The sector due to several reasons could not flourish in the country over the past seventy two years. That will require intensive efforts to manage land, soil, water, and energy more sustainably. This lack of political will is either due to incompetency of government or due to corruption. Confused Cabinet: Government in Pakistan is also sometimes seemed confused because of different interests of each member of the cabinet. Due to this confusion the government is unable to formulate flexible policies for the growth and development of industries in the country. Some suggestions for solving problems of industrial sector of Pakistan are given below. Our industries also lack the capability to bring new ideas and manufacture goods that world have never seen before. Cotton and cotton based products are Pakistan’s largest source of export earnings. Industrial sector of Pakistan situation issues and solutions. For more details please visit About US and Privacy Policy page. For the past four years, Pakistan has witnessed 81 percent rise in tax revenue, which is a big plus for Pakistan. 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. Most of the time government tests different policies which result in the devastation of a sector. Rapid industrialization is considered by the economic exports as the sovereign remedy to put our economy on a sound basis. (500 words without plagiarism) Expert Answer . In 2019, agriculture contributed around 22.04 percent to the GDP of Pakistan, 18.34 percent came from the industry, and over half of the economy’s contribution to GDP came from the services sector. Due to brain drain our industrial sector is facing technical incapability. Is CPEC Really A Game Changer For Pakistan? Cotton textile production is the single most important industry, accounting for about 19 percent of large-scale industrial employment. Due to this reason Pakistan after independence had only 34 industrial units out of 921 operating in the United India (taken from Ikram Rabbani book Pakistan Studies). Another reason is our government inconsistent policy and third reason is trade deficit. Briefly explain what measures can be taken to improve the industrial sector of Pakistan. Controversial Industrial development strategies. The importance of industrial sector for Pakistan can be understood from the following facts. Industrial sector of Pakistan problems and solutions. One of the major reasons of Pakistan trade deficit is her failure to generate demand of her industrial products in the international markets. Goal 9: Industry, innovation and infrastructure Investment in infrastructure and innovation are crucial drivers of economic growth and development. Our industries lack the capability to manufacture some of the important intermediate goods that are used for making final goods such as cars, computers, railways etc. This phase witnessed the massive industrial growth in the country. Energy Sector: Energy sector is one of the important industries to invest in Pakistan. 2. Technology is an important factor for economic development of a country. [1] Product innovation is defined as the introduction of a good or service that is new to the market or is a significantly improved version of a current product. The blog is owned and managed primarily by Ataulhaq Yusufzai. 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. Being students of a reputable institution "Hailey College of Banking & Finance Punjab University"" we are thankful to our Professor Farah Naz Naqvi who sparkled our presentation skills and taught us to visualize the practical picture of the Economy.Faraz Ishaque. Problems of industrial sector in Pakistan. 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). Government policies aim to diversify the country's … Industrial sector has an important contribution in the economy of Pakistan. Trade Deficit: Trade deficit is an economic term. Pakistan is also facing the problem of trade deficit. Clipping is a handy way to collect important slides you want to go back to later. Technical Incapability: Industrial sector of Pakistan is also facing the problem of technical incapability. See our Privacy Policy and User Agreement for details. Government Incompetency: Government inability to formulate vibrant policy and to solve the problems faced by industrial sector of the country on time is a major problem in itself. Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic Development. Pakistan is a poor country, therefore there are not enough developed any industry. importance of industrial sector in Pakistan. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Despite these facts the government is trying to take the country towards industrialization. Agriculture is a major source of country’s foreign exchange earnings plus it has consumed a major portion of labor force in the country. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Most of the present economic problems in Pakistan are ultimately linked to the slow pace of industrial development. 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. Pakistan cannot achieve robust overall growth without a boost to its agricultural and rural productivity and incomes, the authors write. O.3 Recommended Actions for Greening Pakistan’s Industrial Sector 12 O.4 Strengthening MoIP’s Capacity for Sustainable Industrialization 13 O.5 Recommended Actions for Improving Pakistan’s Institutional Framework for Sustainable Industrialization 14 2.1 Average Product Shares in the Manufacturing Sector of Pakistan, 1970–90 31 Pakistan needs a fresh industrial policy that promotes employment generation, focuses on value-added exports with a dash of import substitution to reverse the trend of deindustrialization. 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. Industrial problems and their solutions. The export-orientation and import-substitution effects of industrialization help to improve the balance of payments. About 70% of population is relates to agriculture directly or indirectly. Industrial problems of Pakistan after independence. https://www.askedon.com/industrial-sector-of-pakistan-problems-and-solutions One of the major objectives in all the five year plans of Pakistan is to improve the balance of payments position by (1) increasing export and (2) production of import substitution goods in the country. Industrial Production in Pakistan increased 14.37 percent in November of 2020 over the same month in the previous year. 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. The government has also offered incentives on the installment of industries in under developed areas of the country. All Rights Reserved. Industry is an important sector of Pakistan next to agriculture. Agriculture is the major source of food of huge population of Pakistan. The sector benefited from the Korean War (1950-53), but an overvalued rupee adversely affected agricultural exports. Improve Technical Capability: Government should also take steps to improve technical capability and put an end to brain drain. In Pakistan in particular, the exports of semi-manufactured and manufactured goods resulted in favorable trade. Industrial sector of Pakistan problems and solutions.”. After independence Pakistan took a fresh start of the construction of industrial sector in the country. For years, Pakistan has struggled to cope with the increasing demand of electricity, leaving the country in dire need of revamping its methods for power generation. Establishment Of Government Enterprises: For the industrial uplift in the country, government has established a number of important enterprises that are run by the Ministry of Production. Tax collection can play a vital role to improve the economy of Pakistan. Energy has been main problem to the industrial sector of Pakistan and has significant impact on industrial capacity as well as exports. 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. How the country has groomed into this arena and how has it affected the neighbouring states like China and Iran to invest in Pakistan. Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic Development. Tax Holiday: To encourage industrialist to do investment in the sector, government has announced five years Tax Holiday. Now customize the name of a clipboard to store your clips. Steady Flow Of Power: Government should make sure the steady flow of power to industries to ensure they work regularly. Factors were collected from the existing empirical literature. You can change your ad preferences anytime. Poor commercialization policy is one of the major reasons of this problem. It means when a country’s exports are less than her imports. Privatization Program: To improve the performance of some of the important industries in the country the government has also launched privatization program. Power short fall, more taxes and less production result in the fewer sales of goods that causes capital insufficiency. It is the second largest source of foreign exchange earnings. 3. Due to political instability government is also unable to implement its policies. IT Industry is a service industry that can provide a significant boost to our economic growth in next ten years. Some of the major problems that Industrial sector in Pakistan is facing are given below. Some of these enterprises include Scientific and Industrial Research Council, State Cement Corporation of Pakistan and Small Scale Industries Corporation. https://www.slideshare.net/farazishaque/industrial-sector-of-pakistan Brain Drain: The flow of learned and skilled people out of the country is also a major problem that our industrial sector is facing. So it is the main source of living or income of the major part of economy population. If you continue browsing the site, you agree to the use of cookies on this website. Similarly Italy’s industrial production is dependent on a number of minerals, its industrial Sector accounted for about 25.2% of GDP in 2010, which was a 0.2% increase from the previous years. Those ministers whose families have agricultural background take more interest in the development of agricultural sector and vice versa. Education System in Pakistan Issues And Problems. We publish both Multiple Choice Questions (MCQs) and topic wise complete notes of Current Affairs, Pakistan Affairs, Islamiat, Essay and many other optional subjects of CSS and PMS exam. Frequent Power Short Fall: For industries power is like blood running through the veins of a living being. Looks like you’ve clipped this slide to already. The country has experimented with several economic models during its existence. 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. 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. 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. It accounts for about 61 per cent of country’s export earnings. 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. Below are some of the steps that government has already taken for the growth, development and advancement of industrial sector in the country. See our User Agreement and Privacy Policy. MBA (IRM) students Presentation on Industrial Sector Pakistan. 2) Industrial sector can be promoted by increasing capital. So in this ways this sector increases national GDP. Formulation Of Vibrant Policies: Vibrant policies should be formulated both for the development and commercialization of industrial product and goods of Pakistan. Industrial Sector Of Pakistan Problems And Solutions. Italy’s important industrial facilities are based on aluminum, automotive assembly, chemicals, iron Political Instability: Political instability is a major problem of Pakistan which has not only affected industrial production and growth but also many other working bodies of the country. Flaws in Disaster Management Framework in Pakistan. 4List of proposed projects is … If you continue browsing the site, you agree to the use of cookies on this website. Challenge faced by industrial sector of Pakistan. Key issues in industry in Pakistan. The large-scale manufacturing sector of Pakistan included a handful of industrial units such as textiles, cement, sugar, tea blending and vegetable ghee in … GDP and living standard of people will improve. The need of the moment is to invest in gradually moving Pakistan away from an industrial base to a service based economy. In 1958, a military government of Ayub came into power in Pakistan and announces a new industrial policy in 1959. Government Policies: Industrial sector growth depends upon government policies. Impacts of COVID-19 on Social Life in Pakistan, The Emerging Threat Of Biological Warfare in 21st Century, Pakistan Turkey Relations – Two Countries One Nation, Our History is Mirror of Success of Our Ancestors. Lenient Policy Of Credits: The government has also adopted lenient policy in giving loans and credits to industrial sector in the country. 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. 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. With the need for energy growing daily, the sector is experiencing massive demand. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. In government unfortunately personal interests superseded national interest. In 2020, 35.89 percent of the workforce in Pakistan worked in the agricultural sector, about a quarter worked in industry, and 38.32 percent in the services sector. The article discusses “Industrial sector of Pakistan problems and solutions. It is demand of the time that government should take some concrete steps for solving the issues that this important sector is facing. Pakistan is a neighbor country of india. Askedon blog is useful for CSS and MCQs based tests preparation. Major problems faced by industrial sector in Pakistan. There has to be a concentrated effort to bolster the limping industrial sector. M.Faraz Ishaque (group Leader) Mi10MBA073Syed Ghazanfar Ahmad Mi10MBA013Uzman Ali Mi10MBA021M.Sajid Bashir Mi10MBA036M.Shahzad Anwar Mi10MBA040 Hailey College of Banking & Finance Punjab University. As long as power is regularly supplied to industries, they run smoothly and result in the increase of industrial output and ultimately increase in the foreign exchange of a country. Commentdocument.getElementById("comment").setAttribute( "id", "a1036d08c15608d7119739b3dc91c52f" );document.getElementById("f3d81d2635").setAttribute( "id", "comment" ); Copyrights © 2016-2020 Askedon. 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. 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. 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). Agriculture is also the major source of provision of raw martial to industrial sector of Pakistan. Basic purpose to make this study was to find out the determinants of industrial sector growth in Pakistan. Causes and Identification of Employees’ Politics and its Impact on Performanc... No public clipboards found for this slide. Unfortunately the government of Pakistan has yet not decided whether her economy be industrial or agricultural in nature. Some of the major causes of the above mentioned problems are given below. This will help in the development of industrial sector in the country. 2. In Pakistan unfortunately energy crisis has not only affected the life of an ordinary man but also the work and production rate of industries. Economic development depends upon number of factors. World Bank Group estimated that Pakistan is sacrificing about 1.5 percent of its GDP annual growth to power shortages. This industrial policy emphasis on private sector and the development of agro-based industries. It will increase the demand of labor force to meet the high production level. 3) Saving and investment should be increased to develop industrial sector. 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