Industrial Development

Secondary Industry
 Capital, Enterprise, Land, Raw Material,
Power, Labor (input)
 Weaving, smelting, spinning, dyeing,
printing, knitting, tanning, stitching (process)
 Product (output)
 Cotton textile Industry

 Cotton picking
 Ginning, spinning and weaving
 Export for revenue, domestic use
 Importance: total 60% contribution to
exports
 Big source of employment
 7% GDP generated
 Cotton textile earn more foreign exchange
than raw cotton.
 Reduces dependence on imports (in case
of raw materials)
 Increases income of farmers by promoting
production of raw cotton.
 Good demand in International market.
 Skilled and unskilled labor easily available
for textile factories.
 Large scale production
 Meets domestic demand easily
 Disadvantages
 Shortage of raw material due to diseases
and floods (these days)
 Recession(downturn) in International Market.
 Competition with other countries (Hongkong,
China, Thailand etc)
 Needs further modernization to sustain
international market
 Requires more capital
 Disadvantages
 International restrictions due to child labor
and environmental issues (quality& quantity
effected)
 Outdated machinery needs replacement
 High cost on importing of machinery will
burden foreign exchange
 Frequent power breakdown effects
processing
 Political instability and infrastructure
 Disadvantages
 Frequent changes in government policies
lowers confidence of investors
 Natural hazards and security concerns
effected Karachi and Hyderabad
 Sugar Industry
 Vital Industry
 Raw material: sugarcane
 Location: Punjab, KPK, Sindh
 Mills need to be near sugar-cane fields
 Reasons: a). It starts loosing weight as soon as
it is harvested b). Needs immediate crushing
c). Crop is bulky and heavy therefore its
transportation will be expensive
 By-Products: Bagasse (fibre left after crushing)
Molasses(liquid left after crystallization of juice)
 Fertilizer Industry
 Green Revolution (1960) led to chemical
fertilizers production
 Fertilizers are important input for agriculture
 Raw material: sulphur, phosphate, gypsum
 Natural gas become important raw material
 (natural gas, essentially methane, is upgraded
by combination with nitrogen from the air to
form nitrogen fertilizer)
 https://
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 Fertilizer Industry
 Location: Faisalabad, Daud Khel (Punjab),
Haripur (KPK), Dharki (upper Sindh)
 Nitrogenous fertilizers are used the most in
Pakistan as our soil lack nitrogen as organic
matter
 Cement Industry
 Important for infrastructure
 Factors in favor of this Industry a).
Availability for the Raw material i.e
limestone and gypsum b). Good domestic
market c). High in demand by construction
company
 Natural gas is used as cheap fuel.
 Inflation and rise in demand has increased
prices
 Cement Industry
 Important for infrastructure
 Factors in favor of this Industry a).
Availability for the Raw material i.e
limestone and gypsum b). Good domestic
market c). High in demand by construction
company
 Natural gas is used as cheap fuel.
 Inflation and rise in demand has increased
prices
Steel Industry
 Milestone to industrialization
 Biggest support through formation of
Pakistan Steel Mill Corporation (Karachi)
 It provides raw material to engineering and
construction companies
 Pakistan Steel Mill Corporation is the major
provider of products and by products.
 Products: coke, pig iron/hot metal, rolled &
cast billets, galvanized products, raw steel.
 Important market: Karachi, Taxila; Heavy
Mechanical Complex
 Heavy Mechanical Complex is the major
heavy engineering center of Pakistan.
 Function: designs and manufactures
industrial plants and machinery, equipment
for HEP and thermal plants, fossil fuel
processing plants
 Industrial Estate
 Areas reserved for industry only
 Purpose: encourage entrepreneurs
 Government provides infrastructural facilities.
 Industrial estates gets incentives of
exemptions from custom duty on imported
machinery
 Private sector is encouraged to develop
industrial estates in the country.
 It is allowed to further develop infrastructure.
 Special Industrial Zone
• Developed in the areas that lacks
infrastructural facilities.
• They develop it themselves with
governments’ assistance.
• Government’s incentives: tax exemption on
imported machinery, relaxation in foreign
exchange control, security etc.
• Government’s inconsistent policies and
shift in priorities has discouraged private
investors.
 Government Industrial Policies
• Pakistan Industrial Development
Corporation: encouraged private sector to
invest.
• During 60’s country became self sufficient
in agro based industries. (Era of
Industrialization)
• Nationalization of Industries(1972-88)
• Denationalization (1977-88)
• Privatization (1988 onwards)
 Formal and informal sectors
• Formal: legal& registered with male workers
• Capital intensive with few workers and more
mechanized.
• Regular working hours
• Guaranteed standard in quality of goods.
• Work located in offices and factories
• Informal: self employed, often non registered
• Mainly hand tools, irregular working hours
• Low standard quality
• Work can be done at home (cottage industry)
 Cottage Industry
• Important for rural areas.
• They have their own workers.
• Demand: Hand woven carpets, rugs
embroidered work, & traditional jewelry (at
times even demanded at international level)
• Offers job opportunities at rural level
• Women can make earning
• Many underdeveloped districts can develop
• Use waste of large scale industry to make by
products.
 Sports Goods Industry (Sialkot)
• Export oriented small scale industry.
• Raw material (both local& Imported): rubber,
wood pulp, stitching thread, leather
• Financed through family savings mostly
• Sewing done manually rest is done in
factories.
• It bears elements of both formal and informal
sectors
• Criticism : child labor
• Quality: according to International standards
 Brick Kiln Industry
• Employment opportunity for rural areas
• Found in the outskirts of Punjab cities
• Large user of energy, employs large
number of workers due to intensive manual
brick making process.
• Criticism: Child Labor, scorching heat
 Surgical Instruments Industry
• Location: Lahore & Sialkot (ancillary areas)
• Manufactures from simple to complicated
surgical instruments.
• 95% Sialkot’s manufactures are exported
• Contributes more than 50% to exports
• Criticism: Child labor, lack of better working
conditions and safety measures
 Problems of Cottage and Small
Scale Industry
• Lack extra capital
• Economies of scale are not available.
• Lack of standardization.
• Production methods and machinery are out
dated.
• Electricity not provided sufficiently.
• Technical advise and further training is
limited
 Government’s Policies ; Cottage
and Small Scale Industry
• Various organizations have been developed
by government to develop this sector’s
economy.
• Measures under taking: establishment of
Industrial estates.
• Providing marketing facilities.
• Setting up technical service centers
• Establishing handicraft development center
• Providing loans and guidance to new comers
 Industrial Pollution impact
• Land (waste dumped on land)
• Air (atmospheric; harmful gases)
• Noise (sounds of Machinery)
• Water (Aquatic life, contaminated subsoil
water due to land pollution, Mangroves under
threat due to water pollution, vessels illegally
dumping their oil in ocean
• Municipal and Industrial waste water used in
irrigation.
 How to Control Industrial
Pollution
• Efficient disposal mechanism
• Treating Industrial waste
• Planting trees to restore ecological balance
• Industries should be shifted away from
residential area
• There should be laws to check industrial
waste
• Educate people about hazards of pollution
• Development of departments to keep check
 Tertiary Industry (Tourism)
 Presence of tourist attraction.
 Security
 Availability of capital
 Infrastructure
 Management of tourist attraction
 Marketing and publicity
 Government priorities
 Supporting and encouraging international
visitors (business, visiting families, tourist)
 Tourism (Advantages)
 Balance of payment
 Creates domestic employment
 Encourages cottage craft industry
 Increase in production of food.
 Locals can also avail tourist facilities
 Profit earned
 Cultural linkage and promotion
 Can serve as Sustainable industry
 Tourism (disadvantages)
 Internal and external political economic
situation determines number of tourism
 Seasonal employment (Northern areas)
 Money for tourism can be spent on basic
sectors
 Can interfere into locals’ life, traditional
means of livelihood
 Expensive for local tourists.
 Local culture can be under threat due to
possible crimes by tourists