Slide 1

Presentation By

Muhammad Aziz 14-ME-405Usman Khalil 14-ME-413Danish Fareed 14-ME-440Zeeshan Ramzan 14-ME-431

Industrial Growth Of PAKISTAN

Industry is the production of a good or service within an economy. Manufacturing industry became a key sector of production and labour in European and North American countries during the Industrial Revolution, upsetting previous mercantile and feudal economies.Stephan Gardnier once said:

"The Industrial Revolution was another of those extraordinary jumps forward in the story of civilization.

Pakistan Industrial Sector is the second largest individual sector of the economy accounting for 25% of the GDP. This industrial sector comprised of large, medium and small-scale.At the time of independence the total large scales industrial contribution was only 1.8 percent to GDP. The small-scale industries however, contributed 4.6 percent to GDP. Now from 2010-11 the large scale industries contributes 4.4 % to the real GDP growth rate while the small scale industries contributes 7.5 %.

During the decade 2004-14, the highest industrial growth was observed in 2004-2005 in all sectors of development where it got significant increase of 13.1%. Similarly the worst results were seen in year 2009-10 where it got poor decline of -1.9%. Pakistan Industrial sector recovered from the losses 2010-2011 and hit record recovery of 4.9%. Graphically it can be represented as

HISTORICAL BACKGROUND

The industrial performance in terms of growth/productivity is examined in the following periods of time:

Growth of industrial sector from 1947 to 1950. Growth of industrial sector in 1950's. Performance of industrial sector in 1960's. Performance of industrial sector in 1970's.

Role Of Industry In Economy

Industry of Pakistan provides total of 25% to GDP.A review presented by FBR is as follows:

Industrial Betterment In 2004-2005

The main factors which contributed to rapid economic growth supporting were as follows; Monetary Policy Financial Discipline Consistency and Continuity of Development Policies Strengthening of Domestic Demand Continuously Improving Macroeconomic Environment A Stable Rate

Industrial Decline In 2009-10

The industrial sector has recorded its weakest growth in a decade during fiscal year 2009-10. Main contributors towards this broad based decline were; The impact of severe energy shortages. Decline in domestic law and order situation. Sharp depreciation in rupee VS US dollar.

INDUSTRIAL REGAIN 2010-14Pakistans industrial growth started recovering from deep decline in era 2010-13 due to following reasons. Macro-Economic Policies. Manufacturing And Construction. Fuel Price Adjustment. Privatization.

Steel Mill Being Privatized.

Industries in PakistanTextile industryCement industryFertilizer industryAuto mobile industrySugar industrySports industryTelecom industry Surgical industryLeather industryGlass industry

Historically, Pakistans textile industry and clothing sector has always been a major contributor to the foreign exchange earner and still contributes

Textile Industry

4th largest grower of cotton after USA, China and India

3rd largest consumer of cotton

3rd largest exporter of cotton textiles

2nd largest supplier of cotton yarn with 26% share of the international market

AchievementsTextile Industry

Over 1.3 million farmers, out of total of 5 million are involved in cultivation of this crop.Industrial Sector is the second largest individual sector of the economy accounting for 24% of the GDPTextile IndustryStatistics

Textile IndustryExports

Fertilizer IndustryFertilizer is any organic or inorganic material of natural or synthetic origin (other than liming materials) that is added to a soil to supply one or more plant nutrients essential to the growth of plants.

GDP Contribution14%

Employments4.7 millionFauji Fertilizer LtdEngro Chemical LtdSitara Chemicals Ltd Major Fertilizer Cos & GDP ContributionFertilizer Industry

Cement Industry Cement industryis one of most prominent and energetic organization having operations and interactions with cement.

5th position leavingGermany behindAchievementsPakistan is ranked 5th in the worlds cement exports2008-09 (20.28 mt)Pakistan exports increased by 47% inlast fiscal year.Exported $700m in past yearCement Industry

Cement Companies in Pakistan23 cement companies4 foreign companies3 controlled by the armed force19 companies are listed on the stock exchange.Cement IndustryGDP:-3.5% Contribution

Automobile Industry The business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles

Automobile Industry

20072.8%Contribution to GDP2012 5.8% Automobile Industry

Country ContributionAutomotive engineering is a driving force of large scale manufacturing, contributing US$ 3.6 billion to the national economy and engaging over 192,000 people in direct employment.Automobile Industry

Sugar IndustryAt the time of independence in 1947, there were only two sugar factories in Pakistan.

At present there are 106 sugar mills operating in Pakistan.

It is the 2nd Largest industry in Pakistan after Textile Industry

Sugar Industry

PER CAPITA CONSUMPTION(26kg)Sugar MillsPakistan ranks 15th in the World for sugarcane productionSugar IndustryGDP contribution (0.7%)Employment(1million)Sugarcane acreage in Pakistan is 5th in the World and it is grown on over 1 million hectaresTotal of 106 sugar mills in the country

Sports' are all forms of physical activity which, through casual or organized participation, aim at expressing or improving physical fitness and mental well-being, forming social relationships or obtaining results in competition at all levelsSports IndustrySports Industry

The export of sports goods, increased by 7.85% from US$39.180m US$42.257m last yearSports IndustryStatistics Sialkot export 70% of total world demand for hand-stitched inflatable soccer balls (footballs).

40 million balls annually worth US$210 million.

Companies of various sizes 2,400 Employments more than 200,000 Exporting goods worth US$450 million Large exporters (more than 250 employees)Medium exporters (100250 employees)Small exporters (10100 employees).Commercial exporters (19 employees).Sports IndustryStatistics

Telecom Industry Telecommunication is the transmission of information over significant distances to communicateMain CategoriesTelephoneMobilesInternet

AchievementsIn 2008 Pakistan was the worlds third fastest growing telecommunications marketPakistan traffic volume grew by 253 percent compared to last year during the same periodTelecom Industry

Contributions5% of its Gross Domestic Producthas created 220,000 high-paying jobs in PakistanPakistan is now a leader in mobile usage in south AsiaTelecom Industry

Surgical Industry PAKISTAN SURGICAL INDUSTRIES (PVT) LIMITED was established in 1974 and now has become one of the leading manufacturers of Surgical devices.

Contribution In EconomyIndicator Value To GDP(%) 0.42% To Direct Employment (Numbers) 400-500,000 To Indirect Employment (Numbers) 600-750,000 To Exports (%) 1.21%Surgical Industry

Produces over 150m pieces/year worth Rs 22 billion

2300 companies are working in this sectorStatistics

Over 99% production is done in Sialkot

Out of the total production over 95% is exportedSurgical Industry

Leather Industry The leather made ups and finishing industries symbolize an important division in Pakistan, Earning approximately more than 8 million $ as a foreign exchange earnings to the country.

Production CapacityProduction Capacity ProductionTanned Leather 90 million ft2 60 million ft2 Leather Garments 7 million pieces 5 million pieces Leather Gloves 10 million pairs 5 million pairs Leather Footwear 200 million pairs 100 million pairs The difference in production capacity and present capacity is due to various reasons. Source: Pakistan Tanners Association Leather Industry

Leather export markets

Italy, Spain, Portugal, South Korea, Germany, France, UK, USA and UAE. Statistics: More than 2300 leather processing units Provide employment to about 500,000 people Leather Industry

Glass Industry The glass industry in Pakistan, though developed, still has space for improvement.

There are about 37 glassworks in the organized sector, with the production capacity ranging between 10 tones to 200 tones per day.

The major ceramics industry are Karam Ceramics, Swat Ceramics, Master Tiles, Shabbir Tiles and Emco Industries.

p. 12 - 14Sindh5%KPK19%GDPContribution

Glass IndustryPunjab73%Baluchistan3%

Imports & Exports Glass industry in Pakistan comprises sixteen manufacturers in the organized sector which produces over 90 per cent of the indigenous production within the country.Pakistan exported glass products worth Rs 60 million to Rs 120 million per annum during 2005-2010,

imports of various glassfrom Rs 975 million to Rs 1,782million, during last five years 83%. increase

Glass Industry

CAUSES AND REMOVAL OF INDUSTRIAL BACKWARDNESS IN PAKISTANCauses of industrial backwardness may be divided into following four major categories:

A.HISTORICAL CAUSESB.ECONOMIC CAUSESC.SOCIAL CAUSESD.POLITICAL CAUSES

1) The Policy of British Rulers 2) Lack of Technical KnowledgeHISTORICAL CAUSES3) Industrial Share

ECONOMIC CAUSES4) Disputable Industrial Strategy5) Lack of Mineral Resources6) Low Investment and Low Savings7) Lack of Technical Know-how8) Lack of Infrastructure9) Inflationary Pressures10) Inadequate Industrial Credit

12)Limited Market for Capital Goods13)Lack of Industrial Research14)Frequent Breakdown of Electricity15)Global Recession16)Adverse Balance of PaymentECONOMIC CAUSES11) Unfavorable Industrial Structure

SOCIAL CAUSES17)Lack of Education18) Faith & Fate19)Corruption20) Climate and Weather21) Cultural Disturbance

POLITICAL CAUSES

22)Political Instability

23)Kashmir and Water Issues

25)Burden of Refugees

24)Wars with India

MEASURES OR SUGGESTIONS TO IMPROVE INDUSTRIAL SECTORThe following measures are suggested to improve industrial sector of Pakistan1) More allocation of funds for industrial research is required, which is necessary, for the industrial development.

2) Industrial sector can be promoted by increasing capital.

3) Saving and investment should be increased to develop industrial sector.

4) To promote industrial sector, there should be technical know-how.

Tax concession is also needed to increase the investment in new industries.

6) In time supply of raw material is necessary for the improvement of industrial sector.

7) Advanced infrastructure is necessary for industrial development of Pakistan.

8) Financial institutions should provide credit facilities to industrial sector at flexible terms and conditions.

9) There should be expansion of markets, at domestic and foreign level, of industrial goods.

10) Foreign investment should be encouraged; more incentives should be given to investors.

11) Political stability is compulsory for the development of industrial sector.

12) High degree of technical education is required to produce skilled, technical and efficient work force.

13) Problem of load-shedding and irregular supply of electricity should be removed.

14) Commercial policy and self-reliance policy should be adopted to remove industrial backwardness.

15) Foreign exchange reserves and the balance of payment position should be favorable to develop industrial sector.

ConclusionAll above factors are causing industrial backwardness. So, Pakistan is needed to make industrial development through Use of advanced technology Development in infrastructure Provision of credit facilities Increase in industrial consultancy firms

All Topic Related Questions Are AppreciatedIndustrial Growth Of Pakistan