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n the subsequent pages, we have endeavoured to concisely discuss in detail the subject of Poor
Industrial Growth, following the general to particular and Cause & Effect patterns of
compilation. The purpose of the report is to spread the awareness for the need to develop the
industrial sector of Pakistan, to fulfill which, the report is provided with grim details and recent statistics
of. The scope of this report is to discuss the problems faced by industrial sector within the 796,096 km2
land of Islamic Republic Of Pakistan, their causes, and possible solutions with recommendations.
The research is based on data collection from reliable sources; an interview and a questionnaire. The report
highlights the nature of problems with a purpose to seek scientific attention towards the possible measures to
resolve issues, in order to optimize them. The postulates mentioned in this report call for scientific research as
how to establish seek good climates and lands within the country for suitable industrial growth. The commercial
importance of this report lies in the interest of government to seek for companies, organizations, and businessmen ready to invest for the developmental procedures in Pakistan if offered cheap land areas in their respective
interests with the provision that industrial units are kept as far as possible from the residential areas. A cheapest
way to serve the purpose is to involve the local people in the procedures of development to give them an agency
in the process and create a sense of responsibility.
History bears the evidence that Pakistan got poor industrial land. It got developed to large extent in 1960s but not
industrial sector is again facing downfall It is almost certain that the causes of this industrial backwardness
are corruption, illiteracy, child labour, economic downfall and poor foreign as well as industrial policy.
Reasons Of Poor
Industrial Growth
Conclusions
& Statistics
Historical
Comparison
Various
Aspects of
the Study
Comparison
With Other
Countries
Possible
Solutions
INDUSTRY OF PAKISTAN:
Textile
Leather
Chemical
Industry
Of
Pakistan
Surgical
Fashion
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Feudalism:
The land of Pakistan inherits feudal lords in major parts of the country, especially those of
industrial base. Consequently, the feudals are intended not to develop their underlying area by large.
There is also an involvement of foreign element in paying the feudals to keep their areas under
developed. Thus, the valuable land which could have been exploited for industrial use is still under
feudal occupation.3
Afghans 1980-Exodus:
On top of the other strains on Pakistans economy, another added financial burden was the
influx of Afghan refugees in the 1980s, whose number in 2009 was estimated to be nearly 1.7
million. They created several social and environmental problems for the country, but they have legal
permission to stay in Pakistan till the end of 2012.
Conclusions:
Thus, in order to overcome the political factors impeding our industrial development,
efforts should be made to improve relations with the other states (especially neighbors)
and to acquire political stability, as these are primary steps towards attaining a good
industrial growth rate.
http://www.friendsmania.net/forum/essay-writing-notes-applications-letters/134861.htm
4
http://en.wikipedia.org/wiki/Afghans_in_Pakistan
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. One can easily witness price difference of same
goods in Karachi, Lahore and 5Islamabad.
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. Rate of
inflation is 14.1 % in Pakistan.
en.wikipedia.org/wiki/Economy_of_Pakistan
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.
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.7
http://en.wikipedia.org/wiki/Economy_of_Pakistan
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.
8
Brain Drain:
Graduated student with great minds and ideas, to improve our industrial sector are moving abroad,
as they are finding more better jobs abroad, or other than to live in Pakistan and work in an industry and
work a long time to make their salary a respectable one.
Poverty:
Pakistani people are poor. According to a survey,48% of the people of Pakistan spend their whole
income on only food. So these people cannot establish or run an industry. They have no investment, land
and resources for an industry. Following graph will show us the facts.
Migration:
Recently due to many problems that Pakistan is currently facing, many skilled,professional and well
educated people are leaving Pakistan and going abroad for better future.This is a great loss to our already
weak industry.Rich Pakistani people are not investing money in Pakistan, but they are investing in foreign
countries.
http://en.wikipedia.org/wiki/Economy_of_Pakistan
10
10
11
Pakistan was formulated in
was left with India. Although there are a number of industries operating in Pakistan now but the
general growth rate is not up to the mark. There are several reasons as to why Pakistan has not been
able to match the world standards for industrial growth. Inconsistency in industrial policies by ruling
governments is one of the major reasons.
Pakistan industrial policies were either formulated in response to a crisis or as part of the mediumterm development plans-most of which never saw their actualization.
Firstly, in 1948 India imposed a trade embargo on Pakistan and they blocked the transfer of funds
that they owed to Pakistan under 1947 partition agreement . This trade war highly effected Pakistan as it
was dependent upon on Indian imports of basic goods. Thus, Pakistan encouraged investment in consumer
goods and this resulted in increase in output for domestic goods.
Moreover, from
in Ayub Khans regime the industrial growth rate was much better.
Policies included industrial licensing, formation of Pakistan industrial and commercial investment
corporation (PICIC) and the industrial development bank of Pakistan (IDBP) to facilitate industrialization.
World Bank funded these organizations.
Furthermore, from
prove vital as new projects were chosen on political not meritorious grounds .so in this era also
11
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industrial growth was poor. In 1989 privatization of large industries took place which was not
successful as well.
From
tariff regime led to major developments in automobile and consumer electronic industries.
At last
the distorted law and order situation, fiscal crisis, and the lack of
domestic support decreased the investors and proved to be the reason for poor industrial growth.
In conclusion, the inconsistent industrial policies, political instability, poor law and order
conditions are the main reasons for poor industrial growth in Pakistan.
12
After establishment of our country it has been through different situations, from military
regimes to corrupt democracies. Meanwhile the industries of the country kept their growing, but the
pace of growth is affected by political, social and economic conditions. Comparing the industrial
growth of the country to other nations we see discouraging results. Other countries, like China,
India, Turkey and many more,12 which have the same age as a nation, have gone beyond what we
could actually think in the field of industry and production technologies. Here we want to compare
industrial growth of Pakistan to many other countries.
40
30
20
2011, 13.9
10
0
1998
-10
2011, 3
2000
2004
2006
year
China
Pakistan
12
2002
2008
2010
2012
13
15
10
5
2011, 4.8
2011, 3
0
1998
-5
2000
2002
2004
2006
2008
2010
2012
Year
India
Pakistan
13
14
15
10
5
2011, 4.3
2011, 3
0
1998
2000
2002
2004
-5
2006
2008
2010
2012
Year
Iran
Pakistan
15
10
2011, 9.2
5
0
-51998
2011, 3
2000
2002
2004
-10
-15
Year
Turkey
Pakistan
2006
2008
2010
2012
15
16
economic development around the world. Now, Pakistans economy is at a conjectural moment in its
history. Deep rooted problems in the structure of the economy and in the institutions of governance
have slowed down economic growth.
As far as America is considered, its industry revolutionized at the end of 19 th century. At time of
independence of Pakistan, Britain was losing control over colonies and America was one of the dominant
industrial powers. In the second half of the 20th century, United States faced a competition with the Soviet
Union for political, economic and m14ilitary primacy. Technology and industry have profoundly shaped
America's economic success. At present, USA is one of the top economic powers of the world. Weapon
industry is a major industry of USA.
17
18
15
Budget Commitments
A fixed budget should be allocated for industrial development throughout the country, with
successive increase on yearly or five yearly basis. This will lead to consistent industrial growth of
industrial sector.16
19
Literacy
The first and foremost problem that should be addressed is of education. As discussed in the earlier
sections of this report, free technical education and scholarship programs are already an agenda of the
Sindh government that is in action. Technical education centres should be spread country-wide, taking in
account the economic condition of the masses. Sindh Board Of Technical Education is serving good in
this regard. The public also agrees that lack of education among is the major cause of unawareness among
the people about the importance of education. The government should take rigorous efforts to create
awareness of education among these illiterate people, using advertisement and persuasive programs.
Poverty Alleviation
Poverty alleviation measures should be adopted, so that the local public can come forward in
investments and saving, using their own territories. This will help in eradicating economic imbalance,
since the products will be cheaper domestically. 17
17
20
en.wikipedia.org/wiki/Economy_of_Pakistan
APPENDICES: