Essay Outline: Industrial Sector of Pakistan (Situation, Issues and

Solutions)

1. Introduction:

Industrial Sector is the second largest individual sector of the economy accounting for 24%
of the GDP. The activity in the manufacturing sector is comprised of large, medium and
small-scale. The industrial Production growth rate during the year 2005 remained 6%. Large
scale manufacturing growth rate is 19.9%.
Most of the present economic problems in Pakistan are ultimately linked to the slow pace of
industrial development. Rapid industrialization is considered by the economic exports as the
sovereign remedy to put our economy on a sound basis.
Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic
Development

2. Industrial Sector and Its Components:

3. Importance of Industrial Sector for a Country:

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 shown improvement in national income and promoted
living standard of population.

4. Different Phases of Industrial Development in Pakistan:

Phase 1 (1947-1957):
This phase started from 1947 ended to 1958. During this period, the country was newly
born and politically immature. During this 11-years period, 8 prime ministers came into
power. Not a single prime minister was strong enough to pursue the industrial policy well.
Phase 2 (1958-1969):
In 1958, a military government of Ayub came into power in Pakistan and announces a new
industrial policy in 1959. This phase witnessed the massive industrial growth in the country.
Phase 3 (1973-1977):
During this period, a new democratic government of Bhutto came into power and adopted
the principles of mixed economy.
The nationalized industries were put under the management of Board of Industrial
Management (BIM).
Pakistan Industrial Development Corporation (PIDC) was established.
Other reforms were taken by the government were:
Labour reforms
Abolition of bonus voucher system
Reduction of sales tax on imported items

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 Essay Outline: Industrial Sector of Pakistan (Situation, Issues and
Solutions)

Revision of import policy

Establishment of industrial units in less developed / rural areas
Phase 4 (1977-1988):
A new martial law government by Zia came into power in 1977. The new military
government in 1977 announced the reversal of previous government’s nationalization policy
and introduced a new industrial policy.
Phase 5 (1988-2008):
During the first half of this phase, i.e., 1988 to 1999 the country had faced worst political
conditions in the history of Pakistan.
During the second half of this phase (i.e., 2000-2008), industries of Pakistan faced greater
influence of cheaper goods imported under WTO agreements.
Privatization Policy: To reduce the financial burden imposed on government and to reduce
slack utilization of resources, privatization policy was adopted and is still continued. The
main objectives of privatization were to improve the overall performance of state-owned
industries and to promote healthy competition.

5. Present Situation of Industrial Sector of Pakistan:

Situation of manufacturing sector

Large Scale manufacturing sector
Small Scale manufacturing sector.
Situation of Construction Sector:
Situation of Mining Sector:
Situation of Electricity Generation and Distribution Sector:

6. Issue Confronting the Industrial Sector of Pakistan:

Energy crisis
Devaluation of currency
Lack of infrastructure
Overpopulation
Corruption
Political Issues
International isolation
Political instability
Administrative Issues:
Poor performance of state-owned enterprises
Lack of focus on R&D

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 Essay Outline: Industrial Sector of Pakistan (Situation, Issues and
Solutions)

7. Some Workable Solutions to the Industrial Sector Issues:

Provision of Uninterrupted and Cheap Supply of Energy to the Industrial Sector

Provision of Cheap and Easy Credit Facility:
Maximum Extraction and Utilization of Indigenous Mineral Resources:
Effective and Beneficial use of Women Workplace:
Provision of Necessary Healthcare Facilities for the Labor:
Eradication of the Scourge of Terrorism:
Research based and Workable Industrial Policies:
Sustenance of Democracy and Political Stability:
Promotion of Public-Private Partnership:

8. Conclusion:

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