Some suggestions for solving problems of industrial sector of Pakistan are given below. Industrial Production in Pakistan increased 14.37 percent in November of 2020 over the same month in the previous year. After independence Pakistan took a fresh start of the construction of industrial sector in the country. According to Statista 2019 report industrial sector in Pakistan consumes about 25 per cent work force in the country. Some of the major problems that Industrial sector in Pakistan is facing are given below. In simple words when a country imports more than exports, it is said trade deficit. 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. This phase witnessed the massive industrial growth in the country. The importance of industrial sector for Pakistan can be understood from the following facts. Pakistan is a poor country, therefore there are not enough developed any industry. About 70% of population is relates to agriculture directly or indirectly. Commentdocument.getElementById("comment").setAttribute( "id", "a1036d08c15608d7119739b3dc91c52f" );document.getElementById("f3d81d2635").setAttribute( "id", "comment" ); Copyrights © 2016-2020 Askedon. Technical Incapability: Industrial sector of Pakistan is also facing the problem of technical incapability. 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. Pakistan is also facing the problem of trade deficit. Poor Commercialization Policy: Most of our industrial goods do not make to international markets. 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. In government unfortunately personal interests superseded national interest. 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 is a neighbor country of india. M.Faraz Ishaque (group Leader) Mi10MBA073Syed Ghazanfar Ahmad Mi10MBA013Uzman Ali Mi10MBA021M.Sajid Bashir Mi10MBA036M.Shahzad Anwar Mi10MBA040 Hailey College of Banking & Finance Punjab University. Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic Development. 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. Cotton textile production is the single most important industry, accounting for about 19 percent of large-scale industrial employment. The blog is owned and managed primarily by Ataulhaq Yusufzai. Improve Technical Capability: Government should also take steps to improve technical capability and put an end to brain drain. Some of the major causes of the above mentioned problems are given below. For the past four years, Pakistan has witnessed 81 percent rise in tax revenue, which is a big plus for Pakistan. It contributes 20 per cent to country’s annual Gross Domestic Product according to The Nation news paper July 2019 report. 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. Tax collection can play a vital role to improve the economy of Pakistan. Poor commercialization policy is one of the major reasons of this problem. Confused Cabinet: Government in Pakistan is also sometimes seemed confused because of different interests of each member of the cabinet. The country has experimented with several economic models during its existence. Is CPEC Really A Game Changer For Pakistan? Natural Resources of Pakistan – CSS Notes. Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic Development. importance of industrial sector in Pakistan. In Pakistan in particular, the exports of semi-manufactured and manufactured goods resulted in favorable trade. It will increase the demand of labor force to meet the high production level. Industrial problems of Pakistan after independence. If you continue browsing the site, you agree to the use of cookies on this website. 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). Industry is an important sector of Pakistan next to agriculture. 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. Education System in Pakistan Issues And Problems. So in this ways this sector increases national GDP. It accounts for about 61 per cent of country’s export earnings. World Bank Group estimated that Pakistan is sacrificing about 1.5 percent of its GDP annual growth to power shortages. Importance of Industrial Sector in Pakistan or Role of Industrial Sector In economic Development. GDP and living standard of people will improve. The sector due to several reasons could not flourish in the country over the past seventy two years. Labors in some industries go on strikes frequently when their demands are not fulfilled. 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. Due to this confusion the government is unable to formulate flexible policies for the growth and development of industries in the country. Government policies aim to diversify the country's … 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. This will help in the development of industrial sector in the country. 3) Saving and investment should be increased to develop industrial sector. Cotton and cotton based products are Pakistan’s largest source of export earnings. Agriculture is a major source of country’s foreign exchange earnings plus it has consumed a major portion of labor force in the country. So in this ways this sector increases national GDP. 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. Tax Holiday: To encourage industrialist to do investment in the sector, government has announced five years Tax Holiday. Energy Sector: Energy sector is one of the important industries to invest in Pakistan. [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. 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. Briefly explain what measures can be taken to improve the industrial sector of Pakistan. Unfortunately the government of Pakistan has yet not decided whether her economy be industrial or agricultural in nature. 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. This industrial policy emphasis on private sector and the development of agro-based industries. If you continue browsing the site, you agree to the use of cookies on this website. 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. 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. 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. Flaws in Disaster Management Framework in Pakistan. Industrial sector of Pakistan problems and solutions. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Clipping is a handy way to collect important slides you want to go back to later. Agriculture is also the major source of provision of raw martial to industrial sector of Pakistan. Now customize the name of a clipboard to store your clips. Goal 9: Industry, innovation and infrastructure Investment in infrastructure and innovation are crucial drivers of economic growth and development. Italy’s important industrial facilities are based on aluminum, automotive assembly, chemicals, iron This lack of political will is either due to incompetency of government or due to corruption. IT Industry is a service industry that can provide a significant boost to our economic growth in next ten years. 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. Controversial Industrial development strategies. Formulation Of Vibrant Policies: Vibrant policies should be formulated both for the development and commercialization of industrial product and goods of Pakistan. Most of the present economic problems in Pakistan are ultimately linked to the slow pace of industrial development. Pakistan cannot achieve robust overall growth without a boost to its agricultural and rural productivity and incomes, the authors write. The large-scale manufacturing sector of Pakistan included a handful of industrial units such as textiles, cement, sugar, tea blending and vegetable ghee in … Agriculture is the major source of food of huge population of Pakistan. All Rights Reserved. (500 words without plagiarism) Expert Answer . Energy has been main problem to the industrial sector of Pakistan and has significant impact on industrial capacity as well as exports. Key issues in industry in 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. Economic development depends upon number of factors. Government Policies: Industrial sector growth depends upon government policies. https://www.askedon.com/industrial-sector-of-pakistan-problems-and-solutions 1. 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. The need of the moment is to invest in gradually moving Pakistan away from an industrial base to a service based economy. 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. In Pakistan unfortunately energy crisis has not only affected the life of an ordinary man but also the work and production rate of industries. It is demand of the time that government should take some concrete steps for solving the issues that this important sector is facing. Technology is an important factor for economic development of a country. 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. 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. Below are some of the steps that government has already taken for the growth, development and advancement of industrial sector in the country. 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. Those ministers whose families have agricultural background take more interest in the development of agricultural sector and vice versa. In 1958, a military government of Ayub came into power in Pakistan and announces a new industrial policy in 1959. Problems of industrial sector in Pakistan. Power short fall, more taxes and less production result in the fewer sales of goods that causes capital insufficiency. See our Privacy Policy and User Agreement for details. Frequent Power Short Fall: For industries power is like blood running through the veins of a living being. Due to brain drain our industrial sector is facing technical incapability. 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. MBA (IRM) students Presentation on Industrial Sector Pakistan. 4List of proposed projects is … Major problems faced by industrial sector in Pakistan. Looks like you’ve clipped this slide to already. 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