Pakistan Studies

Problems of Industrial Sector of Pakistan and the remedies of the problems

Bilal Ahmed Mirza

 Industry

 Industry is a branch of an economy that produces a closely related set of raw

materials, goods or services.
 Industries are generally classified as Primary, Secondary, Tertiary and
Quaternary.
 Primary Industry

 This sector of a nation’s economy includes mining, quarrying and extraction

of minerals.
 It can be divided into two categories : genetic industry, including the
production of raw materials that maybe increased by human intervention in
the production process ; and the extractive industry, including the production
of exhaustible raw materials that cannot be augmented through cultivation.
 Primary industry tends to dominate the economies of underdeveloped and
developing nations.
 Secondary Industry

 This sector is also called manufacturing industry. It takes material that is raw,
processes it and then further processes into products. This sector also
includes energy producing industry as well as the construction industry. This
sector may be divided into Heavy and Light industry.
 Heavy industry requires heavy capital investment in plans and machinery.
Petroleum refining, steel and iron would be good examples.
 Light industry may be characterized by the non-durability of manufactured
products and a smaller capital investment. It may involve non-standard
products, such as customized or craft work.
 Tertiary Industry

 This is a broad sector and is also called Service industry. It also includes
industries that, while producing no tangible goods, provide services or
intangible gains or general wealth.
 This sector includes both private and government enterprises.
 The industries of this sector include banking, transportation, tourism,
entertainment, social-welfare and police.
 Quaternary Industry

 An extension of tertiary industry that is often recognized as its own sector ;

Quaternary Industry, is concerned with information-based or knowledge-
oriented products and services.
 Like tertiary sector, it comprises a mixture of private and government
endeavors.
 Industries and activities in this sector include information systems and
information technology ; research and development, including technological
development and scientific research, communication, education and
teaching.
 Industry in Pakistan

 Pakistan, which had almost no large industrial units at the time of partition in
1947, now has a fairly broad industrial base.
 Pakistan’s industrial sector accounts for about 64% of GDP. Cotton textile
production and apparel manufacturing are Pakistan’s largest industries,
accounting for about 65% of the merchandise exports and almost 40% of the
employed labor force. Cotton and cotton-based account for 61% of export
earnings of Pakistan. The consumption of cotton increased by 5.7% over the
past five years while the economic growth rate was 7%. By 2010 the spinning
capacity increased to 15 million spindles and textile exports hit $15.5 billion.
 Some other important industries of Pakistan are :
Mining, fuel extraction, manufacturing, technology, construction, electricity,
food processing, tobacco, fertilizer and steel.
 Importance

 Industry of a country is very important to her and is the backbone of the

economy.
 Industry reduces the heavy dependence of people on agricultural income by
providing them jobs in secondary and tertiary sector.
 It helps in removal of unemployment and poverty.
 It also helps in bringing down regional differences by establishing industry in
backward areas.
 Moreover, export of manufactured goods expand trade and commerce.
 Conclusion

 Now if these remedies are implemented, industrialization will pay a massive role
in the economic development of this country.
 History shows too that the developed countries broke the vicious cycle of
poverty by industrializing, rather than focusing on agricultural or the production
of national resources. The biggest example being UK and USA in 1760.
 A nation that depends on the production and export of raw materials alone
cannot achieve a rapid rate of economic growth. The restricted and fluctuating
demand for agricultural products and raw materials - along with other
uncertainties of nature itself - hampers economic economy.
 If Pakistan has a stable economy, it could help open up new ventures and
opportunities for upcoming industries. It could help to increase our economic
rate and help Pakistan have a healthy,steady and strong economy.
Industrialization is the best way of
providing economic stability.