INDUSTRIAL SECTOR OF PAKISTAN

The Term “INDUSTRY”

“Industry refers to that sector of economy which is related with manufacturing and production of different products”

Industrial Sector Of Pakistan

Functions Of Industrial Sector Industrial Sector is of great importance for

economic development of country. It is historical fact that countries with strong industrial sector have showed more economic growth and development industrial sector have shows improvement in national income and promoted living standard of population.

Industrial Sector Of Pakistan

Industries in Pakistan

Sports industry

Telecom industry

Cement industry

Surgical industry

Sugar industry

Defense industry

Auto mobile industry

Fashion industry

Fertilizer industry

Oil & Gas Industries

Chemical industry

Textile industry

Textile Industry

Historically, Pakistan’s textile industry and clothing sector has always been a major

contributor to the foreign exchange earner and still contributes

Textile IndustryAchievements

4th largest grower of cotton after USA, China and India

3rd largest consumer of cotton

3rd largest exporter of cotton textiles

2nd largest supplier of cotton yarn with 26% share of the international market

Sugar IndustryAt the time of independence in 1947, there were only

two sugar factories in Pakistan.

At present there are 106 sugar mills operating in Pakistan.

It is the 2nd Largest industry in Pakistan after Textile Industry

Automobile Industry The business of producing and selling self-powered

vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles

Automotive Industry Products

CARS

TRUCKS

TRACTORS

BUSES

MOTOR CYCLES

GDP Contribution Of Different Sectors Of Economy

Agriculture 20.47%Crops 9.90%Livestock 9.97%Fishing 0.33%Forestry 0.25%

Industry 23.93%Manufacturing 17.53%Mining 2.39%

Construction 2.19%Electricity & Gas 1.80%

Services 55.60%Wholesale & Trade 17.25%Transport 11.80%Finance & Insurance 3.59%

Ownership & Dwelling 2.22%Public Administration & Defense 5.4%

Community & Social Professional Services 10.22%

Comparison Of Industrial Sector With Other Countries

Asian Countries

Pakistan 23.93% India 26.3% Bangladesh 28.5% China 46.9%

Industrial Development During 1947-50

• 34 units of small industries out of 921

• sugar mills, cotton ginning factories, flour mills rice husking mills

• 6.9% contribution to GDP in 1950

Industrial development during 1950s

• Establishment of a large number of new industries such as woolen yarn, cycle tyres and tubes, paints, varnishes and glass

• Establishment of Pakistan Industrial Development Corporation (PIDC)

• Large investments were recorded in paper, cement, fertilizer, jute mills etc

• contribution to GDP was near 10%.• Twin Objective.

Industrial development during 1960s

• The recurring floods.

• All sectors of the economy suffered

• The industry achieved 7.8% growth against the Plan target of 10%

1972-1977: The Z.A Bhutto Regime

The Era Of Nationalization

Nationalized thirty-two large manufacturing plants in eight major industries.

Iron and steel, basic metals, heavy engineering, motor vehicle and tractor assembly and manufacture, chemicals, petrochemicals, cement, and public utilities.

The Failure Of Nationalization Policy

Reasons: Rise in Oil Prices

Floods and Pest Attack

Devaluation of domestic currency.

Imports from West

1977-1988: The Zia Era

Reversed The Previous Policy Of Privatization

• Investors’ were disturbed mentally.

• industries were Sold back to same owners.

High Growth Rates

›Growth of Large Scale Industry

›Private Industrial Investment

During 1988-97

• Highly political instability.• Mohtarma Shaheed/Nawaz shareef

• Agreements of previous governments were halted.

1998-2007

• Growth of 7.7% in 2002• Improvement in domestic demand & better

macroeconomic environment• 2nd highest growth was seen since last three decades in

2004-05• Stable exchange rate, low inflation and strong domestic

demand for consumer durables.

Continue . . .

• LSM grew by 4.2%• Weakest growth in the decade• Heightened political tension, law & order

detritions and growing power shortages• Traditional low value added industries• Low investment in upgrading technology

2008 To-Onward

• Negative growth rate• Severe energy shortages & like issues• Weak external demand because of world

recession• Imposition of additional taxes• Depreciation of money.

Continue....

• Heavy floods, severe power & gas shortages• Economy recovered afterwards because of

good performance amongst food beverages, tobacco paper etc

• Flood in Sindh• Reduction in duties then

CAUSES OF BACKWARDNESS

HISTORCIAL PROBLEMS

Polices of British rulers

Lack of technical knowledge

Industrial share

ECONOMICAL PROBLEMS

Disputable Industrial Strategy

Lack Of Infrastructure

Energy Crises

Lack Of Industrial Research

INTERNATIONAL PROBLEMS

World Recession

Economic Restriction By Other Countries

SOCIAL CAUSES

Lack Of Education

Terrorism

Corruption

Climate And Weather

Culture Disturbance

POLITICAL CAUSES

Political Instability

Conflicts With India

Industrial Policies Of Different Governments

Revival of Industrial policy

Innovative technology

Containment of skilled labor

Theory of Comparitave advantage

Participation in international galas

Research & Development

Govt projects

Suggested Solutions

Suggested Solutions

Foreign Investment:

Small & Medium Enterprises (SMEs)

Micro Credit

:Privatization

EPZs(Export Process Zone)

Subtitute of powers(coal,gas,windmills)

TAX CONCESSION

Advanced infrastructure

Expansion of markets domestic and foreign

Technical Education

Political stability

supply of electricity

Self realization

Suggested Solutions

Thanks

THANK YOU