Hammad Ul Hussan discusses industrial development in Pakistan in 5 phases from 1947 to 2008. Key industries include cotton textiles, mining, sugar, surgical equipment, sports, and minor industries. Industrial development plays a vital role in Pakistan's economic growth by increasing income, stimulating other sectors, providing employment, boosting agriculture, reducing population growth, enabling defense capabilities, lessening pressure on land, and increasing government revenue through taxes.

1. HAMMAD UL HUSSAN
Student ID: 2020B8019410004
Masters Student
Aerospace Information Research Institute
Topic: Industrial Development in Pakistan

2. Overview
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•Industrial development in Pakistan
• Industries of Pakistan
• Role of Industrial Development in
Economic Development

3. Industrial development in Pakistan
The large scale manufacturing sector of Pakistan have grown at the rate of
9% from last five decades. At the time of independence, Pakistan has
inherited only 34 industrial units out of 921 industrial units in subcontinent.
Industrial development or history of industries in Pakistan can be divided
into five phases:
 Phase 1 (1947-1957): . During this period, the policy emphasis was on
import substitution. Government had established a committee to
formulate industrial policy. Pakistan Industrial Finance Corporation
(PIFC) and Pakistan Industrial Credit and Investment Corporation
(PICIC) were established in 1948.Pakistan Industrial Technical
Assistance Centre (PITAC) was established in 1956.
 Phase 2 (1958-1969): Pakistan announces new policy which focused
on private sector and agro based industries. Various types of funds
were established to promote the industrial development in the country.

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 Phase 3 (1973-1977): a new democratic government of Bhutto came into
power and adopted the principles of mixed economy. Government ruthlessly
nationalized 34 industrial units belonging to the following basic units like
shipping industry, iron and steel, tractor plants etc. Pakistan Industrial
Development Corporation (PIDC) was established. Other reforms include
labor reforms and revision of import policy.
 Phase 4 (1977-1988): reversal of previous government’s nationalization
policy and introduced a new industrial policy. To boost private industrial
development, following measures were taken:
(a) Reduction in interest charges by banks to 12.5% on all fixed investments.
(b) Removal of taxes on issuance of bonus shares.
(c) Fixing standard rebates of excise duty on additional 17 items.

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 Phase 5 (1988-2008): During the first half of this phase, i.e., 1988 to
1999 the country had faced worst political conditions in the history of
Pakistan.
Two governments had come into power for twice, i.e., Benazir’s
Government and Nawaz’s Government, and not even governed for more
than three years. Therefore, the industrial policy was never the top
priority of those two governments.
Privatization policy was adopted and is still continued.

6. Industries of Pakistan
Cotton textile Industry
 The sector employs about 45% of the total labor force in the country
(38% of the manufacturing workers).
 At present, there are 1,221 ginning units, 442 spinning units, 124
large spinning units and 425 small units which produce textile.
Mining
 Pakistan has deposits of several minerals including coal, copper,
gold, chromite, mineral salt, bauxite and several other minerals.
 Currently around 52 minerals, are mined and processed in Pakistan.
 Khewra salt mines are second largest salt mines in the world.

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Sugar Industry
 In 1947 there were only 2 sugar industries in Pakistan and now 106
sugar mills are operating
 Pakistan is the 15th largest sugar producer in the world.
 GDP contribution is 0.7%.
Surgical Equipment industry
 The sector comprises over 2300 companies, of which around 30 can
be considered large and the remainder can be split as 150 units of
medium sized and remaining as small.
 The industry produces on average over 150 million pieces a year
with an estimated value of around Rs. 22 billion.

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Sports Industry
 In Pakistan almost all sports related items are produced but
the famous products are soccer ball, cricket bat, cricket ball,
tennis ball and some other items too.
 Footballs for FIFA world cups also has been manufactured by
Pakistan.
Minor industries
 In Pakistan, cottage or household industries hold an important
position in rural set-up and are usually know as minor
industries .
 Most villages are self-sufficient in the basic necessities of life.
They have their own carpenters, blacksmiths, potters,
craftsmen and cotton weavers.
 There is great demand for Pakistani hand-woven carpets,
embroidered work, brassware, rugs and traditional bangles.
These are also considered important export items and are in
good demand in international markets.

9. Role of Industrial Development in Economic
Development of the country
Industrialization plays a vital role in the economic development of
underdeveloped countries. As the historical record shows, the developed
countries of the world broke the vicious cycle of poverty by industrializing,
rather than focusing on agricultural or the production of national resources.
The role can be summed up as under:
1. Increase in national income: It helps the utilization of the resources of
the country in increasing the quality and quantity of various good to
increase the gross national product.
2. Economic stability: A country which depends upon the production and
export of raw material can not achieve rapid growth. Industrialization
provides the base for a stable economy.
3. Stimulates the progress in other sectors: A development of one industry
stimulates the progress in the other industries.
4. Increased employment: I.D provides increased employment opportunities
in small and large scale industries.

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5. Rise in agriculture production: I.D provides machinery like
tractors, thrashers, harvesters etc. to be used in the agriculture
which increase the productivity and lessen the labor costs.
Income of the farmers boosts the economic growth in the
country.
6. Reduction in the rate of Population: I.D leads to the migration of
the surplus labor from farm sector the industrial area usually
located in urban area. These areas have improved sanitation and
health facilities which encourage people to adopt the family
planning measures which reduces the rate of the population
growth.
7. Provision for defense: The industrially developed country can
build arms and ammunition necessary for the defense of the
country.
8. Lesser pressure on land: The shifting of labor force from
agriculture farm to the industry and use od machinery instead,
also lessen the burden and pressure on the land.

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9. Increase in the Government revenue: Industrial development increase the
supply of good for both internal and external markets. The export of goods
provides foreign exchange, the customs, excise duties and other taxes levied on
the export goods which increases the revenue of the government. The revenue
gathered from this can be spent for the welfare of the population by the
government as a whole.
10. Development of markets: With the development of the industry in the
country the markets for the finished good also widens in the country.