Introduction of Industrial Sector
Introduction of Industrial Sector
Introduction of Industrial Sector
Textile Industry
Sports Industry
Sugar Industry
Cement Industry
Fertilizer Industry
The growth rate of industrial sector for the year 2009-2010 remained 4.9
percent %
Industrial sector contribution to GDP (Gross Domestic Product) for the year
2009-2010 Remained 18.5%
Industrial Sector is second largest sector of our economy.
At the time of independence we had only 34 Industrial Units.
Economic Stability:
Industrial sector earns a good amount of foreign exchange for the country
which is used for repairing national debt and for imp0rtant of machinery etc.
Industrialization brings structural changes in the pattern of foreign trade of
the country. It helps in increasing the export of manufactured goods and thus
earns foreign exchange. On the other hand The processing of raw material at
home curtails the import of goods and thereby helps in conserving foreign
exchange.
Agricultural Development
More Exports
Textile Items
Sports Goods
Leather. Etc
Increase in Employment
Modern Defense
Modem defense cannot be put on a sound footing unless its basic needs are
met from within the country itself and these basic needs are mainly supplied
by modem industry, in the present times it have become more important as we
surrounded by enemies.
Promotes Specialization
Excise Duty
Custom Duty
Corporate Tax
Sales Tax
Industrialization increases the supply of goods both for internal and external
markets. The export of goods provides foreign exchange. The customs excise
duties and other taxes levied on the production of goods increase the revenue
of the state.
Diversification of Economy
Import Substitutes
Extension of Market
Political Stability
Industrial sector is also plays great role in social welfare this sector meets
different needs of society like food and fiber requirement of population.
Industrial development increases the revenue of the government which is
spent on the welfare of people. New roads, dams, buildings and parks are
constructed.
Scale of Production
Increased Production will expand the scale of production with the result cost
of production will be decreased and the profit will be increased for
the businesspeople.
Efficiency of Labour
Industries will make the people hardworking and will go a long way to
increase their efficiency.
From the above discussion it is clear that no doubt Industrial sector has much
importance for economic development without industrial sector no country
can make progress in this modern world.
What is Causes of Industrial backwardness in Pakistan?
Ans:
Causes of industrial backwardness in Pakistan are different types and nature
these problems can be solved with sincere efforts of governments
SME, s Promotion
Our country is developing country and we should establish small and medium
enterprises (SME) Instead of large scale because we have less finance to run
large scale industry.
Optimum Diversification
We should establish every type of industry in every line so that we will be able
to produce every product in our country and in this we can maximum Imports.
Tax Concessions
Government should maintain law and order in country so that security of life
and property will be given to business and they will fed comfortable and will
be ready to invest in country.
Conclusion
B. ECONOMIC CAUSES
4) Disputable Industrial Strategy
It is a huge barrier in the way of industrial advancement. In the history of Pakistan, there
was a policy of import substitution, in the early 1950s. There was a trend of industrialization in the
1960s. The policy of Nationalization was adopted in Z. A. Bhutto’s period and Zia-ul-Haq adopted
the policy of Privatization. The investors are always hesitant to make investment in such
situations.
5) Lack of Mineral Resources
There is acute shortage of mineral resources like oil and coal etc. These resources are
necessary for industrial development. Due to lack of mineral resources, rate of industrial
development in Pakistan is very low. Contribution of natural resources to GDP is 0.8 % in
Pakistan.
6) Low Investment and Low Savings
Deficiency of capital is one more major problem in the way of industrial development.
Pakistan is fundamentally, underdeveloped and there is shortage of capital in the country.
Industrial development is impossible without capital. Sufficient capital is a major condition for
industrial development. Total investment and domestic saving are 13.4% and 9.5% of GDP
respectively.
7) Lack of Technical Know-how
There is lack of technical and skilled workers in the country due to high rate of illiteracy.
Efficiency of labour is very low due to use of backward and orthodox technology. It is also a main
cause of industrial backwardness.
8) Lack of Infrastructure
The infrastructure for industrial development is necessary. There is shortage of
infrastructure in Pakistan. For example, gas, electricity, transport, roads, railways network and
communication are not available up to the requirement of industrial development.
9) Inflationary Pressures
Rate of inflation is very high in Pakistan. The prices of imported machinery, oils, chemicals
and spare-parts are rising very sharply. These factors contribute toward industrial backwardness.
Very high rate of inflation is 14.1 % in Pakistan.
10) Inadequate Industrial Credit
There is shortage of active financial institutions in Pakistan, which may provide credit
services to industrialists according to their needs. Terms and conditions for the provision of credit
are so tight.
11) Unfavourable Industrial Structure
There are inequalities in industrial growth in Pakistan. Manufacturing of consumer goods
is preferred over capital goods. No doubt, return on consumer goods is more but capital goods
are necessary for economic development.
12) Limited Market for Capital Goods
The narrowness of domestic and foreign markets for the industrial goods is also a major
hurdle in the way of industrial development. Small size of market is due to low purchasing power,
low standard of goods and high cost of production etc.
13) Lack of Industrial Consultancy Firms
The investment in modern industries is not only costly but also risky. The capitalists are
regularly withdrawn and hesitant in investing their capital in new industrial ventures. No doubt,
deficiency of capital is a problem in Pakistan but the major problem is that existing capital is not
properly utilizing due to lack of consultancy firms.
14) Lack of Industrial Research
Research work for industrial sector is not satisfactory due to lack of technical education
and shortage of technological universities in the country. Improvement in production and reduction
in cost of production is impossible due to lack of research. Number of technical and vocational
institutions in Pakistan is more than 1522 out of which 1140 are in public sector. These are
providing training to 3,00,000 persons.
15) Frequent Breakdown of Electricity
Like other power resources, electricity is also insufficient in Pakistan to meet the domestic
needs. There is irregular supply and frequent breakdown of electricity in Pakistan. It is affecting
the industrial production in the country. Growth rate of electricity and gas sector, in Pakistan is -
21.1%.
16) Economic Sanctions
Advanced countries are not willing in the improvement of backward countries. They have
created various trade zones among themselves. As a result, they import and export among
themselves. So, export volume of developing countries remains very low. On the other hand,
developed nations have imposed various sanctions on import and export with poor nations.
17) Global Recession
The global economic recession in the last years adversely affected the growth of
manufacturing sector. The donor countries usually interfere in our internal affairs and economic
activities in the time of recession.
18) Adverse Balance of Payment
Adverse balance of payment is a new cause of industrial backwardness. To make
industrial development, we have to import modern machinery and advanced technology from
other countries. But due to shortage of foreign exchange, we cannot import such items to make
rapid economic development. Pakistan is facing the deficit of $ 8.3 billion in its balance of payment
during 2010-11.
A. SOCIAL CAUSES
19) Lack of Education
People have no idea how to set up the industry due to high degree of illiteracy. They have
no sufficient resources to start heavy projects. Efficiency of unskilled, untrained and illiterate
labour is very low that causes in industrial backwardness. Literacy rate is just 57.7 % and
expenditures on education sector are only 1.8 % of GDP, which is lowest in Asia.
20) Faith & Fate
Man should work hard first and then put the result in the hands of ALLAH. Mostly, our
people are irrational, they believe on faith and fate. They do not want to take the risks. They are
working just to meet their basic needs. There is absence of commercial mind in Pakistan.
21) Corruption
Corruption is a great evil, which is still increasing at very high rate in Pakistan. It is found
in government as well as private sector also. Due to corruption, illiterate and dishonest workers
come forward and cause industrial backwardness. Pakistan is at number 34th at the table of the
most corrupt nations and at number 1st in South Asia.
22) Climate and Weather
Climate and weather conditions are also a big cause of backwardness in various
industries. There is inter-relationship between industrial and agricultural sector. If weather is not
well, it causes agricultural backwardness and it results in industrial backwardness.
23) Cultural Disturbance
The cultural disturbances in the country have slow down the production in manufacturing
sector. In addition to this, shortage of raw material has an adverse effect on production. There
are various caste systems in the country.
B. POLITICAL CAUSES
24) Political Instability
An additional cause of industrial backwardness is political instability. Since partition,
political situation of Pakistan is not satisfactory. There are regular changes in the governments
and government policies. Domestic as well as foreign investors feel risk in making investment due
to political unrest. All these result in industrial backwardness.
25) Kashmir and Water Issues
Since freedom, the Kashmir problem has been disturbing our economy. People in
Pakistan remain worried about the danger of war with India due to Kashmir and water issues. So,
Pakistani and especially foreign people hesitate to invest.
26) Burden of Refugees
At the time of partition, Pakistan had to face a serious problem of refugees coming from
India and there was shortage of resources in Pakistan. But now Pakistan is also facing this
problem in the form of Afghan refugees.
27) Wars with India
The two big wars fought in opposition to India in 1965 and 1971. It creates a lot of
economic problems. Now situation is that both Pakistan and India has to keep up a huge part of
their budget for defense.
MARCH 2, 2015
IPRI REVIEW
ADD REPLY
Introduction
The year 2015 is important in the context that it marks the deadline for the participants
of Dakar declaration (Education For All [EFA] commitment) including Pakistan.
Education related statistics coupled with Pakistan’s progress regarding education
targets set in Vision 2030 and Pakistan’s lagging behind in achieving EFA targets and
its Millennium Development Goals(MDGs) for education call for an analysis of the
education system of Pakistan and to look into the issues and problems it is facing so
that workable solutions could be recommended.
The system of education includes all institutions that are involved in delivering formal
education (public and private, for-profit and nonprofit, onsite or virtual instruction) and
their faculties, students, physical infrastructure, resources and rules. In a broader
definition the system also includes the institutions that are directly involved in financing,
managing, operating or regulating such institutions (like government ministries and
regulatory bodies, central testing organizations, textbook boards and accreditation
boards). The rules and regulations that guide the individual and institutional interactions
within the set up are also part of the education system.
Pakistan has expressed its commitment to promote education and literacy in the country
by education policies at domestic level and getting involved into international
commitments on education. In this regard national education policies are the visions
which suggest strategies to increase literacy rate, capacity building, and enhance
facilities in the schools and educational institutes. MDGs and EFA programmes are
global commitments of Pakistan for the promotion of literacy.
A review of the education system of Pakistan suggests that there has been little change
in Pakistan’s schools since 2010, when the 18th Amendment enshrined education as a
fundamental human right in the constitution. Problems of access, quality, infrastructure
and inequality of opportunity, remain endemic.
Issues
Due to the problems in education system of Pakistan, the country is lagging behind in
achieving its MDGs of education. The MDGs have laid down two goals for education
sector:
Goal 2: The goal 2 of MDGs is to achieve Universal Primary Education (UPE) and by
2015, children everywhere, boys and girls alike, will be able to complete a full course of
primary schooling. By the year 2014 the enrolment statistics show an increase in the
enrolment of students of the age of 3-16 year while dropout rate decreased. But the
need for increasing enrolment of students remains high to achieve MDGs target. Punjab
is leading province wise in net primary enrolment rate with 62% enrolment. The
enrolment rate in Sindh province is 52%, in Khyber Pakhtunkhawa (KPK) 54% and
primary enrolment rate in Balochistan is 45%.
Goal 3: The goal 3 of MDGs is Promoting Gender Equality and Women Empowerment.
It is aimed at eliminating gender disparity in primary and secondary education by 2005
and in all levels of education not later than 2015. There is a stark disparity between
male and female literacy rates. The national literacy rate of male was 71% while that of
female was 48% in 2012-13. Provinces reported the same gender disparity. Punjab
literacy rate in male was 71% and for females it was 54%. In Sindh literacy rate in male
was 72% and female 47%, in KPK male 70% and females 35%, while in Balochistan
male 62% and female 23%.
The EFA goals focus on early childhood care and education including pre-schooling,
universal primary education and secondary education to youth, adult literacy with
gender parity and quality of education as crosscutting thematic and programme
priorities.
EFA Review Report October 2014 outlines that despite repeated policy commitments,
primary education in Pakistan is lagging behind in achieving its target of universal
primary education. Currently the primary gross enrolment rate stands at 85.9% while
Pakistan requires increasing it up to 100% by 2015-16 to fulfil EFA goals. Of the
estimated total primary school going 21.4 million children of ages 5-9 years, 68.5% are
enrolled in schools, of which 8.2 million or 56% are boys and 6.5 million or 44% are
girls. Economic Survey of Pakistan confirms that during the year 2013-14 literacy
remained much higher in urban areas than in rural areas and higher among males.
C) Vision 2030
(ii) Re-introduce the technical and vocational stream in the last two years of
secondary schools.
Problems: The issues lead to the comprehension of the problems which are faced in
the development of education system and promotion of literacy. The study outlines
seven major problems such as:
2) Social constraints: It is important to realize that the problems which hinder the
provision of education are not just due to issues of management by government but
some of them are deeply rooted in the social and cultural orientation of the people.
Overcoming the latter is difficult and would require a change in attitude of the people,
until then universal primary education is difficult to achieve.
3) Gender gap: Major factors that hinder enrolment rates of girls include poverty,
cultural constraints, illiteracy of parents and parental concerns about safety and mobility
of their daughters. Society’s emphasis on girl’s modesty, protection and early marriages
may limit family’s willingness to send them to school. Enrolment of rural girls is 45%
lower than that of urban girls; while for boys the difference is 10% only, showing that
gender gap is an important factor.
4) Cost of education: The economic cost is higher in private schools, but these are
located in richer settlements only. The paradox is that private schools are better but not
everywhere and government schools ensure equitable access but do not provide quality
education.
5) War on Terror: Pakistan’s engagement in war against terrorism also affected the
promotion of literacy campaign. The militants targeted schools and students; several
educational institutions were blown up, teachers and students were killed in
Balochistan, KPK and FATA. This may have to contribute not as much as other factors,
but this remains an important factor.
7) Technical Education: Sufficient attention has not been paid to the technical and
vocational education in Pakistan. The number of technical and vocational training
institutes is not sufficient and many are deprived of infrastructure, teachers and tools for
training. The population of a state is one of the main elements of its national power. It
can become an asset once it is skilled. Unskilled population means more jobless people
in the country, which affects the national development negatively. Therefore, technical
education needs priority handling by the government.
Poverty, law and order situation, natural disasters, budgetary constraints, lack of
access, poor quality, equity, and governance have also contributed in less enrolments.
The official data shows the allocation of funds for educational projects but there is no
mechanism which ensures the proper expenditure of those funds on education.
The existing infrastructure is not being properly utilized in several parts of the
country.
There are various challenges that include expertise, institutional and capacity issues,
forging national cohesion, uniform standards for textbook development, and quality
assurance.
The faculty hiring process is historically known to be politicized. It is because of this
that the quality of teaching suffers and even more so when low investments are
made in teachers’ training. As a result teachers are not regular and their time at
school is not as productive as it would be with a well-trained teacher.
Inside schools there are challenges which include shortage of teachers, teacher
absenteeism, missing basic facilities and lack of friendly environment.
Out of school challenges include shortage of schools, distance – especially for
females, insecurity, poverty, cultural norms, parents are reluctant or parents lack
awareness.
Solutions
There is a need for implementation of national education policy and vision 2030
education goals. An analysis of education policy suggests that at the policy level there
are several admirable ideas, but practically there are some shortcomings also.
It may not be possible for the government at the moment to implement uniform
education system in the country, but a uniform curriculum can be introduced in
educational institutes of the country. This will provide equal opportunity to the students
of rural areas to compete with students of urban areas in the job market.
Since majority of Pakistani population resides in rural areas and the access to education
is a major problem for them, it seems feasible that a balanced approach for formal and
informal education be adopted. Government as well as non-government sector should
work together to promote education in rural areas.
The government should take measures to get school buildings vacated which are
occupied by feudal lords of Sindh, Balochistan and Punjab. Efforts should be made to
ensure that proper education is provided in those schools.
The federal government is paying attention to the vocational and technical training, but it
is important to make the already existing vocational and technical training centres more
efficient so that skilled youth could be produced.
Federal Government should play a supportive role vis-à-vis the provinces for the early
compliance of the constitutional obligation laid down in Article 25-A. Special grants can
be provided to the provinces where the literacy rate is low.
Pakistan is not the only country which is facing challenges regarding promotion of
literacy and meeting EFA and MDGs commitments. Education remains a subject which
is paid least attention in the whole South Asian region. UNDP report 2014 suggests that
there has been an improvement in other elements of human development such as life
expectancy, per capita income and human development index value (in past 3 years);
but there has been no progress in the number of schooling years. The expected
average for years of schooling in 2010 was 10.6 years but the actual average of
schooling remained 4.7 for all South Asian countries. In the year 2013 the expected
average of number of years increased to 11.2 but the actual average of years of
schooling of South Asian countries remained 4.7. Regional cooperation mechanism
can also be developed to promote literacy in South Asian region. Sharing success
stories, making country-specific modifications and their implementation can generate
positive results.
Recommendations
Conclusion:
The reforms required in the education system of Pakistan cannot be done by the
government alone, public-private participation and a mix of formal as well as non-formal
education can pull out majority of country’s population from illiteracy. Similarly, to make
the youth of the country an asset, attention should also be paid to vocational and
technical training.
Pakistan’s geo-strategic position has been a major subject of interest among International Affairs
scholars since its inception, but Pakistan’s leadership never bothers to pay heed.
Like quite often in past, Pakistan finds itself in the usual position of being a very important
observer amidst a regional and global crisis. It has important decisions to make in near future,
which will have a profound short and long term impact on global scale. From choosing the best
strategy to deal with India’s veiled threats linked to national security to eliminating active
internal anti-state elements; there is a critical shifting regional apparatus around Pakistan right
now.
Pakistan needs to fundamentally change its approach towards India from reactive to proactive. It
should actively engage India in diplomatic endeavors and should keep India in international lime
light for its domestic problems. Only then it would be in a position to negotiate effectively on
core issues like Kashmir and Indus water treaty.
China Pakistan Economic Corridor is a huge project and it requires extensive debate and decision
making on fronts like transportation, industrialization and security sectors within Pakistan, but it
certainly doesn’t require debate on whether Punjab is Pakistan’s dominant province or not. But
this is the mandate of all parties’ conference and national politics these days and it is damaging
our relationship with China.
There are a lot of issues and key factors to be decided upon regarding the project, such as
location of industrial parks throughout the country, distribution of energy projects and their
allocation to national grid, revamping Pakistan’s logistics sector but there is no need for reviving
provincial differences and making this agreement anything else other than it is, a landmark
economic project between Pakistan and China.
To conclude, the complex regional dynamics of Pakistan demand a timely reaction from our
government but in all likelihood this would not be the case.
After the events of 9/11 in United States, the Western world is now quiet apprehensive about the
security of Pakistan’s nuclear arsenal. Western media, think tanks, newspapers and their official
reports painted a dark picture of Pakistan’s nuclear weapons, falling in the hands of radicals,
extremists, and fundamentalists Jihadi networks, working in connection with Al-Qaeda and Afghan
Taliban. Scenarios were developed about the possible theft of nuclear materials or gaining access to
nuclear weapons by the extremist groups, might be facilitated by some of the insiders as well
outsiders, favorably inclined towards Al-Qeada and Taliban’ political and radical thoughts. On top of
that, the most discouraging scenario was developed, portraying the fear of “radical Islamic
movements destabilize Pakistan,” and possibly transforms “Pakistan into the first radical Islamic
country possessing nuclear weapons.”
I. In February 2000, Pakistan National Security Council (NSC) established the National Command
Authority (NCA), the apex civilian led authority to supervise the employment, deployment, research
and development, and command and control structure of Pakistan nuclear program.[ix] After its
establishment, the NCA has took measures for the safety and security of the nuclear arsenals,
materials, and facilities, which include the formalization of the nuclear safety procedures, security of
nuclear arsenals, physical protection, control, accounting and creation of vital infrastructure and
legislation. As Zafar Nawaz Jaspal articulated, since the establishment of Pakistan Nuclear Program,
“it has institutionalized highly-secured system, which has been improved gradually to thwart internal
and external security challenges,” posed to its nuclear program.[x]
In conclusion, Pakistan has unearthed all the stones to make its nuclear safety and security
apparatus stringent. Therefore, it must be understand that Pakistan nuclear weapons are in safe
hands. Its security mechanism is so much extensive and deliberates that it can preempt as well as
prevent any terrorist attack in future.