Industrial Development In Pakistan

Tuesday, November 9, 2010

Causes Of Industrial Backwardness In Pakistan .
The causes of industrial backwardness in Pakistan are varied and complex . The government of
Pakistan since 1947 is trying hard to develop industries and infrastructure facilities for the growth
of industrial sector , yet it has not achieved success to the desired extent . In the last over three
decades , the contribution of industrial sector to GDP is only 18.5% which by any standard is not
satisfactory . The main obstacles which have slowed and retarded industrial development in
Pakistan are as follows :
1 . Controversial Industrial Development Strategies :
In the past , there have been rapid change in industrial development
strategies because the planners have not been able to resolve the following issues :
(a) . The extent of interdependence between agriculture and industry ,
(b) . The rate of economic growth with or without equal distribution of wealth ,
(c) . Establishment of capital intensive or labour intensive industries ,
(d) . Industrial development through public or private sector investment ,
(e) . Small scale or large scale industries to be patronized ,
(f) . Industries to be nationalized or denationalized and deregulated etc . In the absence
of a clear-cut industrial strategy , the growth of our industrial sector has been very slow .
2 . Lack Of Capital :
The second major problem of industrialization in Pakistan is the lack of capital . In
capital intensive industries like steel and iron , chemical , automobile etc . the amount of capital
required per worker is quite high . In industries like textile , carpet , sugar , paper board etc huge
amount of capital is required to establish and expand these industries . Pakistan allocated a sum
of Rs. 162.2 crore in the first five year plan for the development and growth of industries . In the
sixth five year plan , an amount of Rs.18.1 billion had been placed for the growth of industrial
sector in public sector and Rs.16.0 billion in the 7th plan . The amount is still insufficient to meet
the necessary preconditions for economic take off .
3 . Narrowness Of Market :
The narrowness of home and foreign markets for the manufactured goods is also a
major obstacle in the expansion and growth of industrial sector in Pakistan . The low purchasing
power of the people , the production of substandard goods and the higher cost of production limit
the size of market at home . The advanced countries , due to poor quality of the manufactured
goods of the developing countries , are reluctant to purchase their manufactured goods . Pakistan
, in order to avail of the economics of large scale production and enlarging home markets should
establish import substituting industries . The quality of the products should also be improved to
the international level so that the market opportunities in developed world are explored ,
developed and captured .
Posted by alik at 5:22 AM
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* ▼ 2010 (7)
o ▼ November (7)
+ Government Measures For Industrial Development .
+ Causes Of Industrial Backwardness In Pakistan 3 .
+ Causes Of Industrial Backwardness In Pakistan . 2
+ Causes Of Industrial Backwardness In Pakistan .
 + Industrial development pakistan .
+ Industrial development pakistan .
+ Industrial Revolution .

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