The present government, somewhat in repeat of 1960s, is in the process of setting-up a strong infra-structure for the country. As a consequence, the basic building blocks of such an edifice are in the offing in shape of water dams, highways, airports and even a new port.

So much are the expectations that the developmental budget for the ongoing fiscal is over Rs200 billion. This figure is both huge and unprecedented. And thus it becomes a big responsibility for the government to ensure that the allocations are well-spent and the expected dividends large enough to counter-balance the sacrifices of the tax payer.

Spending should result in some side benefits too. These side benefits would be in the shape of job creation; improvement in the present expertise of our technical resource and lastly, in creation of set ups capable of replicating the giant consortia/ companies managing the building-up of the mega-projects at present.

I would, this time around, delve into the realm of contracting companies capable enough to take up mega-projects on their own. An effort too would be made to understand the need for the governments- both federal and the provincial ones, and other tendering agencies viz.

Semi and autonomous bodies and the state enterprises to arrange for the things in such a manner that both the works in question and the nurturing or maturing of the contractors is concurrently taken up in hand.

The first question would be as to who would be the contractor and what would be his organisational obligations. By way of explaining the issue, we see that the contractor is one who undertakes completion of any particular project in light of the conditions set-forth for the same.

These conditions normally are a corporate set-up, the availability of technical resource, minimum level of R&D- a must to make mid-project adjustments, a connection to or at least the possibility to connect up to experts in case of need; the expertise and understanding of normal technical instructions and specifications; financial depth and access to extra finances in case of need; the availability of the needed tools, plants and machinery and lastly, but, the most important would be the fulfilment of the minimum experience level.

Coming to Pakistan, things here have been awry at the best. At the same time, no concerted steps are being undertaken to improve upon the things. The creation of truly mechanized contracting set-ups was first seen as petty or sub-contractors to the main contractors of Indus River Basin projects of the 1960s.

The set-ups were thereafter further added upon specifically through the NHA and it's now aging Super Highway between Karachi and Hyderabad and by the innovative setting up of the NC, MCP and the steady growth of comparatively smaller companies in the private sector.

However, these could only work on mid-tech projects while leaving the high stuff/ jobs to foreign companies. During the last twenty five years edifies like NC and MCP have wrapped up for all practical purposes- though once these were the envy for all when it came to undertaking imperative infra-structure works in the Arab world.

What is the position at present in Pakistan? Who is undertaking the mega-projects currently underway and what do we envisage for the future? These all questions are vexing us and surely need answers. Thus an attempt would be made to explain these issues.

Presently, a great number of large and mega-projects are under progress- these being in the power, irrigation and the communications sectors. The projects in the power and irrigation sectors are primarily being supervised by Wapda, while PTCL and NHA are the main players in the communications area.

The contractors in all three sectors are all foreigners with local companies acting as sub-contractors or at the most minor or junior partners of a joint-venture or a consortium.

During the last decade or so, the Europeans too have been ousted leaving the Chinese as the predominant force. As an allied problem, we see that the main reason for the ouster of European has been the lower prices being quoted by the Chinese in comparison. In some cases quality has been besides the point.

Some Pakistani companies are indeed working with the Chinese mega-projects underway and in the process would also be gaining experience. But all this may be too little and surely too late.

This is so because by then not much business would be left for the new entrants and nor would these ever think of getting contracts from nearby countries like Afghanistan, Sri Lanka or Bangladesh. At the same time, Pakistanis also stand bereft of their share in the reconstruction business of Afghanistan.

Local companies do not feature anywhere- barring a very small minority which too would be of no consequence. In view of this, one thing is sure that someone other than the companies would have to do something that would result in the required change.

At the same time, we would have to keep the scenario in view whereby international standards have to be enforced. The smaller players or new entrants should not be excluded from the competition.

Actually, it is a part of the checks put in place by the West, some say in order to permanently relegate the East or specifically the developing states and by keeping the newer companies from getting any major contracts.

Now there are two ways to overcome this problem. The first being to ignore the same or keep or crying foul or to accept the requirement so that the local companies are upgraded in a very short period and by providing before time information about the up-coming projects. However, in no case, sham competitions be arranged or something known as domestic preference be allowed to be misused.

Moreover, construction of mega-projects be given the status of a special activity with tax breaks on up-gradation by intending companies. In short, it has to be a concerted national activity.

Here India's example would be extremely appropriate. India rightly comprehended that the Indus River Water's Treaty of the early 1960s would create a large number of water-related projects and all of them would have to be undertaken as per conditions set forth by the World Bank.

And so she quickly set about and then set up consultancies, contracting companies and also pinpointed technical resource through preparation of a national directory.

Thus the third signatory to the treaty was able to garner most of the ensuing contracts in its own territory while Pakistan had to rely on Western companies to do the job. Indeed, these contractors did a great job, but Pakistan could not add on to its inventory of contracting companies- specially when such mega-activity simply stopped thereafter.

It is because of this that all the present mega-projects are being constructed by foreign companies, with the locals acting at the most as sub-contractors. Sadly, the Middle East- once the happy hunting grounds for many a Pakistani venture, is also gone over to others.

What ails the Pakistani companies? These set-ups are in the first of the evolutionary stages and primarily do not possess even a semblance of a corporate structure- a necessity in the world today. Once the management of highly-personalized structures have done well at the initial stage, the quality at a much bigger scale becomes a necessity for competing for bigger business.

The situation is somewhat improved with the introduction of ISO standards- a pre-requisite to acceptance of goods and services for export. However, standardization is perfunctory at best.

So as to ensure improvement on a fast track, GoP too has to chip in and help the companies attain a minimum level of corporate governance. The sooner the better. Thus, with up-gradation of the management structure, the Pakistani companies would be in a better competitive position.

Once the Pakistani companies somehow graduate, GoP must work hard and arrange for contracts abroad- specially in the Middle-East and Africa. It is international business alone that would ensure a healthy economy at home.

With such opportunity and help from the GoP of both the intrinsic and the practical types, the local contracting companies, mainly engineering firms, would start contributing to the national economy and also help in training and utilizing the technical resource.

It all would help in completion of local projects in shorter time and at much cheaper prices. All this can be spearheaded by a consortium of ministries of the federal government- mainly being the ones dealing with production, petroleum and natural resources, commerce, water and power and, of course, the divisions dealing with communication including Railways and the PIA.

Once these ministries start working in tandem, the finance ministry can always join in and then arrange for certain pre-requisites narrated earlier. A special cell (to be kept for a good two to three years) in the PM's office should monitor the evolution and up-gradation of the Pakistani companies. By the end of this gestation period, things can, perhaps, improve for good.