CLASS LECTURES

“IndustrIal development”

INTRODUCTION:
Industry can be defined as a place where Raw Materials are converted into processed,
semi – processed or manufactured products. However, it can also be defined as any work
which affects the GDP or GNP of the country.
An industry can be classified into three categories.

Classification of industries:

PRIMARY INDUSTRY:
These industries are involved in the extraction of raw materials directly from the earth.
These extractions results in raw materials and basic food. For example: Mining, Farming
/ Agriculture, Fishing, Forestry etc.

SECONDARY INDUSTRY:
These industries are involved in the transformation of raw materials into goods. This
transformation results in wood being made into furniture, steel into cars or textiles being
made into clothes, as examples. The types of workers in this sector include skilled and
unskilled workers both.

The development into this sector can be attributed to demand for more goods and food,
which leads to industrialization. Only when the raw material is in abundance since these
industries are heavily dependent upon Primary Industries. For example: Auto Industry,
Furniture Industry, Sugar Industry, Carpet Making etc.

TERTIARY INDUSTRY:
The tertiary sector involves the supplying of services to consumers and businesses. This
sector provides services to the general population and business, including retail, sales,
transportation and restaurants. For example: Police, Banking, IT (Information
Technology) Sector etc.

Class Lectures (Industrial Development)

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TYPES OF INDUSTRIES

Formal Industry Informal Industry

 Proper infrastructure
 Proper facility of utilities like  No or little infrastructure
water, electricity and gas  Temporary facilities of utilities
 Proper arrangement of like water, electricity and gas
machineries and tools  Haphazard arrangements of
 Quality of product manufactured machineries and tools
is maintained  Low quality of products are
 Fixed and defined working hours manufactured
 Fixed salary with a scope of  No defined working hours
increments  Usually works on daily wages
 Has proper hygienic working  Unhygienic working conditions
conditions  Doesn’t have any copyrights thus
 Follow the copyrights and thus are not liable to pay taxes
liable to pay taxes  Doesn’t follow Value Added
 Follow Value Added Services to Services; thus low profit earned
increase their profit

The industries can further be divided into three categories:

Cottage industry Small Scale Large – Scale

Cottage industries are those
industries which are
responsible to meet the
demands of the local
people.
These industries can run
with a very little investment
and by using old traditional
and simple tools /
machineries.
Usually family members are
used as labour due to which
the quality of product can’t
compete in Quality
Assurance Department.
Example: Ajrak making,
pottery, kashi work etc.
Industry
Small Scale industries are
those industries which are
responsible to meet the
demand on a larger scale
and are also responsible to
provide their output to
Large Scale Industries to be
converted into
manufactured goods.
These industries works on
hired workers and with
proper machineries in order
to meet their quality with
International Standards. For
eg: Electrical appliances,
surgical instruments, sports
goods etc.
Industry
Large Scale Industries are
responsible to meet the
demand on internal and
external basis. For which
their product must meet the
quality standards set by ISO
or WTO (World Trading
Organizations)
Usually these industries
functions on sharing
investment with %age profit
system and are highly
equipped with modern
machineries to increase
their product value. For eg:
Textile Industry, Iron / Steel
Industry etc.

Class Lectures (Industrial Development)

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 Principle industries of Pakistan:
Cotton & Textile Industry (flow chart – working)
GINNING MILL
Cotton is separated from
seeds and lint
Raw Cotton COTTON
Raw Material / Input INDUSTRY SPINNING UNIT
Cotton looms are spin
together to make ‘Thread’
(Processed Good)
PRESSING DEPARTMENT / QUALITY
CHECK WEAVING UNIT
The WHITE FABRIC is checked thoroughly for its Threads are weave together
quality and later pressed to remove wrinkles to make a cloth
(Semi – Processed Good)

COLOURING / DYEING PRINTING UNIT

UNIT Fabric is printed with
TEXTILE White fabric is coloured and different patterns and
INDUSTRY dyed as per requirement designs

QUALITY CHECK DEPARTMENT PRINTING UNIT

Fabric is thoroughly checked before packaging. Fabric is printed with
(Semi – Processed Goods) different patterns and
It is then sent to Stitching Unit designs

STITCHING UNIT
Fabric is stitched into a
dress.
(Manufactured Product)

Importance of Cotton / Textile Limitations of Cotton / Textile

Industry
 Generate 6% of the total GDP
 60% of the total export of Pakistan
 Caters the largest employment
force of Pakistan
 Pakistan is the largest exporter of
cotton and cotton products to US,
UK and Canada.
 Towels and handkerchief is
exported as manufactured goods
Class Lectures (Industrial Development)
Prepared By: Syed Abdul Basit
Industry
 Caters a minimal GDP due to export of
raw and semi processed goods.
 Lack of govt. interest, political
instability, outdated machineries,
unskilled labours and lack of raw
material (cotton) due to leaf curl virus
and fruit shedding; results in low
production
 International competitors like
Bangladesh, China and Malaysia
 Child labour policies
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 Cement Industry (flow chart – working)

Importance of Cement industry Limitations of cement industry

 Holds great importance due to
continuous industrialization
processes and urbanization
 Exports cements to India and
Afghanistan.
 Has the ability to produce 70% of
the demand within the country.
 Low cost of production as Raw
materials like Gypsum and
Limestone are widely present in
Pakistan.
 30% of cement is imported from India
which puts an extra burden on the
economy.
 Balochistan being the largest province,
having scope of development doesn’t
have any cement industry
 Lack of govt. interest, political
instability, outdated machineries,
unskilled labours and gas shortages
specially in winters; results in low
production

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 Sugar Industry (flow chart – working)
Importance of sugar industry
 Holds great importance as sugar is
used in and as a diet
 Exports sugar to India and thus
foreign exchange is earned.
 Has the ability to produce 90% of
the demand within the country.
 Produces products which are used
in many other industries like
bagasses and molasses which are
used in chip board making and
pharmaceutical industries
respectively.
 Low cost of utilities (Gas) since
bagasses is used as a cheap source
of fuel to burn (heat) the cane
juice.
 Punjab enjoys subsidy in taxes due
to political influence.
Class Lectures (Industrial Development)
Prepared By: Syed Abdul Basit
Limitations of sugar industry
 10% of sugar is imported from India
which puts an extra burden on the
economy.
 Balochistan doesn’t have any sugar
industry despite the presence of
agricultural land due to bad land
topographical features and climatic
constraints (less water availability)
 Lack of govt. interest, political
instability, outdated machineries,
unskilled labours and shortage of raw
material (sugarcane) as sugarcane is a
hungry crop; results in low production
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 Fertilizer Industry (flow chart – working)
Methane (CH4),
Potassium,
Phosphorous
Raw Material / Input
Air
CATALYSOR UNIT
Oxygen and Nitrogen
from Air is mixed with
many other gases
( (500°C Heat)
Water
N2, H2 & CO2 gas is
produced
COMPRESSOR
Air and other gases are mixed
with increased pressure to
convert the gaseous mixture
into a semi – liquid fluid
HEATER
Importance of fertilizer industry Limitations of fertilizer industry
 Holds great importance as soils in
Pakistan are getting soil deficient.
 Exports fertilizer to India
&Afghanistan and thus foreign
exchange is earned.
 Has the ability to produce 80% of the
demand within the country.
 Low cost production since N2, H2 and
CO2 gases produced as a waste, are
again used in the production
 Balochistan being the largest
province has greater potential to
convert barren into agricultural ones.
Class Lectures (Industrial Development)
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REACTOR
Here fissile materials are
being prepared
FINISHING UNIT
Ammonia (solid) is
produced
(Manufactured Product)
N2, H2 & CO2 gas is
produced as waste
AMMONIA FLUID
TANK
COOLING TOWER
The gaseous form will be
cooled to be converted into a
semi – liquid state.
Recycling Process
 20% of fertilizer is imported from
India which puts an extra burden on
the economy.
 Balochistan doesn’t have any
fertilizer industry despite the
presence of agricultural land
 Lack of govt. interest, political
instability, outdated machineries,
unskilled labours and shortage of raw
material (methane); results in low
production.
 High prices of Liquid ammonia,
adversely effects the production.
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 Iron / steel Industry (flow chart – working)

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 Importance of iron / steel
industry
 Holds an ideal location as Pakistan
Steel Mill is located near Karachi at a
place called Pipri, which is near
Gharo Creek
 PSM (Pakistan Steel Mill) enjoys the
advantage as Port Bin Qasim is near
it and thus helps in the import and
export processes.
 PSM receives its fresh water source
from a lake known as Haleji Lake
 PSM receives its sandstones and
limestone deposits (Inputs) from a
place called Makli Hills
 For internal supply of iron and steel
goods PSM has been provided with a
railway system from Karachi to
Kotri which reduces the
transportation cost.
 PSM has been divided into two
wings; HFF (Heavy Forge Factory)
located at Wah Cantt and HMC
(Heavy Mechanical Complex)
located at Pipri
 PSM (HFF) generates a large foreign
exchange in terms of exporting
weaponry & ammunition to Sweden,
France, Korea and China etc.
Class Lectures (Industrial Development)
Prepared By: Syed Abdul Basit
Limitations of iron / steel
industry
 PSM (HMC) isn’t located near any
Iron Ore site thus iron (Input) has to
be imported which puts an extra
burden on the economy of Pakistan.
 Lack of govt. interest, political
instability, outdated machineries, and
shortage of raw material (iron ore);
results in low production at HMC.
 Due to privatization of PSM and
corruption among the board of
Directors, the foreign exchange
earned by PSM has reduced
drastically during the past few years.
 Coal is imported for PSM since the
quality of coal is not good in
Pakistan thus adding an extra burden.
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 Class Lectures (Industrial Development)
Prepared By: Syed Abdul Basit Page |9
 Problems and limitations for cottage and small
scale industries:
Cottage and small-scale industries contribution to the GDP is only 5%. There are certain
problems associated with these industries that are mentioned below.

 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.
 The wholesaler, who takes most of the profits, exploits the owners of the small-scale
industry.
 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.

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 INDUSTRIAL POLLUTION
Pollution is the introduction of contaminants into the natural environment that causes adverse
change. Pollution can take the form of chemical substances or energy, such as noise, heat or
light. Pollutants, the components of pollution, can be either foreign substances/energies or
naturally occurring contaminants. Industrial pollution is also a big threat to the natural
environment of Pakistan. It can be divided under three categories:

Nuclear Waste:
 Generally consisting of all the radioactive
elements which are mostly used in the
Nuclear Power Plants to produce Energy
 Although the dumping of Nuclear Waste is
carried out in a systematic way and is only
disposed by digging a large ditch or under
water still the radioactive materials emits
radioactivity which is a never ending
process.

Domestic Waste:
 Mostly consist of garbage and household
waste like cartons, plastic and shopper bags.
 Detergents and chemicals are drained out
through sewerage pipelines which sometimes
leach underground.
 Domestic wastage is the most hazardous
source for the contamination of water sources
and gives rise to many diseases due to
abundant presence of germs and bacteria.

Toxic Waste:
 Mostly consisting of the industrial wastage
similar to the domestic waste like wood and
metals etc
 However, the toxic effects of some metals like
copper, mercury, zinc and chromium etc.
 Again this waste also has an adverse affect
upon the marine ecosystem if it is drained out
in the seas and oceans
 As for Nitrates and Phosphates; the soil is the
most vulnerable, suffering the consequences &
resulting in the high concentration of chemicals. Ultimately affecting the human life.

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