Future of Pakistan Lies in Strengthening Local Manufacturing

In conversation with Engr. Fahim I. Siddiqui, CEO FND Consulting Engineers

The recent HVACR Trends Expo, organized by ASHRAE, has garnered significant attention from industry leaders and stakeholders, serving as a crucial platform for discussing the latest advancements, challenges, and future trends in heating, ventilation, air conditioning, and refrigeration (HVACR) technologies. The event, which has met with positive feedback, is seen by many as a vital step toward strengthening the sector and fostering growth. One of the prominent voices who appreciated the initiative was Engr. Fahim I. Siddiqui, CEO FND Consulting Engineers, who expressed his admiration for the event’s organization and scope.

While commenting on the expo Engr. Fahim I. Siddiqui said, “The HVACR Trends Expo organized by ASHRAE was a very good initiative. Its scale can increase with time, and as it grows, it will only get better.” His statement reflects an optimistic outlook for the future of such expos, particularly in terms of their potential to bring together key industry players to share ideas, explore collaborative opportunities, and drive technological advancements. According to him, the Expo’s success lies in its capacity to evolve and expand as it continues to engage stakeholders on a global scale.

In addition to the Expo, a key milestone was the hosting of ASHRAE’s Chapters Regional Conference (CRC) for the first time, marking a historic event for the organization. The conference attracted more than 80 delegates from over 20 countries, showcasing the event’s global relevance and its potential to foster international cooperation. Engr. Fahim I. Siddiqui praised the initiative, stating, “It was a good initiative by ASHRAE Pakistan Chapter and Farooq Mehboob, the past president of ASHRAE. This conference will pave the way for further collaboration, especially for our local manufacturing sector.”

The exclusive conversation with Engineering Post pivoted towards the important discussion regarding local manufacturing challenges, an issue that Engr. Fahim I. Siddiqui is particularly concerned about. He has long advocated for increasing local production, emphasizing its importance not only for economic growth but also for reducing the reliance on imports. “Local manufacturing of products should be increased. It will save our foreign exchange reserves as well,” he remarked, underscoring the financial and strategic benefits of nurturing a robust domestic manufacturing industry.

He believes that Pakistan has missed several opportunities in the past, especially during the 1960s and 70s, when companies and entrepreneurs relied heavily on imports rather than focusing on developing local manufacturing capabilities. “It’s unfortunate that back in the 60s and 70s, companies and entrepreneurs did not work on local manufacturing, relying instead on imports,” he explained. “While imports can be profitable in the short run, they do not contribute to the long-term growth of the country.” His remarks point to the necessity of thinking beyond short-term gains and prioritizing the country’s industrial and economic development in the long run.

According to Engr. Fahim I. Siddiqui, manufacturing is not just a business venture but a long-term investment that requires dedication, technical expertise, and, most importantly, government support. He stressed that the government must play a more active role in promoting entrepreneurship, especially in the manufacturing industry. “Manufacturing is a long-term investment, dedication, as well as technical expertise. The government needs to support entrepreneurship in the manufacturing industry,” he added, noting that such support is critical for creating a sustainable and competitive manufacturing sector. According to him, the current state of local manufacturing has the potential for significant improvement, particularly if the right steps are taken. He pointed out that many major manufacturers started on a small scale and became successful over time, driven by a commitment to quality and innovation. “Almost all the major manufacturers have started from a small scale and have become successful over time. In our bid to incentivise local manufacturing the government needs to involve the industrialists in it as well,” he said. This observation highlights the importance of involving experienced industrialists in shaping the future of local manufacturing, as they can provide valuable insights, leadership as well as the capital required for building a stronger foundation for growth.

One of the crucial factors for ensuring the success of local manufacturing is the adherence to industry standards. Engr. Fahim I. Siddiqui emphasized the importance of third-party certifications in maintaining high quality in locally manufactured products. He explained, “Certifications from third parties are very important. A consultant’s job is to make sure that the client’s money is invested properly. To make such a recommendation, we need to make sure that the product complies with all the industry standards of quality. Third-party certifications are a way to ensure that.” By obtaining certifications, manufacturers can build trust with clients and assure them that the products meet the necessary safety and quality benchmarks.

In addition to quality, Engr. Fahim I. Siddiqui pointed out the cost advantages of locally manufactured products in the current economic climate. He stated, “To be completely honest, a locally manufactured product is much cheaper than an imported one, considering the Rs 280/USD exchange rate. In this scenario, if the local manufacturers work on improving the quality of their product and certifications, it can be a really good opportunity for them.”

Despite the potential, there are challenges that must be addressed on the government level to enable the growth of local manufacturing. Engr. Fahim I. Siddiqui highlighted the high interest rates, foreign exchange rates, and energy costs as significant barriers to growth. “The interest rate and foreign exchange rate are both very high. Energy rate is also very high. These things restrict growth. The government needs to work on incentivising these areas so more people can move towards a manufacturing mind-set,” he urged.

As far as product design is concerned, Engr. Fahim I. Siddiqui CEO of FND Consultants pointed out that there is both an art and a science to designing products, emphasizing the need for standardization. He explained, “As far as system design is concerned, we need to work on designing our products on the basis of some standard designs. There is an art and a science to any design. Products need to be made on standards. The already available prototypes need to be replicated. Machines also need be updated in the industry.” His insights reflect the importance of innovation and modernization in the manufacturing process, as well as the need for companies to invest in updated machinery and technology to improve production standards.

Collaboration through joint ventures (JVs) is another avenue for growth in the local manufacturing industry. Engr. Fahim I. Siddiqui mentioned that many companies are already working on JVs, which facilitate technology transfer and help raise the standards of local manufacturing. He acknowledged that while the new machines and technology are expensive and require significant investment, these collaborations will help the industry grow over time.

Consulting is another critical area that Engr. Fahim I. Siddiqui addressed, highlighting the responsibility that comes with the profession. “Consultancy is a business that requires a lot of responsibility and experience. A Consultant’s relationship with Clients is based on trust, which must be delivered by the consulting engineer. This requires a good team and dedicated work. The current culture of clients cutting down on consultancy fees is not good for the profession, and unfortunately even the consultants are seemingly content to work on low fees. This is not sustainable for the consultancy profession,” he said. Our work is people-driven and needs human input in every way, which is why we need to take the issue of brain drain seriously, which has become a significant challenge for Pakistan’s engineering sector. He noted that many well-trained engineers often seek opportunities abroad, particularly in Dubai or Saudi Arabia. In this regard, FND Consulting Engineers is making efforts to retain talent by offering competitive benefits, including good salaries, generous bonuses, provident fund, company-maintained cars for senior leadership, and free lunch facilities. “An engineer who is trained well gets a good job in Dubai or Saudi very easily. Additionally, the company is working on a vigorous training program for its employees to help them stay competitive and grow with changing industry trends.