A little attention towards cottage industry could help the government get rid of many economic problems including unemployment and poverty.

Cottage Industry has the key importance in the development of Pakistan, holds a fundamental position in rural set-up and also gained immense importance in cities and towns, Mahfooz Elahi, President of Islamabad Chamber of Commerce & Industry has said, addressing the business community.

ICCI President said that cottage and small-scale industries (SME) are labor intensive and provide employment to 80% of the industrial labor force, elaborating the point he added that this reduces the unemployment and offers opportunities for self-employment.

He said that the cost of doing business was touching the sky therefore it was imperative for the government to extend help to the cottage industry and
should announce special electricity tariff for the cottage industry so that they could be able to compete with foreign finished/semi finished goods. Pakistan’s cottage industries have gained immense importance world over, he added

Elahi said that the export orders would largely be met by the local cottage industry operating relatively on medium scale. There is great demand for hand-woven carpets, embroidered work, brassware, rugs and traditional bangles, these are also considered important export items and are in good demand in international market, he opinioned.

He suggested that a program for developing and promoting cottage industries both in rural and urban areas is more feasible as compared to large scale industries that need huge resources.

Mahfooz Elahi said that these industries make effective use of local raw materials which also promotes primary industries so government should announce incentives to assist the cottage industry, which is facing multiple challenges so that they can utilize their existing resources in an efficient way.  

President ICCI said that there is an urgent need for implementation of techniques which not only enhances productivity but develops skills of the laborers and meets the requirements of the local market. Government should also provide subsidiaries for the growth of cottage industries especially in the preliminary stages.