2. DEFINITION
building and growing of industries within an economy by using new
technologies which make jobs easier, faster, and better and lead to an
increase in a business' output and an increase in profits.
Karl Marx :“The industrial revolution is a step in the historical
materialism of the world. That is to say that a class of people overtake
the ruling class and becomes the new ruling class. Capitalists had
invented a new mode of production, and therefore society had to
change”.
4. I. Capital Formation: Industrial development helps in capital formation .By using internal and
external economies, industry can get higher profit. These profits can be reinvested for
expansion and development.
II. Employment Generation: Industrial development leads to the creation of new jobs, which in
turn increases the income of people. This leads to an increase in demand for goods and
services, which further stimulates economic growth.
III. Modernization of Agriculture: Industrial development is necessary for the modernization of
agriculture. To increase productivity, we need chemical fertilizers, pesticides, weedicides,
which are all industrial products. Without industrial development , these goods cannot be
produce and have to be imported which is much expensive. To prepare finished goods rather
than raw ones industrialization must be needed.
IV. Development of Science & Technology: Industrial development encourages the
development of science and technology. The industrial enterprises conduct research and
develop new products. Due to industrialization, we have progressed on atomic science,
satellite communication etc.
V. Importance in International Trade: Industrialization plays an important role in the promotion
of trade. The advanced nation gains in trade other than countries who are industrially
backward. The underdeveloped countries export primary products and import industrial
products. Agricultural products command lower prices, and their demand is generally elastic.
While industrial products command higher prices, and their demand is inelastic.
5. HISTORY OF INDUSTRIALIZATION IN
PAKISTAN
• Pakistan started its industry with very week resources but time to time
Pakistani government realized that the country was lagging behind
industrially. Therefore, special efforts were made to establish a strong
industrial system. An industrial policy was announced in 1948, which
encouraged the private sector. In 1972, the government nationalized ten
types of factories.
• During partition,there were 921 industries in india but only 34 became
part of Pakistan due to unfair.
6. PAKISTAN INDUSTRIALIZATION
Pakistan, which had almost no large industrial units at the time of
partition in 1947, now has a fairly broad industrial base, and
manufacturing accounts for about 17 percent of GDP. Cotton textile
production is the single most important industry, accounting for about 19
percent of large-scale industrial employment.
Over the past decade, Pakistan's economy recorded an average
industrial production growth rate of 3.5%,below the 4.0% average for the
Asia-Pacific region. In 2023, industrial production growth was -2.9%.
7. PIDC (PAKISTAN INDUSTRIAL
DEVELOPMENT CORPORTION)
• INTRODUCTION:
• PIDC was created in 1952 as a statutory body, with the objective of setting up industrial base in the country. Its
focus was those sectors where the private sector was shy and where large amount of capital outlay with long
gestation period was required. The industries were mostly set up in backward and far-flung areas with a view to
create employment opportunities and to bring them at par with the main urban centres. The operational
strategy was to set up projects on a continuous basis and transfer them to the private sector after successful
operation, which encouraged and involved private sector in national development.
Within this mandate, PIDC established 94 Industrial Units during the period from 1952 to 1982 in the major
sectors of economy like Mining, Fertilizer, Cement, Automobile, Chemicals, Pharmaceutical, cotton & Textile,
Ginning, and Sugar etc. PIDC established 73 units in West Pakistan and 21 Units in East Pakistan. Out of 73
Units, 29 were established in Punjab, 19 in Sindh, 17 in KPK (former NWFP) and 8 Units in Balochistan.
The Role of PIDC was redefined in 2004-05 as an “Industry facilitator” with the objective to act as a primary
vehicle for facilitating of industrialization, foster spirit of enterprise, facilitate entrepreneurs and to promote
Industry through skill development and provision of common facility centres to help private Sector in specific
sectors through its wholly-owned subsidiary companies. Its current focus is the development of Industrial
Infrastructure and it is developing and managing 05 Special Economic Zones in Sindh and Punjab.
