Briefly explain what measures can be taken to improve the industrial sector of Pakistan. 3) Saving and investment should be increased to develop industrial sector. Rapid industrialization is considered by the economic exports as the sovereign remedy to put our economy on a sound basis. Industry is an important sector of Pakistan next to agriculture. There has to be a concentrated effort to bolster the limping industrial sector. Below are some of the steps that government has already taken for the growth, development and advancement of industrial sector in the country. Controversial Industrial development strategies. Increase in National Income: Industrial sector also contributes in gross domestic product (GDP) of country According to year 2004-05 the contribution of industrial sector in GDP is 18.3 Percent. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Pakistan cannot achieve robust overall growth without a boost to its agricultural and rural productivity and incomes, the authors write. Industrial sector has an important contribution in the economy of Pakistan. Natural Resources of Pakistan – CSS Notes. Labors in some industries go on strikes frequently when their demands are not fulfilled. All Rights Reserved. Confused Cabinet: Government in Pakistan is also sometimes seemed confused because of different interests of each member of the cabinet. Unfortunately the government of Pakistan has yet not decided whether her economy be industrial or agricultural in nature. Increase in National Income: Industrial sector also contributes in gross domestic product (GDP) of country According to year 2004-05 the contribution of industrial sector in GDP is 18.3 Percent. Privatization Program: To improve the performance of some of the important industries in the country the government has also launched privatization program. Problems Of Industrial Labors: Though industrial labor class in Pakistan has many problems and in some industries they have not even access to basic rights but they are also a major cause of low industrial production. Formulation Of Vibrant Policies: Vibrant policies should be formulated both for the development and commercialization of industrial product and goods of Pakistan. Technology is an important factor for economic development of a country. If you continue browsing the site, you agree to the use of cookies on this website. Pakistan - Pakistan - Economy: After several experiments in economic restructuring, Pakistan currently operates a mixed economy in which state-owned enterprises account for a large portion of gross domestic product (GDP). If you continue browsing the site, you agree to the use of cookies on this website. It means when a country’s exports are less than her imports. Lenient Policy Of Credits: The government has also adopted lenient policy in giving loans and credits to industrial sector in the country. The large-scale manufacturing sector of Pakistan included a handful of industrial units such as textiles, cement, sugar, tea blending and vegetable ghee in … In 1958, a military government of Ayub came into power in Pakistan and announces a new industrial policy in 1959. importance of industrial sector in Pakistan. Some of the major problems that Industrial sector in Pakistan is facing are given below. Technical Incapability: Industrial sector of Pakistan is also facing the problem of technical incapability. The following measures are suggested to improve industrial sector of Pakistan: 1) More allocation of funds for industrial research is required, which is necessary, for the industrial development. The government is privatizing large-scale parastatal units, and the public sector accounts for a shrinking proportion of industrial output, while growth in overall industrial output (including the private sector) has accelerated. ISLAMABAD: The industrial sector grew 5.02 per cent in the outgoing fiscal year as opposed to the growth rate of 5.8pc recorded a year ago, according to Economic Survey 2016-17 released on Thursday. This phase witnessed the massive industrial growth in the country. https://www.slideshare.net/farazishaque/industrial-sector-of-pakistan Clipping is a handy way to collect important slides you want to go back to later. GDP and living standard of people will improve. It is the second largest source of foreign exchange earnings. Industrial sector of Pakistan situation issues and solutions. Industrial Production in Pakistan averaged 4.57 percent from 1990 until 2020, reaching an all time high of 35.15 percent in April of 1991 and a record low of -42.03 percent in April of 2020. Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic Development. It is a major source of consumer goods and employment in the country and accounts for almost 20 per cent of the country’s annual Gross Domestic Products (GDP). In simple words when a country imports more than exports, it is said trade deficit. Most of the present economic problems in Pakistan are ultimately linked to the slow pace of industrial development. I am student of Industrial Engineering and Management, this article boosts great length for my kind of technology, it gives me full insight about the condition and upright of the industrial sectors of this country. With the need for energy growing daily, the sector is experiencing massive demand. Cotton and cotton based products are Pakistan’s largest source of export earnings. This will help in the development of industrial sector in the country. Poor Commercialization Policy: Most of our industrial goods do not make to international markets. Overcome Trade Deficit: Meaningful steps should also be taken to overcome trade deficit and increase our exports. Government Policies: Industrial sector growth depends upon government policies. The importance of industrial sector for Pakistan can be understood from the following facts. Is CPEC Really A Game Changer For Pakistan? Major problems faced by industrial sector in Pakistan. 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. Another reason is country’s incapability to manufacture intermediate goods of some important industries such as mobile phones, computers, cars and railway engines and so on. Now customize the name of a clipboard to store your clips. British Biased Policies: British Government in India before partition due to their biased behavior towards Muslims of the Subcontinent intentionally avoided the construction and development of industries in Muslims majority areas. Challenge faced by industrial sector of Pakistan. All the developed and under developed countries are now making efforts to install improved technology in all sectors of economy agriculture, industry, transport, banking, health, education etc. It contributes 20 per cent to country’s annual Gross Domestic Product according to The Nation news paper July 2019 report. Cotton textile production is the single most important industry, accounting for about 19 percent of large-scale industrial employment. According to Statista 2019 report industrial sector in Pakistan consumes about 25 per cent work force in the country. This industrial policy emphasis on private sector and the development of agro-based industries. How the country has groomed into this arena and how has it affected the neighbouring states like China and Iran to invest in Pakistan. The state of any country’s economic growth and development generally heavily relies on the strength of its infrastructure, whether that is in its energy, telecommunications, water and sanitation, transport or education sector.. After the 1947 partition of British India, the development of infrastructure in Pakistan grew and has made steady progress in the last five decades. Flaws in Disaster Management Framework in Pakistan. Our industries also lack the capability to bring new ideas and manufacture goods that world have never seen before. 1. The need of the moment is to invest in gradually moving Pakistan away from an industrial base to a service based economy. Lack Of Political Will: One of the major causes is the lack of political will of government and its ministers to take important steps for the development of industrial sector in the country. Due to this confusion the government is unable to formulate flexible policies for the growth and development of industries in the country. It accounts for about 61 per cent of country’s export earnings. Energy Sector: Energy sector is one of the important industries to invest in Pakistan. One of the major reasons of Pakistan trade deficit is her failure to generate demand of her industrial products in the international markets. This means two things; Lack Of Capital: Industries in Pakistan also lack enough capital in the shape of money that can be used to expand and developed the industry. The export-orientation and import-substitution effects of industrialization help to improve the balance of payments. In government unfortunately personal interests superseded national interest. 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