FREE ESSAY ON INDUSTRIAL DEVELOPMENT IN PAKISTAN-INTRO

INDUSTRIAL DEVELOPMENT IN PAKISTAN-INTRO

GROUP MEMBERS:
1. AHSAN SHAMIM.
2. ADEELA ASLAM.
3. MUNEEZA ANWER
4. SAAD IQBAL.
TABLE OF CONTENTS.
1. INTRODUCTION 03
2. KINDS OF INDUSTRIES 04
3. INDUSTRIAL INHERITAGE........ 06
4. PHASES OF INDUSTRIAL DEVELOMENT 07
5. IND. PROBLEMS AND REMEDIES 11
6. INDUSTRIAL RESEARCH 17
7. DEVELOPMENT IN DIFF. INDUSTRIES 20
TEXTILE INDUSTRY 20
IRON AND STEEL INDUSTRY 33
AUTOMOBILES INDUSTRY 38
ENGINEERING INDUSTRY 43
CONSTRUCTION INDUSTRY 47
ENERGY INDUSTRY 48
MINING AND QUARRYING INDUSTRY 52
FERTILIZER INDUSTRY 54
CEMENT INDUSTRY 57
PHARMACEUTICAL INDUSTRY 60
8. CONCLUSION 64
9. ENDNOTES 66
10. ACRONYMS 67
DEDICATED TO ALL THE SINCERE
AND SILENT INDUSTRIAL WORKERS
OF PAKISTAN.
INTRODUCTION:
No economy can even dream for economic prosperity without developing its industrial
sector. At the time of partition in 1947, Pakistan was inherited highly discouraging
industrial assets. The newly created country commenced its industrial move in these
hopeless economic and industrial circumstances. We have no doubt, developed in industrial
sector like other sectors of the economy. Today, we are self-sufficient in various
manufactured goods. Nevertheless, it can't be denied also that Pakistan has not
industrially developed, as it should have been during past 52 years.
During this intial period, private sector of Pakistan was lacking not only in capital but
also in experience and thereby it couldn't play its role that can be mentioned. In the
light of this problem, the Government of Pakistan established PIDC1 (Pakistan Industrial
Development Corporation) in 1952. This developed confidence among the industrialists and
investors. After two decades, Pakistan achieved self-sufficiency in various consumer
goods, but still we were lacking in key raw materials like coke, steel and iron etc. In
1973, this dream was also culminated into reality and, with the technical and financial
co-operation of USSR (Now Russia), the foundation stone of Pakistan Steel Mills was laid
down and today this largest project of country has been supplying steel and other allied
productions.
Although the nationalization policy of Zulfiqar Ali Bhutto government2 in October 1972
shattered the confidence of investors to a great extent, the industrial policies of
1984-onwards caught hold of the sinking vessel of the economy of Pakistan. After the May
1998 post-nuclear achievements, economic sanctions weakened the recovery in this sector.
Factors like economic sanctions3, side effects of the measures taken by the government to
minimize the adverse effects of the sanctions (especially freezing of FCA'S), decline in
domestic and foreign investment due to uncertain economic environment and lower demand
for Pakistan exports caused by global economic recession4, adversely effected the growth
of industrial sector.
Now the present "Un-Democratic" government has assumed power with the majority concert
and showing their keen interest in economic development. They have put economic revival
as their first priority, therefore we should hope for better future.
THE TERM 'INDUSTRY':
The term 'Industry' can be defined as:
A collective name of all those units or organizations in an economy, which are engaged in
producing material goods or rendering services of the same kind in making these
organizations successful.
Actually industry includes all those organizations, which create utility in the goods
already produced by nature because the created utility indirectly satisfies the human
wants. Satisfactions are directly gained by using 'consumer goods' while 'capital goods'
(Machine, tools etc.) provide satisfaction directly.
KINDS OF INDUSTRIES:
There may be various bases for classifying an industry like
Special name.
Volume of capital.
Nature of labour.
No. Of workers.
Nature of production.
Nature of transformation etc.
Using these bases, the industries may be classified as under:
1. MANUFACTURING INDUSTRIES
Manufacturing industries are those, which convert natural raw materials or semi-processed
items into finished products.
E.g. Textile industry, which convert cotton and yarn into clothe.
2. CAPITAL GOODS INDUSTRIES
The goods, which are utilized to produce further goods, are called capital goods.
E.g. Tool machines, raw materials producing industries.
3. CONSUMER GOODS INDUSTRIES
These industries produce consumer goods that are available for consumption immediately
after their production.
E.g. Cloth, Shoe, Soap, Medicine producing industry etc.
4. EXTRACTIVE INDUSTRIES
These industries don't produce goods but they get the concerned product directly from the
national resources.
E.g. Mining, Agriculture and Fishing industries etc.
5. LABOUR INTENSIVE INDUSTRIES
These industries use more labour than the proportion of capital. It can also be
interpreted that capital is substituted by labour. Labour intensive industries are
speedily developed in those countries, which lack in capital but are thickly populated.
The benefit of these industries is the lower cost of production of their products.
6. CAPITAL INTENSIVE INDUSTIES
On contrary of labour intensive industries, these industries do the reverse. These
industries are mainly present in European countries, where capital is available in
abundance, but population is thin.
7. GENETIC INDUSTRIES
These industries aim at miraculous enhancement in the volume of production and
introduction of new varieties and kinds of goods. These industries produce new kinds of
plants and livestock.
E.g. Poultry and Fishing industries etc.
8. HIGH-TECH INDUSTRIES
The industries using latest technologies and high skills in production are known as
high-tech industries.
E.g. Computer, Electronics, Robot producing industries.
INDUSTRIAL IN-HERITAGE AT INCEPTION OF PAKISTAN:
The future of a country can be decided on the basis of past and in the light of present.
If the present of a nation is to be discussed, its past should also be considered. The
answer to the question that, 'Are we satisfied with the present industrial situation?' is
not possible without knowing the industrial past of the country. Any final comment can be
given only after comparing present with the past. Some of the pessimists, with reference
to the question of industrial development in Pakistan, are of opinion that no industrial
development has taken place in Pakistan. These people are those who are habitual to see
the dark aspect only. Quite possible that the industrial growth and development has not
been as it should have been during 52 years. To decide upon whether industrial
development has been satisfactory, we will have to consider the industrial structure that
came to the lot of Pakistan in 1947. At the time of its emergence, only 34 small
industrial units came to the lot of Pakistan with 26400 workers. In 1949-50, the
industrial share to the total GNP of Pakistan was only 7%5.
After 1947, the areas, which fell in Pakistan, were merely raw material producing areas,
which were providing the raw materials to those areas, which kept intact with India after
the partition. East Pakistan (Now Bangladesh) was supplying jute to the factories of West
Bengal because of having not a single jute mill. Punjab and Sindh were catering the needs
for cotton for the textile mills of Ahmadabad, Banaras and Baroda.
This in even distribution and development of industries even prior to the division of
sub-continent took place because British rulers were having soft corner for Hindus and
ill feelings for Muslims. They wanted to keep Muslims socially and economically under the
domination of Hindus.
After creation of Pakistan, when industrial assets were divided, Pakistan received the
industrial units included cotton jinning, sugar, ice and rice husking units. The people
were not industrial minded therefore, there was no supply of managerial peoples and
entrepreneurs. In the undivided India, the owners of these units were Hindus, so after
partition when they left for India, these units were either closed or merged.
Consequently Industrial vacuum was created in Pakistan. Briefly, we can say that there
was no industrial base in Pakistan in 1947.