you want your company to grow. Empowering your staff is a must. 2011 was a watershed moment, after which the company grew rapidly. We took on major projects like Emporium Mall and Packages Mall, in addition to many others. We have built credibility and will continue to maintain it. We are considering offering more shareholding and continuing the succession process. We are also working on how to enter Saudi Arabia. Since July 2022, we have been exporting our design services to a company in the U.S. In summary, we aim to take this platform to new heights.

ECIL chief says Pakistan needs very serious reform on how we will survive and govern the ungovernable.

Pakistan’s Economic Scenario

Looking at Pakistan’s affairs from 1947 to 1970, the country’s human resource quality and growth rate were impressive. There were policies and mechanisms for implementation under which the planning process took place and businesses were established. Since all these things were planned, the growth rate was better. We used to have 5-year and 10-year plans designed by the Planning Commission. The companies were well informed of such plans and used to start preparations, focusing on their shortcomings in areas like improving the quality of human resources, etc. If we did not find that capability, universities would incorporate such courses into their curriculum that were required and encouraged graduate students who intended to study abroad to take subjects needed in the country. This is an integrated effort that is a must for any country.

However, if a country is running without a vision, it will end up in a situation like the one we have in Pakistan. We do not have any direction and are running the affairs on a short-term basis. Our governments, which also assume power for brief periods, focus on short-term objectives. If we want to develop the country, we require a long-term vision armed with compatible policies and implementation without interruptions. This process requires periodic reviews and modifications, keeping the real objective in sight. This is a serious shortcoming, and because of it, we are losing many things, of which the drain of human resources is the most serious. We have landed in a critical situation, and I don’t see a way out unless the affairs of the country are sorted out.

Recognition of the Real Problem

The real problem lies within us. We do not recognize our core issue, much like a patient who refuses to acknowledge their illness. For instance, in the recent impasse between Pakistan and the IMF, the latter insisted on controlling our expenses. We kept refusing to do so and instead talked about increasing them, which did not align with our revenues. The IMF did not ask for an increase in petrol prices or a raise in electricity tariffs or anything that would hurt the common people. The Fund only asked for expenditures to be in line with revenues. The government proposed closing unnecessary departments, many of which were politically motivated. But the issue is: what would you do with the employees of those departments? There are other related issues as well. In summary, we need very serious reform on how we will survive and govern the ungovernable.

Boom in the Middle East & Pakistani Companies

The talk about the boom in the Middle East and other countries is true to some extent. The opportunities are connected to the perception of our country. Pakistani companies often work as subcontractors for foreign companies in these countries. You can earn if you work as a lead company, but you need technical qualifications and to meet the requirements of merit. Perception haunts Pakistani companies abroad. This needs to change, and we should target niche markets to be successful.

All major engineering companies are capable of working abroad. They can perform very well provided they meet stringent financial criteria and establish their credibility. Pakistani companies must compete with European companies, which have an edge due to the support they get from their countrymen who serve as advisors in these countries.

Support Structure

To begin with, we need to implement laws in our country. We have serious issues when it comes to execution. For instance, the joint venture formula is provided in the PEC Act, but it does not come into force in practical terms. The tragedy in CPEC was that we gave exemptions to Chinese companies. Not only did we, as Pakistanis, lose, but also our professionals and companies lost everything. It was observed that some Chinese contractors were of much lower standards than Pakistani contractors.

Need for a Policy Shift

First of all, we need to frame a policy under which we should export our companies rather than individual professionals. We should support every kind of firm to set foot in foreign countries. It will also benefit our professionals who work with foreign companies for lower salary packages. If we pitch our companies, a cream of our professionals would have opportunities in a better way. I do not have any doubt that Pakistani companies can compete with Western companies in the Middle East. Then we will no longer beg to export our labor; instead, we will export our companies. The government may open an “Axim-like” bank to facilitate Pakistani companies and provide guarantees for big projects in foreign countries.

What’s New About ECIL

Today, skills matter. Professionals with new skills and armed with new technologies possess value; it is a must for project handling. We focus on incorporating newer technologies and young, skilled people into our company. We need to determine what kind of technologies we need to bring improvement in every aspect of our work.

Role of Universities

I believe universities should move ahead in the research side. There are many technologies that can enhance the quality of concrete. For instance, new technologies are being applied in the Middle East, where the strength of concrete is three to four times higher than in Pakistan. They must be using new technologies for sure. Thus, universities must work in this direction. — MS