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.