INDUSTRY

DEFINITION:
Industry is the work and processes involved in collecting raw
materials, and making them into products in factories.

INTRODUCTION:
Manufacturing is the fabricating of primary material into
more useful products with the use of machines rather than merely tools and
machines driven by power other than the power of human or animal muscles on
a fairy large scale.
Today the industrial development is essential for the rapid economic growth of a
country. The countries that solely relied on agriculture have remained poor and
under developed. Due to the industrial development overall economic
development increases, GDP increases, per capita income increases and
employment increases.
In the field of industry Pakistan at the time of independence started almost from
the scratch, very weak and meager conditions. Pakistan inherited only 34 small
industrial units out of total 991 in the sub-continent. These largely pertained to
cotton textile sugar, cigarettes, rice husking cotton ginning and flour milling.
These together contributing only7, percent of GNP and employed over only
26000 persons in the country.

INDUSTRY OF PAKISTAN
Pakistan ranked as number 43-44 among the countries of the world in nominal
GDP, 26th in GDP with purchasing power parity and number 55 in the world in
factory output.
Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile
production and apparel manufacturing are Pakistan's largest industries,
accounting for about 66% of the merchandise exports and almost 40% of the
employed labor force. Cotton and cotton-based products account for 61% of
export earnings of Pakistan. The consumption of cotton increased by 5.7% over
the past five years while the economic growth rate was 7%. By 2010 the spinning
capacity increased to 15 million spindles and textile exports hit $15.5 billion.
Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco,
chemicals, machinery and food processing.
The government is privatizing large-scale parasternal units, and the public sector
accounts for a shrinking proportion of industrial output, while growth in overall
industrial output (including the private sector) has accelerated. Government
policies aim to diversify the country's industrial base and bolster export
industries.

TEXTILE INDUSTORY OF PAKISTAN

Textile sector of Pakistan plays a pivotal role in the country’s economy – its
significance stemming mainly from its very large cotton production capacity. The
country currently ranks as the 4th largest producer of cotton in the world and has
duly capitalized on this capability by developing and promoting its textile sector.
As a result, Pakistan now also has the third largest spinning capacity in all of
Asia. The importance of the textile sector as an integral part of Pakistan’s
economy is highlighted by the following facts:
- It provides employment to over 40% of industrial labor force
- It contributes 8.5% to GDP
- It accounts for 40% of banking credit
- It holds approximately 60% share in national exports
Pakistan is a sub-tropical country with mean temperature on the higher side
which makes cotton an ideal clothing material for the prevalent climate. Owing
to the ample supply of cotton, Pakistan has an innate opportunity to capitalize
on this resource endowment as the fourth largest producer of the commodity.
The country has the third largest spinning capacity which establishes a strong
foothold for further value addition in the sector.

Minimal and low value-added products dominate exports, constituting over 50%
of the exported value. Cotton cloth, cotton yarn, bed sheets and knitwear remain
major export generators. Over the last five years, the composition has not
undergone any major change except minimal improvement in the share of
readymade garments at 18% in FY16 compared to 13% in FY11, leaving
significant upside potential untapped.
History of Textile Industry in Pakistan
The origin of the Indian textiles is thought to be the Indus Valley civilization,
situated in modern Pakistan, where people used homespun cotton to weave
garments. Historically, the Indus valley region engaged in significant trade with
the rest of the world. The silk from the region, for example, is known to have
been popular in Rome, Egypt, Britain, and Indonesia.
In the 1950s, textile manufacturing emerged as a central part of Pakistan's
industrialization, shortly following independence from the British rule in
the South Asia. In 1974, the Pakistan government established the Cotton Export
Corporation of Pakistan (CEC). The CEC served as a barrier to private
manufacturers from participating in international trade. However, in the late
1980s, the role of the CEC diminished and by 1988-89, private manufacturers
were able to buy cotton from ginners and sell in both domestic and foreign
markets. Between 1947 and 2000, the number of textile mills in Pakistan
increased from 3 to 600. In the same time period, spindles increased from 177,000
to 805 million.

Distribution Location of Cotton Textile Industry

After independence (1947) of Pakistan, first cotton textile mill named Valika
Cotton Textile Mill was established at Karachi in 1948. After establishment of
first mill, it emerged as the largest cotton textile center of Pakistan this was,
because all economic, social, infrastructural, export, and import factors, except
raw material were localized in Karachi.
Although, to take advantage of the nearness of raw cotton and market and in
pursuance of government policy, new textile centers have been developed in
Pakistan. However, Karachi continues to be the largest center.
After Karachi, there was shift to up country centers within the cotton belt.
Faisalabad is now second largest cotton textile manufacturing center in Pakistan.
It has advantage of raw cotton availability labor force and local market facilities
and in course of time and excellent infrastructure facilities has been built up.
Hyderabad is third largest cotton textile manufacturing center in Pakistan. It is
within the cotton belt and enjoys easily accessible local market and it is not very
for from the port and economic capital (Karachi) of Pakistan.
Apart from these big cotton textile manufacturing cities, cotton mills have been
established in almost all cities of Pakistan, especially cotton growing areas to tape
the raw material and to serve the local market and to develop infrastructure in
backward areas to attract investment for other industries.
Besides, textile mills, power looms (non-mill weaving) have made remarkable
progress and our more than 80% cloth production conies from power looms.
Power looms are thus playing a vital role in the cotton textile industry of Pakistan.
They deserve full encouragement and are located almost in every city of Pakistan.
Towels, Hosiery and Canvas are important products of power looms. The power
looms are manufacturing a large variety of these products. This industry is also
located at Karachi, Multan, Hyderabad, Faisalabad, Lahore, Jhang, and many
other cities.

MINING INDUSTRY

Mining is an important industry in Pakistan. Pakistan has deposits of several

minerals including coal, copper, gold, chromite, mineral salt, bauxite and
several other minerals. There are also a variety of precious and semi-precious
minerals that are also mined. These include peridot, aquamarine, topaz, ruby,
emerald, rare-earth minerals bastnaesite and xenotime, sphene, tourmaline, and
many varieties and types of quartz.

The Pakistan Mineral Development Corporation is the responsible authority for

the support and development of the mining industry. Gemstones Corporation of
Pakistan looks after the interests of stake holders in gemstone mining and
polishing as an official entity. Baluchistan province is the richest in mineral
resources available in Pakistan. While recently Sindh discovered coal deposits
in Thar. Khyber Pakhtoonkhwa is rich in gems. Most of the mineral gems found
in Pakistan exist here. Apart from oil, gas and some mineral used in nuclear
energy purposes which comes directly under federal control mining of other
minerals is provincial issue. Currently around 52 minerals, are mined and
processed in Pakistan.

Khewara Salt Mines are the world’s 2nd largest salt mines.

INDUSTRIAL BACKWARDNESS IN PAKISTAN

INTRODUCTION:
Although Government of Pakistan since 1947 is trying hard to develop industries
and infrastructure facilities for the growth of industrial sectors, yet it has not
achieved success to the desired extent. In the last three decades the contribution
of industrial sector to GDP is only 7.1 percent which by any standard is not
satisfactory, while during 2015-16 it becomes 13.2 percent.
 The causes of industrial backwardness in Pakistan are varied and complex.
The main obstacles are:
 Historical causes
 Economic causes
 Political causes
 Social and Geographical causes.

Historical causes
The industrial revolution in Europe introduced power loams for textile
production. The British collected raw material for their industries from the
subcontinent and they captured the market for their products in the sub-continent
and started establishing industries in this area.
The Muslim majority areas were kept backward deliberately to favor the Hindus.
The few industries which were set up in India were allocated at the coastal cities
of Kolkata, Chennai, and Mumbai which were far away from Pakistan’s territory.
Economic Causes
 Lack of capital
Lack of capital is one of the major hurdle of industrialization of heavy
industries in Pakistan.
 Lack of infrastructure
The transport and communication are not well established in Pakistan, to
faster the mobility of labor capital raw material and energy resources. Gas
and electricity are short of requirement.
 Lack of foreign exchange
Pakistan imports industrial machinery and industrial raw material from
abroad, which requires heavy foreign exchange. But Pakistan lacks in
foreign exchange due to debut trade.
 Small size of internal market
Pakistan 63 percent population lives in rural areas and their earning and
savings are very limited. Their purchasing power is very small. So this is
also a great hurdle for development and expansion of industrial sector. The
consumption of industrial products are very small.
 Lack of energy resources
The frequent breakdown of electricity is adversely affecting the industrial
production in the country.
 Political causes
 Unstable political system
The political system of Pakistan has remained unstable since partition.
Frequent changes in the government have been taking place until now.
Due to this the investors remain hesitate to invest in industrial sector.
 Kashmir issue
Due to Kashmir issue Pakistan has faced two main wars with India. There
for Pakistan has forced to invest for arms and ammunition. Due to this the
public sector cannot make any heavy investment in industrial sector.

Social and Geographical issues

 Lack of education
The capital intensive industries requires technical and professional
Knowledge along with trained and skilled labor for better and
sophisticated products while our labor is still untrained.
 Labor problems
The laborers in Pakistan create problems in the production process through
strikes and force to close down the factories.
 Climate and weather
The climate and weather conditions are very harsh in Pakistan. Uncertain
heavy rains floods drought and heat waves are also main hurdles in
industrial development.