Analysis of Pakistan Industries

By: Afaq Ali Khan

Business Studies Department, BUKC 1

Industries in Pakistan

Importance of Industrial
Development For Economic
Development
Historical Perspective of Pakistan's Economy

• Developing Economy means that the pattern of the

economy changing from agriculture to industry.

• At the time of partition there were 921 industries

employing 1,137,150 workers in the subcontinent.

• Pakistan got 34 small industries employing 26,400

workers which is only 4%. And contributing only 7%
of GNP.
Need for Industrial development
• Rise in national income
• Stimulation of agriculture
• Sustained economic growth
• Adjustment in balance of payments
• Stimulates progress in other sectors
( backward and forward linkages)
• Rise in level of employment
• Provision for defense
• Rise in standard of living
Need for Industrial development
• Guarantee of political stability
• Rise in savings
• Increase in government revenue
• Promotes specialization
 Problems of Industrial
Development in Pakistan
• Controversial Industrial Development
Strategies.
• (a) Increasing Exports
• (b) Import substitution industries
• (c) Sectorial balance Between Agriculture and
Industries
• (d) Public sector V/S Private Sector
 Problems of Industrial Development
in Pakistan
• Narrow national outlook
• Absence of entrepreneurship
• Lack of capital
• Lack of technical knowledge
• Shortage of raw material
• Inadequate supply of power
• Scope for marketing