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Industrial Sector of Pakistan

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Industrial Sector of Pakistan

  1. 1. 1
  2. 2. 2
  3. 3.  Industrial sector plays a very vital role in the economic development of underdeveloped countries. 3
  4. 4.  Due to industrial development, › overall economic development increases › living standard of people improves › and overall economic position becomes very bright and hopeful. 4
  5. 5.  An industrial sector makes products from raw materials by the use of manual labor or machines and that is usually carried out systematically with a division of labor. 5
  6. 6.  In a more limited sense, manufacturing is the fabrication or assembly of components into finished products on a fairly large scale. 6
  7. 7.  Secondary Sector of Economy Man-made Sector Converts raw material into Value Added Products Manufacturing is a Capital Intensive Sector. 7
  8. 8.  Increase in National income Higher Standard of Living Economic Stability Improvement in Balance of Payment Agricultural Development More Exports Increase in Employment 8
  9. 9.  Stimulates Progress of other Industries Promotes Specialization Increased Saving & Investment Large Scope for Technological Progress Increase in Government Revenue 9
  10. 10.  Easy to Control Industrial Activity Diversification of Economy Import Substitutes Extension of Market Increase in Rate of Economic Development Change in People’s Attitude 10
  11. 11.  Political Stability Increase in Social Welfare Use of Raw Material Reduces Imports Scale of Production Efficiency of Labor National Defense Requirement 11
  12. 12.  1947-1958: Establishment & Expansion of Large Scale Manufacturing Sector › Export of Jute and Cotton Textile › Export of Consumer Goods › 1947-54: GDP 3.3% › Large Scale Manufacturing Growth 23.6% 12
  13. 13.  1958-1968: The Decade of Development: › Foreign Aid › Private Sector › Further Increase in Cotton & Jute Export › 1958-64: GDP contribution 5.2% › Large Scale Manufacturing Growth 13.3% 13
  14. 14.  1972-1977: The Bhutto Regime—Bad Management › Imports from West › Rise in Oil Prices › Floods and Pest Attack 1977-1988: The Zia Era—High Growth Rates › Growth of Large Scale Industry › Private Industrial Investment 14
  15. 15.  1988-1998: The Age of Structural Adjustment › Investments in Energy Sector › Manufacturing Sector excelled in Food Processing & Textile 15
  16. 16.  The efficiency or inefficiency of the industrial sector is illustrated by converting its share of the GDP of value added in manufacturing at domestic prices into “World Prices”. As compared to other developing countries in early sixties the value added in manufacturing was due to the high rate of protection given by the government to the manufacturing sector. 16
  17. 17.  Manufacturing › Large Scale › Small Scale Mining & Quarrying Construction Electricity & Gas Distribution 17
  18. 18.  Textile & Apparel Food, Beverage & Tobacco Petroleum Group Pharmaceutical Non-Metallic Minerals Products Automobile Steel Products Fertilizers 18
  19. 19.  Chemicals Electronics Leather Products Paper & Paper Board Engineering Products Tyres & Tubes 19
  20. 20.  Pakistan has a widely varied geological frame work, ranging from pre-Cambrian to the present that includes a number of zones hosting several metallic minerals, industrial minerals, precious and semi precious stones. 20
  21. 21.  Coal Natural Gas Crude Oil Chromite Dolomite Gypsum Lime Stone Magnesite Rock Salt Sulphur Barytes 21
  22. 22.  Construction is a process that consists of the building or assembling of infrastructure. 22
  23. 23. › Heavy Engineering/Infrastructure Construction› Commercial Building Construction› Industrial Construction 23
  24. 24.  Electricity CNG 24
  25. 25. 25
  26. 26. Sector Growth Rate GDP Contribution % % Manufacturing 1.71 1.28 (Large Scale)Mining & Quarrying 0.4 0.5 Electricity & Gas 3.07 - 26
  27. 27.  Growth Rate for Industry should be 5.2% Large Scale Manufacturing should be 4.9% Small Scale Manufacturing should be 7.5% 27
  28. 28. Country G.D.P Contribution Pakistan 23.6Bangladesh 28.5 India 26.3 Iran 41.7 China 46.9Saudi Arabia 61.8 U.S 22.1 28
  29. 29. Sector GDP Contribution of Industrial Sector 1) Manufacturing 1,085,440 Large Scale 704,936 Small Scale 380,504 2) Mining & Quarrying 140,971 3) Construction 146,1694) Electricity & Gas Distribution 126,780 Total 1,499,360 29
  30. 30.  1) Internal Sources › Pakistan Industrial Financing Corporation › Industrial Development Bank of Pakistan › National Investment Trust › Bankers Equity Limited › Modarba And Leasing Company 30
  31. 31.  2) External Sources › World Bank › IMF › Pak Kuwait Investment Company › Pak Libya Holding Company › Saudi- Pak Industrial and Agricultural Corporation › SAARC 31
  32. 32.  Textile Goods Leather Sports Goods Chemical Manufacturing Carpets & Rugs Cement 32
  33. 33.  Pakistan ranks 55th in Factory Output Industrial merchandise comprises 60% of the total exports of Pakistan Industry employs 40% of the total labor force GDP contribution by Industry: 24% Labor Force employed in Construction: 9% 33
  34. 34.  Growing Industries in year 2010-11: Cement, Fertilizers, Automobiles Increase in Export earnings of Textile products in 2010-11: 29.9% Increase in Production of Passenger cars & Light Commercial Vehicles in 2010-11: 16.4% Steel Mill is the largest Industrial Unit of Pakistan 34
  35. 35.  Imported/Smuggled Goods Deteriorating Political, Law & Order Situation Fluctuation in Financial Policies Lack of Capital Taxation Policy Shrinkage of Market Lack of Industrial Research 35
  36. 36.  Unemployment Child labor Fall in Exports Inflation Import of Capital and Consumer goods. Low Quality of Products Pollution 36
  37. 37.  Innovation and efficiency in industrial sector. Building high skilled human capacity through targeted worker skills development programs. Provision of technology through technological up-gradation; provision of sophisticated machines, equipment, tools & spares and machine pools. 37
  38. 38.  Research and development in key industrial sectors. Opening up/updating of departments for advanced studies in materials in various universities around the resource rich areas. Centers for research of bio minerals. Establishment of geo-data, Geo- mapping Centers on modern lines. 38
  39. 39.  Targeted development of small and medium business entities to boost employment and reduce poverty. 39
  40. 40.  The growth of Pakistan Manufacturing during 1980-1988 was the fastest in the world at 6.2% In both 5th and 6th five-year plans, actual growth rate exceeded the target of 12% and 9% respectively. In 1991-92, large scale manufacturing sector grew 7.4% which was recognized by World Bank. 40
  41. 41.  Pakistan’s two leading companies as per Forbes Global 2000 ranking for 2011: Oil & Gas Development at 1,429th and PSO at 1,995th rank. Pakistan is 4th largest producer of Cotton in the World Pakistan has the largest deposit of Pure Salt anywhere in the World 41
  42. 42.  During 1951-1952 to 1954-1955 manufacturing grew annually at 34%, one of the highest growth rate ever witnessed any where in the world. In 2010, record production of 8.825 Million Soccer balls for FIFA World Cup worth Rs. 2171.78 Million. 42
  43. 43. Contribution Electricity & Gas Construction ContributionMining & Quarrying Manufacturing 0 20 40 60 80 43
  44. 44. 44

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