This presentation basically represent the industrial growth of Pakistan from the time of independence till now.

2. Presentation By
Muhammad Aziz 14-ME-405
Usman Khalil 14-ME-413
Danish Fareed 14-ME-440
Zeeshan Ramzan 14-ME-431

4. 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
%.

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

6. 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.

7. Role Of Industry In Economy
Industry of Pakistan provides total of 25% to GDP.
A review presented by FBR is as follows:

8. 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.

9. INDUSTRIAL REGAIN 2010-14
Pakistan’s 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.

10. Textile industry
Cement industry
Fertilizer industry
Auto mobile industry
Sugar industry
Sports industry
Telecom industry
Surgical industry
Leather industry
Glass industry

11. Historically, Pakistan’s textile industry and clothing sector has
always been a major contributor to the foreign exchange earner
and still contributes

12.  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

13. 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 GDP

15. Fertilizer 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.

16. GDP Contribution
14%
Employments
4.7 million
Fauji Fertilizer Ltd
Engro Chemical Ltd
Sitara Chemicals Ltd

17. Cement industry is one of most prominent and energetic organization
having operations and interactions with cement.

18. 5th position leaving
Germany behind
Pakistan is ranked
5th in the world’s
cement exports
2008-09
(20.28 mt)
Pakistan exports
increased by 47% in
last fiscal year.
Exported
$700m in past year

19. • 23 cement companies
• 4 foreign companies
• 3 controlled by the armed force
• 19 companies are listed on the stock exchange.
GDP:-
3.5% Contribution

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

21. 2007
2.8%
2012
5.8%

22. Automotive 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.

23. At 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

24. PER CAPITA
CONSUMPTION
(26kg)
Pakistan ranks 15th
in the World for
sugarcane
production
GDP contribution
(0.7%)
Employment
(1million)
Sugarcane acreage in
Pakistan is 5th
in the World and
it is grown on over
1 million hectares
Total of 106 sugar
mills
in the country

25. “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 levels”

26.  The export of sports goods,
increased by 7.85% from
US$39.180m →US$42.257m
last year
 Sialkot export 70% of total
world demand for hand-
stitched inflatable soccer balls
(footballs).
 40 million balls annually worth
US$210 million.

27. 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 (100–250 employees)
Small exporters (10–100 employees).
Commercial exporters (1–9 employees).

28. Telecommunication is the
transmission of information over
significant distances to communicate
Main Categories
 Telephone
 Mobiles
 Internet

29. In 2008 Pakistan was the world’
s third fastest growing telecommunications market
Pakistan traffic volume grew by 253 percent
compared to last year during the same period

30. 5% of its
Gross Domestic Product
has created 220,000
high-paying jobs in Pakistan
Pakistan is now a leader
in mobile usage in south Asia

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

32. Indicator Value
To GDP(%) 0.42%
To Direct Employment (Numbers) 400-500,000
To Indirect Employment (Numbers) 600-750,000
To Exports (%) 1.21%

33. Produces over
150m
pieces/year
worth Rs 22
billion
2300 companies
are working in
this sector
Over 99%
production is
done in Sialkot
Out of the total
production
over 95% is
exported

34.  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.

35. Production Capacity Production
Tanned 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

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

37.  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.

38. The major ceramics industry are Karam
Ceramics, Swat Ceramics, Master Tiles,
Shabbir Tiles and Emco Industries.
Sindh
5%
KPK
19%
GDP
Contribution
Punjab
73%
Baluchistan
3%

39. 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 glass
from Rs 975 million to Rs 1,782
million, during last five years
83%. increase

40. CAUSES AND REMOVAL OF INDUSTRIAL
BACKWARDNESS IN PAKISTAN
Causes of industrial backwardness may be divided
into following four major categories:
A. HISTORICAL CAUSES
B. ECONOMIC CAUSES
C. SOCIAL CAUSES
D. POLITICAL CAUSES

41. 1) The Policy of British Rulers
2) Lack of Technical Knowledge
HISTORICAL CAUSES
3) Industrial Share

42. ECONOMIC CAUSES
4) Disputable Industrial Strategy
5) Lack of Mineral Resources
6) Low Investment and Low Savings
7) Lack of Technical Know-how
8) Lack of Infrastructure
9) Inflationary Pressures
10) Inadequate Industrial Credit

43. 12) Limited Market for Capital Goods
13) Lack of Industrial Research
14) Frequent Breakdown of Electricity
15) Global Recession
16) Adverse Balance of Payment
ECONOMIC CAUSES
11) Unfavorable Industrial Structure

44. SOCIAL CAUSES
17) Lack of Education
18) Faith & Fate
19) Corruption
20) Climate and Weather
21) Cultural Disturbance

45. POLITICAL CAUSES
22) Political Instability
23) Kashmir and Water Issues
25) Burden of Refugees
24) Wars with India

46. MEASURES OR SUGGESTIONS TO IMPROVE
INDUSTRIAL SECTOR
The following measures are suggested to
improve industrial sector of Pakistan
1) 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.

47. 5) 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.

48. 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.

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