Role of Industry And Trade In

Economic Development of Pakistan

Overview of Economies

Raw Material Exporting Economy. ( Saudi

Arabia Oil)
Subsistence Economy. ( Few opportunities)
Industrializing Economy. ( Developing
Countries)
Industrial Economy. ( Developed Countries)

Innovation Phases

The factors of production, usually summarized

in the categories of labor, capital and nature
in economic theory constitute the productive
resources of the country.

First Wave
1785-1845 60 Years Water
Power; Textiles; Iron
Second Wave
1845-1900 55 Years Steam
Rail, Steel.
Third Wave
1900-1950
50 years
Electricity, Chemicals, Internal-combustion Engine
Fourth Wave 1950-1990
40 Years
Petrochemicals, Electronics, Aviation.
Fifth Wave 1990-2020
30 years Digital
Networks, Software, New Media.

Overview

Pakistan ranks 41st in the world and 55th

worldwide in factory output.
Pakistan's industrial sector accounts for about
24% of GDP
Cotton textile production and apparel
manufacturing are largest industries,
accounting for about 66% of the merchandise
exports.
40% of the employed labor force.

Types of Industries In Pakistan

Large Scale Manufacturing Industries.

Small Scale Manufacturing Industries.

Large Scale Manufacturing Industries

67.1% of total manufacturing sector.

17.1% growth rate.
18% contribution to GDP.

Major Large Scale Manufacturing Industries

In Pakistan

Fertilizer Industry

11 industries total
6 in Punjab
3 in Sindh
2 in N.W.F.P
Producing Nitrogenous & Phosphatic
fertilizers.

Textile Industry

8.5% contribution to GDP.

Covers 46% of total Industrial Sector.
Providing Hosiery, Cloth, Ready-Made
garments.
3% of United States imports regarding
clothing and other form of textiles are covered
by Pakistan.
Textile exports share in total export of
Pakistan has declined from 67% in 1997 to
55% in 2008

Vegetable & Ghee Industry

Major share by Private Sector.

155 units.

Sugar Industry

77 Large Sugar Plants.

The productivity is very much in-efficient
( 2003-04 a decline from 5.5 to4 million
tons production)
38 sugar plants in Punjab.
32 in Sindh.
6 in NWFP
1 in Azad Jammu and Kashmir

Cement Industry

27 large Cement Plants.

Productive Capacity of 17.6 million tons.
An increase in demand from 7.7 million tons to
9.8 million tons during the last 6-7 years.
Mainly due to increase constructional
expenditures, decrease in public sector
development.

Automobile Industry

The total contribution of Auto industry to GDP

in 2008 is 2.8% which is likely to increase up
to 5.6% in the next 5 years.
18 units working in country.
Major increase due to the rise in demand of
cars in the country probably due to leasing &
car financing.

Paints and Varnish Industry

22 units in organized sector and 400 units in

unorganized sector.
By organized sector it means that sector
whose records are available and includes firms
organized as companies, payments made via
the banking system, incomes reported to the
tax authorities, sales reported to the VAT
authorities, and employment reported to the
National Insurance authorities.
Due to revival of housing sector a 50%
demand is met by organized and 50% by
unorganized.

CNG Industry

Pakistan is one of the largest users of CNG (

compressed natural gas) in the world.
More than 2,900 CNG stations are operating
in the country in 85 cities and towns.

IT Industry

Total number of IT companies increased to

1306 and the total estimated size of IT
industry is $2.8 billion.
2007, Pakistan was for the first time featured
in the Global Services Location Index by
A.T. Kearney.

Communication Industry

Pakistan Telecommunication Company Ltd has

emerged as a successful Forbes 2000
conglomerate with over US $1 billion in sales in
2005.
Mobile telephone market has exploded
fourteen-fold since 2000 to reach a subscriber
base of 91 million users in 2008.
Contribution of telecom sector to the national
exchequer increased to Rs 110 billion in the
year 2007-08 on account of general sales tax,
activation charges and other steps as
compared to Rs 100 billion in the year 2006-07.

Problems of Large Scale Manufacturing

Industries

Provided consumers with lower quality and

higher prices.
All industrialization was capital intensive &
employment could not increase.
Industrialists earned abnormal profits and
wasted them despite of re-ploughing them.
Textile sector could not modernize itself.
More political influence on industries.

Small Scale Manufacturing Industries

75% share in economy.

Provides Jobs to unskilled labor.
80% labor force employed from the rural
sector.
Includes carpet making, cloth, washing, shoe
etc.
6.5% of GDP

Importance of Small Scale Manufacturing

Sector.

Employment to Women.
Increase in Exports.
Increase in GDP.
Ease of establishment.
Provide experience and skills.

Problems/Drawbacks

Shortage of finance.
High production cost.
Lack of standardization.
Lack of marketing facilities.
Irregular supply of raw material.

Agro-Processing Industry

Agro processing industry refers to the subset

of manufacturing that processes raw materials
and intermediate products derived from the
agricultural sector.
Upstream industries- initial processing
Downstream industries- further
manufacturing operations on intermediate
products.

Important Facts About Our Country

Highest Railway Station of Asia.

Gawadar is world`s largest sea port.
Khewra is the world`s 2nd largest salt mine.
Tarbela Dam 2nd largest dam in the world and
the largest earth filled dam in the world.
5th largest gold mine and largest coal reserves
are in Pakistan.
Most connected country in South Asia with
largest Tele-dentistry.
Largest 6th gas reserve of Asia is in Pakistan.
POF EYE new corner is the world`s best Gun
Technology made in Pakistan.