WITH the changing pattern of the economy and its impact on various sectors, the import pattern has greatly changed and become rather unpredictable because of global factors as well.

But what is striking about the hefty import bill of $30.5 billion in the fiscal 2006-07, is not only its bulk and the staggering large deficit, but the diversity of its contents.

If petroleum adds to the import bill of $7.33 billion, the telecom sector also contributes to a large part of the imports. On the other side, the computer sector is making headway and Prime Minister Shaukat Aziz wants its sponsors to set up the venture capital to develop the industry. Pakistan’s import of machinery in the last fiscal year touched $6.6 billion -- about one-fifth of the total imports.

Pakistan is still in the primary stage of industrialisation as it is manufacturing mainly consumer goods not machines. Even in the automobile sector, Pakistan is still just an assembler.

Attempts to manufacture machines through the Machine Tool Factory, the Heavy Mechanical Complex and the Heavy Electrical Complex were not a success and had to be abandoned for want of adequate investment as well as advanced technology. Even with 300 textile mills, most of the textile machinery is imported. Hence we are relying on imported machinery which in the last fiscal cost $6.6 billion and $6 billion the year preceding that.

In a year in which Pakistan’s manufacturing sector faired poorly in exports, except the textile sector, the import of machinery has been very heavy and is marked for its diversity of their contents.

Even in the area of textiles, in which we exported goods worth $10 billion last year, we have not done too well compared to Bangladesh which exported textiles worth $9.2 billion out of its total exports of $12.12 billion last year despite political turmoil and violence there and the fact that Bangladesh does not produce any cotton; its jeans, shirts and other garments, which are well tailored, did the trick.

Industrial sector in Pakistan, particularly leather, which once was a major sector, has fared poorly in export performance. Its leaders complain of lack of incentives and support. Additional investment in this industry has also been poor compared to the challenges it faces and the opportunities for larger sale abroad.

Now frequent power failures and breakdowns in supply have necessitated the import of power production machinery for $706 million mostly by the private sector. The machinery is needed to set up new power plants which are to be given higher rates to encourage more private sector investment. As a result more and more private sector power plants are coming up with early maturity dates.

Added to that is the import of electrical equipment for $642 million which is a distinct increase over the previous imports.

The textile sector has imported machinery for $503 million which is lower than the previous year’s imports. Some of the machines are expected to produce sophisticated products with higher value added goods.

The I.T and office equipment sector imported equipment for $306 million. Far more will have to be invested and imported if the industry is to achieve the $10 billion target by 2010 -- three years from now.

But more has been said about large investment in the I.T sector than what has been achieved in reality. The prime minister should follow up his call for venture capital in this area with practical measures which are productive and bring about concrete results. The IT software exports fetch merely $100 million.

The Telecom sector has consumed $2,158 million of imports of which the mobile telephone equipment claimed $831.6 million.

With more and more luxury buildings coming up in the form of office towers and super plazas, more advanced construction equipment has to be imported. So $222 million were used for the import of such advanced equipment.

With food grain prices going up along with the prices of vegetables, more farming equipment is being imported. Such imports in the last fiscal year caused $220 million.

The Punjab cost of production committee has suggested Rs518 for 40 kilograms of wheat after the next crop. Higher support prices and heavier procurement prices will increase the profit from farming and make the affluent farmers import more agricultural machinery.

Earlier there was a move to sell off the Heavy Mechanical Complex and the Heavy Electrical Complex and the Machine Tool Factory along with the Steel Mills, but that has been suspended for the time being so that the government could look for better options. We have to make proper use of the equipment on which a great deal has been invested. We have to move from simple manufacturing to machine making where our skills will be used.

And in the area of textiles we have to focus on the value-added instead of importing cotton from India or the central Asia to make low count yarn or cheap cloth which others convert and sell at far higher prices. We have to try to sell our skills instead of largely our sweat.

Of course, the textile industry has to be encouraged to diversify so that it can provide labour to the millions of workers in the country and millions more to come year after year.

What is imperative is that we move from the primary industrial stage to making machinery and certainly the textile machinery which as hundreds of mills need and we import now at a very heavy cost.