Chaudhry Saim Zulfiqar
WILLIAM J Clinton said “In the new economy, information, education and motivation are every thing.” And I put in simply one word “people” who have to use the information, education and motivation that had been responsible and reason for the economic turnarounds in history. From Industrialization era to information revolution, human resources have played pivotal role. Despite the cautions from the UN Secretary General in “World economic situation and prospects 2020” of economic risks with respect to prolonged trade disputes, policy uncertainties, pandemic situation, closure of businesses, massive layoffs, unemployment and deepening political polarization; I firmly believe that turnaround is always possible with the help of human assets who is motivated and resilient across the world.
In the free economy, the blessing is that we share the success with each other from top to bottom. Therefore, strong macroeconomic indicators trickle down that effect and we all from businessmen to a labourer shares the profit of it through the trickle down income generation and enhancement. Employment is the only way to fight inflation and control poverty. In order to create employment, business community and government work hand in hand by creating an environment where doing business is easy, cost effective and efficient. Once people are employed and earning, they will be creating demand for the very same business that had created opportunity for them. So it’s a cycle that starts from macroeconomic stability to micro economic pattern of consumer buying. Beloved readers especially youngsters, you might hear from some experts that Pakistan’s situation is all dark and gloomy but let me put it in this way that it is better to be heading towards the right direction instead of going nowhere.
Despite the economic instability in the last one decade and pandemic situation; Pakistan has seen major improvement when it comes to foreign direct investment, increase in reserves, current account and trade deficits have seen major contractions. Monetary policy of reducing interest rate has generated the economic activity in the country. Pakistan used to be negative in the World Bank stable credit outlook and by the end of last fiscal year 2019-20, it emerges from negative to B3. Tax collection has also recorded increase by 16 percent in the first quarter of 2020-21. Exchange rate remained stable during July to September period of the current fiscal year. Confidence of foreign investors in Pakistan’s economy is increasing. Stock market has also shown growth in the first quarter as well. And we are witnessing the impact of these important figures on our daily life that will soon be visible to all of us.
As a part of packaged food industry, we have contributed by keeping our people safe but at the same time we have generated employment and maintained the quality food supply chain during the lockdown because of the pandemic. Packaged Food Industry has also been impacted by Covid-19 in the past few months. Consumer behaviour and buying patterns have been impacted. But we are a resilient nation and we have fought the pandemic especially packaged food industry which has seen phenomenal growth over the past one year. Pakistan is a country with huge potential for FMCGs from food and grocery products to household items. Its large middle class population are the back bone of its economic outlook. Consumerism is growing every year with new ventures and brands hitting the shelves of stores and people are buying it because purchasing power might have been checked during pandemic but it is certainly not impacted enough to stop people from spending. This large consumer base is making it possible for the industry to expand and create more jobs and kept the cycle of trickledown effect from macro-economy to micro-economy going.
Today’s young consumers belonging to Gen Z have been more brand and health conscious. They are using multiple screens and have been exposed to the tonnage of information on a daily basis. They are ordering online and they are doing business as well from the ease of their homes. They believe in generating employment and creating the cycle of money from one hand to another through more efficient and effective manner which is unprecedented before in history. We, as manufacturers of brands, also believe that we don’t own these brands anymore but these brands belong to the new generation. Now they own it as their national brands and it’s what keep us going and investing more in this great country with full of potential to make it happen; the turnaround from every situation and smoothen out the bumpy roads ahead. I conclude it by saying that if we continue this path of open and free economy by providing suitable environment in terms of regulations to investors and business community keeps creating more jobs and even exporting products and bringing foreign reserve back home then we will not need to worry about our economic success from the top of ladder to the bottom where our true consumer is residing. We just have to “keep moving forward” in the right direction.
—The writer is Chief Executive of Volca Foods.
