Industrial sector of Pakistan

What is industry?
• An industry is a group of manufacturers or businesses that produce a
particular kind of goods or services.
• Workers in the textile industry design, fabricate, and sell cloth
 Industries in Pakistan
Classified into three kinds
• Capital good industries: The industries which produce further capital.
i.e machines, parts , raw material.
• Consumer goods industries : Consumer goods are the goods which
are used to extract utility or satisfaction directly like cement, sugar,
leather , etc.
• Agro-Based industries : The industries which, for their raw materials
depend on agricultural like textile, ghee, sugar.
 Industrial sector
• Sector wise contribution to Economy.(2019)
• It accounts approximately 20.3% to GDP.
• Agriculture 19.3%
• Service sector 61.2%
• Labour force sector wise
• Industry 23%
• Agriculture 42%
• Service sector 35%
Industry
• Ranks 55th in the world in terms of factory output.
• Following are major industrial sector:
• Textile industry
• Sports good industry
• Cement industry
• Fertilizers industry
• Manufacturing & industry
• Food processing industry
• Steel industry
 Large Scale Manufacturing
• Large scale production” refers to the production of a commodity on
a large scale with a large sized firm. It requires huge investments in
plant and machinery. ... The factory system which extensively used
machinery and adopted division of labor made large scale
production 
• LSM sector grows 14.8% in FY21 as compared -9.8% in FY20.
 Production of big industry 2021
Industries Growth 2020-21

Leather -40.5%

Fertilizers +5.66%

Large scale manufacturing +14.85%

Textile +2.69%

Automobile sector +14.66%

Food, beverage, tobacco +15.75

Wood industry -51%

Electronic sector -24%

 Cotton industry
• Cotton has been cultivated & made into yarn & cloth.
• Cotton is widely used natural fiber in various products from clothes to
medical goods & is constantly in demand.
• GM/BT crops have eliminated the need for expensive pesticides &
increase per acre yield
• India adopted GM crop in 2003 & there production increased by 100%
in 2011.
• Four largest cotton producing countries are china, India ,US &
Pakistan that nearly accounts for 75% world production.
Cotton production 2017-18
World cotton share 2019-20
 Cotton in Pakistan
• Cotton is the most important summer cash crop.
• 85% of crop in Punjab & 15% in Sindh is cultivated.
• Annual cotton production has varied from 8 to 15 million bales.
• Textile sector needs 15m bales per year to meet its requirement.
• 60% of export earnings are from textile sector.
• Pakistan is the 8 largest exporter of textile products providing
employment to 38 percent of the work force in the country.
• textile industry contributes approximately 46 percent to the total
output or 8.5 percent of the country GDP
Cont.…..
• Pakistan’s cotton output during current year fell to 7.06 million bales
from 9.104 million bales in FY20.
• A sharp decline of 47.5% (Pakistan cotton ginners association)
• Pakistan was to bring an area of 2.31 million hectares under cotton
cultivation to get 10.8 million bales.
• Only 2.2 million hectares was used according SBP.
• The yield rather fell to 445kg per hectare from 551kg a year ago.
• Cotton production was 14.8million bales in 2014.
Textile processing
• Spinning
↓
•
Weaving 
• ↓
•
Dyeing +Printing+ Finishing
↓
•
Garments Manufacturing
Cont.…..
Cont.….
 Small medium enterprises
• Any private economic establishment engaged in manufacturing,
trading or service providing business with net annual turnover or
sales up to Rs. 300 million in the current fiscal year.
• Less than 250 employees.
•  3.3 million Small and Medium Enterprises in Pakistan.
• SMEs employ 78% of the non-agricultural labor force.
•  40% of the GDP in Pakistan.
• Generate 25% of manufacturing exports earning.
• There are 175 financial institutions in the country.
Cont.……
• SMEs hold only 6% of the banking credit portfolio while the major
chunk of around 66% goes to large corporates.(SBP)
• 30% of the total banking credit is concentrated in 30 large business
groups of the country.
• There are 175 financial institutions in the country.
• Government has waved off electricity bills for 3 months & 50 billion
packages .
Comparison of countries 2019
Countries Employment %

Pakistan 78% of non-agricultural

China 86%

India 41%

Europe  67%