GlobalVillageSpace
Media Partner
- Joined
- Mar 4, 2017
- Messages
- 993
- Reaction score
- 1
- Country
- Location
Global Village Space |
Industrial Closure – How Prudent?
As Pakistan enters its seventh day of industrial lockdown on Friday 27th (including three days of Pakistan resolution long weekend), the question being asked by all stakeholders is; does the government have an industrial plan amidst the duration of the COVID-19 pandemic? Industrial lockdowns are always very tricky to handle, and if called incorrectly can invariably lead to permanent industrial closures or can result in far greater damages.
The resulting colossal financial losses can in-turn: erode any previously held industrial competitive advantage and can make plants permanently redundant; as cash flow constraints make it outrightly difficult to restart engines.
Furthermore, in some cases, it may become impossible to regroup the scattered human resource. And last but not the least, it may kill the very will of an entrepreneur to once again take a business risk, amidst a generally unfriendly business environment.
And it is in this very context that one is a bit confused that, good intentions aside, what exactly prompted the government to take such an irrational decision of shutting down the wheels of industry and manufacturing in Pakistan for more than two weeks? Pakistan has its own peculiar set of problems and simply aping the West in any type of policymaking or carving a copy-paste emergency response mechanism is foolhardy.
Read full article here:
Locking down the Essentials: Whilst Hoping to Survive
Industrial Closure – How Prudent?
As Pakistan enters its seventh day of industrial lockdown on Friday 27th (including three days of Pakistan resolution long weekend), the question being asked by all stakeholders is; does the government have an industrial plan amidst the duration of the COVID-19 pandemic? Industrial lockdowns are always very tricky to handle, and if called incorrectly can invariably lead to permanent industrial closures or can result in far greater damages.
The resulting colossal financial losses can in-turn: erode any previously held industrial competitive advantage and can make plants permanently redundant; as cash flow constraints make it outrightly difficult to restart engines.
Furthermore, in some cases, it may become impossible to regroup the scattered human resource. And last but not the least, it may kill the very will of an entrepreneur to once again take a business risk, amidst a generally unfriendly business environment.
And it is in this very context that one is a bit confused that, good intentions aside, what exactly prompted the government to take such an irrational decision of shutting down the wheels of industry and manufacturing in Pakistan for more than two weeks? Pakistan has its own peculiar set of problems and simply aping the West in any type of policymaking or carving a copy-paste emergency response mechanism is foolhardy.
Read full article here:
Locking down the Essentials: Whilst Hoping to Survive
