f inal presentation on industrial sector (1)
TRANSCRIPT
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INDUSTRIAL SECTOR OF PAKISTAN
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The Term “INDUSTRY”
“Industry refers to that sector of economy which is related with manufacturing and production of different products”
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Industrial Sector Of Pakistan
Functions Of Industrial Sector Industrial Sector is of great importance for
economic development of country. It is historical fact that countries with strong industrial sector have showed more economic growth and development industrial sector have shows improvement in national income and promoted living standard of population.
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Industrial Sector Of Pakistan
Industries in Pakistan
Sports industry
Telecom industry
Cement industry
Surgical industry
Sugar industry
Defense industry
Auto mobile industry
Fashion industry
Fertilizer industry
Oil & Gas Industries
Chemical industry
Textile industry
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Textile Industry
Historically, Pakistan’s textile industry and clothing sector has always been a major
contributor to the foreign exchange earner and still contributes
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Textile IndustryAchievements
4th largest grower of cotton after USA, China and India
3rd largest consumer of cotton
3rd largest exporter of cotton textiles
2nd largest supplier of cotton yarn with 26% share of the international market
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Sugar IndustryAt the time of independence in 1947, there were only
two sugar factories in Pakistan.
At present there are 106 sugar mills operating in Pakistan.
It is the 2nd Largest industry in Pakistan after Textile Industry
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Automobile Industry The business of producing and selling self-powered
vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles
Automotive Industry Products
CARS
TRUCKS
TRACTORS
BUSES
MOTOR CYCLES
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GDP Contribution Of Different Sectors Of Economy
Agriculture 20.47%Crops 9.90%Livestock 9.97%Fishing 0.33%Forestry 0.25%
Industry 23.93%Manufacturing 17.53%Mining 2.39%
Construction 2.19%Electricity & Gas 1.80%
Services 55.60%Wholesale & Trade 17.25%Transport 11.80%Finance & Insurance 3.59%
Ownership & Dwelling 2.22%Public Administration & Defense 5.4%
Community & Social Professional Services 10.22%
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Comparison Of Industrial Sector With Other Countries
Asian Countries
Pakistan 23.93% India 26.3% Bangladesh 28.5% China 46.9%
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Industrial Development During 1947-50
• 34 units of small industries out of 921
• sugar mills, cotton ginning factories, flour mills rice husking mills
• 6.9% contribution to GDP in 1950
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Industrial development during 1950s
• Establishment of a large number of new industries such as woolen yarn, cycle tyres and tubes, paints, varnishes and glass
• Establishment of Pakistan Industrial Development Corporation (PIDC)
• Large investments were recorded in paper, cement, fertilizer, jute mills etc
• contribution to GDP was near 10%.• Twin Objective.
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Industrial development during 1960s
• The recurring floods.
• All sectors of the economy suffered
• The industry achieved 7.8% growth against the Plan target of 10%
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1972-1977: The Z.A Bhutto Regime
The Era Of Nationalization
Nationalized thirty-two large manufacturing plants in eight major industries.
Iron and steel, basic metals, heavy engineering, motor vehicle and tractor assembly and manufacture, chemicals, petrochemicals, cement, and public utilities.
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The Failure Of Nationalization Policy
Reasons: Rise in Oil Prices
Floods and Pest Attack
Devaluation of domestic currency.
Imports from West
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1977-1988: The Zia Era
Reversed The Previous Policy Of Privatization
• Investors’ were disturbed mentally.
• industries were Sold back to same owners.
High Growth Rates
›Growth of Large Scale Industry
›Private Industrial Investment
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During 1988-97
• Highly political instability.• Mohtarma Shaheed/Nawaz shareef
• Agreements of previous governments were halted.
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1998-2007
• Growth of 7.7% in 2002• Improvement in domestic demand & better
macroeconomic environment• 2nd highest growth was seen since last three decades in
2004-05• Stable exchange rate, low inflation and strong domestic
demand for consumer durables.
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Continue . . .
• LSM grew by 4.2%• Weakest growth in the decade• Heightened political tension, law & order
detritions and growing power shortages• Traditional low value added industries• Low investment in upgrading technology
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2008 To-Onward
• Negative growth rate• Severe energy shortages & like issues• Weak external demand because of world
recession• Imposition of additional taxes• Depreciation of money.
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Continue....
• Heavy floods, severe power & gas shortages• Economy recovered afterwards because of
good performance amongst food beverages, tobacco paper etc
• Flood in Sindh• Reduction in duties then
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CAUSES OF BACKWARDNESS
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HISTORCIAL PROBLEMS
Polices of British rulers
Lack of technical knowledge
Industrial share
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ECONOMICAL PROBLEMS
Disputable Industrial Strategy
Lack Of Infrastructure
Energy Crises
Lack Of Industrial Research
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INTERNATIONAL PROBLEMS
World Recession
Economic Restriction By Other Countries
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SOCIAL CAUSES
Lack Of Education
Terrorism
Corruption
Climate And Weather
Culture Disturbance
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POLITICAL CAUSES
Political Instability
Conflicts With India
Industrial Policies Of Different Governments
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Revival of Industrial policy
Innovative technology
Containment of skilled labor
Theory of Comparitave advantage
Participation in international galas
Research & Development
Govt projects
Suggested Solutions
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Suggested Solutions
Foreign Investment:
Small & Medium Enterprises (SMEs)
Micro Credit
:Privatization
EPZs(Export Process Zone)
Subtitute of powers(coal,gas,windmills)
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TAX CONCESSION
Advanced infrastructure
Expansion of markets domestic and foreign
Technical Education
Political stability
supply of electricity
Self realization
Suggested Solutions
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