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COMSATS University Islamabad

HUM111 Pakistan Studies

Assignment 3 (Project)

Topic:
Lack of integration of technology

SUBMITTED BY: MUHAMMAD HASHIM SHAMI

REGISTRATION NUMBER: SP20-BBA-110
CLASS: BBA-2E
SUBMITTED TO: WAQAS AHSAN
DATED: 11/28/2020

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Main Topic:
Current Social, Economic and Political Challenge
related to Industrial Sector of Pakistan.

Sub Topic:
Lack of integration of technology

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Introduction:

An industry is a division that produces merchandise or related administrations

inside an economy. The major sources of income of a group or organization is a
marker of what industry it ought to be arranged in. When a huge corporate
group has numerous sources of revenue generation, it is viewed as working in
various industries. The manufacturing industry became a key sector of
production and labor in European and North American countries during the
Industrial Revolution, upsetting previous mercantile and feudal economies.
This came through many successive rapid advances in technology, such as the
development of steam power and the production of steel and coal.
Following the Industrial Revolution, perhaps 33% of the economic
yield originated from manufacturing businesses. Many developed nations and
many developing/semi-developed nations (China, India, etc.) rely essentially
upon the manufacturing business.

10 largest Countries by Industrial Output (in nominal terms) according to the IMF and CIA World Factbook, at peak level as of 2018
Economy Countries by Industrial Output (in nominal terms) at peak level as of 2018 (billions in USD)

(01)   China 5,316

(—)   European Union 4,757

(02)   United States 3,877

(03)   Japan 1,842

(04)   Germany 1,213

(05)   Russia 744

(06)   South Korea 651

(07)   India 619

(08)   France 589

(09)   United Kingdom 586

(10)   Italy 576

Pakistan’s Industry:

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Pakistan's industrial part represents about 64% of GDP. Cotton material

creation and clothing producing are Pakistan's biggest ventures, representing
about 65% of the product exports and practically 40% of the utilized work
power. Cotton and cotton-based items represent 61% of the fare profit of
Pakistan. The utilization of cotton expanded by 5.7% in the course of recent
years while the monetary development rate was 7%. By 2010 the turning limit
expanded to 15 million spindles and textile export hits $15.5 billion. Other
significant enterprises incorporate concrete, fertilizer, consumable oil, sugar,
steel, tobacco, chemicals, machinery and food processing.
The government is privatizing large scale parastatal units, and the public
segment represents a contracting extent of industrial output, while
development in overall industrial output (counting the private area) has
quickened. Government strategies aim to expand the nation's industrial base
and support export enterprises.
Technology:
The current world is a technological one. All the sectors of the economy are
making use of the available technology to enhance productivity. The
importance of technology in industrial development cannot be downplayed in
any way since technology plays a very crucial role in the development of
industries.

Findings and Discussions

Technology and Industry:

The current world is a technological one. All the sectors of the economy are
making use of the available technology to enhance productivity. The
importance of technology in industrial development cannot be downplayed in
any way since technology plays a very crucial role in the development of
industries. We will look into some of the ways in which technology contributes
to industrial development to see its relevance.
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ROLES AND PROBLEMS DUE TO LACK OF TECHNOLOGY IN THE ECONOMIC

DEVELOPMENT OF PAKISTAN

At present technology is necessary for every nation. Without technology a

nation cannot get all its requirements. Technology is cause of improvement of
physical and human capital.
Technology comes into a country by following ways: Inventions -> Innovations
  
Role of technology in the development of industrial sector:
 Best Use of Capital:
Capital is an important factor of production. Technology is useful to use the
capital in the best way. Technology can increase in production and standard
of goods in minimum time period. So, the return on capital will increase due
to use of technology. Profit margin of the producer also increases with the
use of technology. Rate of capital formation is only 5%.
 Agricultural Growth:
For a long time, old seeds, traditional techniques, ploughs and waste &
garbage etc. were used in agriculture. So, the productive quality and
quantity was very low. But due to use of modern techniques of production,
there is invention of High Yield Variety (HYV) seeds, fertilizers, threshers,
tractors and harvesters, tube-wells and water pumps, insecticides,
weedicides and pesticides all this result in growth and development of
agriculture. Growth rate of agriculture sector is 2.0 %.
 Industrial Development:
In the past, life was limited of limited population. In easy life, the use of
industrial goods was very low. But now in modern age, use of industrial
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goods is increasing day by day. Rapidly increasing population is

also demanding more industrial goods. In this situation, industrial growth
and development is necessary which is possible due to use of
technology.   Growth rate of industrial sector is 4.9 %.

 Increase in Factor’s Productivity:

Technology plays very important role in increasing the productivity of
factors of production. Modern technology is helpful to increase the
efficiency of labor, which results in increase in production and standard of
goods. Value of annual productivity of labor in Pakistan is $ 100.
 Reduction in Poverty:
Use of technology is also caused in reduction in poverty. Use of technology
makes it possible to reduce in cost of production that results in fall in price
level. Availability of high standard goods at low prices increases the real
income of the people and increase in the purchasing power. Technology
opens the new economic sector that creates more jobs for unemployed
population.  All this results in reduction in poverty. 21.0 % population is
living below poverty line in case of Pakistan.
 Time Saving:
Today, time is considered as a power and life is so busy. Lengthy and old
production process is not affordable now. Technology is helpful to shorten
the lengthy production process, it caused in quick yielding and rapid return.
Due to technology, production quality and quantity can be improved in
minim time period.
 Cost Minimization:
Because of modern technology, the firms are in a position to reduce the
cost of production. By employing technology, it is possible to use the same
raw material for more output or same output by using less quantity of raw
material. On the other hand, wastage of large industries can be used in
small industries as a raw material, which caused in reduction in cost of
production.
 Increase in Marginal Efficiency of Capital (MEC):

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Marginal efficiency of capital is the rate of return or profit on capital

invested. With the help of technology, a firm can use the capital effectively.
There is less wastage and more increase in the efficiency of labor that
results in increase in the marginal efficiency of capital.
 Increase in Investment:
16.6 % investment of GDP is not desirable for the economic development in
Pakistan. Use of technology caused to increase in profit margin of the
producer. Increase in profit margin will leads to increase in flow of
investment. At least 25 % investment is needed for economic growth and
development.
 Expansion in Foreign Trade:
Use of modern techniques of production leads toward better quality and
quantity of the products. In foreign trade there is stiff competition among
different countries of the world. Use of technology enables a country to
compete with other nations, expansion in foreign trade and to earn more
foreign exchange reserves.
 Development in Infrastructure:
Technology itself is a component of infrastructure. However, with its use
country’s infrastructure developed. Such as the use of atomic energy, use of
CNG in place of petrol, use of computer, improvement of transport and
communication network etc. Government has reserved an amount of Rs.
133 billion to develop the infrastructure in the country.

Problems or Obstacles:
 Deficiency of Capital:
Cost of advanced technology is very high. Poor countries cannot use the
technology due to deficiency of capital. Domestic savings are 9.9 % of GDP
and investment is 16.6 % of GDP.
 Illiteracy:
Due to illiteracy, our labour is less efficient and less trained. Accordingly,
our labour cannot use the modern technology appropriately. In Pakistan,

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literacy rate is 57 %. On the other hand expenditure on education sector is

2.0 % of GDP.
 Traditionalist Society:
People are backward in developing countries like Pakistan. They are passing
subsistence life and they do not want to use modern techniques of
production.

 Import of Technology:
Import of technology itself is a big problem. In developing countries, there
is shortage of foreign exchange to import the technology.
 Adverse Balance of Payment:
Import of technology causes more increase in imports of the poor
countries. It creates more gaps between the imports and exports. It results
in deficit in balance of payment. At present, deficit in balance of payment is
$ 10.945 billion.
 Limited Home Market:
The markets are limited in their size in developing countries like Pakistan,
while the advanced technologies are concerned with the industries of large-
scale.
 Lack of Natural Resources:
In Pakistan, natural resources are available. But these resources are
remained un-used, ill-used and mis-used. That feels no need for advanced
technology. Natural resources contribute to GDP less than 1 % in Pakistan.
 Backward Social Set-up:
The orthodox and backward social set-up is also an obstacle in the way of
use of modern technologies. People are not ready to use modern
instruments and thinking.
 Lack of Foreign Exchange Reserves:

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Foreign exchange reserves are necessary to import the modern technology

but Pakistan has shortage of foreign exchanges reserves. Foreign exchange
reserves of Pakistan are $ 15.0 billion.
 Backward Economic System:
Most of the developing countries are using the backward economic
systems, which are also a hurdle in way of economic development.
Implementation of Islamic economic system is required for economic
growth and development.

 Monopoly of Developed Countries:

Advanced technology is under the influence of advanced countries. They
charge higher prices while transferring technology to poor countries.
Sometimes, advanced nations transfer backward and out-dated technology
to poor nations.
 Lack of Infrastructure:
Technology without infrastructure in developing countries is impossible.
Transports and communications are not available in fully advanced form in
Pakistan. There is shortage of sanitations and health facilities. Supply of
electricity is also less and irregular.

CONCLUSION

Pakistan can turn a corner by putting resources into tech new businesses and
problematic advances, giving offices like hatcheries, office space, and money
related elbowroom. Such measures couldn't just advance enterprise and
development based basic reasoning, however, they would likewise clean the
Augean stables of neediness and joblessness. Innovation is the sine qua non for
the 21st century and overlooking it could bring about unquantifiable lost
monetary chances. Pakistan has a very robust youth population and with
measures like incubators and financial assistance the country can create a
roadmap toward innovation-based technologies and breakthroughs– much like
the United States did at the start of 20th century and India did in the early
1990s.
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Technology is the center development driver in the 21st century. The Pakistani
government and policymakers can't overlook its interaction with business and
spotlight exclusively on "motorways and metro transports" — without the
suitable utilization of innovation even they can't endure.
Pakistan's IT trades remain at $2.2 billion. To build these fares, Pakistan must
make solid strides, maybe by contemplating the fruitful models of India and
Israel. Putting more in innovative work, making R&D habitats for Pakistan's
specialized power, would improve their specialized capacities as well as would
give them much required hands-on understanding and introduction.
Another noteworthy advance is patch up and changes the instructive
framework to a progressively present day and research-based schedule. This
would positively make a domain for important research and development,
hence affecting fares and even the business scene.
It was very reassuring to see Google coming to Pakistan and organizing college
workshops and talks with youthful Pakistani college graduates. The legislature
should pull every single imaginable switch to draw in more tech organizations
into Pakistan, and make strategies and components that empower tech
goliaths to set up R&D focuses.
The list of things to get could go on. It is the ideal opportunity for the
legislature and the new businesses in Pakistan to take care of business and
benefit themselves of the gigantic open doors the tech world is advertising.
The advantages are expanding sends out, however assuming a helpful job in
the 21st-century tech economy.

References
https://en.wikipedia.org/wiki/Industry_of_Pakistan

 "Emaar Technologies".  www.emaar.com.

“Maqsood Ahmed | https://thediplomat.com/2016/09/technology-in-pakistan-a-slow-march/

“Aiyza Javaid | https://www.pakistantoday.com.pk/author/aiyza-javaid/

“Ahsan Khan | http://www.blogger.com/profile/13484025057321887328

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THE END

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