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   Industrial sector plays a very vital role in
    the economic development of
    underdeveloped countries.




                                             3
   Due to industrial development,
    › overall economic development increases
    › living standard of people improves
    › and overall economic position becomes
     very bright and hopeful.




                                           4
   An industrial sector makes products from
    raw materials by the use of manual labor
    or machines and that is usually carried
    out systematically with a division of labor.




                                           5
   In a more limited sense, manufacturing is
    the fabrication or assembly of
    components into finished products on a
    fairly large scale.




                                         6
 Secondary Sector of Economy
 Man-made Sector
 Converts raw material into Value Added
  Products
 Manufacturing is a Capital Intensive
  Sector.



                                    7
 Increase in National income
 Higher Standard of Living
 Economic Stability
 Improvement in Balance of Payment
 Agricultural Development
 More Exports
 Increase in Employment


                                      8
 Stimulates Progress of other Industries
 Promotes Specialization
 Increased Saving & Investment
 Large Scope for Technological Progress
 Increase in Government Revenue




                                      9
 Easy to Control Industrial Activity
 Diversification of Economy
 Import Substitutes
 Extension of Market
 Increase in Rate of Economic
  Development
 Change in People’s Attitude


                                        10
 Political Stability
 Increase in Social Welfare
 Use of Raw Material
 Reduces Imports
 Scale of Production
 Efficiency of Labor
 National Defense Requirement


                                 11
   1947-1958: Establishment & Expansion of
    Large Scale Manufacturing Sector
    › Export of Jute and Cotton Textile
    › Export of Consumer Goods
    › 1947-54: GDP 3.3%
    › Large Scale Manufacturing Growth 23.6%




                                          12
   1958-1968: The Decade of Development:
    › Foreign Aid
    › Private Sector
    › Further Increase in Cotton & Jute Export
    › 1958-64: GDP contribution 5.2%
    › Large Scale Manufacturing Growth 13.3%




                                                 13
   1972-1977: The Bhutto Regime—Bad
    Management
    › Imports from West
    › Rise in Oil Prices
    › Floods and Pest Attack
   1977-1988: The Zia Era—High Growth
    Rates
    › Growth of Large Scale Industry
    › Private Industrial Investment

                                         14
   1988-1998: The Age of Structural
    Adjustment
    › Investments in Energy Sector
    › Manufacturing Sector excelled in Food
      Processing & Textile




                                              15
 The efficiency or inefficiency of the
  industrial sector is illustrated by
  converting its share of the GDP of value
  added in manufacturing at domestic
  prices into “World Prices”.
 As compared to other developing
  countries in early sixties the value added
  in manufacturing was due to the high
  rate of protection given by the
  government to the manufacturing
  sector.
                                        16
   Manufacturing
    › Large Scale
    › Small Scale
 Mining & Quarrying
 Construction
 Electricity & Gas Distribution




                                   17
 Textile & Apparel
 Food, Beverage & Tobacco
 Petroleum Group
 Pharmaceutical
 Non-Metallic Minerals Products
 Automobile
 Steel Products
 Fertilizers


                                   18
 Chemicals
 Electronics
 Leather Products
 Paper & Paper Board
 Engineering Products
 Tyres & Tubes




                         19
   Pakistan has a widely varied geological
    frame work, ranging from pre-Cambrian
    to the present that includes a number of
    zones hosting several metallic
    minerals, industrial minerals, precious and
    semi precious stones.




                                          20
   Coal
   Natural Gas
   Crude Oil
   Chromite
   Dolomite
   Gypsum
   Lime Stone
   Magnesite
   Rock Salt
   Sulphur
   Barytes
                  21
   Construction is a process that consists of
    the building or assembling of
    infrastructure.




                                          22
› Heavy
  Engineering/Infrastructure
  Construction
› Commercial Building
  Construction
› Industrial Construction


                               23
 Electricity
 CNG




                24
25
Sector         Growth Rate   GDP Contribution
                         %               %


  Manufacturing         1.71             1.28
  (Large Scale)


Mining & Quarrying       0.4             0.5



 Electricity & Gas      3.07              -




                                                26
 Growth Rate for Industry should be 5.2%
 Large Scale Manufacturing should be
  4.9%
 Small Scale Manufacturing should be
  7.5%




                                      27
Country      G.D.P Contribution

  Pakistan            23.6

Bangladesh            28.5

   India              26.3

    Iran              41.7

   China              46.9

Saudi Arabia          61.8

    U.S               22.1


                                    28
Sector                 GDP Contribution of Industrial Sector
       1) Manufacturing                          1,085,440

          Large Scale                             704,936

          Small Scale                             380,504

     2) Mining & Quarrying                        140,971

        3) Construction                           146,169

4) Electricity & Gas Distribution                 126,780

              Total                              1,499,360
                                                                29
   1) Internal Sources
    › Pakistan Industrial Financing Corporation
    › Industrial Development Bank of Pakistan
    › National Investment Trust
    › Bankers Equity Limited
    › Modarba And Leasing Company




                                              30
   2) External Sources
    › World Bank
    › IMF
    › Pak Kuwait Investment Company
    › Pak Libya Holding Company
    › Saudi- Pak Industrial and Agricultural
      Corporation
    › SAARC


                                               31
 Textile Goods
 Leather
 Sports Goods
 Chemical Manufacturing
 Carpets & Rugs
 Cement




                           32
 Pakistan ranks 55th in Factory Output
 Industrial merchandise comprises 60% of
  the total exports of Pakistan
 Industry employs 40% of the total labor
  force
 GDP contribution by Industry: 24%
 Labor Force employed in Construction:
  9%

                                     33
 Growing Industries in year 2010-11:
  Cement, Fertilizers, Automobiles
 Increase in Export earnings of Textile
  products in 2010-11: 29.9%
 Increase in Production of Passenger cars
  & Light Commercial Vehicles in 2010-11:
  16.4%
 Steel Mill is the largest Industrial Unit of
  Pakistan

                                          34
 Imported/Smuggled Goods
 Deteriorating Political, Law & Order
  Situation
 Fluctuation in Financial Policies
 Lack of Capital
 Taxation Policy
 Shrinkage of Market
 Lack of Industrial Research

                                         35
 Unemployment
 Child labor
 Fall in Exports
 Inflation
 Import of Capital and Consumer goods.
 Low Quality of Products
 Pollution



                                   36
 Innovation   and efficiency in industrial
  sector.
 Building high skilled human capacity
  through targeted worker skills
  development programs.
 Provision of technology through
  technological up-gradation; provision
  of sophisticated machines,
  equipment, tools & spares and
  machine pools.
                                       37
 Research    and development in key
  industrial sectors.
 Opening up/updating of departments
  for advanced studies in materials in
  various universities around the
  resource rich areas.
 Centers for research of bio minerals.
 Establishment of geo-data, Geo-
  mapping Centers on modern lines.
                                   38
 Targeted
         development of small and
 medium business entities to boost
 employment and reduce poverty.




                                39
 The growth of Pakistan Manufacturing
  during 1980-1988 was the fastest in the
  world at 6.2%
 In both 5th and 6th five-year plans, actual
  growth rate exceeded the target of 12%
  and 9% respectively.
 In 1991-92, large scale manufacturing
  sector grew 7.4% which was recognized
  by World Bank.

                                        40
 Pakistan’s two leading companies as per
  Forbes Global 2000 ranking for 2011: Oil
  & Gas Development at 1,429th and PSO
  at 1,995th rank.
 Pakistan is 4th largest producer of Cotton
  in the World
 Pakistan has the largest deposit of Pure
  Salt anywhere in the World

                                       41
 During 1951-1952 to 1954-1955
  manufacturing grew annually at 34%,
  one of the highest growth rate ever
  witnessed any where in the world.
 In 2010, record production of 8.825
  Million Soccer balls for FIFA World Cup
  worth Rs. 2171.78 Million.



                                       42
Contribution


  Electricity & Gas


      Construction

                                               Contribution
Mining & Quarrying


    Manufacturing


                      0   20   40    60   80

                                                    43
44

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Role of Industrial Sector in Economic Development

  • 1. 1
  • 2. 2
  • 3. Industrial sector plays a very vital role in the economic development of underdeveloped countries. 3
  • 4. Due to industrial development, › overall economic development increases › living standard of people improves › and overall economic position becomes very bright and hopeful. 4
  • 5. An industrial sector makes products from raw materials by the use of manual labor or machines and that is usually carried out systematically with a division of labor. 5
  • 6. In a more limited sense, manufacturing is the fabrication or assembly of components into finished products on a fairly large scale. 6
  • 7.  Secondary Sector of Economy  Man-made Sector  Converts raw material into Value Added Products  Manufacturing is a Capital Intensive Sector. 7
  • 8.  Increase in National income  Higher Standard of Living  Economic Stability  Improvement in Balance of Payment  Agricultural Development  More Exports  Increase in Employment 8
  • 9.  Stimulates Progress of other Industries  Promotes Specialization  Increased Saving & Investment  Large Scope for Technological Progress  Increase in Government Revenue 9
  • 10.  Easy to Control Industrial Activity  Diversification of Economy  Import Substitutes  Extension of Market  Increase in Rate of Economic Development  Change in People’s Attitude 10
  • 11.  Political Stability  Increase in Social Welfare  Use of Raw Material  Reduces Imports  Scale of Production  Efficiency of Labor  National Defense Requirement 11
  • 12. 1947-1958: Establishment & Expansion of Large Scale Manufacturing Sector › Export of Jute and Cotton Textile › Export of Consumer Goods › 1947-54: GDP 3.3% › Large Scale Manufacturing Growth 23.6% 12
  • 13. 1958-1968: The Decade of Development: › Foreign Aid › Private Sector › Further Increase in Cotton & Jute Export › 1958-64: GDP contribution 5.2% › Large Scale Manufacturing Growth 13.3% 13
  • 14. 1972-1977: The Bhutto Regime—Bad Management › Imports from West › Rise in Oil Prices › Floods and Pest Attack  1977-1988: The Zia Era—High Growth Rates › Growth of Large Scale Industry › Private Industrial Investment 14
  • 15. 1988-1998: The Age of Structural Adjustment › Investments in Energy Sector › Manufacturing Sector excelled in Food Processing & Textile 15
  • 16.  The efficiency or inefficiency of the industrial sector is illustrated by converting its share of the GDP of value added in manufacturing at domestic prices into “World Prices”.  As compared to other developing countries in early sixties the value added in manufacturing was due to the high rate of protection given by the government to the manufacturing sector. 16
  • 17. Manufacturing › Large Scale › Small Scale  Mining & Quarrying  Construction  Electricity & Gas Distribution 17
  • 18.  Textile & Apparel  Food, Beverage & Tobacco  Petroleum Group  Pharmaceutical  Non-Metallic Minerals Products  Automobile  Steel Products  Fertilizers 18
  • 19.  Chemicals  Electronics  Leather Products  Paper & Paper Board  Engineering Products  Tyres & Tubes 19
  • 20. Pakistan has a widely varied geological frame work, ranging from pre-Cambrian to the present that includes a number of zones hosting several metallic minerals, industrial minerals, precious and semi precious stones. 20
  • 21. Coal  Natural Gas  Crude Oil  Chromite  Dolomite  Gypsum  Lime Stone  Magnesite  Rock Salt  Sulphur  Barytes 21
  • 22. Construction is a process that consists of the building or assembling of infrastructure. 22
  • 23. › Heavy Engineering/Infrastructure Construction › Commercial Building Construction › Industrial Construction 23
  • 25. 25
  • 26. Sector Growth Rate GDP Contribution % % Manufacturing 1.71 1.28 (Large Scale) Mining & Quarrying 0.4 0.5 Electricity & Gas 3.07 - 26
  • 27.  Growth Rate for Industry should be 5.2%  Large Scale Manufacturing should be 4.9%  Small Scale Manufacturing should be 7.5% 27
  • 28. Country G.D.P Contribution Pakistan 23.6 Bangladesh 28.5 India 26.3 Iran 41.7 China 46.9 Saudi Arabia 61.8 U.S 22.1 28
  • 29. Sector GDP Contribution of Industrial Sector 1) Manufacturing 1,085,440 Large Scale 704,936 Small Scale 380,504 2) Mining & Quarrying 140,971 3) Construction 146,169 4) Electricity & Gas Distribution 126,780 Total 1,499,360 29
  • 30. 1) Internal Sources › Pakistan Industrial Financing Corporation › Industrial Development Bank of Pakistan › National Investment Trust › Bankers Equity Limited › Modarba And Leasing Company 30
  • 31. 2) External Sources › World Bank › IMF › Pak Kuwait Investment Company › Pak Libya Holding Company › Saudi- Pak Industrial and Agricultural Corporation › SAARC 31
  • 32.  Textile Goods  Leather  Sports Goods  Chemical Manufacturing  Carpets & Rugs  Cement 32
  • 33.  Pakistan ranks 55th in Factory Output  Industrial merchandise comprises 60% of the total exports of Pakistan  Industry employs 40% of the total labor force  GDP contribution by Industry: 24%  Labor Force employed in Construction: 9% 33
  • 34.  Growing Industries in year 2010-11: Cement, Fertilizers, Automobiles  Increase in Export earnings of Textile products in 2010-11: 29.9%  Increase in Production of Passenger cars & Light Commercial Vehicles in 2010-11: 16.4%  Steel Mill is the largest Industrial Unit of Pakistan 34
  • 35.  Imported/Smuggled Goods  Deteriorating Political, Law & Order Situation  Fluctuation in Financial Policies  Lack of Capital  Taxation Policy  Shrinkage of Market  Lack of Industrial Research 35
  • 36.  Unemployment  Child labor  Fall in Exports  Inflation  Import of Capital and Consumer goods.  Low Quality of Products  Pollution 36
  • 37.  Innovation and efficiency in industrial sector.  Building high skilled human capacity through targeted worker skills development programs.  Provision of technology through technological up-gradation; provision of sophisticated machines, equipment, tools & spares and machine pools. 37
  • 38.  Research and development in key industrial sectors.  Opening up/updating of departments for advanced studies in materials in various universities around the resource rich areas.  Centers for research of bio minerals.  Establishment of geo-data, Geo- mapping Centers on modern lines. 38
  • 39.  Targeted development of small and medium business entities to boost employment and reduce poverty. 39
  • 40.  The growth of Pakistan Manufacturing during 1980-1988 was the fastest in the world at 6.2%  In both 5th and 6th five-year plans, actual growth rate exceeded the target of 12% and 9% respectively.  In 1991-92, large scale manufacturing sector grew 7.4% which was recognized by World Bank. 40
  • 41.  Pakistan’s two leading companies as per Forbes Global 2000 ranking for 2011: Oil & Gas Development at 1,429th and PSO at 1,995th rank.  Pakistan is 4th largest producer of Cotton in the World  Pakistan has the largest deposit of Pure Salt anywhere in the World 41
  • 42.  During 1951-1952 to 1954-1955 manufacturing grew annually at 34%, one of the highest growth rate ever witnessed any where in the world.  In 2010, record production of 8.825 Million Soccer balls for FIFA World Cup worth Rs. 2171.78 Million. 42
  • 43. Contribution Electricity & Gas Construction Contribution Mining & Quarrying Manufacturing 0 20 40 60 80 43
  • 44. 44