Industry is one of the vital sectors and makes the major portion of the economy of the country.

The
industry gained a great boost after the “Industrial Revolution”. The countries which were previously
relying solely on agriculture encouraged their industrial sector. This switch over from agricultural to
industrial sector has paid the price to these countries. The examples of developed nations like America,
Germany, Great Britain, Japan, Russia, China etc. are before us. On the other hand the countries which
did not give weight to the industry are lagging behind. With the development of industry national
income increased, the living standard improved, employment opportunities increased and the
investment increased. Not only this, but there was also a great rise in agricultural production. All such
developments opened new vistas for the countries. Countries of the world climbed out of the poverty
and became self-dependent.

Industrialization is linked with the development of the industrial sector on a massive scale in a society
i.e. changing the society from an agrarian one to an industrialized nation. This process involves
technological changes, where new technology is developed and used.

The Industrial Revolution was a great phenomenon in the history of the world. It started in England
during the 18th century when machines began to replace manual labour in many industries. It spread
through much of the world starting in the 19th century and is still continuing in undeveloped countries.
The whole scenario of the production altered with the introduction of the machinery. Machines made
the work faster and easier. The production exceeded the demand of the items. Resultantly the prices
dropped according to the supply and demand theory. With industrial development, many other sectors
of the economy also developed. In short, the Industrial Revolution brought unprecedented changes in
every aspect of life.

Pakistan got independence in 1947. At the time of partition, Pakistan had a negligible industrial base. It
got only 34 industries out of total 955, while remaining were held by India. Such a small number of
industries were not enough for a newly born country to face the industrialized world. Pakistan had to
start from the scratch to develop its industrial sector and stand on its own feet. It had to make the most
of its limited resources in order to keep the pace with the changing trends of the world. With the
passage of time Pakistan utilized it’s all available resources domestic as well as external for rapid
development of manufacturing sector. Pakistan has now attained a fairly diversified base in
manufacturing ranging from essential goods to ship building industry. Domestic production of items
such as refined sugar, steel, fertilizers, cement etc. has helped in import substitution and has saved
substantial amount of foreign exchange.
Pakistan during its early years realized the need for development of appropriate industrial infrastructure
that included setting up industrial estates and an engineering base. The first such estate was established
beyond Lyari in Karachi at the present Sindh Industrial Trading Estate, SITE at Manghopir road. It was
provided necessary facilities such as water, roads, and waste disposal system. To augment the pace of
industrialization, the Shipyard and Engineering Works was created to cater to the needs of engineering
material, plant and equipment.

The Pakistan Council of Scientific and Industrial Research, PCSIR was created in 1953 to develop
technologies for utilization of indigenous resources, dissemination of results of research and solving
problems in processes and operations besides those encountered by newly established industries.

The Pakistan Industrial Development Corporation, PIDC was created almost simultaneously to serve as
the recipient of technologies in heavy industries such as cement and in those for which private
investment may feel shy. PCSIR and PIDC were charged with the responsibility of development of high
level manpower which could strengthen its technology base and assist in the process of technology
transfer.

The Landhi town ship and Landhi Industrial Area were developed almost simultaneously. Korangi town
ship developed in 1961-69 therefore considered the establishment of industrial estates as an integral
part of their planning and as the first and necessary step to ensure employment within the new
settle¬ment for those being shifted.

The small scale manufacturing, based on indigenous or indigenised technologies, continued to be the
main contributor to economic development, more than the large scale industries, until the late fifties. In
the mid-fifties the contribution of the large scale manufacturing based on embodied technologies
overtook that of the small industries. The contribution of the latter was 30% of the total in mid-sixties
and continues to be approximately 25% of the manufacturing sector. Subsequently large and small
industri¬al complexes were established in the cities of Karachi, Lahore, Nowshera, Hyderabad, Sukkur,
Nawab Shah, Mirpur Khas and Khairpur and later on in Baluchistan.

The causes of industrial backwardness in Pakistan are varied and complex. The Government of Pakistan
since 1947 is trying to develop industries and infrastructure facilities for the growth of industrial sector,
yet it has not achieved success to the desired extent. In the last over three decades the main obstacles
which have slowed and retarded industrial development in Pakistan are as follows:
The first and the foremost cause of the backwardness of the industry has been the political instability
which has led to instability of policies. Each successive government unveils its own policies and disposes
of all policies of previous government after it takes over. In the wake of such negligence from
government’s part, the industrial sector is suffering a great setback.

Furthermore the lack of capital is a major hurdle in attaining self-sufficiency in industrial sector. Every
industry requires a large sum of capital to keep its wheel moving. But due to the lack of capital and loan
facilities the progress of industry is lingering.

Limited market is also the major cause of industrial deterioration. Owing to government’s indifference,
our domestic markets have not expanded to an extent to accommodate the home-made goods.
Moreover our peoples’ proclivity to foreign goods is also giving a severe blow to our industry.

The proper utilization of the capabilities of the labour play a very vital role in the progress of the
industry. By fully utilizing labour capabilities the production can be improved and increased. But
unfortunately, underutilization of labours’ potential on right place is inflicting a great loss and industry is
lagging behind to compete with the world.

Communication plays a very important and vital role in industry’s progress. If communication is in
disorder, industry fails to survive. Due to lack of transportation and absence of basic infrastructure like
roads, water supply, sanitation and proper disposal of waste water and solid wastes, our industry is
lagging behind.

Lack of basic infrastructure along with the expensiveness of means of transportation and
communication is also contributing to industrial failure.

The significance of technical knowledge to industry cannot be negated. Industrial progress is thwarted in
the absence of workers equipped with technological knowledge. The paucity of such technically
experienced labour force makes the journey towards industrialization challenging.

Lack of technical minded workers coupled with shortage of entrepreneurs is worsening the things. Not
only local businessmen but also foreign investors are not ready to set up new industries and make
investments. They are reluctant to invest their time and money in the country which is lacking in basic
infrastructure and where law and order situation is deteriorating day by day. All these things are acting
as repellent for industrialists and in turn industrial development.
Energy crisis is further a bolt from blue for our industry. Our country is starving in electricity, oil and gas
which are the most essential requirements to run industry. In spite of having vast resources of gas, oil,
coal etc. our country is unable to provide uninterrupted supply of fuel to industry which is creating
havoc to this sector.

Last but not the least, economic restrictions imposed by donor countries and lack of effective
exploitation of the World Market are also contributing to our industry’s failure.

We are living in a state of lawlessness. The old norms that have held the state together for so long are
no longer applicable. The new norms are still embryonic. The transition from agrarian to industrialised
nation is marked by transition of cooperative society into competitive society. The social infrastructure
needs to accommodate itself to the new requirement. What our government should do at this point is
to speed up the development projects and intensify industrialisation. It should try to reduce
provincialism and increase nationalism. A good policy for completion of transition of industrialization is
required. Here are some suggestions to stabilize our industrial sector:

• Government must unveil a solid industrial policy keeping in view the global requirements.

• Policies must be strictly implemented.

• Industrialists be given loans on easy instalments, so as they could run industries smoothly.

• New markets for the local products be explored and the quality of local products be improved to
increase the demand abroad.

• New technical universities and institutions be established for the guidance of the labour and equip
them with the modern techniques being used in the industry.

• Means of communication and basic infrastructure required for industry like roads, transportation etc.
be improved and enhanced to make the access easy.

• New and emerging entrepreneurs must be encouraged to lead the industrial sector and make
investments.

• The crisis of energy must be resolved on priority basis and interrupted supply of energy to industry be
ensured.

• Law and order situation be improved to allure (attract) the investors to invest their money and time.

• More attentions should be given to increase export.

• Import substitution products be produced to encourage people to use local products.

• Realistic and up-to-date statistics be provided to this sector.

To conclude with, the people of Pakistan perhaps already are aware that the country had the choice of
building institutions for development of technology and other industrial infrastructure and/or a strong
institution for planning. Pakistan opted assistance from the USA in formulating economic development
plans while both India and Korea when offered similar options opted for establishment of institutes of
technology on the pattern of Massachusetts Institute of Technology, MIT. The KIST or Korean Institute of
Science and Technology and a chain of IITs or the Indian Institutes of Technology were offered as
technical assistance to Korea and India respectively and both countries flourished on the basis of solid
and self-reliant foundations provided by the respective institutions. Pakistan has all the resources and a
solid base to become an industrialized country. The need of the hour is to turn the policies into action by
following the examples of developed countries in letter and spirit.