INDUSTRIAL DEVELOPMENT

DEFINITION

 building and growing of industries within an economy by using new

technologies which make jobs easier, faster, and better and lead to an increase
in a business' output and an increase in profits.
 Karl Marx :“The industrial revolution is a step in the historical materialism of
the world. That is to say that a class of people overtake the ruling class and
becomes the new ruling class. Capitalists had invented a new mode of
production, and therefore society had to change”.
 IMPACT OF INDUSTRIAL
DEVELOPMENT IN ECONOMIC
GROWTH

 Capital formation
 Employment generation
 Modernization of agriculture
 Development of science & technology
 Importance in international trade
I. Capital Formation: Industrial development helps in capital formation .By using internal and external
economies, industry can get higher profit. These profits can be reinvested for expansion and
development.
II. Employment Generation: Industrial development leads to the creation of new jobs, which in turn
increases the income of people. This leads to an increase in demand for goods and services, which
further stimulates economic growth.
III. Modernization of Agriculture: Industrial development is necessary for the modernization of
agriculture. To increase productivity, we need chemical fertilizers, pesticides, weedicides, which are
all industrial products. Without industrial development , these goods cannot be produce and have to be
imported which is much expensive. To prepare finished goods rather than raw ones industrialization
must be needed.
IV. Development of Science & Technology: Industrial development encourages the development of
science and technology. The industrial enterprises conduct research and develop new products. Due to
industrialization, we have progressed on atomic science, satellite communication etc.
V. Importance in International Trade: Industrialization plays an important role in the promotion of
trade. The advanced nation gains in trade other than countries who are industrially backward. The
underdeveloped countries export primary products and import industrial products. Agricultural
products command lower prices, and their demand is generally elastic. While industrial products
command higher prices, and their demand is inelastic.
 HISTORY OF INDUSTRIALIZATION IN
PAKISTAN

• Pakistan started its industry with very week resources but time to time
Pakistani government realized that the country was lagging behind industrially.
Therefore, special efforts were made to establish a strong industrial system. An
industrial policy was announced in 1948, which encouraged the private
sector. In 1972, the government nationalized ten types of factories.
• During partition,there were 921 industries in india but only 34 became part of
Pakistan due to unfair.
 PAKISTAN INDUSTRIALIZATION

 Pakistan, which had almost no large industrial units at the time of partition in
1947, now has a fairly broad industrial base, and manufacturing accounts for
about 17 percent of GDP. Cotton textile production is the single most important
industry, accounting for about 19 percent of large-scale industrial employment.
 Over the past decade, Pakistan's economy recorded an average industrial
production growth rate of 3.5%,below the 4.0% average for the Asia-Pacific
region. In 2023, industrial production growth was -2.9%.
 PIDC (PAKISTAN INDUSTRIAL
DEVELOPMENT CORPORTION)
• INTRODUCTION:
• PIDC was created in 1952 as a statutory body, with the objective of setting up industrial base in the country. Its focus was
those sectors where the private sector was shy and where large amount of capital outlay with long gestation period was
required. The industries were mostly set up in backward and far-flung areas with a view to create employment
opportunities and to bring them at par with the main urban centres. The operational strategy was to set up projects on a
continuous basis and transfer them to the private sector after successful operation, which encouraged and involved private
sector in national development.

Within this mandate, PIDC established 94 Industrial Units during the period from 1952 to 1982 in the major sectors of
economy like Mining, Fertilizer, Cement, Automobile, Chemicals, Pharmaceutical, cotton & Textile, Ginning, and Sugar
etc. PIDC established 73 units in West Pakistan and 21 Units in East Pakistan. Out of 73 Units, 29 were established in
Punjab, 19 in Sindh, 17 in KPK (former NWFP) and 8 Units in Balochistan.

The Role of PIDC was redefined in 2004-05 as an “Industry facilitator” with the objective to act as a primary vehicle for
facilitating of industrialization, foster spirit of enterprise, facilitate entrepreneurs and to promote Industry through skill
development and provision of common facility centres to help private Sector in specific sectors through its wholly-owned
subsidiary companies. Its current focus is the development of Industrial Infrastructure and it is developing and managing
05 Special Economic Zones in Sindh and Punjab.