Industries of Pakistan - PapaCambridge

Pakistan Studies

Written And Compiled By Sir Hamza Mohammad Ali Page 1 03452833634

Industries of Pakistan

Industry:

The industry for satisfying human wants creates utility in the goods already produced by

nature which is term as farm utility. The industry exchanges the present utility or creates

economic volume in the commodities produced by the nature. The industry can be defined as “A

collective name of all those units or organizations in an economy which are engaged in

producing material goods.

Classification of Industries

1. Primary Industries:-

The extraction of raw materials e.g mining, forestry etc.

2. Secondary Industries:

Manufacturing industries which involve in the transformation of raw materials into semi

manufactured or manufactured products e.g steel works, car industry etc.

3. Tertiary Industries:

These are concerned with providing a service to customers e.g transport, relating etc.

4. Quaternary Industries:

These provide information and expertise e.g universities research and development.

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Secondary Industry as a system

Inputs Processes OutPuts

Capital e.g 1. Processed goods such as

Smelting Cement cotton yarn, ghee

Weaving lime sugar and wheat flavour

Enterprise Spinning Which may be row materials

Dyeing For other industries or said

Printing Directly

Land Knitting Soft drinks tinned fruit which

Stitching Are sold directly

Raw

material

Tanning 2. Manufactured goods which may

Raw materials for other industries

Such as bottles cotton cloth steel

Steels and wire may be raw

Material for ather industries or

Said directly to consumers

Axles, electric motors fan guards

Which entirely the raw

profit Reinvested

Materials for other industrial units 3 manufactured goods such as drugs fans, garments

motor cycle are final products sold directly to the people.

Heavy Industry:-

The large manufacturing units such as iron and steel, ship building etc which are engaged

in number of labours high capital tones of raw material etc.

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Light Industry:-

Industries manufacturing articles of relatively small bulk for direct use by consumers.

Factors affecting the location of a manufacturing unit

(Human, economic and natural factors)

1. Transport and communications:-

• Appropriate types are essential for some industrial goods e.g cylinders and tankers for

LNG.

• Specialist terminals at ports necessary for oil tankers for bringing the fuel to generate

electricity for industries.

• Transport is needed to carry the raw materials to the factory and the finished goods to the

market.

• The presence of a good transport net work will enable goods to be moved more quickly.

• Transport is usually more attractive to industry which are well connected than one’s

which are poorly.

• Industries will usually try to locate in areas where transport costs are low as possible in

orders to lower the total cost of production and maximise profit.

• e.g In Pakistan may factories are located near Karachi port.

2. Presence of skilled and unskilled pool of labor.

Adequate amount of workers with the appropriate skills makes possible production of

high quality goods.

Some industries such as textile manufacturing require many workers locate near densely

populated areas where labour is plentiful.

On the other hand industries which require labour with specific skills will need to best up

either in an area where such labor is available or in places where the labour pool can be

easily trained. e.g computer software industry in Karachi. Its locaton is strongly

influenced by the availability of expertise.

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3. Nearness to market:-

The presence of a ready market that is demand for the cut puts influences the location of

some industries. Industries which produce items which are brought frequently such as

drinks bread etc are usually located near population centres where the market is industries

which produce perishable goods such as dairy products and vegetables also tend to be

located near the market e.g vegetables are grown in malir and distributed in Karachi

market however technological.

Advancements in transport and refrigeration facilities have lessened the need for such

industries to be located near their markets.

4. Government:-

Can encourage the setting up and running of industries e.g reduction in tones.

The government may influence the location of industries by setting aside certain plots of

land for industrial location and development it may also prohibit the location of polluting

industries near residential areas like in Karachi, industries are set up in site area and

korangi away from residential areas. The government may also offer loans, tax exemption

to attract companies to set up industries in a country.

5. Capital:-

Adequate amount makes possible the provision of everything necessary to set up the

industry such as raw materials, machines and transport equipment.

6. Land:-

The availability of flat land is an import and factor influencing the location of an industry

such as steel mill, NRL etc. Its is generally easier and less costly to build industry on flat land.

The cost of constructing a plant affects the over all cost of production. In addition the availability

of land also allows for future expansion of the factory.

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7. Raw Material:-

Adequate amount at the right time and of the best quality allows minimum out put. The

nature of the raw materials influences the location of a manufacturing industry as the cost of

transporting then to the factory add to the total cost of production industries that use bulky raw

materials tend to be located near their source in order to minimize transport costs some raw

material suffer a weight less such as sugar cane. Transport cots are lower if the factory is located

near the source of the raw materials.

e.g several tons of lime stone is needed to make few tones of cement. The transport cost will be

lower if the factory is located near limestone deposits.

8. Power:-

Regular supplies essential to keep production going. Factories are usually set up in or

near urban areas (Karachi, Lahore) which are adequately supplied with electrical Power.

Types of goods

Capital goods consumer goods

Capital goods:-

Are those goods that are utilized to produce further goods e.g

Iron and steel industry

Heavy mechanical complex

Electronics and electrical industries

Consumer goods:-

Industry is that which produces goods to be consumed direct by ultimate consumed direct

by ultimate consumers end users e.g

Pharmaceutical Industries

Synthetic industries

Leather industries

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Raw materials

Primary resources

sustainable/renewable non renewable

timber fish water power agriculture power mineral

crops coal iron ore

cotton oil limestone

wheat gas chromite

fruit

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Secondary products

Processed Manufactured

Cotton yarn Cotton cloth

Wheat flour Engine

Wood Pulp Steel Coils

Role of industrialization in the economic development of the Country

1. Increase in national income

2. Higher standard of living

3. Economic stability

4. Improvement in balance of trade

5. Stimulates progress in other sectors

A development of one industry leads to the development and expansion of other

industries e.g the construction of milk processing plats add to its one of producing ice

creams.

6. Increase employment opportunities

7. Rise in agricultural production

8. Large scope for technological

9. Reduction in the rate of population granted

10. Increased saving and investment

11. Provision for defence

12. Increase in the government revenue

Causes of Industrial backwardness in Pakistan

1. Lack of Capital

2. Narrowness of market

3. Lack of Infrastructure facilities

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4. Lack of technical know how

5. Political Instability

6. Economic sanctions

Industrial Sickness:-

Industry which fails to generate an internal surplus on a continous basis and depends for its

survival upon frequent infusion of funds mostly from borrowings. An industrial units becomes

sick when its

a) capacity utilisation is less than 50% during the last 5yrs.

b) need of capital and machinery has been eroded by more than 50%.

c)the unit has remained close for a period of more than 6months.

CAUSES OF INDUSTRIAL SICKNESS

1. High taxation

2. Over valuation of the project

3. Break down of electricity

4. Shortage of raw material

5. Labor indiscipline

6. Wrong location

7. Lack of finance

8. Use of out dated machinery

Formal and Informal Sectors:-

The formal sector employees the permanent residents of a city (as opposed to the

informal sector i.e. those who migrate from rural areas on temporary / seasonal basis). The

Required level of education and skill is higher than that of the informal sector. The informal

sector attracts more of the migrants that come into the city. Usually they have no education and

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very few skills. They are unlikely to got regular or paid jobs and they need to great their own

jobs to survive.

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Comparison

Formal Sector

1. Employed by institution.

2. Capital intensive with few workers generally mechanized.

3. Regular working hours and certain wages.

4. Relatively guaranteed standard in quality of goods.

5. Work located in offices or factories.

6. legal and registered.

7. normally males.

Informal Sector

1. Self employment.

2. Labour intensive using mainly hand tools very few modem machines are used.

3. Regular working hours and uncertain wages.

4. Often low standard in quality of goods.

5. Work done at home or on the streets.

6. Often non-registered.

7. Mostly females and children.

Industrial Estates:

These are specific areas reserved for Industry only. They are established to help and encourage

entrepreneurs.

The Government Provides infrastructure facilities such as metalled roads, electricity, water, gas

hospitals and sanitation facilities.

The industrial estates can enjoy various incentives such as exemptions from custom duty on

imported machinery.

The private sector is also encouraged to established industrial estates in the country.

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Special Industrial Zones (SIZ)

A siz can be developed even in those areas where infrastructure facilities are not available.

The interested companies (local or foreign) would develop these facilities and provide utilities

for the zones.

These are assisted by the government agencies to provide public facilities e.g. telephone,

electricity, water supply method roads.

The investors are allowed to develop their residential, commercial and social facilities in the

vicinity of the industrial zone.

The government has also offered many incentives which include tax exemptions on import of

machinery, relaxation in foreign exchange control. Simplified procedures, tax holidays and

security.

Industrial estates and there advantage for development of industries in urban areas.

1. Local transport facilities

2. Power

3. Large pool of labour available

4. Services available

5. Ready market available.

6. Research and training centres available.

Why Industrial estates have been developed.

1. Local raw material is consumed

2. Foreign exchange saved learning

3. Provides employment

4. Economy stability.

5. To groom and strength the industrial base

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Export Processing Zones or Free Enterprise Zone

Export processing industries were given incentives to relocate through exemptions to relocate

through exemptions from taxes.

The EPZA was set up in 1980 with authority to plan, develop, manage and operate the EPZ’s

across the country.

It's first project was at Karachi, which was set up in 1981 on an area of 3300 acres.

All the infrastructure services like electricity gas water, telecommunication services were

provided to investors under simplified procedures called on window operations.

173 industrial units were approved by the beginning of 1997 for setting up various

manufacturing facilities ware houses, trading units, banks and insurance companies are working

at the KEPZ.

Employment has been provided directly to over 6000 workers.

An estimated 167.27 million dollars was invested in these units.

The main industries set up are garments leather good, electrical and electronics light engineering,

chemicals, paper products and fabric products.

The second EPZ was set up in Jan 1997 at Sialkot.

There is a joint venture between EPZ and the Punjab small industries corporation (PSIC) in

association with the Sialkot number of commercial and industries.

It is spend over 133 acres and is located in phase-III of PSIC’s industrial estate.

Dry Ports.

- Some in land cities, which are far from the seaports have established has dry ports

in order to promote foreign trade.

- The cities which act as dry ports help to speed up export and import procedures

e.g. by giving clearance by the custom authorities by checking processes etc.

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Reasons for establishing dry ports:-

1. To reduce the Warload at Karachi Port and Port Qasim in order to seek up the checking

and clearance of cargo.

2. To help the government in the smooth collection of revenue.

3. To reduce the pressure on exporters and importers by providing hassle free transportation

of cargo from their production point to the sea port directly.

4. To stimulate foreign trade activities in those cities which are far away from the seaport.

A dry port requires certain infrastructure facilities e.g.

1. Highly efficient rail transport with a container service to carry bulk cargo.

2. Efficient managerial staff.

3. Huge storage sheds and open areas.

4. Refrigeration facilities for perishable items like fruits, vegetables.

Problems:

1. Mismanagement

2. Same dry parts have been converted in smuggling dens by the custom officials who

helped importers to their consignment clear without paying duty and tax.

Dry Ports of Pakistan

1. Sialkot (Sanbrial)

2. Lahore

3. Multan

4. Faisalabad

5. Rawalpindi

6. Hyderabad

7. larkana

8. Quetta

9. Peshawar

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Functions of dry ports

Export Material Checking Clearance form

Seaport transportation storage

Export destination

Reasons for development of EPZ both for sea port and dry port

1. Concession in mark up an loans

2. Concession on custom’s duty and sales tax.

3. Labour is easily available (Skilled and unskilled)

4. Infrastructure facilities.

5. Power is available.

6. Raw material is easily available

7. Spare Parts and machinery parts are available

8. Land is available for establishment of new factories.

9. To increase the flow of exports

10. Improve standard of management.

Importance of T.C

1. Faster easier communication

2. Can contact other countries long distance communication

3. Internet conferencing better advertising

4. Ordering / Purchasing / Selling

5. Internet banking / transfer of funds

6. Find out what is required

7. Surfing the web / searching for goods or suppliers.

8. For better productivity

9. Supply / sales

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Importance of Infrastructure

1. Electricity for offices, factories, lighting power

2. Roads for transport of people and goods

3. Telephone for quick communication and better business.

4. Water for washing, cleaning etc

5. Gas for power heating

6. Hotels for tourism / visitors

Flow Industrial estates increase the Industrial production

1. Increase quality of goods.

2. Reliable power

3. Water supply / Sanitation

4. Roads, Railways to and from the estate

5. Govt incentives.

6. Opportunities for more technology, modernization and specialization.

Govt. encourage the development of industrial estate

1. Denationalisation

2. Set up PIDC

3. Encouraged foreign investment

4. Loans made available

5. Industrial development bank of Pak

6. Tax holidays.

7. Govt buys machinery and sells it cheaply.

8. Relaxed foreign exchange controls.

9. Protect new and infant industries

10. Provides infrastructure facilities i.e. water electricity and metalled roads.

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11. Dry ports / sea ports

How Govt attracts investors to develop Industries:

�� Industrial estates

�� Tax exemption on imported machinery

�� Less foreign exchange control

�� Tax holiday

�� Simplified procedures

�� Private Power stations

�� Better roads /rails / air ports

� Dry Ports for better security

� Consistent govt policies

�� Agencies to help investors provide infrastructure e.g. water, electricity telephones,

roads, social facilities near industrial zones.

How govt helps for exports

1. Marketing support

2. Identifies marketing opportunities abroad

3. Attend foreign trade fairs.

4. Ensure high standards of goods

5. Reduction of taxes to provide incentive to exporters

6. Loans made available i.e. ID Bank

7. Dry port facilities

8. Provide rail links to ports of Karachi

9. Improvement of road communication

10. Air port facilities

11. EPZ’s set up at Karachi / Sialkot

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Industrial Policy

1. Establishment of labour intensive industry so that the surplus labor force may be

observed.

2. To develop the economy in a manner so that it could reach the destination of self growth.

3. Enhancement in the production capacity and improvement in standard of production.

4. Increase in number of Industrial technician

5. Boosting high valve exports

6. On the machinery and plant imported for the development of key industries custom

duties were abolished.

7. Electronic goods cement and mineral industry was exempted from customs duty and

sales tax on the import of machinery and plant.

8. Streamlining of investment procedure and legal protection.

9. Incentives to Oversees Pakistan to invest in industries.

10. Foreign investment is welcomed and full protection has been guaranteed.

11. Pakistan industrial credit and investment corporation (PICIC) has been established as a

public limited company with the financial support of the state bank of Pakistan.

12. Poly technical industries, engineering colleges and universities are established to ensure

the availability of technical personnel.

13. Central testing laboratories to test the quality of goods imported and produced.

14. Foreign companies are welcomed but investors are to employ Pakistanis both in

administrative and technical positions and provide them training facilities.

Industrial policy and development depends open.

1. Availability of capital.

2. Managerial and technical skills

3. Technology

4. Infrastructure (roads, institution, water etc).

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Agro based Industries

Are those industries which have a backward linkage with the agricultural sector. The agro based

industries include rice, wheat milling gur and sugar making, cotton ginning, poultry, fish

processing, dairy products. The technology and skill required for the development of these

industries is not lacking what requires is the creation of a appropriate environment for the

development of these industries in rural areas. The agree industries are divided in six major parts.

1. Crops

The villagers can manufacturer a variety of products from husks of wheat and rice.

2. Non-Crops:

The wastes of certain fruits can be used for making pulp oil. The fruits can be dried and

their supply can be maintained through out the year in the local and international market.

3. Live Stock:

This industry is less capital intensive goats, sheep etc can easily be reared up by the small

formers dairy products can also be produced as they are in great demand all over the country.

The waste of animals can be used for making bio gas.

4. Fishery:

Fishing can be carried out deep into the sea for increasing the supply of fish both for

consumption at home and export.

5. Poultry:

Can provide an additional source of income to the formers

6. Edible Oil

The formers should consider sunflower and Soya bean as cash crops. If the production of

their seeds for extracting oil is carried on commercial basis it can earn a higher income.

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Cottage small scale Industries.

Cottage industries are those which are carried on in the home in which the owner himself works

and is helped by the family members but no hired labor is employed. The job may be whole time

or part time. No power is used and the implements used are very simple eg wood work hand

knotted carpets etc.

Small scale industries are those which employees less than 50 workers and does not use electric

power and uses. If they, use electric power they do not employ not more than 20. Therefore

assets do not exceed Rs.2 million to 10 million.

The cottage and small scale industry may be rural or urban. In rural areas carpet industry,

poultry, rice rusking, gur making bee keeping and small repairing workshops are popular cottage

and small scale industries.

Urban industries includes hand and power loans, manufacturing of sports goods leather goods,

embroidery, tailoring works, making of silver, gold ornaments furniture making, handicrafts,

carpets etc why it is important to encourage cottage and small scale industries.

1. These industries are labour intensive and provide employment to 80% of the

Industrial labour force. This reduces unemployment and offers opportunities for self

employment

2. Traditionally, women are not encouraged to work outside their homes. Industries like

carpet weaving,candle making and handicrafts can be gainfully employed. This

increases the active labour face.

3. These industries also meet the local demand for industrial goods and save foreign

exchange.

4. There is a demand for rugs, carpets, brass ware handicrafts and embroided work in

the international market. These goods provide 30% of the export receipts of the

manufacturing sector.

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5. When people are employed gainfully in villages, the migration of people from rural to

urban areas will be reduced. The acute problems of housing, sanitation, education

transport and health will be reduced in urban areas.

6. Many districts are under developed with the expansion of such industries, the regional

disparity in income can be reduced.

7. There industries make effective use of local row materials which also promotes

primary industries like agriculture and mining.

8. These does not require much capital and high technology.

9. These do not use much imported material or equipment.

10. The wastes of large scale industries particularly the cotton, sugar and steel industries,

can be used to make by products.

Difference between these industries in urban and rural areas.

Rural areas:

1. Lack of facilities and earning.

2. Cannot promote goods on higher scale

3. Transportation problems.

4. labour problem can’t employ outsiders

5. Services within the areas

6. Raw material

URBAN AREAS:

1. Availability of resources

2. Good market and selling facilities

3. No labour problem

4. Serve higher areas

Importance of these industries in rural areas

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- rural areas are the neglected areas of our country

- There is a lack of opportunities in the rural areas and people lend to migrate

towards the urban areas.

- Trend of rural urban migration will reduce because employment opportunities will

be provided in their areas thus the rate of migration will reduce.

- Women will be a part of active labour force.

Advantages:

1. Employment potential

2. Employment of women

3. Use of industrial waste

4. Source of foreign exchange earnings.

5. Extension of home market

6. Balanced growth

7. Reduction of rural migration

8. Quick yielding

9. Little burden an imports

Problems

1. Financial constraints

2. Use of out dated machinery

3. lack of standardization

4. Shortage of trained and technical persons

5. Lack of marketing facilities

6. Irregular and inadequate supply of electricity

7. Short supply of raw material

8. Lack of infrastructure

9. lack of storing facilities

10. They are mostly unregistered.

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Government policy towards small scale and cottage industries

- The government of Pakistan has taken various measures for the development of

these industries.

- At present the growth and expansion of small scale industries is the responsibility

of the princes.

- Each province has set up its own small industries corporation board. These are

Punjab small Industries Corporation (PSK) Sindh Small Industries Corporation

(SSIC) Small Industries Development Board NWFP (SIDB) Directorate of Small

Industries Balochistan (DSIB)

- The Government of Pakistan has created another authority: SMEDA small and

medium enterprises development authority in act 1998.

- This Authority is to provide and facilitate support prices generate greater

employment opportunities and drive industrial growth.

- The main measures which have been adopted for production and popularizing the

products of these Industries are as follows.

- Industrial Estates.

- Providing marketing facilities

- Technical Services

- Handicraft Development Centres

- Carpet Centres

- Advisory Services

- Financial Assistance providing loans on easy installments.

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SOLUTIONS:

• If these industries is to be developed in rural and urban areas. We shall have to use new

machinery latest methods of production, research on new designs etc.

• The people are unable to go abroad and find market to sell the products.

• The government should provide the type of handicrafts demanded in the international

market.

• The import of machinery used for the production of goods on small scale should be

allowed under personal baggage scheme.

• The government should also grant scholarships for industrial education.

Areas and types of Products

Sialkot:

Sports goods, surgeries instruments, cutlery

Gujranwala

Electric fans

Rawalpindi

Embroidered feet wear

Gujrat

Electric fans, curved, wooden brass

Lahore surgical instruments, electric fans

Embroidery foot wear

Multan

Embroidered foot ware, engineering

Peshawar

Carved wooden, brass embroidered foot wear

Hand loom, wool spinning

D.G. Khan

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Carved wooden, brass

Types of Industries

Industrial uses of Water

Water is required almost in all the industries

In some industries it is the raw material cooling and washing purpose

Some of the industries which use water are:

1. Thermal power station to generate electricity by stem

2. Hydro electric power static’s to generate electricity

3. Iran and steel to cool down furnaces

4. Pharmaceutical for injections and syrups

5. Textile for washing and dyeing

6. Chemical industry for chemicals and solutions

7. Food Processing for beverages

8. Tanning for washing and dyeing

In areas where the rainfall is relatively high or where there are large rivers, access to water

resources is fairly easy

Places like Peshawar, Lahore, Faisalabad etc have adequate water for industrial uses

Industries located in low-rainfall areas like sindh and Balochistan, that are also for away from

major rivers, suffer from water

Example of Karachi

Karachi is the largest industrial centre and its requires massive quantities of water

The water supplied through Pipes is insufficient to meet industries needs.

A large quantity of water has to be supplied by tankers which operator throughout the day

Water shortages continue to affect productivity

Some of the industrial plants near the malir and lyari rivers have bared wells in to the river bed.

Although the initially topped water was sweet, it has become.

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A number of Industries have to instead desalination plants which have added to the cost of

Production. Pakistan steel does not suffer water shortages become it is supplied by the KWB..

The Noariabad hub Industrial Estate

The Noariabad state is located 90 km north of Karachi or the way to Hyderabad.

It was established in 1983.

Initially a number of tube wells were installed were installed in kundi nadi but the water

obstained from this source is still inadequate.

As a result only 70 out of k 100 industries that were planned for the estate have been developed.

50% have already closed down

Hub Industrial Estate was established in 1981.

1200 industries were planned for the estate.

Out of there 170 have been installed.

105 industries were closed down.

Although the estate is supplied by water through the has down which is rot sufficient.

A large quantity of water is supplied to the estate through tankers for Karachi even this is

insufficient, time consuming and costly.

Industrial development

In general the industrial development of Pakistan be divided into three period.

Period of rapid industrial growth 1948-71

1. The period from 1947 to 1971 is one of rapid industrial growth in Pakistan though the growth

rate was not uniform throughout the of period.

2. The entrepreneurs who migrated from India had adequate managerial skill and financial

resources

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3. A ready home market existed.

4. The raw materials was available locally and the foreign exchanged earned by the businessman

during Korean war made it possible to develop consumer goods industries like cotton textile,

sugar, cement etc an a large scale.

5. The second five years plan.

6. The third five year plan.

The allocation for industrial development was doubled.

Emphasis was shifted from consumer to capital goods

The planet with difficulties in the very first year was broke out with India and funds had to be

diverted for defence USA the main donar suspended aid later political disturbances adversely

affected the economic development of the country In spite of these difficulties the pace of

industrial development continued though at a slower rate.

Period Of Slow Growth 1972 – 77

Industrial development in Pakistan greatly suffered because of Internal and external forces.

1. Separation of Bangladesh

2. Nation action of Industries

3. The uncorporate policies of the government reduced the of investment in the private

sector.

4. Foreign in skills were also reluctant to invest

Period of fluctuating growth 1977 onwards

1. Denationalization of industries

2. Private sectors were given incentives.

3. Foreign investors were invited and provided

many facilities.

4. Modernization of existing plants

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5. Establishments of few new projects.

Cotton Textile industry

Cotton textiles is Pakistan’s largest industry it provides employments to 50% of the Industrial

labour force. It has been developed at various locations. Karachi, Hyderabad and Faisalabad are

the main centres.

Processes of Cotton Mills

1. Ginning: It is the process by which cotton seeds are separated from cotton and then it is

compressed into bales.

2. Spinning: It is the process by which thread or yarn is made from raw cotton.

3. Weaving:

It is the process by which cloth is made from yarn.

Fibres from plants (flex, cotton) are first SP into thread. Threads are arranged

length wise on a loom. These are the warp other threads the weft are then wave

cross wise through the warp this weaving of threads makes the cloth.

Location of cotton textile industries

1. Karachi possesses on infrastructure that is not available in other regions.

2. histrocial advantage of Karachi as an industrial city.

3. Cotton graving area in Indust valley of mid-sindh accessible.

4. Major roads from cotton growing areas

5. Railways from cotton growing areas.

6. Higher humidity assists cotton industry

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7. Electricity from national grid / nearby power stations like korangi thermal plant Kanup

and Bin Qasim thermal plant

8. imported machinery can be received at Karachi without additional transportation cost

9. large post of labours which pours into Karachi

10. Largest commercial and financial centre

11. Research and educational in states present to trained skill and technical person.

Disadvantages

1. Karachi is not located near the cotton producing areas, so raw material has to be

transported to the mills and factories from up country

2. shortage of water supply

Faisalabad Advantages

1. It is located in central Punjab and has the advantage of being in the cotton producing

areas.

2. Cotton does not need to be transported over long distance so it saves transportation cost.

3. Infrastructure facilities are present

4. Most thickly populated region of the country so there is a large peel of Karachi.

5. Favourable government policies ect.

Disadvantage

Far From the part for export of finished products and for import of machinery.

Hyderabad Advantage

1. Located in the cotton Producing areas of lower sindh.

2. Large local market

3. Not far from the port of Karachi for importing machinery and exporting products.

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4. Infrastructure available

Other centers

1. To tap the local / Domestic market and to serve the local market

2. To take the advantage of tax holiday and other incentives given by the Government e.g

N. Punjab, NWFP, Quetta, Rawalpindi, Peshawar etc

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Written And Compiled By Sir Hamza Mohammad Ali Page 30

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Advantage Of Exporting Cotton Textile Then Raw Cotton 1. Value of raw cotton is very low then manufactured cotton products in international

market.

2. Cotton produced in our country is directly consumed and also fulfills the demand in

international market thus earns a good foreign market.

3. Provides employment to skilled and unskilled labor.

4. As foreign exchange would increase process of industrialization would speedup.

Problems of Fluctuation of the Cotton Textile Industry.

1. Crop can be some time affected by leaf virus, disease, fly attacks and flood so den

material for Industry.

2. Machinery is old and obsolete.

3. Shortage of technical hands.

4. Financial liability and pear liquidity.

5. Recession in the international market.

6. Lack of International standards and strong competition with Egypt’s Korea Thailand,

Taiwan, Hongkong.

Government Policies and measures to reactivate textile Industry

1. Excise duty an cotton yarn and other cotton products except cotton cloth has been

finished

2. Custom duty on new imported machinery has been abolished

3. Financial assistance.

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The Manufacturing of Cotton Fabric Loam is used for weaving fabric After the weaving is complete, the fabric is taken to the checking department where it is checked and mended if necessary. After the fabric has been woven and checked thoroughly. It is folded by the folding machines.

Sugar Industry � It is the second most important among all the manufacturing industries.

� Any cut in the yield of Sugar cane caused by adverse climate (floods), disease or pest

attack.

� Payment to the farmers is done very late which is a disincentive to sugar cane

cultivations and prices also cause fluctuation in amount of Sugar cane available.

� Pakistan produces Sugar cane in the large quantity but local per hectare production is

comparatively low.

� Sucrose proportion is less

� Due to less sucrose preparation cost of sugar production is high.

� Sucrose proportion in sugar cane produced in Pakistan is form 8% to 9%.

Sucrose:a complex carbohydrate found in many plants and used as a sweetening agent

Location of Industry 1. Availability of Sugar cane at the form because sugar cane is a product which starts to

lose weight soon after it is harvested therefore it must be crushed as soon as possible

after harvesting.

2. Sucrose proportion.

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By Products and Uses 1. Bogasse is used to turn the mills to place of fuel, making of chip boards paper and

animal feed.

2. Molasses. The quantity of molasses is about 4% of the sugarcane crushed. This can well

be utilized to produce various types of acids. Ethylene is another product which can be

obtained and turned into various types of packing plastics. Molasses can thus be used as

a base for the chemical Industry.

Sugar Production Capacity There were 66 mills in 92-93, 70 mills in 95-96 and 78 mills in 99-2000. The climate of sindh is more suitable for the crop then that of Punjab because sucrose proportion in sindh sugar can is higher than of Punjab the same is the reason due to which the new sugar plants re being setup in sindh. Cane Crushing 40% to 50% of total quantity of Sugar cane is made available to the sugar mills for crushing purposes while 5% is used as is used as cattle feed and remaining 55% is utilized for making desi sugar and gur. Demand As the urbanization is increasing the people are using more sugar. The rural population is also switching over from Desi Sugar or gur to defined sugar more over the demand for sugar has also increased in Pakistan due to the development of pharmaceutical Industry because it is used as one of the most important the demsnd for sugar is more than its production therefore sugar is imported to fill the negative gap between demand and supply if this negative gap is not filled a substantial amount of foreign exchange will have to be consumed on sugar import.

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Solutions 1. Increase the yield of Sugar cane

2. More mulls should be established

3. De zoning of sugar mills.

According to this system of zoning the sugar cane growers were bound to sell their sugar cane only to the sugermills of their own areas now all the growers are free to sell to those mills which could pay them reasonable and beter prices wheather the mills are situated in their own areas or not.

Iron and Steel Industry The people of Pakistan started hoping and dreaming of their own steel mill in the early 1950’s

1. We lack natural resources.

2. We lack infrastructure, trained men power and managerial talent to manage a steel

complete.

3. Steel is abundant in the world and can be imported.

4. We are agricultural country and should concentrate on development of agriculture only.

The Pakistan Steel Mill Corporation The Pakistan Steel mill Corporations with technical and financial assistance from the USSR, was established on December 30, 1973 at Pipri. It is located about 40km east of Karachi on Gharo Greek near Port Qasim. The raw materials for steel mill are iron are manganese and closing coal and area imported from foreign countries Iran are is in posted from Australia Brazil and Canada Coking coal from Australia Pakistan Steel Provides row materials to the engineering and construction industries. The products of Steel mills are Pig Iron, rolled and cost billets, galvanized products, row steel hot rolled sheets cold rolled sheets and Trig Iron.

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Impact on National Economy 1. Development of Construction Capability

The mill has increased the capability of massive Civil works installation of

electrical and mechanical equipments.

2. Assimilation of Knowledge

Pakistani engineers have started gaining expertise in the field of manufacturing

of steel.

3. Employment opportunities.

Pakistan Steel has provided tabs to 20,000 persons for construction work.

4. Import Substitution.

The Products of Steel mill saves foreign exchange.

5. Effects an agriculture.

The production of there shores tractors and other agricultural implements have

new been made easy.

Location of Industry

1. Site:

Flat, Cheap, unused land was available next to gharo creek at pipri.

2. Natural Routs:

Port Qasim has a natural harbor that facilities import and exports.

3. Capital:

The former USSR provided economic assistance in the form of technology and

capital.

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4. Raw Materials:

Iron are, manganese and most of the coking coal is imported through nearby

Port Qasim. Iime-stone-needed as flux is brought by road from the Makli Hills

near Thatta large quantities of water are required in the process of making steel,

it is brought from lake haleji 50 kms to the east.

5. Energy:

Port Qasim and Karachi have the highest electricity by generating capacity in the

country Pipri thermal Power Station produces 21% and Korangi Thermal Power

station preduces 15% of the total thermal energy preduced. In addition Karachi

has a Nuclear Station.

6. Labour:

Skilled and unskilled labour is available locally from Karachi.

7. Markets:

Many industries that use steel products are located in Karachi. It also supplies

cold rolled Sheets, galvanized sheets, pig iron and to other parts of the country.

Over half of the steal produced is used in Punjab.

8. Transport:

Pipri Connected to the main Karachi-Kotri railway. Metalled roads also connect

this area to the main road system.

Other Steel Complexes in the Country. 1. Pakistan Machine tool factory.

Location: Karachi in 1968 collaboration with Swiss company.

Products: Machines and tools for the engineering industry, transmission.

Components and automotive parts.

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2. Heavy Mechanical Complex.

Location: Taxila in 1979 with Chinese assistance.

Products: Industrial Plants and machinery, equipment for hydro.electric

power plants, thermal power plants, oil and gas processing plants petro chemical

plants, boilers, cranes steel structures, railway equipment road rollers.

Machinery of sugar mills.

3. Heavy foundry and forge:

Location: Taxila

Products: Railway Parts, automobiles, heavy machinery.

iii) Why Has the fertilizers, Industry grown in recent years. {5} • Reclaimed deserts such as thal, cholistan desert the soils larked organic nuterients.

• The need of farmers because they has been farmed for a very long time and hence

nutrients have been used up by crops a long time ago unless replenished by flood.

• Continous cropping / multicropping exhaust the soil nutrient.

• Use of Hyvs are very demanding on soils and hence the need for chemical fertilizers.

• Pakistan has an agro based economy in order to increase production chemical fertilizers

are required.

• Government has played its part and giving different in vertices to the industries .

(B) Fig3 shows the main types of industry on the Quaid-e-Azam Industrial Estate. (i) Name the Three Types of Industry with the most factories. Dyeing /Printing Engineering Pharmaceutical. All Three needed to score /mark

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(ii) To which type of industry shown on Fig 3 does each of the following belong

1-yummy Icecream Nyle Tyres Caravel refrigerators.

1. Foods (beverages)

2. Auto parts / rubber

3. Engineering

(iii) What are the advantages forth industries on the Quaid-e-Azam Industrial estate of being situated city like Lahore.

• Financial centre / attracts investors /entrepreneurs.

• Large / Unskilled labour force .

• Cheap labour

• Skilled labour available at university / college

• Water (from mains)

• On national electricity grid / electricity available

• Has natural gas Pipeline.

• Servicing industries /Component industries focus / network of communications / served

by (any 2 from) roads and railways and air.

• Dry port / has international links / Air port.

• Large market

How the city briefest flat / power /easy to transport goods / good infrastructure. 3 (c) How hare the national and provincial government of Pakistan encouraged the development of in dushe states

• Denationatisation

• Setup PIDC / Provincial Equivalents.

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• Encouraged Foreign Investment.

• Loans Made available.

• Industrial development Banks of Pakistan

• Land made available

• Incentives.

• Government boys machinery and sets it cheaply.

• Relaxed foreign exchange controls.

• Protects new / infant industries

• Provides infrastructure facilities

• Water, Electricity Supply, metalled rads.

• Dry port (inland cities) port Karachi facilities available.

Power / training staff / Hospitals / Schools.

iii) What according to the article, is a problem for the further growth of the T.V assesmbling industry. Explain why this is a problem Smuggling Firms lose money Less money for investing in new Plant / machinery Cannot afford to pay skilled workers. Cannot compete with foreign competition Loss of market / exports May lead to factory closure c) Why is the government keen to increase the export of engineering goods [5] High value goods for export May of Pak’s exports are low in value Helps build up economy Decreases import (of these items) Pak has a serious – ve balance of payments

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Foreign exchange needed (in order) to afford / buy in modern industrial Machinery / petroleum / etc To pay off debt Provide more jobs Needed for rapidly growing pop Etc 0= promotes better relations abroad / good name / world - wide demand / increase standard of living. (ii) Why is Karachi such an important industrial city in Pakistan [8] Established by British Foreign investment Rich Pakistan / Muslims refugees from India live there and have invested in industry Financial centre of Pak Govt incentives / encouragement Development of SITE / Korangi Karachi EPZ Industrial area at plot Qasim Tax holidays / some customs duties waived Terminus of rail net work of Pak Terminus of road work of Pak Flat land Major sea ports i.e Kemari and port Qasim Import raw materials / machinery Having factory in Karachi saves on further transport costs. International air port. Power / electricity available from Nuclear Thermal power station i.e Korangi, Pipri Largest city of Pak numerous workers Huge market Universities / colleges Skilled workers / management available (v) At sugar mills the milling season lasts only 160 days what problems does this caves and how might they be over come. [4] Problems Seasonal employment / unemployment for rest of year skilled workers may be lost to other industries permanently / shortage of labour. Inn efficient use of machinery/mill Machinery deteriorates with lack of use As closing date approaches farmers may be forced to sell at low prices. Solutions Casual labourers migrate to other employment / work in cottage industries.

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Many workers are poor farmers who return to their farms with the extra income earned. Develop industries using the by products Bagasse can be used for chip board / particle boards paper / animal feed. Molasses can be used for ethylene / packaging plastics Offer incentives to keep / attract labour. B (i) Explain why Karachi is the largest cotton textile manufacturing centre in Pakistan [4] Historical advantage of Karachi as an industrial city Capital available from investors / foreign investors / refugees from india. Cotton growing area in Indus valley of mid-sindh accessible major roads from cotton growing area. Railways from cotton growing areas Higher humidity assists cotton industry. Electricity from national gird / near by power stations Imported machinery enters Pak through the port Close to port for exports. Attracts labour Pak’s major financial centre Largest city therefore large domestic market Close to sea port for export Govt developed EPZ (ii) Tow of the three main cotton textile manufacturing centres of Pak are situated with in areas grown cotton. Name one of these centres [1]

Faisalabad, Hyderabad

Industries Nov, 2000

Q4. (a) Study the graph Eig 4 showing cotton yard and cotton cloth production in Pakistan b/w 1948 and 1944. (i) Describe the Trends shown in the production of cotton yarn from 1948 to 1994 [3] Increased rapidly until 1972/5 Increased more slowly 1972/5 to 1981/3 Hasfallen sharply since 1981/3 (ii) Explain the changes in the amount of cotton cloth produced from 1948 to 1994 [6]

Rapid increase 1948 to 1972/3 due to Rapidly increasing POP / increasing domestic market Investment by muslim refugees from Indian territory Govt encouragement / fast role of Industrialization Import of foreign looms encouraged / permitted

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Increased production of raw cotton / yarn Drive to process cotton rather than export raw cotton More money gained from exporting cloth than raw cotton Increasing demand from abroad

Decline 1972/3 to 1982/3 due to

Nationalization led to inefficiency / lack of investment Loss of Bangladesh / after effects of 65 – 71 war with India Machinery became old / absolute Replacement of parts costly Many looms not working Shortage of skilled workers Labour problems High cost of power Lack of entrepreneurial interest Fall in production of raw cotton by floods etc

Increase since 1982/3 due to

Govt has taken steps to ensure problems are addressed Private sector encouraged to tet involved again Rapid growth in small units Exempted from excise duty Power looms are made locally

INDUSTRIES Questions 1. Define the term secondary industry 2. Define what is meant by processing and manufacturing industries . 3. What is meant by enterprise and industrial raw material 4. State the factors for industrial location 5. With the help of examples name the industrial raw materials used in Pakistan 6. Describe three ways in which raw cotton and sugar cane are used as industrial raw materials 7. Name the main natural raw materials produced in Pakistan 8. Why power is important for industries and name the types of power used in different industries. 9. Name the industrial raw materials imported by Pakistan. 10. Name the types of labour required by industrias 11. What does the term infrastructure means 12. With reference to examples describe the features of the following industries.

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1. Small scale or craft industry 2. Small and medium scale factory 3. Large scale factory industry 13. Name the processes in a cotton industry and define these processes 14. Name the province which has the largest ginning factories 15. Name three large cotton textile industry centres of Pakistan 16. On the map of Pakistan mark the location of cotton textile centres of Pakistan and describe their distribution. 17. Explain why Karachi is the largest cotton textile center of Pakistan 18. Name the out puts of cotton textile industries 19. Name an important product of the power looms and name the countries to which this product is to which this product is exported 20. Why the exports of the named product from power looms has not increased 21. Name the products of hosiery industry. 22. How may a cotton textile factory in Karachi be affected by July floods in the Punjab 23. How and why may the economy of an area by affected by flooding 24. State the function of a loom 25. Describe the problems of the cotton textile industry. 26. Describe the processes of sugar industry. 27. Explain why sugar industry is called a material oriented industry. 28. On the map mark the sugar industries and describe their distribution 29. Name the by products of sugar industry and describe their uses 30. Which province has the larges number of sugar mills. 31. State the inputs required by a processing factory such as sugar mill. 32. Select a sugar mill at one of the following location from NWFP and explain how its inputs needs are satisfied. 33. At sugar mills the milling season lasts only 160 days what problems does this cause and how might they be over come. 34. Explain why Pakistan is not self sufficient in sugar. 35. In which year the production of chemical fertilizers began in Pakistan. 36. Name the corporation which established the chemical fertilizer industries and state there location. 37. Name the type of fertilizers used in Pakistan and what is the reason for this. 38. Name the raw materials which are used to make different types of fertilizers. 39. On the map mark the fertilizer industries and describe their distribution. 40. Why has the fertilizer industry grown in recent years. 41. How has the Govt tried to encourage the use of chemical fertilizers. 42. Why cement industry is located closed to the source. 43. Name the steel industry located in the south of Pakistan and state its location 44. Name the products of steel mill 45. Name the steel industry located in the North of Pakistan and state its location.

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46. Name the products of HMC. 47. Explain the factors for the location of Pakistan steel mill. 48. Name the raw materials required for PSM. 49. What are industrial estates. 50. Name the infrastructure facilities at industrial estates. 51. Name the province which has he largest number of industrial estates. 52. Explain what are special industrial zones. 53. With the help of example explain what are dry ports and EPZ and why they have been developed. 54. What are the different infrastructure facilities required by a dry port. 55. Describe how does a dry port function. 56. With the help of examples when was rural industrial estates project was announced and why they were developed. 57. Name the areas where special industrial zones were established. 58. Name the large scale industries established by PIDC. 59. Describe the incentives offered to the private sector by the government. 60. In which year was nationalization of industries took place. 61. What was the effect of nationalization of the economy of Pakistan. 62. Name the industries which were nationalized. 63. In which year was denationalization of industries took place. 64. What were the objectives of privatization. 65. In which year was privatization commission established. 66. Describe the difference between formal and informal sectors. 67. Define with the help of examples small scale and cottage industries. 68. Why it is important to encourage cottage and small scale industries. 69. Explain the advantages of establishing cottage and small scale industries. 70. State the names and described the difference between cottage and small scale industries and state their areas of location. 71. On the map of Pakistan mark / locate these industries. 72. Explain the problems of these industries. 73. What are the advantages for the industries on the Quaid-e-Azam industrial estate of being situated in a major city like Lahore. 74. How have the national and provincial Govt of Pakistan encouraged the development of industrial estates. 75. Explain the importance of cottage industries to village life in Pakistan. 76. Why is the Govt keen to increase the export of engineering goods. 77. Most of Pakistan’s factories are in the small scale manufacturing sector how has the Govt helped the development of these industries. 78. How does the Govt attract local and foreign investors to develop industries in Pakistan. 79. Define pollution. 80. State the names of different types of pollutions.

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81. Describe with the help of examples what are stationary and unstationary sources of pollution. 82. Describe how fuel companies add pollution into the environment and what are its effects. 83. Explain Fig 9.37 Huma. 84. How mangrove forests are affected by water Pollution. 85. Explain has industrial pollution affect the people. 86. Explain how industrial pollution can be controlled. 87. With the help of examples define tertiary industry. 88. Define tourism. 89. State and describe types of tourists in Pakistan. 90. In which year Pakistan became a member of the international union of official travel organizations. 91. Which organization was responsible for tourism before 1964. 92. Which authority was made responsible for tourism in 1964. 93. Which corporation was set up in 1970 for tourism. 94. State the factors for the development of tourism in Pakistan. 95. Name the three main groups of international visitors to Pakistan. 96. Explain why visitors come to Pakistan on business and name the countries from which they come. 97. Describe the range of accommodations and communication available for these tourist. 98. Name the countries from which people come to visit their families and explain their trends from 1980’s till recent year. 99. Explain why Foreign tourists who visit Pakistan for recreational purposes are few in number and describe the range of accommodations available for them 100. Name the countries from which tourist came to Pakistan. 101. Name the country which is the main source of visitors to Pakistan. 102. Other than U.K name three other countries which are the main source of visitors to Pakistan. 103. Name in order of overseas visitors coming into Pakistan. 104. Name the Main cities to which most of the overseas visitors come. 105. Why is the number fo domestic tourists in Pakistan increasing.

106. Name in descending order the modes of transportation which are used by the

domestic tourists and what is the average length of their stay.

Documents

Industries of Pakistan - PapaCambridge