Stg. Mangement Pres.

2. • To developed the industries that vacancies
opportunities
INDUSTRIALIZATION
Industrialization refers to process of
manufacturing consumer goods and capital
goods to create social overhead capital in
order to provide goods and services to
individual and businesses

3. • It was established in 1950 under the act of
federal legislative.
• PIDC board work for planning, promoting,
organizing, and implementing programs for
• Establishment of industries
• development of mines and
• Development of any material that
government may specify

4. When Pakistan came into being, industries
remained neglected by private sector due to:
• Lack of expertise
• Experience
• Capital & Technical know how
In such a desperate situation PIDC (Pakistan
Industrial Development) made a
breakthrough

5. • The corporation started functioning from
1952
Main function of the corporation:
 To establish preferably those industries in
which private sector did not show interest
Or
 In such industries which were of vital
importance from security and economic point
of view

6. • Originally made responsible to promote 15
specified industries.
They included
Jute, paper board and newsprint, Heavy
engineering included iron and steel, Ship
building, heavy chemicals, Fertilizers, sugar,
cement, Textile, chemicals, pharmaceutical,
natural gas, Petro chemicals, coal & peat, and
Exploitation of marine fisheries

7. • It was bifurcated into two Provincial
Corporations of the then East Pakistan &
West Pakistan and WPIDC was created under
the Provincial Industrial Development (West
Pakistan) Ordinance, 1962. It was later on,
renamed as Pakistan Industrial Development
Corporation (PIDC) after the fall of East
Pakistan and dissolution of Provinces..

8. Public Sector Private Sector
Organizations owned and operated
by government
Organizations owned and operated
by private owners
The beneficiary is general public The beneficiary is consuming public
who uses good and services
It is not profit-driven It is profit oriented
No competition is involved between
organizations
Competition is involved for profit
Policy decisions are bound by the
law
It is managed under the rules of
shareholders
Examples : KESC, PIA, Pakistan
Railways
Examples : Retail stores

9. Main features of government’s helpful
policies are:
 Tax concessions
 Protection to industries
 Required infrastructure facilities were full
provided for the growth and expansion of
industries
 Introduction of export bonus scheme
 Commercial banks and insurance companies,
established in private sector

10. • The private industrial sector in Pakistan was
progressed through the efforts of (PIDC).
• It set up industries in the field like fertilizer,
cement, chemicals, sugar and textiles.
• After laying a firm industrial base, PIDC
makes disinvestment in some of the projects
and transferred them to the private sector.

11. • The Government set up 10 industrial estates
and provided infrastructure facilities .
• The State Provided technical training.
• Heavy Mechanical Complex at Taxilla and
Machine Tool Factory at Landhi were
established in the machinery sector.

12. • Nationalization of industries in 1972 was the
biggest cause of the fall of private industrial
sector in Pakistan.
• The total investment in private sector
dropped from Rs.1358 million in 1970-1971
to Rs.650 million during 1976-1977
• The devaluation of currency to the extent of
131% raised the cost of machinery which
resulted in rapid cost inflation.

13. • The public sector of Pakistan has its roots
from 1972 when private industrial units were
nationalized.
• To eliminate the concentration of wealth in
few hands, raising the volume of production,
increasing employment were the core reasons
of nationalization.

14. Privatization:
Privatization Is a process by which the
Government of a country transfers the
state owned enterprises to the private
sector.

15. • Decreasing the number of existing employees
or reducing the size of staff employed in an
organization and still maintaining and
promoting the efficiency of the enterprises.
Reasons for Downsizing
• Downturn in business
• Improved technology
• Reduced funding
• Overstaff

16. • The share of public industrial sector
increased from 7% in 1972 to 71% in 1977.
• During the period of 1973-1974, petroleum
and shipping companies and private sector
banks were nationalized.
• In 1972, 32 basic industries and 3 life
insurance companies were transferred to
public sector.

17. • General Zia-Ul-Haq came in to power in
1977 and immediately took measures to
promote Private Sector in Pakistan.
• Most of the industrial units were
denationalized and brought back to their
respective owners.
• The private sector was further encouraged by
the introduction of fiscal incentives in 1982-
1983 such as tax holidays and rebates in
custom duty.
• The sixth Five Year Plan (1983-1988) specifically
adopted privatization as a central theme.