pidc strategic mgt

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PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION (PIDC) Presented by M.RIZWAN ALI HASHMI

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Stg. Mangement Pres.

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Page 1: PIDC Strategic Mgt

PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION

(PIDC)

Presented by M.RIZWAN ALI HASHMI

Page 2: PIDC Strategic Mgt

PIDC MISSION

• To developed the industries that vacancies opportunities

INDUSTRIALIZATIONIndustrialization refers to process of manufacturing consumer goods and capital goods to create social overhead capital in order to provide goods and services to individual and businesses

Page 3: PIDC Strategic Mgt

HISTORY OF PIDC

• It was established in 1950 under the act of federal legislative.

• PIDC board work for planning, promoting, organizing, and implementing programs for

• Establishment of industries• development of mines and • Development of any material that

government may specify

Page 4: PIDC Strategic Mgt

PIDC

When Pakistan came into being, industries

remained neglected by private sector due to:• Lack of expertise• Experience• Capital & Technical know how

In such a desperate situation PIDC (Pakistan Industrial Development) made a breakthrough

Page 5: PIDC Strategic Mgt

PIDC

• The corporation started functioning from 1952

Main function of the corporation: To establish preferably those industries in

which private sector did not show interest

Or In such industries which were of vital

importance from security and economic point of view

Page 6: PIDC Strategic Mgt

PIDC

• Originally made responsible to promote 15 specified industries.

They included Jute, paper board and newsprint, Heavy

engineering included iron and steel, Ship building, heavy chemicals, Fertilizers, sugar, cement, Textile, chemicals, pharmaceutical, natural gas, Petro chemicals, coal & peat, and Exploitation of marine fisheries

Page 7: PIDC Strategic Mgt

PIDC

• It was bifurcated into two Provincial Corporations of the then East Pakistan & West Pakistan and WPIDC was created under the Provincial Industrial Development (West Pakistan) Ordinance, 1962. It was later on, renamed as Pakistan Industrial Development Corporation (PIDC) after the fall of East Pakistan and dissolution of Provinces..

Page 8: PIDC Strategic Mgt

Public Vs Private sectorPublic Sector Private Sector

Organizations owned and operated by government

Organizations owned and operated by private owners

The beneficiary is general public The beneficiary is consuming public who uses good and services

It is not profit-driven It is profit oriented

No competition is involved between organizations

Competition is involved for profit

Policy decisions are bound by the law

It is managed under the rules of shareholders

Examples : KESC, PIA, Pakistan Railways

Examples : Retail stores

Page 9: PIDC Strategic Mgt

Government Policies

Main features of government’s helpful

policies are: Tax concessions Protection to industries Required infrastructure facilities were full

provided for the growth and expansion of industries

Introduction of export bonus scheme Commercial banks and insurance companies,

established in private sector

Page 10: PIDC Strategic Mgt

The Private Sector in Pakistan

• The private industrial sector in Pakistan was progressed through the efforts of (PIDC).

• It set up industries in the field like fertilizer, cement, chemicals, sugar and textiles.

• After laying a firm industrial base, PIDC makes disinvestment in some of the projects and transferred them to the private sector.

Page 11: PIDC Strategic Mgt

The Golden years 1947-1967

• The Government set up 10 industrial estates and provided infrastructure facilities .

• The State Provided technical training.

• Heavy Mechanical Complex at Taxilla and Machine Tool Factory at Landhi were established in the machinery sector.

Page 12: PIDC Strategic Mgt

The Fall of Private Sector

• Nationalization of industries in 1972 was the biggest cause of the fall of private industrial sector in Pakistan.

• The total investment in private sector dropped from Rs.1358 million in 1970-1971 to Rs.650 million during 1976-1977

• The devaluation of currency to the extent of 131% raised the cost of machinery which resulted in rapid cost inflation.

Page 13: PIDC Strategic Mgt

The Public Sector in Pakistan

• The public sector of Pakistan has its roots from 1972 when private industrial units were nationalized.

• To eliminate the concentration of wealth in few hands, raising the volume of production, increasing employment were the core reasons of nationalization.

Page 14: PIDC Strategic Mgt

Privatization of Public Enterprises

Privatization: Privatization Is a process by which the Government of a country transfers the state owned enterprises to the private sector.

Page 15: PIDC Strategic Mgt

Downsizing in various Public Sector in Organization

• Decreasing the number of existing employees or reducing the size of staff employed in an organization and still maintaining and promoting the efficiency of the enterprises.

Reasons for Downsizing• Downturn in business• Improved technology• Reduced funding• Overstaff

Page 16: PIDC Strategic Mgt

The Ascendency of Public Sector 1972-1977

• The share of public industrial sector increased from 7% in 1972 to 71% in 1977.

• During the period of 1973-1974, petroleum and shipping companies and private sector banks were nationalized.

• In 1972, 32 basic industries and 3 life insurance companies were transferred to public sector.

Page 17: PIDC Strategic Mgt

Post Ascendency Period• General Zia-Ul-Haq came in to power in

1977 and immediately took measures to promote Private Sector in Pakistan.

• Most of the industrial units were denationalized and brought back to their respective owners.

• The private sector was further encouraged by the introduction of fiscal incentives in 1982-1983 such as tax holidays and rebates in custom duty.

• The sixth Five Year Plan (1983-1988) specifically adopted privatization as a central theme.

Page 18: PIDC Strategic Mgt

Thank You!.