Unit 9# Secondary and tertiary industries

1. Suppose you want to set up a cotton textile industry in Pakistan. Explain the
factors you will consider in choosing the particular location for your industry.
Ans: If I set up a cotton textile industry in Pakistan, I will choose the location of
textile industry in such a way, that the total cost of bringing all the inputs together,
producing the goods and distributing the products to the market, are minimized
and allow for maximum profit. Cotton industries are normally located where most
of the factors are available which are given below:
1. Climate 2. Power 3. Raw Material 4. Labour 5. Transport 6. Markets

1. Climate: Climate exercises the most powerful influence on cotton industry.

Cotton yarn cannot be spun successfully under dry conditions. The humidity of the
atmosphere must be considerable; otherwise the yarn breaks constantly during the
process of spinning. Another climatic factor in the localization of cotton industry is
an abundant supply of water. Water is needed in so many operations connected
with the industry.

2. Power: Like any other industry cotton textile industry also requires constant and
cheap sources of power. Most of the industries are located near sources of power.

3. Raw Material: In determining the location of an industry, nearness to sources of

raw material is of vital importance. Nearness to the sources of raw cotton materials
would reduce the cost of production of the industry.

4. Labour: Basically, cotton textile industry was a labour-intensive industry. The

need of clothing and requirement of low level of technology enabled a
businessman to set up the industry. Minimum level of training is enough for the
labourers to be acquainted with the production system.

5. Transport: Transport facilities, generally, influence the location of industry.

Further, the modes and rates of transport and transport policy of the Government
considerably affect the location of industrial units.
6. Markets: Accessibility of markets is more important in the case of industries
manufacturing consumer goods rather than producer goods.
2. What is the importance of the Fertilizer Industry to Pakistan?
Ans: Being primarily an agrarian state, with agriculture contributing 20% to the
gross domestic product (GDP) and providing over 40% of the employment,
Pakistan’s growth is and has always been heavily dependent on the health of its
fertilizer industry.

Chemical fertilizers have considerably increased since the Green Revolution in the
1960s. Fertilizers are very important for increasing agricultural production.
Various raw materials e.g. sulphur, phosphate, gypsum are used to make different
types of fertilizers. After its discovery in Pakistan, natural gas became the main raw
material.

With increased capital investment, advancement of technology and more players in

the industry, the domestic production capacity of various fertilizers has increased
to over 9 million tons per year, which has surpassed the national demand
consistently over the past years. The supply of locally manufactured urea at
significantly discounted prices as compared to imported fertilizer has allowed
improved consumption of the input by the farmers, leading to higher crop yields.

Growth in the consumption of urea from an average of 5.2 million tons to 5.8
million tons per year is a testimony to the contribution that the industry has made
to growth in agricultural output of the country.

3. Explain the effects of Industrial policies followed by different governments on

the performance of the Industrial sector.
Ans: Industrialization and the Private Sector (1947-71)
After 1947 the private sector was reluctant to invest in capital-intensive industries.
The Pakistan Industrial Development Corporation (PIDC) was established to invest
in these industries. It established many largescale industries (fertilizers, textiles,
cement, chemicals, paperboard, sugar).

PIDC later transferred some of its projects to the private sector when the risk was
reduced. This encouraged the private sector and stimulated industrial activity
during the 1960s.
Nationalization of Industries (1972-77)
In 1972, adopting the principle of ‘nationalization, there was a major change in
government policy. The transfer of ten basic industries to the public sector was a
heavy blow to the private sector

Denationalization (1977-88)
In 1977 the government reversed its industrial policy. The Martial Law Government
gave assurances that no further industries would be nationalized. Many
nationalized industries were given back to their former owners.

Privatization (1988 onwards)

The privatization of State Owned Enterprises (SOE) has been promoted since 1991.
The policies of liberalization and deregulation are followed all over the world.

Objectives of Privatization
• To create better opportunities for the private sector for expansion and
modernization.
• To improve productivity and profitability
• To reduce the burden on the government's economic resources
• To facilitate economic activities for the private sector.
• To achieve more rapid industrialization

4. a) WATER ELECTRICITY GAS PIPES TELEPHONE ROADS

Choose two types of infrastructure from the list above and for each explain its
importance to businesses on an industrial estate.
Ans: 1. WATER: is needed for washing, cleaning drinking and sanitation purpose in
every business and industrial estate. It could be a raw material in mineral water
industry. It is used for cooling for furnaces in steel mu. water is used for chemicals,
dyeing, Printing, pharmaceutical and food processing.

2. ELECTRICITY: is needed for power & energy. It is used for running machines for
manufacturing of products. It provides light, heat and ventilation. Work can be
done efficiently. Computers can be used in industries.
3. GAS PIPES: supply gas to the industries where it is used as a cheap fuel for
production e.g. cement and fertilizer industry. It is used to provide heat and light. It
is used for cooking purposes.

4. TELEPHONE: is a source of communication. It helps to contact the buyers and

suppliers. It is used for sales, orders marketing and advertising. E-mail and internet
can be connected with telephones which links the whole world.

5. ROADS: are a source of transport. They help to bring raw material to the industry
and take the finished goods to the markets for sale. Roads are efficient and cheaper
way for travel and attraction for visitors.

b) What are the benefits and problems of developing new industrial estates?
Ans: Benefits: They provide employment opportunities. The goods produced
help to export so that trade increases. More foreign exchange can be earned. There
will be an increase of GDP and GNP.

It helps to increase the national income and economic growth. There is competition
among the industries which helps to increase the quality. Government provides an
infrastructure as roads, railway, electricity and communication. It provides
subsidies, rebates and tax holiday to the industries for their stability.

Problems: There is a need of more capital. The costs are high. There is loss of
agricultural land as it is cleared to construct industries. The power resources
needed to run the estate would help to deplete the natural resources e.g. coal, gas
etc.

More imports are needed as machinery and which increases the import bill leading
to a negative balance of Payments. There is too much of rural-urban migration in
search of jobs.
5. a) Study Figure 9-A, which shows the location of Faisalabad.

State three factors shown on Figure 9-A which influence the cotton industry in
Faisalabad. For each factor, explain its importance to the development of this
industry.
Ans: 1. Most important factor which makes Faisalabad a textile industry center is
the supply of raw material (raw cotton) from the surrounding areas of Rechna Doab
which are canal irrigated.

2. Facility of road and rail transport helps to carry raw material to · Faisalabad and
also transport finished goods to Karachi and other places in the country.

3. Dry port and airport provide facility for export of finished goods to foreign
markets. Airport helps businessmen.
b) Study Figure 9-B.

In recent years there has been skills little growth in the cotton textile industry.
With reference to Figure 9-B, explain the advantages and disadvantages of
increasing cotton textile production in Pakistan.
Ans: 1) Advantages: Growth of cotton textile industry would create more jobs
and employment in the country. It will reduce unemployment, bring higher income
and increase GDP. Improvement in infrastructure would lead to further progress in
other industries.

There would be improvement in road and rail transport, power supply and water
supply. Increased export of finished textile goods would bring more foreign
exchange and help in reducing trade deficit. Better and new technology may be
adopted to reduce the cost of production and improve the quality of product.

Disadvantages: Increase in cotton textile production would mean that Pakistan will
depend on only one industry. Any reduction in production may have a harmful
effect on the economy of the country.

Growth and development of industry will cause greater rural to urban migration.
Industrial development will cause greater pollution in the environment. It may
cause less investment in other industries. There would be less land for food crops if
more land is given to cotton crop.
6. Describe and suggest reasons for the developments which are taking place in
the Special Industrial Zones.
Ans: A scheme of Special Industrial Zones was planned to support the manufacture
and trade of various export products. A Special Industrial Zone can be developed
even in areas where infrastructure such as water supply, electricity, telephone and
metalled roads are not available. The interested companies (local or foreign
investors) would develop these facilities and provide utilities for the zones. They
will be assisted by the relevant government agencies to provide facilities e.g.
telephone, electricity, water supply, metalled roads. Investors will be allowed to
develop residential, commercial and social facilities in the vicinity of the industrial
zone.
The government has also offered incentives such as tax exemptions on imports of
machinery, relaxation of foreign exchange control, simplified procedures, tax
holidays and security. However, in order to attract local and foreign investors, there
needs to be consistency in government policies. Abrupt changes or shifting
priorities weaken investors' confidence and discourage industrial expansion.
Unfortunately, this has too often been the case, so investor confidence is low.

7. a) The Kaghan Valley and others in the Himalayan Mountains attract

international and domestic tourists.
i. Explain why tourists visit these valleys.
Ans: Tourists visit the Kaghan valley and other sites in the northern hilly
region mainly during summer season. Cool temperatures provide a relief from the
heated Punjab and Sindh plains. Tourists enjoy the mountain scenery, greenery of
the coniferous forests, lush green meadows, fast flowing streams and glaciers.
Opportunities of camping, trekking, hiking, mountaineering and skiing provide great
attraction for tourists. There are local tourists as well as foreigners.

ii. Explain, with reference to two examples, why tourists visit cultural attractions
in Pakistan.
Ans: There are many locations and sites of cultural attraction in Pakistan which are
of interest to tourists. The Kalash tribe near Chitral is very famous for its costumes
and dances. Mohenjo-Daro, Harappa, Taxila and Swat are places of attraction for
people interested in history, culture and archaeology. There are many places where
rock inscriptions and Buddhist stupas can be seen. Many tourists are interested in
mosques, tombs, forts and palaces of historical importance. Colourful costumes of
Hunza and polo matches of Gilgit also attract many tourists.
b) Explain the advantages of developing tourist attractions in Pakistan.
Ans: Tourism is a source of foreign exchange earnings for Pakistan and it helps to
correct the balance of payment. Tourism creates employment for people who work
in hotels, as guides, taxi drivers and porters for tourists. Tourism encourages local
handicraft industries in which tourists take much interest. Tourism brings
development to an area. Local housing, roads, schools, hospitals, electricity, water
supply and sanitation are improved. Tourism helps to check the migration of people
from hilly areas in search of employment

c) Why is capital important for the development of tourism?

Ans: Like other industries, the tourist industry needs investments in order to attract
tourists by providing comfort, convenience and safety to tourists. Capital is needed
for building hotels, guest houses and good eating places and roads, and also to
provide proper taxi and bus service for tourists.
Investment is needed in advertising both in the country and outside the country to
attract tourists. Both public and private investments are needed for the
development of tourist industry.

8. a) i. Name a city in Pakistan where sports goods are manufactured.

Ans: Sialkot is famous for the manufacture of sports goods.

ii. How may the presence of the sports goods industry in this area:
A: increase employment opportunities B: improve the local infrastructure?
Ans: A - The sports goods industry is progressing because it is export
oriented. On account of its high quality, Sialkot sports goods are in good demand in
foreign countries. The industry is largely small scale and cottage industry.
Therefore, the industry offers more employment opportunities to increase the
output and export.

B - In view of the increase in volume and value of export of sport goods from Sialkot
the government has provided better infrastructure in the form of supply of
electricity, gas, water supply, telephone, and training of skilled workers. Road and
rail transport have been greatly improved. An airport and Dry Port have also been
provided for the convenience of exporters.
b) How does industry in cities pollute the environment?
Ans: Industries in cities greatly pollute the environment. Water flowing
out of industrial units is charged with chemicals. It is made to flow in open drains
going to streams, rivers and the sea. Some industries emit smoke and other gases
which cause air pollution. In Pakistan industries do not build treatment plants for
their waste products or waste water. Karachi, Lahore, Faisalabad suffer from
dangers of environment pollution from industries. In Karachi the sea water is
polluted and is affecting the mangrove forests and fishing in the coastal areas. In
Lahore, River Ravi is badly polluted on account of industrial waste water. The Kabul
river receives the water discharged from industries of Nowshera, and Leiah Nullah
receives industrial waste from Rawalpindi.

9. Study Figure 9-C, Figure 9-D and Figure 9-E showing the stockyard at Pakistan
steel Mills, Pipri.
a) i. Name three raw materials used in the Pakistan Steel Mills.
Ans: Coal, iron ore, manganese

ii. Why are most of the raw materials imported?

Ans: Pakistan lacks development of resources. Therefore, iron ore is not mined
in Pakistan and is imported from Australia and Brazil. Pakistan coal is of low quality
and is not suitable for smelting iron. Coal for the steel mill is also imported from
Australia and South Africa. Manganese is also imported.

iii. Name the two outputs from the steel mills shown on Figures D and E.
Ans: 1. Steel sheets 2. Slabs

b) i. Name two human inputs to the steel mills.

Ans: 1. Skilled labour 2. Transport and communication

ii. Explain how human inputs such as those named in (b) i can improve
production.
Ans: Skilled labour is essential for any progressive industry. Skilled labour is
efficient and can adopt latest techniques easily. Production is fast and of required
standard. Better transport system will ensure supply of raw-material in increased
amount.

It will also help in transport of finished goods to markets and to meet orders on
time. Better communication between the mill and the dealers will improve
production.
Telecommunication can help in speedy exchange of information about products,
markets rates, online banking, advertising and marketing as well as information
about improved technology. All these aspects can help in improvement of industrial
production.

c) Read the extract below.

Imports of steel increased by 37% from 2004 to 2005 as a growing amount of
machinery and industrial steel products flowed in. This amount is higher than any
government predictions,

Explain the advantages and disadvantages of increasing steel production in

Pakistan.
Ans: Main advantage for steel productions in the country is that it reduces
dependence on foreign import of steel. It saves foreign exchange for the country.
The steel produced is in great demand for heavy and light engineering works (for
making machinery) and for construction of buildings Also the steel mill gives
employment to a large number of workers. Disadvantage is that the cost of
production is high because both coal and iron one is imported. The initial cost of
building the mill is very high and beyond the financial resources of Pakistan. The
mill creates pollution in the area by giving out smoke and toxic effluents. It
encourages rural urban migration as well. Lack of infrastructure and skilled labour
are other difficulties.

10.a) i. What is an Export Processing Zone (EPZ)?

Ans: An Export Processing Zone is an industrial estate where export-oriented
industries are set up. Export quality goods are produced which are all exported. The
government provides infrastructure (roads, power, water and gas supply and
sanitation) and also gives many incentives.

ii. Explain how the building of industrial estates could help to increase industrial
production in Pakistan.
Ans: In an industrial estate the infrastructure is provided by the government, which
attracts investors. Since the infrastructure (roads, reliable power supply, gas and
water supply, sanitation) is provided and the cost of land is minimal, industrial
estates have been very successful in increasing industrial production in the country.
The infrastructure helps to attract other industries in the region; there is progress
in the field of industrialization.
It also offers opportunities of introducing modern technology and leads to
modernization. Mostly consumer goods are produced in an industrial estate for
which a large ready market exists in the country, SITE in Karachi and Kot Lakhpat in
Lahore are good examples of industrial estates. At present there are about 70
industrial estates working in the country. Private sector industrial estate is working
in Sialkot, which has brought much development in sports goods, surgical
instruments and other small-scale industries.

b) Describe the characteristics of an industry in the formal sector of employment.

Ans: All modern large-scale manufacturing industries, big organizations,
commercial firms, financial institutions are included in formal sector of
employment Main characteristic of formal sector is that a large work force is
employed. Salaries are fixed and paid regularly. Formal sector needs a proper and
high level of education and special skill is required. Usually workers are permanent
residents of the town and hours of work are defined. The formal sector pays usual
taxes to the government. The organization is housed in a proper building. High
quality and value-added goods are produced and high standard of service is
provided.

11. Read the following two statements.

A: The government should encourage foreign tourists to come to Pakistan as this will
help reduce our negative balance of payments.

B: International tourism has too many negatives for Pakistan - it is not a reliable source
of income because of international events such as pandemic disease and terrorism.

Which statement do you agree with more? Give reasons for your answer and
refer to places or examples you have studied in Pakistan to support your answer.
Ans: A country’s image and reputation is judged on the basis of its capacity to
provide basic facilities to tourists, particularly foreigners.

Various European countries like Switzerland, France, the UK, Italy and Greece can
fetch several hundred billion dollars from tourism, why cannot Pakistan, a country
blessed with enviable natural beauty?
Unfortunately, the absence of tourism culture in Pakistan has much to do with
corruption and inefficiency on the part of tourism departments in various provinces
of the country who are either irresponsible in their duties or lack proper training on
providing maximum facilities to tourists at affordable prices.

The crimes including armed robbery, assault, carjacking, kidnapping, sectarian

violence and terrorist attacks occurs across Pakistan. Political and religious protests
are very common which discourage potential tourists to come Pakistan.

Pakistan is blessed with beautiful tourists as well as historical and religious sites
where tourists from abroad visit in large numbers. The north of Pakistan is known
for its peaks, glaciers, lakes and forests where not only homegrown tourism can
flourish but millions of tourists from abroad can also be attracted.

Pakistan has contributed significantly to the fight against Terrorism and violence.
It’s time the international community, especially the United States, acknowledge
that. In 2020 and early 2021, tourist places in Pakistan were closed and only
reopened during the summer of 2021. The rush in tourist destinations during the
summer of 2021 is unprecedented. Pakistan needs to promote homegrown tourism
and take practical steps to provide safety, security, better hygienic, infrastructure
and accommodation facilities so that both local and foreign tourists can be pulled
in.

In the year 2021, Pakistan earned $18 billion from the tourism industry, which
constituted 2.7% of the total GDP growth and providing 1.4 million direct jobs and
3.6 million jobs including related industries. The tourism economy can generate
foreign exchange. A good flow of foreign tourists adds fresh capital to the country’s
economy and reduce our negative balance of payments.