chp#8 by akbar zaidi

1.  Name: Samiullah
 Program: BBA
 Roll no. BBA-39
 Semester: 4th
 Subject: analysis of Pakistan economy
 Topic: key issues in industry in Pakistan
 Resource person: ma’am kaniz Fatima
 Date: 24/03/2021

2.  An industry is a group of manufacturers or
businesses that produce a particular kind of
goods or services.
 Automobile industry
 The automobile industry makes cars and car
parts.
 Textile industry
 Workers in the textile industry design,
fabricate, and sell cloth.

3. SMALL SCALE IND: LARGE SCALE IND:
 Small scale
industries (SSI) are
those industries in which
manufacturing, providing
services, productions are
done on a small scale or
micro scale.
 tissues, chocolates,
toothpick, water bottles.
 Large scale
industries are referred to
as those industries that are
having huge infrastructure,
raw material, high
manpower requirements
and large capital
requirements.
 Textile industry
 Steel industry

4.  The industrial growth of Pakistan was
exceptional at the start.
 The growth rate was almost doubling
from 1950 to 1955.
 Less existent of industries.
 More industries operationalized in the
early 1960’s.

5.  Pakistan has a large presence of small and
medium scales of industries which contributes
30 % of GDP.
 Agriculture growth and green revolution
played a critical role in the development of
small scale industries, especially in Punjab in
1960’s.

6.  Profits are limited and they are mostly spent on
the daily expenses of the owners.
 They do not have extra capital for the
expansion of these industrial units.
 lack of management hierarchy.
 absence of book keeping.
 Banks refuse or restricts lend to SME’s.
 In a survey of FY2007, 1669.74b rupees of credit
disbursement only 1.7% was taken by SME’s.

7.  The textile industry is the largest
manufacturing industry in Pakistan.
 Approx. 30% of the total exports of Pakistan
came from textiles in 1990/1.
 Cotton yarn’s contribution to export increased
from 10 to 18 % between 1982 and 1990.
 Between 1962 and 1970 Pakistan covered
almost 11% of the world market.

8.  Under the Bhutto regime the textile sector lost
its importance in “1970’s” .
 Between 1973 and 1987 both Hong Kong and
Korea captured greater market shares on the
basis of more dynamic production.
 The fact was that Hong Kong and Korea were
producing man made and bleached cotton.
 On the other hand Pakistani entrepreneurs
ignored the up gradations.

9.  While Pakistan is fourth largest cotton
producer and its cotton fiber is considered one
of the best in the world, due to poor picking,
and elimination of contamination it looses this
advantage.
 Pakistan is one of the largest exporter of cotton
yarn in the world in terms of quantity but in
terms of value it only captures 5% of the
market share.
 Due to the lack of technology Pakistan loses the
value woven fabric in the world market too

10.  Textile industry of Pakistan is the most efficient
one in the country….(world bank)
 Textile is technology oriented business which
require capital intensive technology, but major
machineries in textile industry of Pakistan is
more than fifteen years old and requires major
up gradation and must meet modern
standards.
 Electricity and gas shortage has also a big
impact on the lower production of this sector
too.

11.  Public sector, portion of the economy composed of
all levels of government and government-controlled
enterprises.
 The public sector and the role of Govt in general have
been discredited in recent years.
 Diminished role of the state
 Costly to run
 In efficient
 Poor performance

12.  A large privatization efforts was launched in
NOV,1990 by Nawaz’s Govt.
 Disinvestment and deregulation committee
was established.
 The principle was the Govt should completely
retire from the production of the industrial
goods.
 At the earlier opportunity 109 industries were
privatized.

13.  Privatization commission was launched in 1991
to supervise the privatization process.
 Need for privatization was to raise revenue.
 Initially privation process was unsuccessful.
 Govt had to revise its decision.
 Govt was searching more transparent and
effective procedure to maintain.
 Reason of failure,
 Companies were already bankrupt.

14.  By the end of 1960’s, it was realized that
elevating growth required substantial costs.
 Industrial structure was highly inefficient.
 Reasons:
 State involvement.
 Too much emphasis on manufacturing sectors.
 Ignoring the Agri sector.
 No technical change.
 Wastage of resources.

16.  A major impact on industries and overall economy
of Pakistan from 2008 onwards is energy crisis.
 Estimate suggested that 2-3 % of overall GDP was
lost due to power shortage.
 shortfall exists is inefficient and outdated power
plants that are unable to generate electricity that
meets the national demand.
 Pakistan's long-term energy needs can only be met
with judicious planning, with regards to
harnessing all the available energy sources.