Secondary Industry:

Inputs

➢ Capital (invested finance)

➢ Enterprise (business skill)
➢ Land (work-site)
➢ Raw Materials (basic commodity transformed)
➢ Power (machinery or labour)
➢ Labour (number, skills & other characteristic of labour force)

Factors influencing location

➢ Natural Route (land & sea routes for cheap and easy transportation of goods)
➢ Site Requirement (cheap, well drained & correct sized lands?)
➢ Power Supply (sources)
➢ Industrial Linkage (nearby industrial areas that we can we can benefit from)
➢ Skilled Labour (number of)
➢ Government Policies
➢ Capital
➢ Access to Market
➢ Raw material

Cotton Textile
Introduction
60% of exports
Main areas; Karachi, Hyderabad, Multan, Quetta and Faisalabad.
Advantages
7% of GDP
Creates employment opportunities (50%) for not only skilled but also unskilled Labour.
Foreign exchange earned (60% of exports)
Fulfils local demand so less import needed (saves foreign exchange reserves)
It utilizes local raw material thus increasing farmer's income
Disadvantages
Strong competition from Taiwan, Egypt & South Korea.
Water shortage for manufacturing due to conflict with other users
Child Labour, environmental issues & terrorism causes the industry to close
Problems of pest attack / climate problems/ poor harvest

Cement industry
Introduction
Limestone, sulphur, gypsum locally available, good domestic market & natural gas is available as cheap fuel
Pakistan has insufficient timber for construction so use cement in some other parts, because steel industry is small
Main areas are Daud Khel, Kohat, Karachi and Hyderabad.
Importance of cement to the development of Karachi
High demand in construction industry of dams, barrages, bridges, underpasses, roads, lining canals, houses,
factories, hotel, etc.
Used to make infrastructure (better roads for transport & better bridges for easy access)
A stronger building material, which is long lasting & more durable and has a modern appearance.
Improving slums & squatter settlement.

Fertilizer industry
Introduction
Natural gas as fuel
Phosphate , Sulphur and gypsum are locally available
PAFF in 1979
Main areas are Multan, Faisalabad, Sukkur & Haripur
Benefit of increasing fertilizer production for the people
Higher yields as there is more food production rate
Reduces imports of fertilizer or improved Balance of Payment
Less debt & Higher farm incomes / profit
More jobs

Sugar mills
Sugar cane must be crushed quickly after cutting as it looses its weight rapidly, thus reduces sugar content.
It keeps down transport cost because sugar cane is bulky therefore expensive.
By-products of sugar mill; bagasse & molasses
Main areas are Thatta, Faisalabad, Peshawer & Bahawalpur

Pakistan Steel Mill Cooperation (Karachi at Pipri)

Raw material include imported (Manganese, coking Coal & iron ore) & locally produced (Limestone, coal & water;
Haleji River). Outputs include raw steel, rolled and cast bullets, pig iron, coke & galvanized metals.
Heavy Mechanised Complex Taxila (with the help of China)
It is a heavy engineering center. The inputs are outputs of steels. While the outputs include agricultural machinery,
equipment for HEP & thermal power plants, boilers, cranes, construction machinery and railway equipment.
Heavy Forge Factory at this complex has proved crucial for Pakistan’s defence production needs.
Why was Pipri chosen for steel mills?
Site
Flat, cheap & unused land
Natural routes
Port Qasim
Capital
Invested by USSR
Energy
Pipri TPS (21%)
Korangi TPS (15%)
KANUPP
Labour
Skilled & Unskilled from Karachi
Markets
Karachi & over half in Punjab
Transport
Karachi-Kotri Railway
Advantages & Disadvantages of Steel Mills
Advantages
Employment opportunities
Rise in GDP
Improved BOP
Industrialization
Disadvantages
Requires import of raw material
Environmental Pollution
Lack of technical experts & skilled
Ample electricity supply is needed

Industrial Estates S.I.T.E (Sindh Industrial Trading Estates) Karachi

Industrial estates are special areas reserved for industries. The government offers incentives:
➢ Exemption from customs or imported machinery
➢ Tax holidays
➢ Electricity / power supply
➢ Better roads
➢ Private power stations are allowed
➢ Simplified procedures
➢ Infrastructural requirements
Why choose industrial estate?
➢ Employment as increase in GDP/GNP so increases national income
➢ Positive BOP so it stimulates economic growth
➢ Attracts more investors
➢ Development of infrastructure e.g. roads, power, telecommunication
➢ But
➢ Lack of investment (investors might not come due to changing government policies)
➢ Lack of skilled labour due to high illiteracy
➢ Loss of agricultural land / trees
➢ Increase in rural — urban migration.
Specialized Industrialized Zones
Investors would supply infrastructural needs themselves with coordination along respective Government Agencies.
They can develop their residential, social, & commercial facilities in the zones vicinity
Same incentives are offered

Formal & Informal sector

Formal Sector Informal Sector

• Capital intensive
• Employment by
institution
• Regular working hours
• Decided wages
• Quality o+ goods
• Work in offices /
factories
• Legal / registered
• Mainly adults / no
child labour
• Pension schemes
• Labour intensive
• Self — employment
• Flexible working
hours
• No fixed wages
• Poor quality of goods
• At home
• May not be registered
• Child labour
• -------------------------
--------------------------

Formal Sector
Advantages Disadvantages
Guarantee of products Expensive
Warranty available Not available at odd times
Can be replaced quickly Fixed prices (non-
Fixed timing negotiable)

Informal Sector
Advantages Disadvantages
Cheap No guarantee
No fixed price (negotiable) No warranty
Availability at different Usually non—replaceable
timings May not be available at
certain times.
Cottage Industry

Sports Good Industry

➢ Sialkot
➢ Export-orientated
➢ Raw Materials Rubber, Stitching threat, leather & wood pulp (imported from Japan, Korea & England)
➢ Processes include sewing (in small workshops manually) & final processes are done factories
➢ This Industry bears resembles to both formal & informal sector
➢ Cutting of wood, stitching & rubbe4 sheets are done by child labourers in the primitive conditions
➢ All goods have first class design & perfect quality; they meet international standards (1998 World Cup)
➢ All steps are supervised

Surgical instrument Industry

➢ Lahore & Sialkot

➢ From a very small level & low technological base to high sophisticated level
➢ From repairs of ordinary instruments to manufacturing of complicated surgical instruments
➢ Export from Sialkot (95%) to Egypt & Afghanistan
➢ They manufacture 10,000 different types of surgical instruments export them across the world
➢ Constitutes to 1% world's total surgical goods exports

Brick kiln Industry

➢ Raw materials
➢ Coal as fuel, clay (the main raw material), water (usually from a tube well) & labour
Processes
➢ Digging (the earth)
➢ Mixing (the clay and water to prepare paste)
➢ Moulding (to shape the paste like bricks)
➢ Drying (unbaked bricks in sunlight)
➢ Baking / heating (the bricks to make them stronger)
Importance
➢ Employment for both males and females
➢ Bricks are used in construction for building houses, offices, bridges or lining canals
➢ Shortage of wood in Pakistan / wood is expensive.
➢ So bricks are used in flooring to replace wood
➢ Shortage of steel due to few steel industries
➢ So bricks are used in roofing replacing steel/iron
➢ Cement is expensive so bricks are sometimes used to reduce construction cost
Problems
➢ Bonded labour
➢ Very low wages, so labour take loans and are forced to work in the same industry
➢ Child labour
➢ Expensive fuel
➢ Air and land pollution
➢ 40°C
Solution
➢ Strict laws against child labour
➢ Pak-Epa has requested people to switch from natural gas to conventional heating methods
➢ Chimneys are to be at extreme heights
➢ Clean coal technologies
➢ Newer technology
Problems:

➢ Limited profit
➢ Lack of quality
➢ Economy of Scale not achieved
➢ Outraged machinery and methods are used
➢ Illiteracy
➢ Child Labour
➢ Povery
➢ Lack of marketing
➢ Limited training & practical advise
➢ Electricity is not available

What efforts are being taken to take the problems:

➢ Establishing small industrial estates

➢ Marketing facilities be provided
➢ Technical service centres be established
➢ Pre — investment counselling and guidance
➢ Loans on easy instalment to purchase machinery
➢ Rural electrification
➢ Provision of roads from industries to markets for easy purchase of inputs / easy sale of products
➢ Handcraft development centres have been established
➢ Organizations like PSIC, SSIC, etc. have been established
➢ Tax breaks to reduce financial burden
➢ Dry ports for exports from inland cities
➢ Telecommunication improvements for better contact with the market
➢ More use of machinery, thus more value —added goods so more profits

Environmental Impacts

Impacts

➢ Diseases e.g. deafness, diarrhoea

➢ Contamination of sub soil water effects food crops and supplies of drinking water from wells
➢ Industrial waste harmful for irrigation of crops
➢ Threat to marine life e.g. fish due to polluted water
➢ Threat to mangroves due to polluted water

Control

➢ Awareness campaigns e.g. NGO's should cooperate

➢ Protests / show of concern by public
➢ Strict enforcement of environmental laws
➢ Water treatment plants be installed to purify water
➢ Green trees be planted to reduce air pollution
➢ Industries should be established away from residential areas
Tertiary Sector

Possibility of Tourism

➢ Presence of Tourist Attractions (Several spots within easy travelling distances)

➢ Security (issue for Pakistan particularly after 9/11 attacks)
➢ Availability of Capital (To invest in everything tourism-related)
➢ Infrastructure (basic)
➢ Management of Tourist Attractions (Avoid deforestation in Murree)
➢ Marketing & Publicity (Use of internet & websites + PTDC has been recently setup)
➢ Transport & Communication (Not get stuck in N.M)
 ➢ Government Priorities (Desire to invest e.g. PTDC has been recently setup)

Who comes to Pakistan

➢ For Business
➢ To attend trade delegations.
➢ Educational activities e.g. some educational institutions have hired foreign staff e.g. Principal and teachers.
➢ Staff of multinational companies such as oil companies, Foreign Banks e.g. Citibank, Standard Charted Bank.
➢ UNO officials who are working in a number of projects in Pakistan e.g. WHO (World Health Organization).

➢ Visiting Families
➢ Many Pakistani’s work abroad mainly in K.S.A, Kuwait, U.A.E, UK and U.S.A.
➢ Not tourist but when on holidays, they come to visit their families, friends in Pakistan almost every year.
➢ They stay with family members and not in hotels.

➢ For Recreation
➢ Recreational purposes
➢ Historic Interests (Places)
➢ Museum
➢ Religious Faith
➢ Different culture to their own
➢ Festivals (Basant)
➢ Visiting Northern areas and beautiful lakes and gullies.

Advantages

➢ Domestic Employment
➢ Encourages local cottage crafts Industry and the production of souvenirs
➢ Food production increases because of the creation of the local market
➢ Locals can utilize the infrastructure or even the facilities setup for tourists

Disadvantages

➢ Tourists arrivals usually internal & external political and economic situation (9/11 attacks)
➢ Seasonal employment (May-October). So they have supplement their income from other sources
➢ Natural environment can be badly affected (Queen of The Hills= Murree)
➢ Destroys local culture + Not respect religious belief or local customs + New social problems

Sites
Punjab
➢ Ancient history/archaeology – Taxila/ Harappa
➢ Hillstations – Murree/Nathia Gali
➢ Tombs/shrines -Allama Iqbal/Ranjit Singh/ Jahangir
➢ Culture – Mughal architecture/ Shalimar Gardens/ Badshahi mosque/Lahore Fort/Rohtas Fort
➢ Modern buildings – Minar–e-Pakistan/Presidential palace/Parliament building/Faisal mosque
➢ Other – Khewra salt mines
Sindh
➢ Ancient history/archaeology – Mohenjo-Daro/ Bhambore/ Kot Deji
➢ Tombs/shrines – Shahbaz Qalander (sufi)/ Muhammad Ali Jinnah/Mazar-e-Quaid./ Chaukundi/ Makli
➢ Culture – Mughal architecture/Jamia Masjid/ Ranikot Fort/ Kafir-Qila Fort
➢ Hillstations – Gorakh
➢ Lakes – Keenjhar, Manchar
KPK
➢ Valleys – Kaghan/Kumrat/Swat/Kalam/Naran
➢ Lakes – Saiful Muluk
 ➢ Others
➢ Northern Areas
➢ Kaghan Valley (Kunhar Lake & Shrogan + Fishing)
➢ Swat Valley (fruit laden orchards & idyllic valley)
➢ Gilgit Valley (Polo)
➢ Skardu (Start of K-2 & other peaks)
➢ Hunza Valley (Fort of Baltit)
➢ Chitral (Birir, Bumboret & Rumbur valleys)

Call Centres

What is it?

➢ Office of an organisation which handles phone calls to & from one or more companies
➢ Inbound from a customer to a company
➢ Outbound from the company to its customers
➢ Handles a lot of calls via efficient computer system
➢ Forward calls to Agents who then transfer them to companies
➢ Used by companies to promote products

Pakistani Scope

➢ 0800-bookings, hotels, banks, airlines, reservations, medical facilities, insurance claim & data entries
➢ Domestic & overseas customers' calls must be dealt with quick response, high quality communication links &
efficient handling without time delays
➢ PTCL is providing connectivity for establishing call centres

Advantages

➢ Employment opportunities
➢ Good source of revenue

Disadvantages

➢ Only computer skill workers can work

➢ Expansion of call centres is linked to growth of the business
➢ Few workers are needed because they have computer systems
➢ They only cater for industries with urban areas (whilst 67% of population lives in rural areas)