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Ministry of Planning

Development and Reform


Government of Pakistan

Pakistan PQI Initiative

Implementing Partners:

Ministry of Planning
Development and Reform
Government of Pakistan
Message from the Prime Minister

I am delighted to learn that Ministry of has demonstrated that it is possible to grow at


Planning, Development, and Reform, along the rate of 9-10%+ per year for a sustained
with partners from Ministries of Industries and period of time and this is the only way to break
Production, Science and Technology, and through the shackles of poverty and depriva-
Higher Education are launching the Pakistan tion once and for all.
Productivity, Quality, and Innovation (PQI)
Initiative. I also note with satisfaction that by Doing so will require a number of different
launching the PQI Initiative, we have taken pieces of the economic puzzle to come
another step forward in creating the founda- together in synchronicity but above all it would
tion on which future economic growth and require the upgradation of our sectoral
prosperity of this country would be built. The platforms in industry, agriculture, and services
PQI Initiative represents, in many ways, a to achieve global competitiveness. We must
broad range of interventions and investments address our balance of trade by producing
in our future that are fully aligned and support- products and services (including high technol-
ive of the Vision 2025. ogy products and services, where possible)
that command a greater marketshare and
With its mantra of "working harder, better, and higher price than our competitors. Only by
faster" PQI sets the right tone for the Pakistani building the capacity and capability of our
nation and pushes and inspires them to sectoral platforms can we become globally
achieve economic heights never imagined competitive and make rapid advance towards
before by seeking to make Pakistan one of the our destiny of becoming a prosperous country
top-25 global economies by the year 2025. I free of poverty in the not-to-distant future.
would even go further to implore all involved
to set our sights even higher and seek to make I am confident that the participating ministries,
Pakistan a middle income country within the in particular, and other public and private
shortest possible span of time. While it may be stakeholders, in general, will learn a lot from
challenging, it is by no means impossible and the PQI Initiative and help the country move
the Pakistani people deserve better. I am economically forward by building the capacity
certain that if put our hearts and mind into this and capability of its most critical economic
endeavor and fully commit to making it sectors.
happen, we would be surprised by how quickly
we can achieve this given the immense natural I wish all those involved best of luck and
wealth, talent, and potential that this country godspeed.
offers. Many countries in East Asia, most
recently China, and even our eastern neighbor Shahid Khaqan Abbasi
Message from the Federal Minister

I am very pleased that, Ministry of Planning, tion in our agricultural value-chains. East Asian
Development, and Reform, along with partners countries - such as South Korea, Taiwan, Thailand,
from Ministries of Industries and Production, and Malaysia - that have achieved rapid economic
Science and Technology, and Higher Education success in the last quarter of the 20th Century did
are launching the Pakistan Productivity, Quality, so by adopting conscious, calibrated, and
and Innovation (PQI) Initiative. The PQI Initiative sustained efforts to upgrade the capacity and
has been longtime coming and is something the capability of their sectoral platforms. The
country is in a dire need of. In the last five years of example of the Standards Productivity and
this Government, Pakistan has broken through its Innovation Board (SPRING) in Singapore is a case
low growth rate of around 3% and has now in point and is an inspiration for Pakistan's own
reached 5.8% - highest recorded by the country Productivity, Quality, and Innovation Initiative. We
for the last 13 years. But as we aim to break free of have been very fortunate to have benefited from
the 6% threshold, we must also re-double our the advice and insights of experts from the Asian
efforts to forge ahead with even greater resolve Productivity Organisation in helping design the
so that we could lift this country to heights never PQI Initiative.
achieved before.
Today, we live in a time when the economic (and
Our prosperity and future well-being depends on not military) might of a country is the source of its
the competitiveness of our economic actors - true strength. Countries are known and respected
within industry, services, and agriculture - to not for how many bombers and tanks they own
compete in and command a share in the global but how strong and fast growing their economies
market and to do "more with less" locally. This can are, how digitised their government is, and how
only be achieved through a sustained and many unicorns they create. Countries that do not
conscious effort to upgrade the capabilities and produce anything that the world values find
capacity of our sectoral platforms to make them themselves at a terrible risk of being overrun and
better and more productive than those of our forgotten by those that do. It is, therefore, impera-
competitors. Competitiveness depends on tive that we pay attention to building true
productivity, quality, and innovation and before economic strength through investment and
these ideas could be fully operationalised by our capacity building of our industries and sectors.
businesses they must become embedded in our
culture and work ethic - in other words, within We must also evolve a political consensus on
ourselves as individuals, within our communities, what is important for the future our this country,
and within the broader society at large. our younger generations, and the generations not
born. While we may disagree on political matters
We must internalise, as a nation, and as people, and finer points of policy, we must all agree on a
the PQI mantra of working "harder, better, and basic economic blueprint for achieving a prosper-
smarter" to create true impact around us. ous Pakistan and I am confident that enhancing
our productivity, quality, and innovation must be
We must embrace modern approaches such as an important part of this national economic
cluster-based strategies for the development of agenda.
our industry and strive for maximum value-addi-
Ahsan Iqbal
Pakistan PQI Initiative

Productivity, Quality, and Innovation are the cornerstones of national competitive-


ness and prosperity. In recent years, nations around the world have sought to
encourage their citizens to work harder, better, and smarter and devised
strategies and plans to better capture the products of their toils and translate
these into economic growth and prosperity.

The East Asian Tigers - such as Singapore, Taiwan, Thailand, and Malaysia - have
long recognised the value of a productive, quality, and innovative workforce and
have encouraged and rewarded relentless pursuit of productivity and value. The
Standards, Productivity, and Innovation Board or SPRING Singapore was created
in 1996 and charged with the task of enhancing the competitiveness of enterpris-
es to help the city state achieve its economic goals. SPRING identified 25-30
priority sectors and helped implement targeted interventions to build the competi-
tive capacity within each sector. Similar interventions have taken place in other
regions in Europe and North America as well.

Today, Pakistan stands at the cross roads in its journey of economic development
and prosperity. With our macro-economic fundamentals stabilising (i.e. energy
shortage addressed, economic growth at 5.7%, and CPEC presenting a major
regional opportunity) Pakistan's economy is ready for a take-off. However, this will
only materialise if we can systematically upgrade the capacity and competitive-
ness of our agricultural, industrial, and service platforms and bring them at par
with peer countries in the region and around the world, failing which the
aspiration of becoming a middle income country within a decade is likely to
remain beyond our reach.

The Pakistan Productivity, Quality, and Innovation (PQI) Initiative is designed to


help achieve just that.

The PQI Pilot being launched today will test the ability of a number of government
agencies as well as industry and sectoral associations, international donors,
specialists and consultants to work together as part of one national effort focused
to enhance the competitiveness of 5 priority pilot sectors, namely, surgical
instruments, trucking, food processing, gems and jewelry, and value-added
textiles.

The primary objective of the pilot project is to:

• Capture the ‘low hanging fruits’ to deliver a real improvement in the PQ&I
baselines;
• Create the credibility for the PQI initiative and build momentum;
• Ensure that the core team quickly climbs a steep learning curve; and
• Allow time for the broader PQI initiative (20-25 priority sectors) to planned
and phased in.

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Pakistan PQI Initiative

Most importantly, while the pilot project is being executed, the Project Manage-
ment Committee shall work with key statakeholders to flesh out the details of the
broader PQI strategy for the next 5 years (starting July 2020). This will require
detailed analysis and planning, stakeholder engagement, and strategy develop-
ment and subsequent approvals through the CDWP/ECNEC in early 2019.

The current project comprises 6 sets of Activities further subdivided into 8


distinct sub-activities or tasks to be executed in 2018-2020 timeframe. These are
illustrated in the figure below:

Identification,
Establishment Creation of
Buy-in, and
of National PQI Initiative
Strategizing
PQI Steering Management
for Pilot
Committee Structure
Sectors

Launching of Periodic
Conferences,
PQI Frame- Review of
Training, and
work and Performance
Awareness
Initiative in Pilot
Campaign
(Press Conf.) Sectors.

Launching of Approval of
Prime Minis- National PQI
ters Excel- Policy & Plan
lence Award (2020-2025)

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Pakistan PQI Initiative

Key elements (with respective timeframes) of each of these 8 components are


described below:

National PQI Steering Committee shall be responsible for


Establishment creation and approval of PQI Framework, Policy, and Initiatives
of National National PQI Steering Committee will provide leadership and
oversight in planing, monitoring and reviewing the productivity,
PQI Steering
quality & innovation related activities in Pakistan through
Committee respective departments/ organizations under their control.
Timeframe: March - April 2018

A PQI Initiative shall be launched to pilot test the broader PQI


Creation of Framework and Policy. This shall be overseen and executed
through a PQI Core Committee, a Project Management Commit-
PQI Initiative tee, Sector Teams, and Working Groups.
Management Timeframe: April-May 2018
Structure

Identification of 4-5 Sectors/Sub-Sectors/PSEs for the Pilot to


be run between July 2018 and June 2019. Secure buy-in and
Establishment identify 10-15 organisations in each sector participating in these
of National pilots.
Sectoral Teams shall meet with sector leaders and specialists to
PQI Steering identify a strategy and workplan comprising 4-6 actions to be
Committee implemented across respective sectors to deliver 20-30%
improvements in PQI.
Timeframe: April - May 2018

Establishment National PQI Framework and Initiative shall be officially


launched with a Press Conference in the Federal Capital. This
of National shall also suggest the formal launch of the Pilot Project and the
PQI Steering Awareness Campaign.
Committee Timeframe: April - May 2018

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Pakistan PQI Initiative

Conferences, A Series of Conferences and Events (1 Federal, 5 Provincial),


Training Programmes (1000 PQI Champions), and Awareness
Training Campaign shall be launched.
Programme, Awareness Campaign shall primarily focus on Social Media and
and Awareness Radio with some print coverage (adverts and supplements) to
Campaign keep it cost-effective.
Timeframe: Starting May 2018

The Sectoral Strategies created and agreed upon by Sectoral Teams


will be implemented by Working Groups comprising sector leaders
Periodic and organisations to deliver PQI improvements. These shall be
Review of overseen and guided by PQI Project Management Committee.
Performance in
PQI Project Management Committee shall meet every fortnight (but
Pilot Sectors no less than once a month) to review and report progress.
Timeframe: July 2018 - June 2019

Prime Minister's Excellence Award will be given to both public


and private manufacturing and service organizations as MBNQA
Launching Prime and European Quality Award is given in USA and Europe
respectively
Minister's Excel- An independent committee will be established which will review
lence Award and assess the companies and then recommend the best
performing companies.
Timeframe: June 2019

Approval of Awareness of quality and innovation will be given to both public


National PQI and private sector organizations including general public by
Policy and arranging PQI conferences at federal and provincial levels and
Action Plan organizing trainings
Timeframe: July 2019 - Dec 2020
(2018-2025)

Figure: Major components of Project

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Pakistan PQI Initiative

The project shall seek to achieve its objectives through the deployment of
cross-Departmental Teams that will work on a set of pilot sub-sectors. 4-5
sub-sectors have been chosen from Industry, Agriculture, Services, and Public
Sector as pilots. The knowledge gleaned through implementation across a small
number of companies in these pilot projects would then be utilized to strategise a
much larger intervention involving larger number of organisations across multiple
(20-25) priority sectors. The pilot projects shall seek to capture low-hanging fruits
that could be achieved without much investment in capital equipment and
primarily through training, capacity building, advising/guiding/mentoring, and
monitoring and evaluation.

Each cross-Departmental Sectoral Team shall study the relevant sub-sector,


review global best practices, consult with experts (where necessary), and identify
6-8 feasible action items that could be easily implemented across a small number
of 10-15 pilot organisations over a 8-12 month period. The actual delivery of impact
will be carried out by support staff from within the sector (e.g. 2-3 people from
each company) trained specifically in PQI tools and techniques for the purpose.
The choice of feasible action item shall also take into account the need to better
deploy existing resources (particularly equipment) to the fullest and executing
entities shall make all necessary attempts to also leverage additional support from
existing funded projects.

The cross-Departmental Sectoral Teams will monitor progress of implementation,


advise and suggest course corrections, and report to the Project Management
Committee on a fortnightly basis. The Project Management Committee shall use
its multi-sectoral view to oversee, guide, and modify the initiative and strategy,
where necessary, and issue instructions to the Sectoral Teams to execute.

In addition to the core task of implementing PQI initiative across pilot sectors, two
important elements constitute the pilot phase of the PQI Initiative.

First, PQI Initiative shall engage with some of Pakistan’s most productive,
quality-conscious, and innovative companies through a ‘PQI Flagship Company’
Programme. The Flagship Company Programme shall enlist no more than 2
companies from each of the 20-25 sectors into a process of benchmarking,
learning, and capacity-building for the rest of the sectors. PQI will engage execu-
tives and experts from the PQI Flagship Companies to help improve and lift other
companies within the sector. In exchange, these companies shall be provided
benefits such as international benchmarking, national and international visibility,
ability to provide thought leadership on policy, and special audiences with senior
government leaders such as Prime Minister, Minister for Planning, Development
and Reforms, Minister for Finance, Chairman FBR, etc. The PQI Flagship Company
Programme shall be designed and executed by the Planning Commission.

Second, a Prime Minister’s Excellence Award will be introduced in the private and
public sector organizations of Pakistan. This model shall be launched in the public
and private companies along the lines of the Malcolm Baldrige National Quality

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Pakistan PQI Initiative

Award (MBNQA) and European Foundation for Quality Management (EFQM)


excellence models in US and Europe respectively. Candidate companies shall
submit their applications to the PQI Core Committee that will be assisted by NPO
for evaluation. NPO will deploy a team of assessors to individually visit and evalu-
ate the candidates short-listed by PQI Core Committee. PQI Steering Committee
will form an Award Evaluation Committee (AEC) which will send its recommenda-
tions for the award to the Steering Committee. The Steering Committee will
finalize the names whom award will be given and send these recommendation to
Prime Minister.

The Figure below provides a snapshot of the implementation framework to be


executed during the 12-18 month period.

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Ministry of Planning
Development and Reform
Government of Pakistan

www.banaopakistan.com

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@banaopakistan

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