SUBJECT: PAK ECONOMY

1. NAME : SALAHUDIN ANSARI
BATCH: 2K16/BBAE

2.  ASSIGNMENT GIVEN BY: M. ERUM SHAIKH
 SUBJECT : ECONOMICS OF PAKISTAN

3. 1)Economic development
 Economic development is the process by which nation improves the
economic, political and social well-being of its people. the term has
been used frequently by economists,politions and others and the 20th
and 21st centuries. The concepts, however has been in existence in the
west for centuries.mordernization,westernization,and especially
industrialization are others terms people have used while discussing
economic development.
 Economic development has a direct relationship with environment and
environmental issues.
 Where as economic development is a policy intervention endeavor
with aims of economic and social well-being of people, economic
growth is a phenomenon of market productivity and rise GDP.

4. Economic Development in Pakistan

5. 2) Economic growth
 Economic growth is the increase in the inflation-adjusted market value of
the goods and services produced by in economy over time .
 Its is conventionally measured as the percent rate of increase in real gross
domestic product, or real GDP,usually in per capita terms.
 The “rate of economic growth” refers to the geometric annual rate of
growth in GDP between the first and the last year over a period of a time.
Implicity,this growth is the trend in the average level of GDP over the
period which implicitly ignores the fluctuations in the GDP around this
trend.

6. Cont… In increase in economic growth caused by more efficient use of inputs (such
as labor productivity, physical capital, energy or materials) is referred to as
intensive growth.
 Measuring economic growth main article (Gross domestic product)
The economic growth rate is calculated from data on GDP
estimated by countries, statistical agencies.
The economic growth rate provides insight into the general direction and
magnitude of growth for the overall economy. In the United States, for
example, the long-term economic growth rate is around 2 to 5%. Lower
economic growth rates are seen in most highly industrialized countries. Fast-
growing , economies on the other hand, see rates as high as 10% although
this rate of growth is not likely to be sustainable over the long term.

7. 3) Main measures of economic development
 There are a number of measures which have been used to estimated the
economic development of a country. These measures in brief are:
1. Increase in real GNP.
2. Increase in real per capita income.
3. Rise in overall well-being of the people.
4. Basic needs approach.
5. Human development index.

8. 4)Human development
 A measurements of achievements by human through advancement of
knowledge, biological changes, habit formation or other criteria that
displays changes over time.
 Understanding human development can help a company to manage
personnel, market and sell products or negotiate international trade.

9. THE HUMAN DEVELOPMENT INDEX
 The Human Development Index was developed as an alternative to simple
money metrics. It is an easy-to-understand numerical measure made up
of what most people believe are the very basic ingredients of human well-
being: health, education, and income. The first Human Development
Index was presented in 1990. It has been an annual feature of every
Human Development Report since, ranking virtually every country in the
world from number one (currently Iceland) to number 177 (currently
Sierra Leone).
 Pakistan stands at 146th, India ranks 136th , Bangladesh 136th among the
185 countries.

10. 5)Technology and economic development
 Technology means the body of knowledge and technique which can be
used to combine economic resources for the production of goods and
services
 Information technology economic growth:
 The often-advocated view that the information technology revolution
will change the world must stem from the basic premises that
investment in I.T has a visible impact on a productivity and economic
growth.
 The rapid rate of growth can be achieved through high level of
technology.

11. Cont…
 There are about 6.7 billion people living in different parts of the world
(including Pakistan) who have low standard of living .
 The growth of net national income in developed countries cannot be
claimed to have been due to capital alone. Kindleberger observed that major
part of this increased productivity is due to technological changes. Robert
Solow estimated that technological change accounted for about 2/3 of
growth of the U.S. economy; after allowing for growth in the labour force and
capital stock.
 In fact, the technology can be regarded as primary source in economic
development and the various technological changes contribute significantly
in the development of underdeveloped countries. The impact of
technological change on production functions can be illustrated with the
help of following diagrams.

13. 6.Poverty reduction strategy
 Poverty is a situation in which a person or community lacks the resources
to enjoy a minimum standard of life and wellbeing considered acceptable
in the society.
 Most of the countries of the world measure poverty by using income or
consumption level.
 According to the world bank poverty head count analysis , if the income
per adult in Pakistan is taken as $1.25 per day ,then 21.04 of the population
falls bellow poverty line but if the poverty line raised $2/day then 60%.

14. Poverty: poverty is general scarcity or the sate of one who lacks
certain amount of material possession or money, it is multifaceted concept
which include social, economic and political elements.
It also means lack of necessary basic needs such as food, clothing, shelter. It
is situation in which a person or community lacks resource to enjoy a
minimum standard of life.
Poverty Measurement: most of the countries of the world by using
income and consumption level. consumption is more important than
income.
Pakistan use household consumption to measure poverty: poverty
line are used called thresholds. Pakistan officially used poverty line on
calorie based and consumption based absolute poverty is estimated.

16. 7. VICIOUS CIRCLE OF POVERTY
The people in the less development countries have low per capital in come. Having low
income their rate of savings is low. When savings are small in a country investment will
also be low. Low investment leads to low productivity with low productivity with low
productivity level, the income is bound to be low people as such remain poor. In the
ways vicious circle of poverty completes. A country can get rid off from poverty its rate
of capital formation is the key to economic development by demand and supply of
capital.

17. DEMAND SIDE OF CAPITAL
 The production of the poor country is low. The low production causes low
per capital income and low purchasing power. The low purchasing power
reduces the demand for products. Due to low demand, market will be
limited. So vicious circle of poverty is complete on the demand side of
capital formation.

18. SUPPLY SIDE OF CAPITAL
In the developed countries due to low production, per capital income is
low. The low level of income means capacity to save is low. The low level of
savings leads to low investment. The low rate of investment reduces the
productivity per worker. It leads to low per capita income. The vicious
circle is thus complete on the supply side of capita formation.

19. Main points of vicious circle of
poverty
 Poverty
Low production
Rapid population growth
Low per capita income
Low consumption
Limited market
Low savings
Lack of capital
Low investment
Low production
poverty
a country is poor and remains poor because its human and natural resources remain
most utilized. In the less developed countries people are mostly unskilled and
technologically backward. So the natural resources are not use properly, output
remains low and poor country remains poor. Because it is poor.

20. 8.Market imperfections and price distortions
as obstacles to economic development in
Pakistan
 Most of the development countries are facing a few general obstacles to
economic development. these includes political instability,corruption,excessive
foreign dept,and their payments,inappropriate
education,unemployment,inflation and lack investment.the smooth working of
price mechanism in promoting their efficient use for resources of the country.
 However in 1980,s and 1990,s with the dawn of 21st century, the position is
entirely changed, here is a growing dissatisfaction with the role of the public
enterprises which are undergoing heavy losses, or inefficient and wasteful.

21. Cont….
1) Lack of full information about market.
2) Lack of effective competition.
3) Unequal distribution of wealth.
4) Slow investment.
5) Prices of goods fail to change.
6) Growing dissatisfaction.
7) Less product innovation.
8) Price distortions

22. 9.Capital formation
 Capital formation is a concept used in macroeconomics, national accounts
and financial economics. Occasionally its also used in corporate accounts.
it can be defined in few ways.
 It is a specific statistical concept used in national accounts statistics,
econometrics and macroeconomics, in that sense, it refers to a measure of
the net additions to the (physical) capital stock of a country or an
economic sector in an accounting interval, or a measure of the account by
which the total physical capital stock increased during an accounting
period. to arrive at this measure, standard valuation principles are used

24. 10) Sources of capital formation
 The internal or domestic sources: are voluntary reduction in consumption
by households and enterprises, and involuntary cut in consumption
through taxation, compulsory landing to the government ,or
inflation,absorpion underemployed labour into productive work profit of
government enterprises etc…
 External sources
 Foreign aid: the developing countries also finance domestic capital
formation with the help of foreign capital. It can be obtain from a number
of sources such as government to government aid programmes , export
credit agencies etc…

25. 11.Mineral Resources in Pakistan
 The minerals are the precious wealth of a country Pakistan is quite rich in
mineral recourses compared to many recourses compared to many other
developing countries of the world. In Pakistan mineral including coal,
copper, gold, chromites, mineral salt bauxite and several other minerals.
Natural Gas :
 The importance of natural gas in Pakistan has been increasing rapidly.
Natural Gas is an alternative fuel vehicle that was compressed natural gas
(CNG) as a cleaner alternative to other fossil fuels. Natural gas vehicles
should not be confused with vehicles powered by propane, which is a fuel
with a fundamentally different composition.

26. Coal
 Pakistan has a large resources base of coal of about 186 billion tones
including 175 billion tons at Thar coal fields . Coal is mainly used in the
cement sector (58%) and bricks kilns (40.5%).
Region Coal
(Billion tons)
Sindh: Thar, Lakhra,
SondaThatta, Jheruck,
Haji coal others.
184.623
Punajb: Eastern Salt
Range, Central Salt
Range, Makerwal.
0.235
Balochistan: 0.217
KPK: 0.091
AJK: 0.009
Grand Total 185.175

27. GOLD
 Gold reserves in Pakistan remained unchanged at 64.50 Tonnes in the
fourth quarter of 2016 from 64.50 Tonnes in third quarter of 2016. Gold
reserves in Pakistan averaged 64.91 Tonnes from 2000 until 2016,
reaching an all time high of 65.44 Tonnes in fourth quarter of 2007 and a
record low of 64.38 Tonnes in the first quarter of 2010.

28. 12.Mineral development agencies
 Mining and quarrying accounts for only 0.5 percent of GDP and is a
minor sector.
 Private sector accounts for 85% of the total coal production.
 Pakistan mineral development agencies attached to the ministry of
petroleum,and natural resources, of the Government of Pakistan. It was
created in 1974 with an authorized capital of RS 10 million to expand
and help mineral development activities in the Country.

29. Resource development corporation
 The resource development corporation was established in 1974, and it is
government sponsored corporation. The main objective of this
corporation is to investigate, probe and develop the mineral resources
(except oil and gas). The main emphasis was on finding out the copper
deposits at sandal in chiai district of Baluchistan.

30. PAKISTAN MINERAL DEVELOPMENT
CORPORATION (PMDC)
 Pakistan mineral development corporation (PMDC) is an autonomous
corporate body functioning under the Ministry of Petroleum and natural
resources Government of Pakistan possessing necessary expertise in
exploration, evaluation, mining and marketing of different minerals in
Pakistan.
 Geological Survey of Pakistan (gsp):
 The geological survey of Pakistan is an autonomous and independent
institution under the Ministry of Petroleum and natural resources which
is tasked and mandate with advancing the geosciences knowledge and
carrying out systematic studies on official mapping and area surveying.

31. 13.Power resources
 Energy has been rightly termed as the lifeline of economic growth and
development .
 Besides the obvious productive sources of demand , energy, requirement
also grow for consumption uses.
 GDP growth rates of 3.7 to 4.2% past of four years. the demand for energy
for productive and consumptive uses is growing rapidly.

32. 14.Energy crisis in Pakistan
 An energy crisis is any great short fall in the supply of energy resources to
an economy .
 It usually refers to shortage of oil and additionally to electricity or other
natural resources.
 Energy crisis n Pakistan was expected and it started in the year 2007 . We
will look at the demand and supply of 2008 expected demand and supply
of coming years.

34. Causes of energy crisis In Pakistan
 Economic and political instability
 Fluctuation of oil prices in energy market
 Faulty distribution system
 Aging of equipment
 Mismanagement of energy resources
 Unproductive efforts

35. 15.Natural resources
 natural resources include an extensive natural gas supply, some oil, hydro
power potential, coal (although not high quality), iron ore, copper, salt,
and limestone. Agricultural products are wheat, cotton, rice, sugarcane,
eggs, fruit, vegetables, milk, beef, and mutton. Primary industry includes
textiles, food processing, pharmaceuticals, construction materials,
shrimp, fertilizer, and paper products. Major exports are textiles, rice,
leather goods, sports goods, carpets, rugs, and chemicals. Pakistan
imports petroleum, machinery, plastic, edible oil, iron, steel, tea, and
paper.

36.  COAL: it reserves are estimated at 175 billion tons. This would equate
to 618 billion barrels of crude oil. When compared to oil reserves his
is more than twice the amount of the top four countries. If At KSA’s
current usage, the reserves would last more than 200 years.
 Oil and Gas : Natural gas production is at a high level in Pakistan.
Estimated reserves are 885.3 billion cubic meters. The Sui gas field is
the largest, accounting for 26% of Pakistan’s gas production
 Forestry: they are limited to 4% of Pakistan’s land; nonetheless the
forests are a main source of food, lumber, paper, fuel wood, latex,
and medicine. The forests are also used for wildlife conversation and
ecotourism

37.  Land : About 28% of Pakistan’s total land area is under cultivation.
Pakistan boasts one of the largest irrigation systems in the world. the
most important crops are cotton, wheat, rice, sugarcane, maize,
sorghum, millets, pulses, oil seeds, barley, fruits and vegetables,
which together account for more than 75% of the value of total crop
output
 Uranium: Pakistan has a long history of exporting small amounts of
uranium. In 2006 Pakistan produced about 45 tons of uranium.
 Water: The fishing industry plays a role in the national economy of
Pakistan. The coastline is 814km and fishery resources still have room to
grow. Fishing in Pakistan is a major source of export earnings.

38. 16.Human resources Human resources refers to the size of population of a country along with
its efficiency ,educational qualities ,productivity ,organizational abilities
and farsightedness.

39. 17.UNEMPLOYMENT DEFINITION
 Unemployment refers to a situation in which the workers who are
capable of working and willing to work do not get employment.
In Pakistan, the unemployment rate measures the number of people actively
looking for a job as a percentage of the labour force.
Pakistan Labour Last Previous Highest Lowest Unit
Unemployment Rate 5.906.007.803.10percent[+]
Employed Persons57420.0056520.0057420.0026961.00Thousand[+]
Unemployed Persons3620.003580.003730.00903.00Thousand[+]
Population 193.56189.87193.5645.85Million

40. The unemployment rate in Pakistan for the year 2016-2017 is 6 percent.
-Unemployement rate of china in 2016 is 4.1%
-India's unemployment rate halved from 9.5 per cent in August 2016 to 4.8 per cent in February this year.

41. FACTORS OF UNEMPLOYMENT
 POOR GOVERNANCE : Good governance is an essential pre condition
for employment as it establishes the enabling regulatory and legal frame
work legal for the sound functioning of land , labor ,capital and other
factors of market.
 Political stability: is fundamental to the creation of an enabling
environment for growth and development.
 Corruption: is the most dangerous factor that reorder Pakistan's
economic and governance system since its inception.

42. 18.MANPOWER AND IT’S SALIENT FEATURES
 Manpower means the labour force. As we know the whole of the population of a
country cannot represent its labour force, Therefore labour force is only that
portion of a population which participate in some economic activity.
The Employed labour force in Pakistan estimated at 53.84 million persons in
2010-11.
37.85 Million is in rural areas .
15.99 Million is in urban areas.
In rural areas the labour force participation rate is higher due to live pattern and
the nature of agriculture activity

43.  The Workers Participate In Various Occupations. These Occupation Is
Classified In To Three Categories.
(1) Primary Occupations ;- The Primary Sectors Comprises of all such
occupations in which the role of nature 45% Of The Entire Labour Force.
i.e. agriculture, animal husbandry, fishery, forestry and mining. In Pakistan
agriculture sector continues to be the major employment generating sector.
(2) Secondary Occupations ;- The secondary sector include occupations
which seek to transform raw material into semi and finish product such as
mining, quarrying, manufacturing industry constructions etc, This sector
generates above 18% employment opportunities for labour force.
(3) Tertiary Sector ;- It include all occupations which are concerned with a
production of services such as transport banking trade insures,
administration and profession. This sector absorb about 37% of labour force.

44. CHARACTERISTICS OF MANPOWER
 (1).The employment of labour force by sector reveals that agriculture sector still
continues to be the major employment generating sector. Whereas in advanced
countries of the world, a large proportions of working populations is found
engaged in manufacturing, trade of commerce.
 (2). The ratio of working populations to total population 10 years above is
about 45.7% which means that about 54% are depending for their livelihood on
the working people. The dependency ratio is very high.
 (3). The women’s participation in labour force 21.7% which is also very low.
 (4). The large percentage of labour (45%) is dependent in agriculture which
indicates the large scale disguised unemployment in this sector.
 (5). With the rapid rise in population, the job opportunities are not increasing at
the same rate. This has led to low per capital income and prevalence of wide
spread poverty.

45. 19.IMPORTANCE OF AGRICULTURE SECTOR IN
ECONOMIC DEVELOPMENT
 About 50 years earlier, agricultural sector was not considered as a commercial
sector for economic development in a large number of developing and
developed nations. During the last 50 years this sector is realized as a major
productive sector of Pakistani economy. 61% population is living in more than
50,000 villages in Pakistan.
(According to Economic Survey 20010-11)
 Backward agricultural sector contributes 20.9 % to GDP.
 Its growth rate is as low as 1.2 %.
 It employs the 45.0 % of total labour force.
 Its contribution to exports (Food Group) is 8.62 %

46.  Some of the major role of agriculture in economic development of a
country are as follows:
 Agricultural sector plays a strategic role in the process of economic
development of a country.
 It has already made a significant contribution to the economic prosperity
of advanced countries and its role in the economic development of less
developed countries is of vital importance.
 In other words, where per capita real income is low, emphasis is being laid
on agriculture and other primary industries.

47.  1- Increase in Per Capita Income
 Per capita income is the annual average income of the individuals of a
nation. We derive it by dividing national income on total population.
Agricultural sector provides more jobs to unemployed people. It increases
the individuals as well as national income. Agricultural sector is essential
to increase the PCI, which is $ 1254 at present.
 2- Major Source of Employment
 Agriculture sector provides employment to major portion of our labour
force. More than 45.0% of our labour force is directly involved in
agriculture sector, while 66.7% of our rural population is dependent on
agriculture. This is the major sector, which provides employment to a
large portion of our population. Agriculture sector is helpful to reduce the
unemployment and disguised unemployment.

48.  3- Reduction in Poverty
 Agriculture development has significant impact on rural development. If
productivity increases in agriculture it reduces poverty and stimulates
non-farm employment, too. They are able to get basic services of life such
as water supply, sanitation, provision of health and educational facilitates.
About 21.0% population of Pakistan is much poor.
 4- Supply of Food
 Food is the first in basic necessities of the life. The agriculture sector is the
sole provider of all type of food like wheat, rice, corn, sugarcane
vegetables and fruits etc., to the population engaged in various sectors of
the economy. Agricultural sector also provides food to those animals that
provide milk, cheese, butter and meat to population to maintain
the efficiency. According to economic survey of Pakistan, exports of food
group are $ 2007.3 million.

49. 20.Review of the past performance of agriculture in
Pakistan 2016
 During FY 2016, the performance of agriculture sector as a whole remained dismal as it
witnessed a negative growth of 0.19 percent against 2.53 percent growth during the same
period last year. The growth of crops declined by 6.25 percent, while the other sub
component of Agriculture sector like Livestock, Forestry and Fishing posted positive
growth of 3.63 percent, 8.84 percent and 3.25 percent, respectively.
 Important crops having a share of 23.55 percent in agricultural value added has
witnessed negative growth of 7.18 percent on account of large decline in cotton
production (27.83 percent), rice production (2.74 percent) and maize production (0.35
percent) during 2015-16 against negative growth of 0.52 percent during the same period
of last year
 The Livestock sector having contribution of 58.55 percent in the agriculture recorded a
positive growth of 3.63 percent during 2015-16 compared to 3.99 percent growth during
the same period last year

51. 21.MAJOR CROPS OF PAKISTAN
 In Pakistan, farm production is dominated by a few crops which account
for almost 60 percent of GDP from agriculture. Cropping systems vary
widely because of variations in agro-climatic and soil conditions. Wheat is
the major winter crop in all regions of the country. In summer, rice,
cotton, and maize are grown in areas suitable for their production. Crop
production takes
 place both on irrigated and dry land, with irrigated agriculture
contributing’ about 80 percent of the total production. The five major
crops are Wheat, rice, cotton, sugarcane, and maize.

52. WHEAT
 Self-sufficiency in wheat can be achieved and sustained only if wheat yields are
increased beyond past levels. This can be done by bringing more area under
certified wheat seed. At present, only 10 percent of the wheat-growing area is
being sown with certified wheat seed as against the minimally desired 20
percent. Further increase in yield can be realized through improved cultural
practices, greater attention to tillage and harvesting, more balanced and timely
use of fertilizer, and higher water-use efficiency.

53. RICE
 Rice is the second most important economic crop in Pakistan. Pakistan
appears to have a comparative advantage in producing the highly-valued,
aromatic basmati rice. Basmati has been’ a major export of Pakistan, and
generates substantial revenues for the government from export duties.
The government has adopted a number of policy measures to promote
larger

54.  COTTON : occupies the largest area of all the crops in
Pakistan. Economically, it earns the largest export revenues. In addition to
the lint, cottonseed for oil and meal accounts for 80 percent of the
national oilseed production
Pakistan is an efficient producer of cotton, and it can therefore ordinarily
produce cotton at prices equal to or lower than international long-
trend prices except in abnormal years of glut or high subsidies by other
cotton-producing countries.

55. Sugarcane
 Sugarcane is an important cash crop of Pakistan, occupying about 896,100 ha
in 1991-92: 536,200 ha in Punjab; 255,300 ha in Sindh; and 104,000 ha in
NWFP. In Punjab and NWFP, the area under sugarcane has remained static
since 1975-76. In Sindh, it has increased by 47 percent.
from 39.1 to 43.9; and for Sindh, from 34 to 55.8 tonnes/ha
(Agricultural statistics of Pakistan 1991-92, pp. 27-28).
 Sugarcane has experienced limited improvement over the years. A basic
constraint is that sugarcane does hot produce viable seed in the Indus plain:
Another problem is that research stations have very limited area for breeding,
replicated experiments, and seed multiplication.

56. 21.Livestock
 Livestock is an important sub-sector of agriculture in Pakistan.
 It contributed 55.9% of agriculture and recorded growth of 4.1%in 2014-2015 against 2.81
during 2013-14.
 domesticated animals raised in an agricultural setting to produce commodities such
as food, fiber, and labor. The term is often used to refer solely to those raised for food,
and sometimes only farmed ruminants, such as cattle and goats.
 Livestock are used by humans for a variety of purposes, many of which have an
economic value. Livestock products include:
 Meat A useful form of dietary protein and energy, meat is the edible tissue of the animal
carcass . Dairy products Mammalian livestock can be used as a source of milk, which
can in turn easily be processed into other dairy products, such as yogurt, cheese, butter.
Using livestock for this purpose can often yield several times the food
energy of slaughtering the animal outright . For example, domestic sheep and goats
produce wool and mohair, respectively; cattle, swine, deer, and sheep skins can be made
into leather; livestock bones, hooves and horns can be used to fabricate jewellery,
pendants, or headgear.

57. 22. fisheries
 It is also a sub sector of agriculture . It is playing a significant role in the
national economy by reducing pressure on demand for mutton ,beef
,poultry. It contributes on an average about 0.4% to the total GDP and 2%
to agriculture . It is estimated that about 400 thousand fisherman and
their families are dependant up on the fisheries for their live hood.
Fisheries is the main economic activity of the coastal belt of sindh and
Baluchistan.

58. 23.Role public industrial sector in Pakistan
 Industrial Sector is of great importance for economic development of country. It
is historical fact that countries with strong industrial sector have showed more
economic growth and development industrial sector have shows improvement
in national income and promoted living standard of population.
 “Industry refers to that sector of economy which is related with manufacturing
and production of different products”
 · Main Industries in Pakistan
 Following are the main industries of our country
 Textile Industry
 Sports Industry
 Sugar Industry
 Cement Industry
 Fertilizer Industry

59.  Industrial Sector is the second largest individual sector of the economy
accounting for 24% of the GDP. The activity in the manufacturing sector is
comprised of large, medium and small-scale. The industrial Production
growth rate during the year 2005 remained 6%. Large scale manufacturing
growth rate is 19.9%.

60. 24.Pakistan steel and its impact on the
economy
The government established the Pakistan steel mills corporation thinking that
that economic growth would not be possible without a self sufficient iron and
steel making plant.
 Pakistan Steel Mills is spread out over an area of 18,660 acres (75.5 km2) (about
29 square miles (75 km2)) including 10,390 acres (42 km2) for the main plant,
8,070 acres (33 km2) for the township and 200 acres (0.8 km2) for the 110 MG
water reservoir. In addition it has leasehold rights over an area of 7,520 acres
(30 km2) for the quarries of limestone and dolomite in the Makli and Jhimpir
areas of Thatta district
 It is one of the largest industrial complex in Pakistan as well as in South Asia and
due to its enormous expansion, the steel mill has its own educational facilities
housing and residential programmes, parks and recreation facilities and police
services apart from the provisional authorities.

61.  PAKISTAN Steel Mills, the country’s largest industrial complex, has a much
greater impact on national economy than Pakistan International Airlines,
notwithstanding their financial positions.
 Being an icon of the large-scale manufacturing, a functional PSM has the
potential to trigger economic growth and impact positively a number of
associated sectors from construction to infrastructure to small scale industries.
Its absence or closure could expose the country to huge imports and foreign
exchange loss

62. 25.Role of private sector in the industrial
development of Pakistan
 Pakistan's economy is a mixed economy. The private and public sectors are
walking side by side. If we examine history of Pakistan, we will find that
private sector has played very effective role in the development of
industrial sector. During the period of 1947-67 the private sector share in
the investment was very encouraging in the 2nd five year plan the
performance of private sector was appreciated and it is considered the
golden period of industrial development. The country became self
sufficient in most of the industries with the help of private sector. In order
to encourage the private sector government of Pakistan also provide
various facilities during 1947 to 1965.

63.  Public sector has come to stay in industries like steel, fertilizer, cement,
petroleum refining and petrochemical, automotive equipment etc.
wherein it would continue to remain active, though mainly concentrating
upon rationalization, balancing, modernizing and selective expansion.
 The public sector has also continued to play its socio-economic role in
industrial development of less-developed regions. Most of the
investments required by public sector for its programmed are, in line with
the existing policy; have to be generated by public sector enterprises
through their own resources such as retained earnings and provision for
depreciation.

65. THANK
YOU