Industrial Development in Pakistan (Part-1)

1. Importance
2. Historical Overview
3. Major Industries
4. Future Directions
 1: Importance:

• Industrialization is the key to

economic development and overall
prosperity.
• Without Industry no economy can
grow.
• It is the backbone of a strong and
stable economy.
• Industry is the base of modernization
and development of a state.
• Industrialization helps the
international standing of a state.
• Industry and technology go together.
• Industry enhances trade and save
foreign exchange.
• Industrialization brings self-reliance for a
nation.
• Industry is also important for
agriculture.
• Agriculture provides raw materials and
which is input for industry and output is
the finished goods.
• Industrialization improves the quality
of life, help in Poverty reduction, and
provide employment facilities.
• Industrialization has close relevance
with the defense and security of the
country.
• How can industry be classified?
• There are four types of industries,
these are:
• Primary,
• Secondary,
• Tertiary and
• Quaternary.
• Primary industry involves getting raw
materials e.g. mining, farming and
fishing.
• Secondary industry involves
manufacturing e.g. making cars and
steel.
• Tertiary industries provide a service e.g.
teaching, Banking and nursing.
• Quaternary industry involves research
and development industries e.g. IT.
 2: Historical Overview
• At the time of independence, Pakistan
had inherited only 34 industrial units out
of 921 industrial units in subcontinent,
about 3.7 percent of India’s industry
• They were cotton textile, cigarettes,
sugar, rice husking, cotton ginning and
flour milling industries; and together
they contributed only
• Such a small number of Industry was
insufficient to meet the needs of the day-
to-day life.
• 7% of GDP and employed a little over
26,000 employees.
• Priorities set out in the early years:
–1. Industry would be based on
indigenous raw materials.
–2. Consumer goods should be
manufactured to meet the
immediate needs of the people.
–3. Private initiative to be encouraged.
– 4. The state to be involved in the
process through: facilitation and help,
financial help, tax incentives,
protective tariffs etc. It also played
direct role to set up industry.
– 5. Training and research facilities
provided.
– 6. Industrial Development Board was
formed in 1948.
• All Five Years Plans from 1955, 1960,
1965-70 paid greater emphasis on
private sector and rapid
industrialization. It added to
aggregate economic growth.