Chap 9-Industrial Development

UNIT 9-SECONDARY AND TERTIARY
INDUSTRIES
BY: ADNAN QURESHI

CAIE APPEARANCE FOR 2020
WHAT IS INDUSTRIAL DEVELOPMENT ?
• Industrial Development is the synthesis of contributions from four major factors, namely, Business, Technology,
Government and Labour and successful industrial projects can be achieved only through a close co-operation
and mutual understanding between these contributors.
• It refers to the contribution played by different sectors of an economy to bring out production in the form of
Gross Domestic Product.
• The development of various industries using the natural resources and output of primary industry to make
products with more market value.
• Pakistan Industrial Sector is the second largest individual sector of the economy accounting for 25% of the
GDP. Pakistan's labour force is 57.2 million out of which 20.3% in working in industrial sector.
Adnan Qureshi-BSS BCCP 2019

TYPES OF INDUSTRIES AND THEIR CONTRIBUTION
• PRIMARY INDUSTRY:
An industry involved in the extraction and collection of natural resources / directly involved with the nature.
Agriculture and Livestock farming, Mining, Forestry and Fishing are the major sources of primary industry. It
contributes about 20.47% to the GDP of Pakistan in 2018.
• SECONDARY INDUSTRY:
This industry connects the primary industry in the form of raw materials to the finished or semi-finished products. It
includes manufacturing or processing on large, medium or small scale. It creates value added products for
export purpose manly. It contributes about 23.93% to the GDP of Pakistan in 2018.
• TERTIARY INDUSTRY:
This industry provides services, skills, goods and products from primary and secondary industries to its ultimate
consumer. Marketing, Advertising, Quality Controlling, Wholesaling, Retailing are the major sources of Tertiary
Industry. Trade and Tourism is another important part of Tertiary Industry. It contributes about 55.60% to the
GDP of Pakistan in 2018.

TYPES OF SECONDARY INDUSTRIES
COTTAGE INDUSTRIES:
• Also called household industries. It is an industry in which employees work in their own homes, often using their
own equipment, mostly women and children work in them. These type of industries have small investment and low
output, categorizes as informal sector.
SMALL-SCALE INDUSTRIES:
• A unit employing less than 50 persons if using power and less than 100 persons without the use of power and with
capital assets not exceeding Rs. five lakhs. Categorizes as Formal sector or Informal sector both.
LARGE SCALE INDUSTRIES:

• Industries where there is no limit to the number of people employed (i.e. unlimited) as well as investment (high
capital), Mostly produced standardized goods, hired mostly skilled labour, can be multinational. These industries
categorizes in Formal sector, mostly mechanized.

NATURE OF INDUSTRIES
AGRO-BASED INDUSTRY:
• An industry use agricultural products as their raw materials.
Examples: Cotton Textile and Sugar Industry etc.
MINERAL-BASED INDUSTRY:
• An industry use different minerals as their raw materials.
Examples: Fertilizer Industry, Cement Industry and Iron and Steel Industry etc.

INPUTS REQUIRED FOR SECONDARY INDUSTRY
• Physical Input:
• Land: the actual place where the industry is located. Plain and flat land is most suitable. Often large scale industries are not set
up in rugged or badland topographical areas.
• Raw material: the basic commodity taken from the primary industry to be used for processing. If the locally produced raw
material is abundant in quantity, its processing industry will grow and the product will be cheaper at cost. If raw material is
imported, its processing industry will find difficulty in its growth.
• Human Input:
• Capital: the money/finance required to set up an industry. It decides for the size, production unit, labour wages and purchase of
raw material for an industry.
• Enterprise: the business skills required to develop products and to market them properly. Major enterprises are Public Limited
Companies with multiple units and high cost of production.
• Labour: the number of skilled people required to run industries in both manual and machine operating jobs. Skilled and
experience labour plays an important role in the growth of an industry.
• Power Supply: Electricity, diesel, gas and coal are the major sources of running an industry. Their affordable rates also affect
the cost of production and the business grows.

PROCESSING AND MANUFACTURING
• Smelting: The chemical reduction of a metal from its ore by a process usually involving fusion, so that earthy and other impurities
separate. It is used in Iron and Steel industry.
• Weaving: A method of textile production in which two distinct sets of yarns or threads are interlaced at right angles to form a fabric
or clothing the form of warp and weft.. It is used in Cotton Textile industry.
• Spinning: A method of twisting together of drawn-out strands of fibers to form yarn, and is a major part of the textile industry. The
yarn is then used to create textiles. It is used in Cotton Textile industry.
• Dyeing: A process in which color is transferred to a finished textile or textile material (like fibers and yarns) to add permanent and
long-lasting color. It is used in Cotton Textile industry.
• Printing: A process of printing a fabric, these being the block, roller, screen, heat transfer and ink-jet methods. It is used in Cotton
Textile industry.
• Knitting: A process that creates multiple loops of yarn, called stitches, in a line or tube to make fabric in Cotton Textile industry.
• Stitching: A process by which pieces of fabric are sewn together to make garments in the Cotton Textile industry.
• Tanning: A process of treating animal skins to produce leather. It is used in leather industry.
• Molding/ Moulding: A process of manufacturing by shaping liquid or pliable raw material using a rigid frame called a mold or
matrix. ... A mold or mould is a hollowed-out block that is filled with a liquid or pliable material such as plastic, glass, metal, or
ceramic raw material.

FACTORS FOR LOCATING AN INDUSTRY
• PRIMARY FACTORS:
• Climate: Companies requiring controlled temperatures , humidity and ventilation should consider the climatic factor while
locating the plant.
• Nearness to the sources of raw material : In general perishable products manufacturing companies are located to the
source of raw materials. For example . food processing industries should be located nearer to canning factories, meat packing
plants.
• Transportation costs: In obtaining raw material and also distribution or marketing finished products to the ultimate users is
an important criteria. Some Companies find it desirable to be located near the seaport or near one of the inland waterways.
• Proximity to Markets: Small businesses in retail or wholesale or services should be located within the vicinity of densely
populated areas or near to consumers market.
• Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway
stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of communication are
important, especially for small scale businesses.
• Availability of Labour: Availability of skilled and non-skilled labour and technically qualified and trained managers.
• Banking and financial institutions : These should be located nearby in order to provide financial assistance to the industries.

FACTORS FOR LOCATING AN INDUSTRY
• PRIMARY FACTORS:
• Climate: Companies requiring controlled temperatures , humidity and ventilation should consider the climatic factor while
locating the plant.
• Locations with links: to developed industrial areas or business centers result in savings and cost reductions in transport
overheads, miscellaneous expenses.
• Government influence: Both positive and negative incentives to motivate an entrepreneur to choose a particular location
are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and
liberalization. Negative incentives are in form decentralization of industries.
• Safety and Security: The provision of secured and safe environment for business activity is an important factor for locating
industries. Major cities of Pakistan have better secured environment than that of Balochistan.

IMPORTANCE OF INDUSTRIES
• Meet the demand locally / domestically therefore reduce import
• Increase export and help to earn foreign exchange
• Returning of loans
• Industrialization
• Urbanization
• Economic Stability (helps government to stabilize price in country when goods are available in sufficient quantity)
• Development of Infrastructure (Roads, Hospitals, etc.)
• Generate employment
• Correct Negative BOP ( Balance of Payment)
• Improve GDP (Gross Domestic Product) and GNP (Gross National Product)
• Agricultural development
• Promotes Specialization
• Mechanization
• Reduce Population Growth Rate
• Diversification in Economy (Industrialization eliminates dependence on agriculture only).
• Adnan Qureshi-BSS BCCP 2019
Political Stability
LARGE SCALE INDUSTRIES IN PAKISTAN
• Cotton Textile Industry
• Sugar Industry
• Cement Industry
• Fertilizer Industry
• Iron and Steel Industry
• Oil Refining Industry
• Oil and Ghee Industry
• Leather Tanning Industry

COTTON TEXTILE INDUSTRY

• Textile industry is primarily concerned with design and production of yarn, cloth, clothing and their distribution.
• The Textile industry in Pakistan is the largest manufacturing industry in Pakistan. Pakistan is the 8th largest
exporter of textile commodities in Asia.
• Textile sector contributes 8.5% to the GDP of Pakistan. In addition, the sector employs about 45% of the total
labor force in the country.
• The textile sector in Pakistan contributes 57% to the country's exports.
• As on June 2018, Pakistan textile industry comprises of 517 textile units (40 composite units and 477 spinning
units). There are 28,500 shuttle-less looms and 375,000 conventional looms The Spinning Sector has grown with
export demand & cotton production.

COTTON TEXTILE INDUSTRY-PROCESSES

COTTON TEXTILE INDUSTRY-PROCESSES

COTTON PRODUCTS AND BY-PRODUCTS
• Products Cotton is used to make a number of textile products. These include terrycloth, used to make highly
absorbent bath towels and robes; denim, used to make blue jeans; chambray popularly used in the manufacture of
blue work shirts and corduroy, seersucker, and cotton twill. Socks and most T-shirts are made from cotton. Bed sheets
are often made from cotton. Cotton is also used to make yarn used in knitting. While many fabrics are made
completely of cotton, some materials blend cotton with other fibers, including rayon and synthetic fibers such as
polyester.
• By products:
• •The cottonseed which remains after the cotton is ginned, is used to produce cottonseed oil, which after refining can
be consumed by humans like any other vegetable oil.
• •The cottonseed meal that is left, is generally fed to livestock.
• •Cotton linters are fine, silky fibers which adhere to the seeds of the cotton plant after ginning. These curly fibers are
typically less than 1/8in, 3mm long. Linters are traditionally used in the manufacture of paper and as a raw material
in the manufacture of cellulose Lint Seeds.

PROBLEMS FACED BY COTTON TEXTILE INDUSTRY IN PAKISTAN
• Shortage of raw material

• Inaccessibility
• Instable political situation and bad Law and Order condition ( Terrorism)
• Frequent change in Government Policies ( Nationalization, Denationalization etc.)
• Strong competition in the International Market especially by Taiwan, Korea, Egypt etc.
• Trade barrier/sanctions and embargo ( Child labour etc.)
• Power shortage
• Outdated machinery
• Financial constrains
• Shortage of Skilled labour

POTENTIAL OF GROWTH OF COTTON TEXTILE INDUSTRY IN PAKISTAN
• Increase production of cotton crop / quality of cotton crop
• Research into solutions to leaf-curl virus
• More and better Irrigation facilities.
• More investment/government support/tax exemptions/loans
• Address child labour/environmental issues to ease international restrictions
• Modernise machinery/plant/technology
• Increase availability of power/electricity
• Training / education of workers

LOCATION OF COTTON TEXTILE INDUSTRY IN PAKISTAN

Explain what can be done to improve Pakistan’s cotton textile industry?

Explain what can be done to improve Pakistan’s cotton textile industry?
• Increase production of cotton crop / quality of cotton crop/better yield seeds.
• Research into solutions to leaf-curl virus and other diseases affecting yield.
• Better and more Irrigation facilities for Kharif season.
• More investment/government support/tax holidays/loans/ insurance of crops.
• Address child labour/environmental issues to ease international restrictions.
• Modernise machinery/plant/technology/better quality of seeds which less water
consumption.
• Increase availability of power/electricity/minimize the power charges/ provision of subsidy
• Training / education of workers

PAST PAPER QUESTIONS
• Study Fig. which shows the distribution
of the cotton textile industry in Pakistan.
Q: Describe the distribution of cotton

processing centres. [3]

Describe the distribution of cotton processing centres. [3]
• Most processing centres / factories in Punjab

• Along rivers (in Punjab) / River Indus (in Sindh)
• Southern / Lower Sindh eg. Hyderabad, Karachi
• Northern / Upper Sindh eg. Sukkur, Larkana
• KPK / NWFP eg. Peshawar, Nowshera
• Northern Baluchistan eg. Quetta

• Study graph which shows the output of
yarn and cloth between 1999 and 2008.
Q: Compare the outputs of cotton yarn

and cotton cloth from 1999 to 2008. [2]

Q: Compare the outputs of cotton yarn and cotton cloth from 1999 to 2008. [2]
• Yarn greater than cloth

• Both increase
• Both make sharp increase in 2004
• After 2005 cloth levels out but yarn continues to increase

SUGAR INDUSTRY IN PAKISTAN

SUGAR INDUSTRY
• Sugarcane in Pakistan is grown on approximately 1.2 million hectares and provides the raw material for 89
sugar mills.
• The sugar industry is the country's second largest agriculture-based business after textiles.
• Pakistan is the 6th largest sugarcane producer, 9th largest by sugar production and 8th largest sugar consuming
country in the world.
• Sugarcane contribute in GDP is 0.7% only and provide employment to 1.5 million people in Pakistan.
• There are 89 sugar mill units in Pakistan (2017-18) currently out of which 45 are in Punjab, 38 are in Sindh
and 6 in KPK.

SUGAR INDUSTRY
INPUTS PROCESS OUTPUTS
• Gur
Raw material growing areas • Quick transportation after
Flat land • Brown Sugar
Harvesting • White Sugar
Power by Bagasse, HEP and
• Washing and scrubbed with chalk
National Grid • Bagasse (Fiber left when sugar
and water to remove smell and
High population density for cheap cane stalk crushed for Juice
dirt.
labour used to make paper, chipboard,
Water from Rivers ( Indus, Jhelum • Crushing with heavy rollers to animal feed, generating
etc.) and lakes extract juice electricity)
Government Incentives ( financial • Calcium Phosphate is added in • Molasses (Viscous by-product;
banking, provision of Infrastructure, Sugar juice as it entrap some brown colour liquid, produced
Industrial Estates etc.) impurities and absorb others and during Crystallization used to
Well developed Roads. float to the top of the tank / make animal feed, bakers’ yeast,
Financial support from Private and container, from where it is then
alcohol etc )
Public sector and Foreign Investors skimmed off.
• Filtration to clear the syrup and
become decolorized
• Purified Syrup is then crystallized
to produce refined Sugar.
SUGAR INDUSTRY (PROBLEMS AND SOLUTIONS)
Problems:
• Seasonal employment
• Skilled work may be lost due to seasonal jobs
• Inefficient use of machinery/ production is affected
• Deterioration of machinery due to less use
• Delay in transportation of Sugar cane may force farmers to sell their crop at low prices
• Inconsistency in the introductory price of sugarcane.
Solutions:
• Cottage and Small industries using by-products.
• Extra income for poor farmers.
• Subsidy on machinery/stalks/fertilizers by the government.
• Better introductory price for the purchase of sugarcane.

LOCATION

FERTILIZER INDUSTRY IN PAKISTAN

FERTILIZER INDUSTRY OF PAKISTAN
• The fertilizer industry of Pakistan has enormous potential and is well on its way to becoming one of the biggest
fertilizer exporters in the region in the coming years.
• Most of the agriculturally important regions have soils lacking in nitrogenous matter which is required by HYV
seeds as well as for bulky crops like sugarcane.
• The Nitrogenous (N) Fertilizers provide the plant with protein content, color and growth.
• The Phosphorous (P2O5) Fertilizers promote strong, healthy root development and helps plants mature more
rapidly and thus aids in blooming and seed further formation. They are also critical for the synthesis of energy
regulating substances in plants.
• The Potassium (K2O) Fertilizers allow the plants to resist diseases and promotes growth from root to stack.
They also improve the size of grains and seeds, and provide winter hardiness to legumes and other crops.

LOCATION OF FERTILIZER INDUSTRY IN PAKISTAN
• Upper Sindh: Dharki and Sukkur
• Lower Punjab: Machigoth and Multan
• Upper Punajb: Faisalabad, Jaranwala, Daud Khel and
Sheikhupura
• Khyber Pakhtoonistan: Haripur

FACTORS INVOLVED IN ITS LOCATION AND GROWTH
• These areas are on generally flat lands of plain areas which enabled easy construction of factories due to more
accessibility and better infra structure.
• Nitrogen and mineral rocks are available virtually everywhere in Pakistan but natural gas is not. This is why these
factories are situated either near gas fields themselves (in upper Sindh and Potwar Plateau) or are linked to gas
pipelines.
• These factories are majorly situated in areas with high population density meaning cheap labor is available.
• It is largely mechanized for which power supply is essential. These factories are located along national grid and
near thermal power plants.
• These factories are situated in the middle of agriculturally important regions especially for cash crops like
wheat, cotton, sugar-cane and rice.

MAIN FERTILIZER INDUSTRY UNITS IN PAKISTAN
• Arif Habib Corporation Limited.
• Dawood Hercules Corporation Limited.
• Engro Corporation Limited.
• Engro Fertilizers Limited.
• Fatima Fertilizer Company Limited.
• Fauji Fertilizer Bin Qasim Limited.
• Fauji Fertilizer Company Limited.

TYPES OF FERTILIZERS IN PAKISTAN

CEMENT INDUSTRY IN PAKISTAN

CEMENT INDUSTRY IN PAKISTAN
• In 2019, 18 Cement factories have 25 plants are working in Pakistan, 12 in Punjab, 4 in Sindh, 7 in KPK and 2 in
Balochistan. It contributes 3.5% in the GDP od Pakistan.
• Pakistan is world’s 14th largest cement producer and the 5th major exporter.
• Cement and clinker are not the same material. Cement is a binding material used in construction whereas
clinker is primarily used to produce cement. The main differences between clinker and cement are given
below. Clinker is a nodular material which is used as the binder in cement products.

CEMENT PROCESSING

LOCATION OF CEMENT INDUSTRY IN PAKISTAN

MAJOR CEMENT PLANTS IN PAKISTAN
• Lucky Cement Limited
• D.G.Khan Cement Limited
• Fauji Cement Company Limited
• Maple Leaf Cement Factory Limited
• Attock Cement Pakistan
• Askari Cement Limited

IMPORTANCE OF CEMENT INDUSTRY IN PAKISTAN
• Availability of raw materials (limestone, shale, gypsum and clay) and natural gas in Pakistan
makes it the highest potential for growth.
• It is one of the major large scale industry with immense potential for growth in both
northern and southern region of Pakistan.
• It provides jobs to 15,00,000 employees. Investment opportunities would develop more
jobs in the sector.
• CPEC projects of power, road and rail network will help the northern areas and Balochistan
to develop on much faster rate in future.
• It is Pakistan’s major export with Afghanistan, Middle East and India as growing economies
is a source of earning foreign exchange.

PAST PAPER QUESTION

IRON AND STEEL INDUSTRY IN PAKISTAN

• Iron and Steel industry plays an important role in the development of a country as it provides a backbone for
transport, machinery, other industries as well as agriculture. There are about140 Iron and Steel units working in
Pakistan.
• It contributes 3.3 % to The GDP of Pakistan directly and have more input in terms of indirect contribution.
• It is providing jobs to 92,000 employees including 14000 in Pakistan Steel Mills only.
• Pakistan Steel Mills (Pipri Karachi) and Heavy Mechanical Complex (Taxila) are the biggest units working
however, the industry has a lot more potential for growth in Pakistan.
• It has the biggest contribution in manufacturing and construction sectors as well as provides high taxes to the
government.
• The raw material (Iron ore) required for the making of steel is not abundant in Pakistan as well the fossil fuel
(Natural gas) is also not sufficiently enough, which occurs as a hindrance to the growth of this industry.
• Raw materials required for making Steel: Iron ore, Coal, Chromium, Nickel, Manganese and Copper.


PRODUCTS OF IRON AND STEEL INDUSTRY
• Pig Iron
• Steel Coils
• Steel Sheets
• Steel Plates
• Steel Bars
• Steel Pipes
• Steel Wires
• Cast Iron
• Wrought Iron

OIL REFINERY INDUSTRY IN PAKISTAN
BYCO OIL REFINERY NATIONAL REFINERY PAK ARAB OIL REFINERY

OIL REFINERY INDUSTRY IN PAKISTAN
• Pakistan is 25th largest importer of crude oil importing of US $ 9.61 billion in 2019.
• Pakistan imports crude oil, petroleum and oil products from Middle Eastern countries
(Saudi Arabia, Iran, Kuwait, Qatar and UAE) to meet its remaining 70% oil needs. 30%
of Crude oil is produced locally with the proven reserves of 184 million barrels.
• The crude oil imported and locally produced, go for oil refinery located at Karachi,
• It provides jobs to thousands of people as well as saves foreign exchange be importing crude
oil as compared to refined petroleum.
• eight oil refineries are currently operating in the country: Pakistan Refinery, National
Refinery, Parco, Attock Refinery, Byco-I and II, Enar Petroleum Refining Facility
(ENAR¬I) and Enar Petroleum Refining Facility (ENAR-II).

LEATHER TANNING INDUSTRY IN PAKISTAN

LEATHER TANNING INDUSTRY IN PAKISTAN
• The leather industry in Pakistan is largely export oriented. Pakistan is well known in the
international market for its high quality and wide variety of finished leather, leather
garments and leather gloves. However, at present, the country's leather industry is
functioning below its existing capacity.
• Millions of animals are reared and slaughtered which provide ‘hide’ (from cattle, camels and
buffaloes) and ‘skin’ (from goats, sheep)
• currently, the sector is exporting a yearly volume of almost 980 million US dollars (2018)
making it the second highest foreign exchange earner for Pakistan.

LEATHER INDUSTRY IN PAKISTAN
PROBLEMS SOLUTIONS
• Too much use of chemicals in preserving • Better and proper mechanization in storing
the skins. leather.
• Wastage of leather due to lack of • Quality assurance and better stitching to
refrigeration and cold storage. maintain international standard.
• This industry have less number of women • Better sustainability in rearing and
working due to extensive labour required. maintaining animals at the commercial
• Leather is sensitive and perishable farms.
therefore areas away from the leather • Finding more markets for leather products.
tanning industry are not used as value
added products.

OIL AND GHEE INDUSTRY

OIL AND GHEE INDUSTRY
• Pakistan is the third largest importer of crude and refined oil in the world.
• Major importers are Malaysia and Indonesia.
• There are more than 150 oil and ghee manufacturing units working in Pakistan.
• The import of crude and refined cooking oil has increased to 2.6 million tons per annum in
Pakistan.
• Main centres are: Karachi, Lahore, Hyderabad, Haripur, Faisalabad, Multan and
Peshawar.
• Karachi is the biggest centre as it is a seaport and much of crude cooking oil is imported
here.

PROBLEMS OF OIL AND GHEE INDUSTRY
• High price of electricity and natural gas add cost to Oil and ghee industry.
• High taxes on import of crude oil by the government.
• A big portion of the manufactured oil and ghee is transported to Afghanistan and Central
Asian countries.
• Punjab Food Authority and other agencies in Pakistan keep strict measures on quality
assurance in the country.
• No government policy on food quality in the country enables other manufacturers of low
quality to earn profit.
• High cost of transportation from Port Qasim to other units in the country.

INDUSTRIAL ESTATES IN PAKISTAN
• An industrial estate is a place where the required facilities
and factory accommodation are provided by the
government to the entrepreneurs to establish their industries
there. Industrial estates have been utilised as an effective
tool for the promotion and growth of small-scale industry
• All major cities of Pakistan have several industrial estates
where proper site is provided by the government/owned
by private business entrepreneurs. They are provided
with electricity and power supply with subsidy. They are
close to the dry/ seaports with transport facility. They
have proper working hours by skilled labour and proper
machine work with better efficiency.

INDUSTRIAL ZONES IN PAKISTAN
• An industrial estate is a place where necessary infrastructural facilities are made available to
entrepreneurs. Industrial parks, industrial zone, industrial area, industrial township are some
of the other terms used to denote industrial estates.
The following are the objectives of setting up industrial estates:
1. Ensuring well planned and structured industrial development.
2. To provide the necessary infrastructure.
3. To provide common facilities to a number of industries.
4. To promote development of clusters.
5. To enable small units to source products from one another.
6. To enable dispersal of industries.
7. To promote balanced regional development.
8. To ensure development of backward areas.
9. To provide a climate for smooth functioning of industrial enterprises
FEATURES OF INDUSTRIAL ZONES
• Separate plots and sheds for various kinds of business.
• There is a cluster of units.
• It gives development to regional underdeveloped areas.
• All enterprises are provided with road, railway, telecommunication, water and gas.
• Promotes industrialization in the region.
• Different sizes of enterprises can be established according to their potential.
• Can be developed in any urban or rural area.
• Can be developed by government, private sector or joint venture of the two.

FORMAL AND INFORMAL SECTORS OF INDUSTRIES

FORMAL AND INFORMAL SECTORS OF INDUSTRIES
Formal Sector Informal Sector
Employed by some Self-employed/sole entrepreneurship

factory/institution/company
Capital intensive with few workers/operators Labour intensive with many tool workers
Generally modern in machine work Very few modern machines are used
Standard quality of goods produced Often low quality of goods produced
Work is located in offices or factories Work done at homes or streets
Legal and registered Often non-registered
Usually male dominated workers Mostly females and children/ family oriented.
COTTAGE/ SMALL SCALE INDUSTRIES IN PAKISTAN
• Brick Kilns Industry
• Sport Goods Industry
• Wooden Furniture Industry
• Embroidered Items Industry
• Gems and Precious Stones Industry
• Marble Industry
• Surgical Goods Industry
• Carpet Making Industry

BRICK KILNS INDUSTRY OF PAKISTAN

BRICK KILNS INDUSTRY
• It is one of the biggest informal sector of manufacturing in Pakistan due to avalaibilty of raw material
almost everywhere. Clay and Coal is needed to prepare bricks.
• There are estimated 12,000 kilns, mostly in Punjab and Sindh employing 2.3 million workers (almost
all of them under bonded labour and 50% of them not having any NICs) and contributing 3% to
GDP .
• The sector consumes 3 million tonnes of coal, both imported and local, under highly energy
inefficient conditions.
• The government is trying to make brick kilns industry use natural gas instead, to control pollution.
Likewise, the child labour is also to be minimized and labour is to be improved be making this sector
registered with government to gain more taxes.
• Camel/Horse/Donkey/Bull carts are used to transport clay coal from the deposits to the kilns and then
baked bricks to the markets. Lorries are used too.

BRICK KILNS INDUSTRY IN PAKISTAN

BRICK KILNS INDUSTRY IN PAKISTAN
PROBLEMS SOLUTIONS
• Informal sector making it difficult to • This sector can be brought under Industrial
properly organize the production. estate making it a proper formal sector.
• Child labour is a major part of • Child labour should be minimized under
employment. strict laws by the government.
• Due to coal burning in the kilns, pollution • Instead of coal, natural gas can be used as
makes serious health issues. an alternative fuel to minimize pollution.
• No proper/ low wages for its workers. • Skilled labour/ trained staff can be
• Animals are used for transportation of provided to the industry.
bulky items. • Sites can be connected with metalled roads
and railways.

SPORTS GOODS INDUSTRY

SPORTS GOODS INDUSTRY
• In Pakistan almost all sports related items are produced but the famous products are soccer
ball, cricket bat, cricket ball, tennis ball and some other items too. Sports industry of
Pakistan has been manufacturing the soccer ball for the FIFA World Cup.
• The main raw materials required are: leather, wood, rubber.
• It earns 3.7% of Pakistan’s total exports.
• The sports industry of Pakistan lies in the city of Sialkot. Sports industry is the main factor
of Sialkot’s economy as it earns great profit from it due to the high demand of sports good
in international market.
• Sports goods such as football, volley ball ,hockey sticks, cricket bats, all kind of sports
gloves, sportswear, sports kit and fitness articles, footballs, hockey ball ,hockey sticks,
cricket bats and rackets are mostly handmade and reputed excellent in international
market.
• Lack of machinery and child labour are the biggest hindrances in the growth of Sports goods
industry.
SPORT GOODS INDUSTRY IN PAKISTAN
PROBLEMS SOLUTIONS
• Informal sector making it difficult to • This sector can be brought under Industrial
properly organize the production. estate making it a proper formal sector.
• Child labour is a major part of • Child labour should be minimized under
employment. strict laws by the government.
• Wood is not produced locally. • Special man made forests can be promoted
Deforestation is a big problem in Pakistan. b government/ business owners to avoid
Imported timber is expensive. unnecessary deforestation.
• Noise Pollution in the urban areas due to • Special Industrial Estates can be developed
not having proper working places. for the industry.
• Low quality products/not able to compete • Skilled labour/ trained staff can be
internationally. provided to the industry/ more machine
based technology.

CARPET INDUSTRY IN PAKISTAN

• Pakistani handmade carpet industry is a rural-based cottage industry.

• It requires almost nil capital investment.
• The weaver community belonging to the weaker section of the society forms an integral
part of the industry.
• It is highly labour-intensive. It is most 100% export-oriented.
• Average Share in Total Exports is 2.48%.
• Pakistan ranks No.4 as a producer and exporters of carpets in terms of volume.
• Pakistan is facing stiff competition from China, Turkey, Iran, Nepal and India.
• Pakistan is having market of around 2% of total world import of flooring coverings.

PROBLEMS SOLUTIONS
• More labour intensive and children and • More mechanization can be brought to
women are workers. minimize labour.
• Local cotton, wool is not processed • Wool, silk and cotton can be pasteurized
properly before use. properly and can be used on machine
• Hand looms as often wooden and time looms instead of wooden looms.
consuming in use. • Loans can be provided by the
• The workers at the looms are under paid banks/government as it is capital intensive.
and do not follow proper rules for wages. • Quality can be assured by computer
• Most of the carpets and rugs are utilized designing and graphic work to be able to
locally and are not used for export despite compete with international market.
for its high demand.

SMALL: WOODEN WORK INDUSTRY

WOODEN WORK INDUSTRY
• Pakistan has huge potential for creating furniture, and its KP region is known for its exquisite
woodwork and carving.
• The country has six hubs for wooden furniture: Karachi, Lahore, Sargodha, Chiniot, Gujrat,
and Peshawar. Of these Chiniot, Gujrat, and Peshawar have the most famous
woodworkers, who are known for their sophisticated carving technique and uniquely
intricate patterns, making Pakistani furniture stand out all over the world.
• The latest technology like machine designing is used but the cost of furniture is generally
high due to lack of quality wood. Mostly wood and timber is imported from Indonesia,
Srilanka, Thailand, Kenya etc.
• Locally produced Sheesham and Deodar trees are also used from the Irrigated forests of
Chhanga Manga, Chichawati, Mianwali and other Bela (Riverine) forests.
• Chipboard, Formica and Ply wood are best alternates for cheaper cost of furniture.

PROBLEMS
• Profits are limited and they are mostly spent on the daily expenses of the owners. They do not
have extra capital for expansion of these industrial units.
• Economies of scale are not available so production cost is higher. Goods produced in small-scale
industries cannot compete in open market if the same goods are manufactured on a large scale.
• The wholesaler, who takes most of the profits, exploits the owners of the small-scale industry. In
some cases goods are sold to wholesalers at cost price, which discourages the owners and they
reduce the quality and quantity the produced.
• In rural areas, where the electricity is not provided, small-scale industries are difficult to set up.
Even the great fluctuation in voltage and power break-downs cause damage to the electric motors.
The commercial rates of electricity have also increased significantly which hinders the growth.
• The craftsman and artisans learns their skills and production methods from their elders. The
provision of technical advice and further training is limited.

SURGICAL INSTRUMENTS

SURGICAL INSTRUMENTS
• Pakistan is world’s 8th largest country for the manufacturing of surgical instruments.
• Surgical Association has 3900 members firms, more than 1,50,000 workers are grossly
engaged in manufacturing of surgical instruments to meet the export commitments in the
International Market.
• The value of export of surgical instruments for the financial year 2015-2016 is US$ 358.00
Million and has great potential for further growth.
• The main centre for surgical instruments is Sialkot with most of the centres.
• Other than Sialkot, Daska, Gujranwala and Rawlapindi are the centres.
• Pakistan exports surgical instruments to the United States, Germany, the United Kingdom
and France.

CHALLENGES AND PROBLEMS OF SURGICAL INSTRUMENTS
• Quality of surgical instruments is not up to the mark and thus faces international barriers
on hygiene by World Trade Organization.
• Child labour is a major problem is coming out of trade barriers from this sector.
• Lack of training for the workers often leads to accidents.
• No support from the government sector/ laons are not sanctioned/ insurance is difficult.
• Lack of machines and manual work is a reason of low quality of surgical instruments.
• Modern technology is not used in the manufacturing of surgical tools and are kept at
shabby/unhygienic stores without proper sterilized packaging.
• The cost is high due to expensive electricity as compared to other regional countries thus it
bring pressure on the sale of tools internationally.

PAST PAPER QUESTION
• 3 (a) Study Fig. 5, a map of Pakistan.
• Name the two main centres of production of
surgical instruments at D and E. [2]
• (c) (i) Give two examples of a small-scale or
cottage industry. [1]
• (ii) Using your answers to (c)(i), explain
what is meant by a small-scale or cottage
industry. [4]

PAST PAPER QUESTION
• Name the two main centres of production of surgical instruments at D and E. [2]
D Sialkot, E Lahore
c) (i) Give two examples of a small-scale or cottage industry. [1]
wood carving, embroidery, jewellery, ornaments etc. sports
goods, surgical goods.
(ii) Using your answers to (c)(i), explain what is meant by a small-scale or cottage
industry. [4] -small production/small output
• traditional skills
• in homes/on the street/not in factories
• lack of machinery/labour intensive/low technology -women workers/family workers/no
hired labour
• self-employment/informal industry/less than 10 workers employed/small workforce -low
profits
• to meet local demand -for tourism

EMBROIDERY WORK INDUSTRY IN PAKISTAN

EMBROIDERY WORK INDUSTRY IN PAKISTAN
• Embroidery work is done on a large scale in Pakistan. Not only men, but women of Pakistan
also do this elegant work on different types of clothing and accessories.
• It is an informal sector with great potential for growth. Millions of women and men are
associated with this industry.
• The manual work of embroidery has more demand as compared to machine embroidered
work.
• The availability of locally produced raw material is a big reason for the growth of this
industry.
• It does not require capital, labour or enterprise and therefore it is an easy business to start
anywhere in the country.
• Embroidery work has a high demand internationally and is well appreciated in Europe and
Far West.

GEMSTONE INDUSTRY IN PAKISTAN
• Pakistan is 5th largest producer of gems and stones in the world.
• Emerald, Topaz, Rubi, Opal, Aquamarine are major gems exported from Pakistan making US $ 3.7 billion
in 2018. The major import markets from Pakistan are Thailand, Hong Kong, China and United States.
Some of the major problems of the industry are:
• Non recognition of gemstone sector as an industry by the government
• Lack of effective regulatory and institutional framework
• Imparting with obsolete methods and technologies
• Lack of proper infrastructure at mining sites
• Lack of skilled labour
• No training institution
• Smuggling of gemstones
• No financial support from banks and other private institutes.
• Lack of marketing skills
GEMSTONE INDUSTRY IN PAKISTAN

TERTIARY INDUSTRY
• TOURISM: It is one of the most important aspect of tertiary industry as it deals with
travelling and excursion to different sites of the country providing job and business
opportunities to the locals.
• It is one of the fastest growing industries of the world. The direct contribution of Travel and
Tourism to the GDP of Pakistan is 3% and 6.2% of the total employment. Pakistan Tourism
Development Corporation (PTDC) was set up in March 1970 which was given the status
of Ministry of Tourism in 2004.
IMPORTANCE OF TOURISM IN PAKISTAN:
• Pakistan can earn foreign exchange and it may help to correct Pakistan's balance of payment
and lessen the burden of debt.
• It creates domestic employment and increase the standard of living in those Areas where
tourist activities take place.
• It encourages local Cottage craft industries and the production of souvenirs.
• It helps to reduce rural-urban migration by providing employment to local people in their
areas.
TERTIARY INDUSTRY IN PAKISTAN
• Types of Tourism in Pakistan:
• Domestic Tourism- Internal Tourism- National Tourism- International Tourism
• Tourists’ Attraction in Pakistan:
• Mountain Peaks: The K2, Nanga Parbat, Trich Mir, Koh-i-Suleiman.
• Archaeological: Mohejo Daro, Harappa, Taxila.
• Historical/Cultural: Lahore, Thatta, Multan, Peshawar, Hyderabad, Karachi.
• Northern Areas: Gilgit, Hunza, Skardu, Murree, Swat, Kaghan, Naran Valley.
• Museums: Lok Versa Museum and Heritage Library, Peshawar Museum, Taxila Museum, Lahore
Museum, National Museum of Pakistan.
• National Parks: Margalla Hills National Park, Hingol National Park, Deosai National Park, Ayubia
National Park, Hazarganji-Chiltan National Park, Khunjerab National Park, Kirthar National Park.
• Beaches: Clifton, Kemari, Hawks’ Bay, Keti Bander, Thatta, Jiwani, Pasn, Gwader, Ormara,
Somiyani.
TERTIARY INDUSTRY OF PAKISTAN
• Problems of tourism in Pakistan:
• Political uncertainty and terrorism have badly hampered the growth of this industry.
• It only provides seasonal employment in most of the tourist places in the Northern areas in
Pakistan.
• Due to lack of budget/ furnace, local government cannot provide proper facilities,
accommodation, security, proper food, hiking and other equipment’s etcetera.
• The natural environment may be badly affected because of deforestation, land and water
pollution it is also decreasing the scenic beauty.
• Tourism often destroys local culture and tradition. New social problems of crimes, tourism,
drugs etc. may emerge.
• Lack of connecting roads, fly overs, absence of railway and airports, money exchange
offices, banks.

TERTIARY INDUSTRY OF PAKISTAN
• Sustainability and Growth Prospects of Tourism in Pakistan:
• Government should provide better infrastructure facilities in the tourist attraction places.
• Government should link all the tourist places with roads or railway line in order to encourage
domestic as well as foreign tourism.
• Government should reduce the air fares for tourist in Pakistan in order to increase tourism as well
should develop small airports at more towns in the north.
• Government should I locked allocate separate budget for the development of tourist attraction
places.
• Government should provide good accommodation, Food Supply and hospital and try to save
cultural heritages and natural beauty of these areas.
• There should be strict and Force full implementation to restrict deforestation and increase of
afforestation.

Chap 9-Industrial Development

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Chap 9-Industrial Development

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UNIT 9-SECONDARY AND TERTIARY

BY: ADNAN QURESHI

Adnan Qureshi-BSS BCCP 2019

Adnan Qureshi-BSS BCCP 2019

LARGE SCALE INDUSTRIES:

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• Shortage of raw material

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Q: Describe the distribution of cotton

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• Most processing centres / factories in Punjab

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Q: Compare the outputs of cotton yarn

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• Yarn greater than cloth

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• Arif Habib Corporation Limited.

• Dawood Hercules Corporation Limited.

• Engro Corporation Limited.

• Engro Fertilizers Limited.

• Fatima Fertilizer Company Limited.

• Fauji Fertilizer Bin Qasim Limited.

• Fauji Fertilizer Company Limited.

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• D.G.Khan Cement Limited

• Fauji Cement Company Limited

• Maple Leaf Cement Factory Limited

• Attock Cement Pakistan

• Askari Cement Limited

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