Cottage and Small scale Industries

In Pakistan
 Content Points
What is cottage and small scale Industry?
Importance of cottage and small scale industry in
Pakistan?
What is the differences between cottage and small
scale industry?
What are the advantages and disadvantages of
cottage and small scale industries?
Types of cottage and small scale industries and
problems faced by them
Government policies towards small scale and
Cottage industries
What are Cottage and small scale industries?
Cottage industry is a small-scale, decentralized manufacturing business
often operated out of a home rather than a purpose-built facility.

Small scale industries(SSI) are those industries in which

manufacturing ,providing services and production are done on a small
scale .These industries do a one-time investment in machineries ,plants
and industries which could be on an ownership ,hire purchase or leave
basis.
Industries
in Pakistan
Importance of cottage and small scale
industries in Pakistan:
Cottage or small-scale industries like carpet-weaving, candle-
making and handicrafts can be established in houses and women can
be gainfully employed. This increases the active labour force.
These industries also meet the local
Demands for industrial goods, and
save foreign exchange spent in imports.

Example of Cottage Work in Pakistan

 Differences of cottage and
small scale industries:
•The location of cottage industries is restricted in villages whereas the small scale
industries are mostly located in urban and semi-urban areas

•Cottage industry being a household industry is mostly run by the household members
while the small scale industries are mostly run by hired labourers

•Cottage industries are producing goods for meeting local requirements whereas small-
scale industries are producing goods to meet the demand for the people living in a wider
area.

•Cottage industries are spending a very low amount of money while small scale
industries are spending a very high amount of money and are working with machines
Advantages and Disadvantages of
cottage industries in Pakistan:
Advantages Disadvantages
Cottage and small-scale industries are labour-intensive Because they are operated on small scales, that’s why
and provide employment to 80% of the industrial the profit is limited
labour.
These industries also meet the local demands for Economies of scale are not available, so production
industrial goods, and save foreign exchange spent in cost is higher.
imports
Cottage and small-scale industries do not use much Sometimes the goods are sold to wholesale at cost
imported material or equipment price ,which discourages the owner and they reduces
. the quality and quantity of the goods.
Cottage and small-scale industries do not use much Small-scale industries are difficult to set up in rural
imported material or equipment. areas as there is no electricity
Types of small scale industries
in Pakistan
Sports good industry

Surgical instruments industry

Brick kilns industry

Sports goods Industry
One of the main sports good industry is located
in Pakistan in the city of Sialkot ,which is export-
orientated.
The industry uses raw material such as
rubber ,stitching thread and leather etc.
Manufacturing is mainly done by hands in small
workshops ,only the final stages of production is
done in factories.

All the manufacturing steps are supervised to

maintain quality ,that’s why Sialkot is also known
globally as “the producer of good quality
products in sports.
Surgical Instruments Industry
The Surgical Instruments manufacturing
Industry in Pakistan is located in the cities of
Sialkot ,Lahore and their urban areas.
The industry has developed from a very low
level in technology to a highly advanced
level.

At first the industry the industry started manufacturing basic

instruments to fulfil the needs of local hospitals ,but in the late 1940s
the industry begin to export instruments in the foreign countries. And
now more than 95% of the instruments manufactured in Sialkot are
exported to other countries.
 The Brick Kilns Industry
The Brick Kilns Industry is an important industry for Pakistan as it
provides employment to the
people living in that rural areas.
These industries are located on the v

outskirts of most of the cities in Punjab.

The suitable clay for making bricks is only exists in Punjab and the
process is mainly done by hands.

The Brick kilns are large users of energy and

needed majority of labours. However, the brick
kilns are one of the major source of
environmental pollution.
Problems faced by the cottage and
small scale industries in
Pakistan
• Profit is Limited

•Incompetent of management

• Lack of standardization

•Lack in technology

•Lack in electricity

•Shortage of raw material

Government policies towards Small-
Scale and Cottage Industry
• Establishment of industrial estates
.
• Providing marketing facilities.

• Setting up of technical service centres.

• Establishing handicraft development centres and carpet

centres.
• Providing per-investment counseling and guidance to
newcomers.
• Providing local and foreign loans to small industry owners on
easy installments.
 Credits:
Planning and Organization: Aqeel Shahzad

Research work and Material: Basas Tahir

Slide creation and Editing: Idress Usman/Taimoor

Tahir