Ahmed Khan Malik

Karachi’s industries remain slow to adopt modern technologies—a delay experts warn threatens the city’s competitiveness in an increasingly digital global economy.

Karachi, Pakistan’s largest metropolis and economic hub, hosts thousands of factories, workshops, and trading enterprises that power the national economy. From textiles and garments to steel, chemicals, and automotive parts, the city’s industries contribute a major share of Pakistan’s GDP and exports.

Experts say inadequate infrastructure is a key reason for slow technology adoption. Many industrial zones in Karachi still face frequent power outages, voltage fluctuations, and poor internet connectivity. Without reliable electricity and high-speed broadband, firms struggle to automate systems, adopt data analytics, or shift to cloud-based operations. Even where modern machinery exists, inconsistent utilities prevent its full use.

Another major hurdle is the shortage of technically skilled professionals. Karachi produces thousands of engineering and IT graduates annually, yet most lack hands-on experience in industry-specific technologies such as robotics, machine learning, industrial automation, and the Internet of Things (IoT).

“Educational institutions often emphasize theory over practice. Industries struggle to find workers who can manage modern systems, forcing many to rely on outdated machinery simply because they lack trained technicians,” said Nizamuddin Siddiqui, Research Fellow at the Policy & Research Wing of the F.B. Area Industrial Association, while speaking to Wealth Pakistan.

He added that limited investment in research and development (R&D) further hampers innovation, as most local firms operate on thin margins and avoid experimenting with new methods. “This conservative mindset keeps productivity low and makes it hard to compete internationally with producers who use automation, data systems, and precision tools to enhance efficiency,” he observed.

Siddiqui also pointed to financial barriers. Small and medium-sized enterprises (SMEs), which form the backbone of Karachi’s economy, often cannot afford the steep upfront costs of digital transformation. “Modern machinery, software systems, and workforce training require significant capital. Access to finance is limited, and few banks offer targeted loans for technology upgrades. As a result, smaller businesses remain stuck in low-tech, low-productivity cycles,” he said.

Policy constraints further compound the issue. There are few incentives or tax relief measures for companies investing in digital modernization. Industrial policies remain outdated and fail to address the challenges of technological transformation, while bureaucratic red tape discourages firms from importing modern equipment or adopting innovative production models.

Latif Jamal, Executive Director of the Industry Facilitation Cell at the Sindh Industry Department, said that reversing this trend requires coordinated efforts among the government, academia, and the private sector. “The government must provide stable infrastructure, supportive policies, and financial incentives for modernization. Universities should revamp curricula to include practical training aligned with industry needs, and businesses must view technology as an investment, not a cost,” he emphasized.

He cautioned that unless Karachi’s industries embrace digital transformation soon, they risk being overtaken by more technologically advanced competitors both within Pakistan and abroad. “With the right mix of innovation, skill development, and policy support, however, Karachi can still emerge as a regional leader in industrial modernization,” Jamal added.

Credit: INP-WealthPk