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
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
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
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