Detailed view about the industrial sectors of Pakistan. Their history. import or export status. problems and recommendations to improve current status.
Manufacturing and Small Scale Industries of Pakistan
1.
2. M. Mubeen Afzal 1485
BS-TMM 5th
Topics: Basic Structure of Manufacturing Sector in Pakistan
Small Scale Industry and Its Importance In Pakistan
3. Contents
What is manufacturing and manufacturing sector?
Contribution in GDP
Background
Manufacturing industries
Causes
Small scale industries
Types of small industries
Importance
Problems
4.
5. What Is Manufacturing?
The process of making goods or wares by manual labor or by
machinery, especially on a large scale is called manufacturing.
For example: The manufacture of television sets.
What Is Manufacturing sector?
Manufacturing sector refers to any business that transforms raw
materials into finished or semi-finished goods using machines, tools
and labor.
Great importance for economic development.
6. Manufacturing Production:
Production in Pakistan is expected to be 7.40% by the end of this quarter, according
to Trading Economics global macro models and analysts' expectations. Looking
forward, we estimate Manufacturing Production in Pakistan to stand at 7.50% in 12
months time.
In the long-term, the Pakistan Manufacturing Production is projected to trend
around 8.00% in 2020, according to our econometric models.
7. Contribution In GDP:
Pakistan Industrial Sector is the second largest individual sector of the economy
accounting for 20.88% of the GDP
. In 2017 it recorded a growth of 5.02% as compared
to the growth of 5.80% last year. This sector comprised of large, medium and small-
scale.
Manufacturing is the most vibrant sub sector of the industrial sector having 64.4%
contribution in the industrial sector and in GDP it accounts for 13.45%.
8. Contribution In GDP:
Manufacturing (sub-sector) is further divided in three components including
large-scale manufacturing (LSM) with the share of 51.26% in industrial sector,
small-scale manufacturing share is 8.80% in industrial sector.
From 2010-11 the large-scale industries contributes 4.4 % to the real GDP
growth rate while the small-scale industries contributes 7.5 %.
9. Historical Background:
At the time of independence the total large scales industrial contribution was only
1.8% to GDP
. The small-scale industries however, contributed 4.6% to GDP
.
Pakistan at the time of partition in 1947 had a negligible industrial base. It got only
34 industries out of 955, while remaining were held by India.
With the passage of time Pakistan utilize its resources domestic as well external for
rapid development.
10. GROWTH OF MANUFACTURING SECTOR IN
PAKISTAN
The Manufacturing performance in terms of growth/productivity is examined in
the following periods of time:
1. Growth of Manufacturing sector from 1947 to 1950.
2. Growth of Manufacturing sector in 1950’s.
3. Growth of Manufacturing sector in 1960’s.
4. Growth of Manufacturing sector in 1970's.
11. MANUFACTURING INDUSTRIES IN PAKISTAN
Pakistan ranks forty-first in the world in factory
output. Pakistan’s manufacturing sector accounts
for about 25% of GDP
.
Following are the main industries of our country:
Textile Industry
Sports Industry
Sugar Industry
Cement Industry
Fertilizer Industry
12. Other Major Industries Include:
Automobile
Leather products
Paper & board
Pharmaceuticals
Chemical
Engineering items
Electronic
Petroleum products
Food, beverages & tobacco
Mining and Quarrying
Services Sector
Agriculture
Steel
Electricity and Gas
13. CAUSES OF INDUSTRIAL BACKWARDNESS IN
PAKISTAN:
Political Instability
Lack Of Capital
Limited Market
People’s liking to foreign goods
Communication & Transportation
Energy Crisis
Economic Restrictions
Lack of Modern Technology
New Competitors
Low Foreign Investment
High Interest Rates
Lack Of Technical Knowledge
14. Small Scale Industries
Those industries in which Manufacturing,
production and rendering services are done
on a small scale on micro level.
Industries make one-time investment in
machinery plants or industries.
In Pakistan cottage or household industries
hold an important position in rural set-up.
16. Importance
Makes use of the industrial waste.
Reduces regional disparity.
Little burden on imports.
Less capital and less sophisticated technology is involved.
Good use of local raw material.
Gainful employment of women.
Source of foreign exchange earning.
Meets the demands of local market.
Contribute in GDP
17. Problems
Limited profits earn.
Can't produce large scale production.
Lack of standardization and quality control.
Outdated Production Methods are used.
Wholesaler earns more than the owner.
Electricity and voltage problems.
Technical advice and further training is Limited
18. Government efforts for Cottage Industries.
Following organizations have been made by government to
develop the cottage industries.
1. Pakistan small scale industries corporation (PSIC)
2. Punjab small scale industries corporation (PSIC)
3. Sindh small scale industries corporation (SSIC)
4. Small scale industries Board KPK (SIDB)
5. Directorate of small-scale industries Baluchistan (DSIB)
19. Measures of the following org
Establishment of industrial estates.
Providing marketing facilities.
Setting up of technical service centers.
Establishing handicraft development centers and carpet
centers.
Providing pre-investment counseling and guidance to
newcomers.
Providing local and foreign loans to small industry owners
on easy installments.