Industrial Sector Of Pakistan

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

Industrial sector plays a very vital role in the economic development of underdeveloped countries

Introduction

Secondary Sector of Economy Man-made Sector Converts raw material into Value Added

Products Manufacturing is a Capital Intensive Sector.

Few Prominent Features

Manufacturing › Large Scale › Small Scale Mining & Quarrying Construction Electricity & Gas Distribution

Sector’s Division

Textile & Apparel Food, Beverage & Tobacco Petroleum Group Pharmaceutical Non-Metallic Minerals Products Automobile Steel Products Fertilizers

Manufacturing Industries

Chemicals Electronics Leather Products Paper & Paper Board Engineering Products Tyres & Tubes

Manufacturing Industries

Pakistan has a widely varied geological frame work, ranging from pre-Cambrian to the present that includes a number of zones hosting several metallic minerals, industrial minerals, precious and semi precious stones.

Mining & Quarrying

Coal Natural Gas Crude Oil Chromite Dolomite Gypsum Lime Stone Magnesite Rock Salt S ulphur Barytes 

Mining & Quarrying is further divided into…

Construction is a process that consists of the building or assembling of infrastructure

Construction

Heavy Engineering/Infrastructure Construction›

Commercial Building Construction› Industrial Construction

Construction is further divided into…

Electricity CNG

Electricity & Gas Distribution

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 & Trade17.25%◦ Transport 11.80%◦ Finance & Insurance 3.59%◦ Ownership & Dwelling 2.22%◦ Public Administration & Defense 5.4%◦ Community & Social Professional Services 10.22%

GDP Contribution of Different Sectors of Economy

Sector-wise GDP & Growth Rate

contribution of industries

GDP growth0%

5%

10%

15%

20%

25%

30%

PakistanIndia Bandladeshsrilanka

Comparison of the industrial sector with other countries

Major contributer to forigen exchange, cotton and cotton based products accounts for 61% in export

3rd largest exporter of the world Over 1.3 million farmers upto 5 million are involved in the

cultivation of this crop 8.5% contribution to GDP Scarf, winter Shwals, wool fibrics, Blankets etc are the

products of Textile Total export $14.8 billion in the last year Employment provide 6.2m

Textile Industry

In Pakistan in 1947 there were only two suger industries

At present 106 suger mills are opreating in pakistan

It is 2nd largest industry after textile 15th rank in the world in suger production Employment 1 million Per capita consumption is 26 kg GDP contribution is 0.7%

Suger industry

Cement contribution in GDP is 3.5% Exported last year 700 million USD (47%

increaed) Pakistan has ranked 5th position in world

exporter of cement Total companies 23, 4 forigen and 3

controlled by armed forces 19 are listed in stock exchange

Cement Industry

Fertalizer is any oraganic and inorganic products added to soil to supply plant nutritent.

Major products are Uera, DAP, NP, CAN, SSP Contribution of fertalizers are 14% in GDP Emlpoyment are 4.7 million Major fertalizer corporations are Fuji fertalizer Sitara chemical ltd Engro chemichals

Fertalizer industry

Sport goods are football, hockey sticks, cricket bat, volley ball, golf ball, badminton rackets, basket ball, boxing gloves

40 million balls are anually exported worth 210 USD

Sialkot export 70% of world demand for inflatable balls

increased 7.8% in last year Employement more than 200,000 Exporting goods worth $450 million Total companies 2400

Sports Industry

Pakistan has natural resuorces over 600,000 km2

Coal, Gas, Salt, Gold, Marbel, Gam stones, are big resources

Only Gold production is 450 crore USD Oil extruction, Marbel industry provide a lot of

employement Gold, copper Reserves is esti-mated to $260billion

Mining and extraction industry

Increase in National income Higher Standard of Living Economic Stability Improvement in Balance of Payment More Exports Increase in Employment Stimulates Progress of other Industries Promotes Specialization

Importance of Industrial Sector in Pakistan Economy

Increased Saving & Investment Large Scope for Technological Progress Increase in Government Revenue Import Substitutes Extension of Market Increase in Rate of Economic Development

Importance……

Problems to the industrial Sector of Pakistan

Lack of Infrastructure

HISTORICAL CAUSES

The Policy of British Rulers

Lack of Technical Knowledge

ECONOMIC CAUSES

Industrial Share

Low Investment and Low Savings

Lack of Technical Know-how

Following are main problems to industrial which make obstacle in the way of growth in their producton, result in transfering industries to other

countries.

Problems……

Bad law and order situation resulting in lower investment

Unfavorable Industrial Structure

Lack of Industrial Research

Frequent Breakdown of Electricity

SOCIAL CAUSES

Adverse Balance of Payment

Lack of Education

Corruption

Problems………….

POLITICAL CAUSES

Political Instability

Kashmir and Water Issues

Changing political and economic policies

Terrorism

Suggested solution

Forigen investment

Attract forigen cargo airlines

Micro credit

Innovative technology

Substitute of powers (oil, gas,

wind mills)

Decrease interest rate

privitization

Traning of labourResearch

development

Advanced infrastructure is necessary for industrial development of Pakistan.

  Financial institutions should provide credit facilities to industrial sector at flexible terms and conditions.

     There should be expansion of markets, at domestic and foreign level, of industrial goods.

  Foreign investment should be encouraged; more incentives should be given to investors.

Political stability is compulsory for the development of industrial sector.   High degree of technical education is required to produce skilled,

technical and efficient work force.   Problem of load-shedding and irregular supply of electricity should be

removed.   Commercial policy and self-reliance policy should be adopted to remove

industrial backwardness.   Foreign exchange reserves and the balance of payment position should

be favorable to develop industrial sector.

1) Internal Sources › Pakistan Industrial Financing Corporation Industrial Development Bank of Pakistan National Investment Trust Bankers Equity Limited Modarba And Leasing Company

Financing of Industrial Sector

2) External Sources World Bank IMF Pak Kuwait Investment Company Pak Libya Holding Company Saudi- Pak Industrial and Agricultural

Corporation SAARC 

Financing…

Pakistan has suffering from shortage of energy, Govt should must take serious steps to provoke transfering of industries to other countries

Govt should make plans for reducing the energy shortage

Provide good circumstances to forigen invester and encourage them

conclusion