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Towards sustainable industry

October 7, 2025
in Opinion & Analysis
Reading Time: 3 mins read
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Pakistan produces a finite number of resources, and it can only withstand a certain degree of greenhouse gas emissions to stay healthy. Consuming resources at unsustainable rate is the biggest driver of climatic crisis. Thus, environment-friendly industrial progress is major factor for promoting sustainable living.

Our population continues to grow but that rise in numbers has not been matched by similar increase in supplies of freshwater food, clothing and housing. Furthermore, poor industrialisation adversely affects both the population and the economy. When industries fail to develop adequately, job opportunities decline and large segments of the population remain trapped in poverty. Sluggish industrial growth contributes to economic stagnation and hinders national progress.

Pakistan’s some industries such as automobile, fertiliser, steel, sugar, polyester and energy are still working under protection need to grow up and stand on their own feet. Also, the textile, cotton and cottage industries must become globally competitive by quickly adopting technological change. Accelerating industrialisation will enable the country to tackle chronic issues such as poverty and unemployment and increase Gross Domestic Production (GDP) and sustained economic growth.

A more robust economy also translates into improved access to education and healthcare, while cheaper consumer goods and food items become more accessible to the middle and lower-income classes. Moreover, the best manufacturers spearheading sustainable practices need to share lessons with others about how to reduce the environmental footprint by improving their energy efficiency.

Economically prosperous countries often take bold initiatives in science and technology to drive sustainable and resource efficient industrial growth. For Pakistan, enhancing industrial sustainability requires a parallel push to promote international trade. This strategy would benefit the economy in several ways. Exporting products such as textiles, sports goods and agricultural commodities generates vital revenue and boosts GDP. Trade also supports employment across manufacturing, agriculture and transport sectors.

At the same time, Pakistan must continue importing essential items like machinery and green technology to support its industrial base. Diversifying export markets is equally important – it reduces reliance on a single trading partner and contributes to economic stability. Increased trade further encourages investment in infrastructure, including roads, ports and industrial zones, which are crucial for sustained growth.

According to economic survey, in FY25, Pakistan’s exports stood at $27.3 billion compared to $25.7 billion in FY24, while imports have increased from $43.4 to $48.6 billion. This significant trade imbalance indicates that the country spends more foreign currency on imports than it earns through exports. Such imbalances weaken the economy by increasing dependence on foreign markets, putting persistent trade deficits which can result in excessive borrowing, thus raising national debt.

Furthermore, lower export levels reduce industrial production, leading to job losses. A devalued currency also increases the cost of imports, pushing up domestic prices. Free trade agreements (FTAs) can help mitigate these issues by reducing tariff barriers and enhancing trade flows. Since 2000, Pakistan has signed multiple FTAs. According to the Ministry of Commerce, as of 2024, Pakistan had 15 trade agreements either in effect or under negotiations.

Pakistan’s export profile has evolved over time. Initially reliant on agricultural products, the country has shifted toward industrial exports such as textiles, garments, sports goods and surgical instruments. On the import side, the focus has shifted from basic foodstuffs and raw materials to more advanced industrial goods. With urbanisation and economic growth, demand has increased for items such as petroleum products, automobiles and high-tech machinery.

However, the demand for fuels must be decreased by adopting climate-friendly sources of energy including wind, solar and hybrid-electric sources. Our industry must focus on reduction in emissions at source, through use of fuel-efficient equipment. Pakistan’s aviation system should also benefit from new innovative propulsion technologies and move towards using carbon-free fuels to support sustainable tourism.

According to the United Nations World Tourism Organization (UNWTO), due to unprecedented increase in global tourism, the demand for air travel is expected to double by 2050. However, it is imperative to assess the social, economic and environmental impact of the tourism industry on local communities. In addition, mass tourism should bring economic benefits to local people and support the system of waste management, water consumption and environment protection.

While industrialisation is essential for Pakistan’s future, it must be pursued sustainably. The country should adopt climate-friendly industrial policies by investing in renewable energy sources and implementing strict environmental regulations. Industrial growth must be aligned with goals to reduce pollution and decouple industrial growth from carbon emissions. The use of alternative sources of energy should be incentivised to reduce reliance on fossil fuels. Additionally, urban overcrowding – driven by internal migration – poses a major challenge. Economic and industrial planning must incorporate urban development strategies to ensure balanced growth across cities and rural areas.

In conclusion, Pakistan must prioritise sustainable industrialisation by promoting exports, reducing trade deficits, investing in technology and human resources, and safeguarding ecological balance by transforming local energy system. A balanced and future-oriented industrial policy with social innovation can transform Pakistan into a climate resilient and economically secure nation.

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