PRESENTED BY
• Iqra Hafeez Mi12bba014
• Hafiza Bushra Mi12bba020
• Ayesha Imtiaz Mi12bba043
• Rida Munir Mi12bba059
• Atifa Asghar Mi12bba060

Industrial &
Manufacturing
Sector Of Pakistan

CONTENTS
• Pakistan Profile
• Economy Of Pakistan
• Introduction
• History
• Small Scale Industries
• Industrial Sector in Pakistan
• Causes Of Backwardness
• Steps ‘d Taken By Govt.
• Comparison With Other Countries
• International Economists View
• Islamic Economic System

PAKISTAN PROFILE
• Area 7,96,096 sq.Km
• Population 186.02 Billion
• Literacy rate 60%
• Per capita income 1,43,808 Rs.
• Un-employment rate 6.2%
• Revenues 29.71 billion$
• Expenditures 47.97 billion$
• 7th largest army
• Major industries

ECONOMY OF PAKISTAN
Particulars Billion US $ %age
GDP 236.5 4.14
Inflation 236.2 8.7
Agriculture 60 2.1
Industry 51 5.8
Service 129 4.3

INRODUCTION
• Industry refers to that sector of Economy which
is related to manufacturing and production of
products.
• Manufacturing is the key sector for the
development of any Economy.

HISTORY
• Negligible Industrial base Economy
• 34 out of 955 units
• Industries of locally produce raw material
• Industrial finance corporation in 1948
• 6.9% to GDP in 1950
• Pakistan Industrial Development Corporation in
1952
• 11.9% to GDP in 1960
• By June 1971, 59 large scale unit by PIDC

1970’S
• Disappointing industrial growth from 1970-77
• Bhutto’s polices of Nationalization was the
major cause
• GDP growth rate fell to 2.8%

1990’s
• After The Death Of General Zia,Structural
adjustments ‘re made in 1988-1999
• Growth rate boosted up to 8.1% in 1989
• Reduced to 4.7% in 1990s(first half)
• Reduced to 2.5% in 1990s(2nd half)

MUSHARRAF ERA
• Pak Eco witnessed many changes
• Per Capita Income Raised upto 1000$
• Low Interest rate bubble bursted
• In business 15% from 5%
• For Consumers 22%

ZARDARI ERA
• Global economies Experienced the worst Eco
recession since the great depression of 30’s
• Demand for Pak goods Decreased
• Pak industries started to move towards Bangladesh
• Starving time

SMALL SCALE
INDUSTRIES

DEFINITION
• Business that employs a small number of
workers.
• Does not have a high volume of sales.
• Generally privately owned and operated sole
proprietorships, corporations or partnerships.

FEATURES
• Legal definition of a small-scale enterprise
varies by industry and country.
• Small-scale enterprises generally have fewer
than 500 employees within a 12-month period
in non-manufacturing industries.

IMPORTANCE
• Developing personal relationships.
• Responding flexibly to problems and challenges.
• Inventiveness and innovation
• Low overheads
• Catering for limited or niche markets

Industrial Sector In
Pakistan

INDUSTRIAL SECTOR TODAY
• 23.93% of total GDP
• 13.3% to total employment
• 2.5% net foreign investment
• Growth rate of 5.8%

INDUSTRIAL SECTORS
Textile Industry Construction
Industry
Auto Mobiles &
Parts
Sugar Industry
Tele Comm.
Industry
Surgical
Instruments

TEXTILE INDUSTRY

THE MARKET
• Textile Industry is dominated by Punjab
• 3% of United States imports regarding clothing and other form of
textiles is covered by Pakistan
• 60% of country’s total exports
• 38% of total employment
• 8.5% to GDP
• High contribution by tax (23.5 billions)

Issues
• Lack of research and development in cotton
sector
• Lack of modernized equipment
• Increasing cost of production
• Internal issues
• Lack of new investment

Recommendation
• Research and development center
• Modernization in machinery
• Decrease in cost of production
• Energy efficiency
• Encourage entrepreneur
• New Techniques must be in process

Opportunities
• EU granted Pakistan Exports with reduce tarrifs
under GSP plus Status
• 3% of Textile ‘ll be exported in EU markets at 0
Terrif
• GoP has allowed tax-free & duty free imports of
textile machinery to encourage capital
investment

SUGAR INDUSTRY

THE MARKET
• In 1947 only 2 sugar mills
• Now 106 sugar mills operating in Pakistan
• 2nd largest industry after Textile
• Pakistan ranks 15th
• 1.9% of total GDP
• Provides employment to 1.5 millions
• Investment of 100 billion
• Pay 12.16 billion of taxes

ISSUES
• Lowest yield per hector
• Poor management and planning
• Poor quality
• Unable to meet domestic need
• Flood
• Smuggling
• Artificial shortage

RECOMMENDATIONS
• High yielding varieties should be introduced
• Government check that mills utilize their max.
capacity
• Workshop for farmers
• Export of sugar surplus
• Investment in ethanol as a fuel
• Improvement in irrigation system

CONSTRUCTION
INDUSTRY

CONSTRUCTION INDUSTRY
• Drivers of economic growth.
• Construction and material industry has grown at a
pace of 5.2%.
• Contributes 11.42% in the overall industrial sector.
• Projection is 10% growth in the fourth quarter of
2014-15.

THE MARKET
• 4 plants in 1947
• 0.5 million ton capacity in 1947
• Now 29 plants
• Capacity of 44.09 million ton
• Total domestic market 19 million ton
• 3.5 % contribution in GDP

CHART
2.9 3.26
6.01
9.56
11.67
4.3
11
13.6
17.3
21.6
25
20
15
10
5
0
2010 2011 2012 2013 2014
Production in tons
Consumption

ISSUES
• Shortage of coal
• Competition with India and china
• High rate of taxes ( 96 PKR per 50 kg)

RECOMMENDATION
• Utilize Reserves of coal
• Revised taxation
• Stability of Pak rupee
• Duty free Pet Coke

AUTO MOBILES &
PARTS INDUSTRY

THE MARKET
• No inherited industry
• First automobile produced in 1953
• Pak Suzuki in 1984
• Toyota in 1993
• Honda in 1994
• Hyundai in 1999

THE MARKET
• 5.6% of GDP
• Investment of 20 billions
• Employment to 1,92,000 directly
• Indirectly 1.2 million
• 2nd largest tax payer, 63 billion of taxes

ISSUES
• Input cost
• Scarcity of raw material
• Competition with imported cars
• Fuel prices

RECOMMENDATION
• Import German technology
• Foreign investment
• Ethanol fuel
• Strict import policy
• Decrease taxation

SURGICAL
INDUSTRY

THE MARKET
• 17 inherited units in Sialkot
• Now 2500 units
• Exports of over USD 270 millions
• Employment to 1.5 lakhs people
• 1% to GDP
• 1.21% of total exports

ISSUES
• Technology
• Marketing
• Human resource
• Research and development

RECOMMENDATIONS
• Consultancy for branding and international
marketing
• Broaden the sphere of industry
• Fill human resource gap
• BOI to facilitate joint ventures
• Technological up gradation

TELE-COMMUNICATION
INDUSTRY

THE MARKET
• In 2008 Pakistan was the world’s 3rd fastest growing
Tele market
• In 2012 ,Telecom sector contributed PKR 133 billion
• Pakistan is now a leader in mobile usage in south
Asia
• Currently Pakistan's global share is estimated at
USD 2.8 billion
• Total number of IT companies increased to 1306

OPPERTUNITIES
• Stretching the broadband services
• Reliable IT infrastructure
• 6% to GDP
• Income tax exemption till 2016

CAUSES OF
BACKWARDNESS

PEST ANALYSIS

POLITICAL CAUSES
• Political Instability
• Kashmir and Water Issues
• Burden of Refugees
• Wars with India
• MFN to India

ECONOMICAL CAUSES
• Disputable Industrial Strategy
• Lack of Mineral Resources
• Low Investment and Low Savings
• Inflationary Pressure
• Frequent Breakdown of Electricity
• Economic Sanctions

SOCIAL CAUSES
• Lack Of Education
• Faith & Fate
• Corruption
• Climate & Weather
• Cultural Disturbance

Technological Causes
• Lack of Industrial Research
• Lack of Technical Know-How
• Lack of Infrastructure
• Lack of Industrial Consultancy Firms

SUGGESTIONS

SUGGESTIONS
• Resolve energy crisis
• Loans on easy installments
• Improved quality of goods
• Tax Concession
• Foreign Investment
• Use of advanced technology

COMPARISON WITH
OTHER COUNTRIES

GDP GROWTH RATE
9
8
7
6
5
4
3
2
1
0
GDP Growth Rate
4.3
8.2
7.2
6.1
Pakistan
China
India
Bangladesh

PERCENTAGE CONTRIBUTION
Contribution Towards GDP
23.93
26.30
28.5
46.9
32
Pakistan
India
Bangladesh
China
Sri Lanka

INTERNATIONAL
ECONOMISTS VIEW

JIM O’NEILS PROJECTIONS
• Currently Pak is 44th largest economy in the
world
• Pakistan ‘d become 18th largest & 55th in factory
output
• GDP will be grow 15 times in next 36 years
• Inflation ‘d be reduced to 8.2%

ISLAMIC ECONOMIC
SYSTEM

QUAID E AZAM VIEW
• Three things ‘d be done
Do Justice
Do Good To Others
Extended Charity

THREE THINGS ‘d NOT BE DONE
No Act Of Coercion
No Interest
Obscenity