Professional Documents
Culture Documents
Industries of Pakistan
Industry:
The industry for satisfying human wants creates utility in the goods already produced by
nature which is term as farm utility. The industry exchanges the present utility or creates
economic volume in the commodities produced by the nature. The industry can be defined as A
collective name of all those units or organizations in an economy which are engaged in
producing material goods.
Classification of Industries
1. Primary Industries:-
The extraction of raw materials e.g mining, forestry etc.
2. Secondary Industries:
Manufacturing industries which involve in the transformation of raw materials into semi
manufactured or manufactured products e.g steel works, car industry etc.
3. Tertiary Industries:
These are concerned with providing a service to customers e.g transport, relating etc.
4. Quaternary Industries:
These provide information and expertise e.g universities research and development.
Heavy Industry:-
The large manufacturing units such as iron and steel, ship building etc which are engaged
in number of labours high capital tones of raw material etc.
Light Industry:-
Industries manufacturing articles of relatively small bulk for direct use by consumers.
Factors affecting the location of a manufacturing unit
(Human, economic and natural factors)
1. Transport and communications:-
Appropriate types are essential for some industrial goods e.g cylinders and tankers for
LNG.
Specialist terminals at ports necessary for oil tankers for bringing the fuel to generate
electricity for industries.
Transport is needed to carry the raw materials to the factory and the finished goods to the
market.
The presence of a good transport net work will enable goods to be moved more quickly.
Transport is usually more attractive to industry which are well connected than ones
which are poorly.
Industries will usually try to locate in areas where transport costs are low as possible in
orders to lower the total cost of production and maximise profit.
e.g In Pakistan may factories are located near Karachi port.
3. Nearness to market:-
The presence of a ready market that is demand for the cut puts influences the location of
some industries. Industries which produce items which are brought frequently such as
drinks bread etc are usually located near population centres where the market is industries
which produce perishable goods such as dairy products and vegetables also tend to be
located near the market e.g vegetables are grown in malir and distributed in Karachi
market however technological.
Advancements in transport and refrigeration facilities have lessened the need for such
industries to be located near their markets.
4. Government:-
Can encourage the setting up and running of industries e.g reduction in tones.
The government may influence the location of industries by setting aside certain plots of
land for industrial location and development it may also prohibit the location of polluting
industries near residential areas like in Karachi, industries are set up in site area and
korangi away from residential areas. The government may also offer loans, tax exemption
to attract companies to set up industries in a country.
5. Capital:-
Adequate amount makes possible the provision of everything necessary to set up the
industry such as raw materials, machines and transport equipment.
6. Land:-
The availability of flat land is an import and factor influencing the location of an industry
such as steel mill, NRL etc. Its is generally easier and less costly to build industry on flat land.
The cost of constructing a plant affects the over all cost of production. In addition the availability
of land also allows for future expansion of the factory.
7. Raw Material:-
Adequate amount at the right time and of the best quality allows minimum out put. The
nature of the raw materials influences the location of a manufacturing industry as the cost of
transporting then to the factory add to the total cost of production industries that use bulky raw
materials tend to be located near their source in order to minimize transport costs some raw
material suffer a weight less such as sugar cane. Transport cots are lower if the factory is located
near the source of the raw materials.
e.g several tons of lime stone is needed to make few tones of cement. The transport cost will be
lower if the factory is located near limestone deposits.
8. Power:-
Regular supplies essential to keep production going. Factories are usually set up in or
near urban areas (Karachi, Lahore) which are adequately supplied with electrical Power.
Types of goods
Capital goods consumer goods
Capital goods:-
Are those goods that are utilized to produce further goods e.g
Iron and steel industry
Heavy mechanical complex
Electronics and electrical industries
Consumer goods:-
Industry is that which produces goods to be consumed direct by ultimate consumed direct
by ultimate consumers end users e.g
Pharmaceutical Industries
Synthetic industries
Leather industries
Raw materials
Primary resources
sustainable/renewable non renewable
timber fish water power agriculture power mineral
crops coal iron ore
cotton oil limestone
wheat gas chromite
fruit
Secondary products
Processed Manufactured
Cotton yarn Cotton cloth
Wheat flour Engine
Wood Pulp Steel Coils
Industrial Sickness:-
Industry which fails to generate an internal surplus on a continous basis and depends for its
survival upon frequent infusion of funds mostly from borrowings. An industrial units becomes
sick when its
a) capacity utilisation is less than 50% during the last 5yrs.
b) need of capital and machinery has been eroded by more than 50%.
c)the unit has remained close for a period of more than 6months.
very few skills. They are unlikely to got regular or paid jobs and they need to great their own
jobs to survive.
Comparison
Formal Sector
1. Employed by institution.
2. Capital intensive with few workers generally mechanized.
3. Regular working hours and certain wages.
4. Relatively guaranteed standard in quality of goods.
5. Work located in offices or factories.
6. legal and registered.
7. normally males.
Informal Sector
1. Self employment.
2. Labour intensive using mainly hand tools very few modem machines are used.
3. Regular working hours and uncertain wages.
4. Often low standard in quality of goods.
5. Work done at home or on the streets.
6. Often non-registered.
7. Mostly females and children.
Industrial Estates:
These are specific areas reserved for Industry only. They are established to help and encourage
entrepreneurs.
The Government Provides infrastructure facilities such as metalled roads, electricity, water, gas
hospitals and sanitation facilities.
The industrial estates can enjoy various incentives such as exemptions from custom duty on
imported machinery.
The private sector is also encouraged to established industrial estates in the country.
The government has also offered many incentives which include tax exemptions on import of
machinery, relaxation in foreign exchange control. Simplified procedures, tax holidays and
security.
Industrial estates and there advantage for development of industries in urban areas.
1. Local transport facilities
2. Power
3. Large pool of labour available
4. Services available
5. Ready market available.
6. Research and training centres available.
Why Industrial estates have been developed.
Export processing industries were given incentives to relocate through exemptions to relocate
through exemptions from taxes.
The EPZA was set up in 1980 with authority to plan, develop, manage and operate the EPZs
across the country.
It's first project was at Karachi, which was set up in 1981 on an area of 3300 acres.
All the infrastructure services like electricity gas water, telecommunication services were
provided to investors under simplified procedures called on window operations.
173 industrial units were approved by the beginning of 1997 for setting up various
manufacturing facilities ware houses, trading units, banks and insurance companies are working
at the KEPZ.
Employment has been provided directly to over 6000 workers.
An estimated 167.27 million dollars was invested in these units.
The main industries set up are garments leather good, electrical and electronics light engineering,
chemicals, paper products and fabric products.
The second EPZ was set up in Jan 1997 at Sialkot.
There is a joint venture between EPZ and the Punjab small industries corporation (PSIC) in
association with the Sialkot number of commercial and industries.
It is spend over 133 acres and is located in phase-III of PSICs industrial estate.
Dry Ports.
- Some in land cities, which are far from the seaports have established has dry ports
in order to promote foreign trade.
- The cities which act as dry ports help to speed up export and import procedures
e.g. by giving clearance by the custom authorities by checking processes etc.
1. Highly efficient rail transport with a container service to carry bulk cargo.
2. Efficient managerial staff.
3. Huge storage sheds and open areas.
4. Refrigeration facilities for perishable items like fruits, vegetables.
Problems:
1. Mismanagement
2. Same dry parts have been converted in smuggling dens by the custom officials who
helped importers to their consignment clear without paying duty and tax.
Dry Ports of Pakistan
1. Sialkot (Sanbrial)
2. Lahore
3. Multan
4. Faisalabad
5. Rawalpindi
6. Hyderabad
7. larkana
8. Quetta
9. Peshawar
Written And Compiled By Sir Hamza Mohammad Ali Page 13
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Pakistan Studies
Importance of Infrastructure
1. Electricity for offices, factories, lighting power
2. Roads for transport of people and goods
3. Telephone for quick communication and better business.
4. Water for washing, cleaning etc
5. Gas for power heating
6. Hotels for tourism / visitors
Industrial Policy
1. Establishment of labour intensive industry so that the surplus labor force may be
observed.
2. To develop the economy in a manner so that it could reach the destination of self growth.
3. Enhancement in the production capacity and improvement in standard of production.
4. Increase in number of Industrial technician
5. Boosting high valve exports
6. On the machinery and plant imported for the development of key industries custom
duties were abolished.
7. Electronic goods cement and mineral industry was exempted from customs duty and
sales tax on the import of machinery and plant.
8. Streamlining of investment procedure and legal protection.
9. Incentives to Oversees Pakistan to invest in industries.
10. Foreign investment is welcomed and full protection has been guaranteed.
11. Pakistan industrial credit and investment corporation (PICIC) has been established as a
public limited company with the financial support of the state bank of Pakistan.
12. Poly technical industries, engineering colleges and universities are established to ensure
the availability of technical personnel.
13. Central testing laboratories to test the quality of goods imported and produced.
14. Foreign companies are welcomed but investors are to employ Pakistanis both in
administrative and technical positions and provide them training facilities.
1. Crops
The villagers can manufacturer a variety of products from husks of wheat and rice.
2. Non-Crops:
The wastes of certain fruits can be used for making pulp oil. The fruits can be dried and
their supply can be maintained through out the year in the local and international market.
3. Live Stock:
This industry is less capital intensive goats, sheep etc can easily be reared up by the small
formers dairy products can also be produced as they are in great demand all over the country.
The waste of animals can be used for making bio gas.
4. Fishery:
Fishing can be carried out deep into the sea for increasing the supply of fish both for
consumption at home and export.
5. Poultry:
Can provide an additional source of income to the formers
6. Edible Oil
The formers should consider sunflower and Soya bean as cash crops. If the production of
their seeds for extracting oil is carried on commercial basis it can earn a higher income.
Cottage industries are those which are carried on in the home in which the owner himself works
and is helped by the family members but no hired labor is employed. The job may be whole time
or part time. No power is used and the implements used are very simple eg wood work hand
knotted carpets etc.
Small scale industries are those which employees less than 50 workers and does not use electric
power and uses. If they, use electric power they do not employ not more than 20. Therefore
assets do not exceed Rs.2 million to 10 million.
The cottage and small scale industry may be rural or urban. In rural areas carpet industry,
poultry, rice rusking, gur making bee keeping and small repairing workshops are popular cottage
and small scale industries.
Urban industries includes hand and power loans, manufacturing of sports goods leather goods,
embroidery, tailoring works, making of silver, gold ornaments furniture making, handicrafts,
carpets etc why it is important to encourage cottage and small scale industries.
1. These industries are labour intensive and provide employment to 80% of the
Industrial labour force. This reduces unemployment and offers opportunities for self
employment
2. Traditionally, women are not encouraged to work outside their homes. Industries like
carpet weaving,candle making and handicrafts can be gainfully employed. This
increases the active labour face.
3. These industries also meet the local demand for industrial goods and save foreign
exchange.
4. There is a demand for rugs, carpets, brass ware handicrafts and embroided work in
the international market. These goods provide 30% of the export receipts of the
manufacturing sector.
5. When people are employed gainfully in villages, the migration of people from rural to
urban areas will be reduced. The acute problems of housing, sanitation, education
transport and health will be reduced in urban areas.
6. Many districts are under developed with the expansion of such industries, the regional
disparity in income can be reduced.
7. There industries make effective use of local row materials which also promotes
primary industries like agriculture and mining.
8. These does not require much capital and high technology.
9. These do not use much imported material or equipment.
10. The wastes of large scale industries particularly the cotton, sugar and steel industries,
can be used to make by products.
URBAN AREAS:
1. Availability of resources
2. Good market and selling facilities
3. No labour problem
4. Serve higher areas
- The government of Pakistan has taken various measures for the development of
these industries.
- At present the growth and expansion of small scale industries is the responsibility
of the princes.
- Each province has set up its own small industries corporation board. These are
Punjab small Industries Corporation (PSK) Sindh Small Industries Corporation
(SSIC) Small Industries Development Board NWFP (SIDB) Directorate of Small
Industries Balochistan (DSIB)
- The Government of Pakistan has created another authority: SMEDA small and
medium enterprises development authority in act 1998.
- This Authority is to provide and facilitate support prices generate greater
employment opportunities and drive industrial growth.
- The main measures which have been adopted for production and popularizing the
products of these Industries are as follows.
- Industrial Estates.
- Providing marketing facilities
- Technical Services
- Handicraft Development Centres
- Carpet Centres
- Advisory Services
- Financial Assistance providing loans on easy installments.
SOLUTIONS:
If these industries is to be developed in rural and urban areas. We shall have to use new
machinery latest methods of production, research on new designs etc.
The people are unable to go abroad and find market to sell the products.
The government should provide the type of handicrafts demanded in the international
market.
The import of machinery used for the production of goods on small scale should be
allowed under personal baggage scheme.
The government should also grant scholarships for industrial education.
A number of Industries have to instead desalination plants which have added to the cost of
Production. Pakistan steel does not suffer water shortages become it is supplied by the KWB..
As a result only 70 out of k 100 industries that were planned for the estate have been developed.
50% have already closed down
Hub Industrial Estate was established in 1981.
1200 industries were planned for the estate.
Out of there 170 have been installed.
105 industries were closed down.
Although the estate is supplied by water through the has down which is rot sufficient.
A large quantity of water is supplied to the estate through tankers for Karachi even this is
insufficient, time consuming and costly.
Industrial development
In general the industrial development of Pakistan be divided into three period.
Period of rapid industrial growth 1948-71
1. The period from 1947 to 1971 is one of rapid industrial growth in Pakistan though the growth
rate was not uniform throughout the of period.
2. The entrepreneurs who migrated from India had adequate managerial skill and financial
resources
Written And Compiled By Sir Hamza Mohammad Ali Page 25
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Pakistan Studies
Industrial development in Pakistan greatly suffered because of Internal and external forces.
1. Separation of Bangladesh
2. Nation action of Industries
3. The uncorporate policies of the government reduced the of investment in the private
sector.
4. Foreign in skills were also reluctant to invest
Cotton textiles is Pakistans largest industry it provides employments to 50% of the Industrial
labour force. It has been developed at various locations. Karachi, Hyderabad and Faisalabad are
the main centres.
7. Electricity from national grid / nearby power stations like korangi thermal plant Kanup
and Bin Qasim thermal plant
8. imported machinery can be received at Karachi without additional transportation cost
9. large post of labours which pours into Karachi
10. Largest commercial and financial centre
11. Research and educational in states present to trained skill and technical person.
Disadvantages
1. Karachi is not located near the cotton producing areas, so raw material has to be
transported to the mills and factories from up country
2. shortage of water supply
Faisalabad Advantages
1. It is located in central Punjab and has the advantage of being in the cotton producing
areas.
2. Cotton does not need to be transported over long distance so it saves transportation cost.
3. Infrastructure facilities are present
4. Most thickly populated region of the country so there is a large peel of Karachi.
5. Favourable government policies ect.
Disadvantage
Far From the part for export of finished products and for import of machinery.
Hyderabad Advantage
4. Infrastructure available
Other centers
1. To tap the local / Domestic market and to serve the local market
2. To take the advantage of tax holiday and other incentives given by the Government e.g
N. Punjab, NWFP, Quetta, Rawalpindi, Peshawar etc
2. Cotton produced in our country is directly consumed and also fulfills the demand in
international market thus earns a good foreign market.
6. Lack of International standards and strong competition with Egypts Korea Thailand,
Taiwan, Hongkong.
3. Financial assistance.
Any cut in the yield of Sugar cane caused by adverse climate (floods), disease or pest
attack.
Payment to the farmers is done very late which is a disincentive to sugar cane
cultivations and prices also cause fluctuation in amount of Sugar cane available.
Pakistan produces Sugar cane in the large quantity but local per hectare production is
comparatively low.
Location of Industry
1. Availability of Sugar cane at the form because sugar cane is a product which starts to
lose weight soon after it is harvested therefore it must be crushed as soon as possible
after harvesting.
2. Sucrose proportion.
2. Molasses. The quantity of molasses is about 4% of the sugarcane crushed. This can well
be utilized to produce various types of acids. Ethylene is another product which can be
obtained and turned into various types of packing plastics. Molasses can thus be used as
a base for the chemical Industry.
Solutions
1. Increase the yield of Sugar cane
According to this system of zoning the sugar cane growers were bound to sell
their sugar cane only to the sugermills of their own areas now all the growers are free to
sell to those mills which could pay them reasonable and beter prices wheather the mills
are situated in their own areas or not.
Iron and Steel Industry
The people of Pakistan started hoping and dreaming of their own steel mill in the early 1950s
1. We lack natural resources.
2. We lack infrastructure, trained men power and managerial talent to manage a steel
complete.
The mill has increased the capability of massive Civil works installation of
electrical and mechanical equipments.
2. Assimilation of Knowledge
3. Employment opportunities.
Pakistan Steel has provided tabs to 20,000 persons for construction work.
4. Import Substitution.
5. Effects an agriculture.
The production of there shores tractors and other agricultural implements have
new been made easy.
Location of Industry
1. Site:
Flat, Cheap, unused land was available next to gharo creek at pipri.
2. Natural Routs:
Port Qasim has a natural harbor that facilities import and exports.
3. Capital:
The former USSR provided economic assistance in the form of technology and
capital.
4. Raw Materials:
Iron are, manganese and most of the coking coal is imported through nearby
Port Qasim. Iime-stone-needed as flux is brought by road from the Makli Hills
near Thatta large quantities of water are required in the process of making steel,
it is brought from lake haleji 50 kms to the east.
5. Energy:
Port Qasim and Karachi have the highest electricity by generating capacity in the
country Pipri thermal Power Station produces 21% and Korangi Thermal Power
station preduces 15% of the total thermal energy preduced. In addition Karachi
has a Nuclear Station.
6. Labour:
7. Markets:
Many industries that use steel products are located in Karachi. It also supplies
cold rolled Sheets, galvanized sheets, pig iron and to other parts of the country.
Over half of the steal produced is used in Punjab.
8. Transport:
Pipri Connected to the main Karachi-Kotri railway. Metalled roads also connect
this area to the main road system.
Location: Taxila
iii) Why Has the fertilizers, Industry grown in recent years. {5}
Reclaimed deserts such as thal, cholistan desert the soils larked organic nuterients.
The need of farmers because they has been farmed for a very long time and hence
nutrients have been used up by crops a long time ago unless replenished by flood.
Use of Hyvs are very demanding on soils and hence the need for chemical fertilizers.
Pakistan has an agro based economy in order to increase production chemical fertilizers
are required.
Government has played its part and giving different in vertices to the industries .
(B) Fig3 shows the main types of industry on the Quaid-e-Azam Industrial Estate.
(i) Name the Three Types of Industry with the most factories.
Dyeing /Printing
Engineering
Pharmaceutical.
All Three needed to score /mark
(ii) To which type of industry shown on Fig 3 does each of the following belong
1-yummy Icecream
Nyle Tyres
Caravel refrigerators.
1. Foods (beverages)
3. Engineering
(iii) What are the advantages forth industries on the Quaid-e-Azam Industrial estate of being
situated city like Lahore.
Financial centre / attracts investors /entrepreneurs.
Cheap labour
Large market
How the city briefest flat / power /easy to transport goods / good infrastructure.
3 (c) How hare the national and provincial government of Pakistan encouraged the development
of in dushe states
Denationatisation
Incentives.
iii) What according to the article, is a problem for the further growth of the T.V assesmbling
industry. Explain why this is a problem
Smuggling
Firms lose money
Less money for investing in new Plant / machinery
Cannot afford to pay skilled workers.
Cannot compete with foreign competition
Loss of market / exports
May lead to factory closure
c) Why is the government keen to increase the export of engineering goods [5]
High value goods for export
May of Paks exports are low in value
Helps build up economy
Decreases import (of these items)
Pak has a serious ve balance of payments
Many workers are poor farmers who return to their farms with the extra income earned.
Develop industries using the by products
Bagasse can be used for chip board / particle boards paper / animal feed.
Molasses can be used for ethylene / packaging plastics
Offer incentives to keep / attract labour.
B (i) Explain why Karachi is the largest cotton textile manufacturing centre in Pakistan [4]
Historical advantage of Karachi as an industrial city
Capital available from investors / foreign investors / refugees from india.
Cotton growing area in Indus valley of mid-sindh accessible major roads from cotton growing
area.
Railways from cotton growing areas
Higher humidity assists cotton industry.
Electricity from national gird / near by power stations
Imported machinery enters Pak through the port
Close to port for exports.
Attracts labour
Paks major financial centre
Largest city therefore large domestic market
Close to sea port for export
Govt developed EPZ
(ii) Tow of the three main cotton textile manufacturing centres of Pak are situated with in areas
grown cotton. Name one of these centres [1]
Faisalabad, Hyderabad
Industries
Nov, 2000
Q4. (a) Study the graph Eig 4 showing cotton yard and cotton cloth production in Pakistan b/w
1948 and 1944.
(i) Describe the Trends shown in the production of cotton yarn from 1948 to 1994 [3]
Increased rapidly until 1972/5
Increased more slowly 1972/5 to 1981/3
Hasfallen sharply since 1981/3
(ii) Explain the changes in the amount of cotton cloth produced from 1948 to 1994 [6]
Rapid increase 1948 to 1972/3 due to
81. Describe with the help of examples what are stationary and unstationary sources of
pollution.
82. Describe how fuel companies add pollution into the environment and what are its effects.
83. Explain Fig 9.37 Huma.
84. How mangrove forests are affected by water Pollution.
85. Explain has industrial pollution affect the people.
86. Explain how industrial pollution can be controlled.
87. With the help of examples define tertiary industry.
88. Define tourism.
89. State and describe types of tourists in Pakistan.
90. In which year Pakistan became a member of the international union of official travel
organizations.
91. Which organization was responsible for tourism before 1964.
92. Which authority was made responsible for tourism in 1964.
93. Which corporation was set up in 1970 for tourism.
94. State the factors for the development of tourism in Pakistan.
95. Name the three main groups of international visitors to Pakistan.
96. Explain why visitors come to Pakistan on business and name the countries from which
they come.
97. Describe the range of accommodations and communication available for these tourist.
98. Name the countries from which people come to visit their families and explain their
trends from 1980s till recent year.
99. Explain why Foreign tourists who visit Pakistan for recreational purposes are few in
number and describe the range of accommodations available for them
100. Name the countries from which tourist came to Pakistan.
101. Name the country which is the main source of visitors to Pakistan.
102. Other than U.K name three other countries which are the main source of visitors to
Pakistan.
103. Name in order of overseas visitors coming into Pakistan.
104. Name the Main cities to which most of the overseas visitors come.
105. Why is the number fo domestic tourists in Pakistan increasing.
106. Name in descending order the modes of transportation which are used by the
domestic tourists and what is the average length of their stay.