Detailed view about the industrial sectors of Pakistan. Their history. import or export status. problems and recommendations to improve current status.

2. M. Mubeen Afzal 1485
BS-TMM 5th
Topics: Basic Structure of Manufacturing Sector in Pakistan
Small Scale Industry and Its Importance In Pakistan

3. Contents
 What is manufacturing and manufacturing sector?
 Contribution in GDP
 Background
 Manufacturing industries
 Causes
 Small scale industries
 Types of small industries
 Importance
 Problems

5. What Is Manufacturing?
 The process of making goods or wares by manual labor or by
machinery, especially on a large scale is called manufacturing.
 For example: The manufacture of television sets.
 What Is Manufacturing sector?
 Manufacturing sector refers to any business that transforms raw
materials into finished or semi-finished goods using machines, tools
and labor.
 Great importance for economic development.

6. Manufacturing Production:
 Production in Pakistan is expected to be 7.40% by the end of this quarter, according
to Trading Economics global macro models and analysts' expectations. Looking
forward, we estimate Manufacturing Production in Pakistan to stand at 7.50% in 12
months time.
 In the long-term, the Pakistan Manufacturing Production is projected to trend
around 8.00% in 2020, according to our econometric models.

7. Contribution In GDP:
 Pakistan Industrial Sector is the second largest individual sector of the economy
accounting for 20.88% of the GDP
. In 2017 it recorded a growth of 5.02% as compared
to the growth of 5.80% last year. This sector comprised of large, medium and small-
scale.
 Manufacturing is the most vibrant sub sector of the industrial sector having 64.4%
contribution in the industrial sector and in GDP it accounts for 13.45%.

8. Contribution In GDP:
 Manufacturing (sub-sector) is further divided in three components including
large-scale manufacturing (LSM) with the share of 51.26% in industrial sector,
small-scale manufacturing share is 8.80% in industrial sector.
 From 2010-11 the large-scale industries contributes 4.4 % to the real GDP
growth rate while the small-scale industries contributes 7.5 %.

9. Historical Background:
 At the time of independence the total large scales industrial contribution was only
1.8% to GDP
. The small-scale industries however, contributed 4.6% to GDP
.
 Pakistan at the time of partition in 1947 had a negligible industrial base. It got only
34 industries out of 955, while remaining were held by India.
 With the passage of time Pakistan utilize its resources domestic as well external for
rapid development.

10. GROWTH OF MANUFACTURING SECTOR IN
PAKISTAN
 The Manufacturing performance in terms of growth/productivity is examined in
the following periods of time:
 1. Growth of Manufacturing sector from 1947 to 1950.
 2. Growth of Manufacturing sector in 1950’s.
 3. Growth of Manufacturing sector in 1960’s.
 4. Growth of Manufacturing sector in 1970's.

11. MANUFACTURING INDUSTRIES IN PAKISTAN
 Pakistan ranks forty-first in the world in factory
output. Pakistan’s manufacturing sector accounts
for about 25% of GDP
.
 Following are the main industries of our country:
 Textile Industry
 Sports Industry
 Sugar Industry
 Cement Industry
 Fertilizer Industry

12. Other Major Industries Include:
 Automobile
 Leather products
 Paper & board
 Pharmaceuticals
 Chemical
 Engineering items
 Electronic
 Petroleum products
 Food, beverages & tobacco
 Mining and Quarrying
 Services Sector
 Agriculture
 Steel
 Electricity and Gas

13. CAUSES OF INDUSTRIAL BACKWARDNESS IN
PAKISTAN:
 Political Instability
 Lack Of Capital
 Limited Market
 People’s liking to foreign goods
 Communication & Transportation
 Energy Crisis
 Economic Restrictions
 Lack of Modern Technology
 New Competitors
 Low Foreign Investment
 High Interest Rates
 Lack Of Technical Knowledge

14. Small Scale Industries
 Those industries in which Manufacturing,
production and rendering services are done
on a small scale on micro level.
 Industries make one-time investment in
machinery plants or industries.
 In Pakistan cottage or household industries
hold an important position in rural set-up.

15. Types of Small Industries
 Carpets
 Textiles
 Embroidery
 Jewelry
 Ceramics
 Woodworks
 Metalwork
 Sports

16. Importance
 Makes use of the industrial waste.
 Reduces regional disparity.
 Little burden on imports.
 Less capital and less sophisticated technology is involved.
 Good use of local raw material.
 Gainful employment of women.
 Source of foreign exchange earning.
 Meets the demands of local market.
 Contribute in GDP

17. Problems
 Limited profits earn.
 Can't produce large scale production.
 Lack of standardization and quality control.
 Outdated Production Methods are used.
 Wholesaler earns more than the owner.
 Electricity and voltage problems.
 Technical advice and further training is Limited

18. Government efforts for Cottage Industries.
 Following organizations have been made by government to
develop the cottage industries.
 1. Pakistan small scale industries corporation (PSIC)
 2. Punjab small scale industries corporation (PSIC)
 3. Sindh small scale industries corporation (SSIC)
 4. Small scale industries Board KPK (SIDB)
 5. Directorate of small-scale industries Baluchistan (DSIB)

19. Measures of the following org
 Establishment of industrial estates.
 Providing marketing facilities.
 Setting up of technical service centers.
 Establishing handicraft development centers and carpet
centers.
 Providing pre-investment counseling and guidance to
newcomers.
 Providing local and foreign loans to small industry owners
on easy installments.