Technology transfer through foreign agreements

The government’s decision to incorporate technology transfer arrangements in any future agreements with other countries and multinational companies is a commendable move. Lack of modern technology is one of the primary causes of industrial backwardness. There are several success stories in our region of countries forcing other parties to transfer technologies before allowing them to conduct business in their territory. China enforces strict technology transfer agreements and joint ventures with domestic companies for any foreign company aiming to expand its operations into Chinese market. Such transfer is partly responsible for the massive development in India — a country which came into being the same time as ours with their industry at a level slightly better than ours if not similar. This has been the default way of any developing country opening up its market for international community in order to avail true benefits of globalization.

The idea of importing technology instead of goods and services is new for government policymakers in Pakistan and PTI being the first timer will have to tread ever more lightly in this regard. Foreign governments and companies may show unwillingness to share tech with local partners. They can be brought around with promising tax cuts and access to 210 million strong market. But in order to benefit from technological transfers, we have to ensure that our local workforce is capable of absorbing, learning and then quickly mastering the new technology which is being transferred. As the government pushes ahead with technology transfer provisions in new agreements, perhaps it may take the intervening time to ensure that local educational institutions are also producing a product which is up to scratch. Having proper human capital in place is crucial for harnessing foreign technology to develop a modern and vibrant national economy.