2. Industrial Estate:
Industrial Estates are specific areas
reserved for industry only. The
government provides infrastructure
facilities such as metalled roads,
electricity, water, gas, hospitals and
sanitation facilities. Pakistan's first
industrial estate Sindh Industrial
Trading Estate Limited (S.I.T.E)
Karachi was established in 1947.
3. SPECIAL INDUSTRIAL ZONES
Special industrial zones can be developed even in areas
where infrastructure facilities like water supply, electricity,
telephone and metalled roads are not available. The
interested companies (local or foreign investors) would
develop these facilities and provide utilities for the zones,
however, they will be assisted by the respective government
agencies to provide public facilities e.g. telephone, electricity
and water supply, metalled roads. The investors will be
allowed to develop their residential, commercial and social
facilities in the vicinity of the industrial zone.
4. What is the Difference Between Formal and Informal
Sectors?
The formal sector consists of the businesses, enterprises and economic activities that are
monitored, protected and taxed by the government, whereas the informal sector is comprised of
the workers and enterprises that are not under government regulation. British anthropologist Keith
Hart coined the term "informal sector" in 1973 as part of a study on Ghana. There are many conflicting
theories as to the role and benefits of the informal sector.
In contrast to the formal sector, the laborers, businesses and activities that make up the informal sector
are not registered with or taxed by the government. For this reason, scholars sometimes refer to the
informal sector as the black market, shadow economy or underground economy. Originally, the term
referred to self-employed small enterprises like street vending, sewing, artisanry and small farming. It
now also includes wage-earning jobs like crop-harvesting, cleaning and any other unprotected
occupation.
5. FORMAL SECTOR INFORMAL SECTOR
Employed by institution. Self employment.
Capital intensive with few workers.
Generally mechanized.
Labour intensive using mainly hand tools.
Very few modern machines are used.
Regular working hours and certain wages. Irregular working hours and uncertain wages.
Relatively guaranteed standard in quality of
goods.
Often low standard in quality of goods.
Legal and registered. Non-registered.
Work is located in office or factories. Work done at home or on the streets.
