CAUSES OF INDUSTRIAL BACKWARDNESS IN PAKISTAN

The causes of industrial backwardness in Pakistan are varied and complex. The Government of Pakistan
since 1947 is trying to develop industries and infrastructure facilities for the growth of industrial sector,
yet it has not achieved success to the desired extent. In the last over three decades. The main obstacles
which have slowed and retarded industrial development in Pakistan are as follows:

Causes of Industrial Backwardness:

1. Controversial Industrial development strategies.

One of the major objectives in all the five year plans of Pakistan is to improve the balance of payments
position by (1) increasing export and (2) production of import substitution goods in the country. The
twin objectives of promoting export orientation and import substitution have not been achieved to the
desired extent. The share of industrial raw material for consumer goods in the aggregate import instead
of falling has risen. Similarly the percentage of capital goods in the total imports has increased.

The slow growth in industrial sector is mainly due to rapid changes in the industrial development
strategies. The planners have not yet been able to solve the central issues such as:

 sartorial balance between agricultural and industrial sectors.

 balanced regional development.
 growth V/S welfare strategy.
 small scale V/S large scale.
 capital intensive V/S labour intensive.
 public sector V/S Private Sector.
 rural V/S urban.
 The policies of nationalization and denationalization of industries.
 the absence of clear demarcation of industries between public and private sectors has landed
the industrial sector in deep seated recession

2. Lack of capital.

The second major problem of industrialization in Pakistan is the lack of capital. In capital
intensive industries like steel and iron, chemical, automobile etc. the amount of capital required
per worker is quite high. In industries like textile, carpet, sugar paper board etc, huge amount of
capital is required to establish and expand these industries.

3. Limited Market:

Limited market is also the major cause of industrial decline. Pakistan manufacturing sector have
high costs, low labor productivity and inefficient production processes. There is a threat by the
Chinese and Indian manufacturers to gain most of the market share. Owing to government’s
 indifference, our domestic markets have not expanded to an extent to accommodate the home-
made goods.

4. Peoples’ Liking to Foreign Goods:

Moreover our peoples’ liking to foreign goods is also giving a severe blow to our industry.

5. Economic Restrictions:

Economic restrictions imposed by donor countries and lack of effective exploitation of the World
Market are also contributing to our industry’s failure.

REFERENCES.
 https://discover.hubpages.com/education/CAUSES-OF-INDUSTRIAL-BACKWARDNESS-IN-
PAKISTAN
 https://www.csstimes.pk/causes-industrial-backwardness-pakistan-css-pakistan-affairs-notes/
amp/