Pakistan Studies

Industries

INTRODUCTION

The Industrial base of Pakistan Pakistn at the time of Independence was very weak. Not more than 35 important industries fell to Pakistan’s share.To restrict dependance on Indian industrial centres,it became essential to set up basic industries.To overcome this handicap the government encouraged the establishment of new industries based on local raw material which was sufficiently available. 
In 1949-50 manufactured items accounted for only 1.5% of the national income.After 10 years the ratio improved to 5 %.In 70-71 the ratio increased upto 16.31% .In 78-79 the ratio declined to 14.35%. Today the large soule industries have 19.9% share in our GNP.Pakistan has attained a fairly diversified base in manufacturing ranging from essential consumer goods to heavy engineering,chemicals and tools industry.Inspite of this enormous progress,we cannot still claim to be an industrially developed country.Our economy still depends upon the agricultural sector and import of various industrial products from other countries. 

LOCALIZATION FACTORS

There are some important geographical and economic factors which exercise a great influence on the Localization of any industry.The factors are called the localization factors and are as follows: 

1.Raw Materials:

No Industry can be established without availability of raw materials.They should be easily accessible otherwise the expenses incurred on their acquisition become immense .The modern means of transportation have made possible to tap distant sources of raw material. 

2.Power Resources:

An industry can not run without the supply of energy and power.Modern complex industries consume large amount of power.Fuel must be easily available at the selected site.Water power,thermal power ,natural gas,mineral oil and small quantity of coal (due to low production) is used as power in Pakistani industries. 

3.Proximity to The Market:

The ultimate purpose of all production is consumption.The consuming market should not be remote from the industries,otherwise the delivery of the manufactured items will add immensely to the cost.However modern means of transportation have opened the world market and decreased dependance on the local market. 

4.Labour:

Labour of its three types: 
1)Skilled 
2)Unskilled and 
3)Management and labour staff. 
Abundant and cheap supply of all kinds of labour should be available at the site of the industry.Unfortunately we are not self sufficient in the supply of skilled labour which is a great handicap for our local industries.We have to import skilled labour which adds to our cost. 

5.Suitable Climate:

Climate determines the working power and efficiency of labourers and also the economy of the products.Different kinds of industries require different kinds of climate. Generally speaking, temperate climate is most suitable as it stimulates people to work harder. 

6.Easy Availability of Capital:

It is an accepted fact that modern industrialization is impossible without the large supply of capital.Easy and large supply of capital is an important factor for the localization of any industry.I.D.B.P,N.D.F.C ,PIDC,PICIC AND ICP are institutions in our country which are playing an indispensable role in the industrial development of our country by providing financial help to our industries. 

7.Government Encouragement:

Encouragement and incentive from the side of the government is an important localisation factor for any industry. 

8.Means of Transportation:

In these days of specialized and diverse trading operations,availability of means of transport (may it be by air,sea or land)is indispensable.These means should be easily and quickly available and should also be cheap to minimize cost of production. 

9.Political Conditions:

Areas at a safe distance from politically explosive regions and enemy territories are preferred for industrial location. 

(A) COTTON TEXTILE INDUSTRY

Importance:

Cotton textile industry is the biggest industry of Pakistan.Pakistan forms the base of world Cotton textile industry.It is a broad industry and involves spinning i.e.yarn production and weaving i.e.cotton production. 
The making of textiles employs over 200,000 persons in Pakistan which is more than 1/3rd of all those employed in large scale industries.It also makes the largest contribution to the GNP.Apart from its basic contribution of fulfilling the need at home,we earn a large amount of foreign exchange from the export of cotton yarn and cloth. 

Review of Progress:

The country had 18 cotton mills in 1948 with 1.77 lac spindles and 4,824 looms.The total production of yarn was 3 crore pounds and that of cloth amounted to 9 crore yds.Their production was altogether inadequate for the country’s requirements and a large quantity of cloth and yarn had to be imported. Resources were available for its development.The government gave priority this industry made the greatest progress.In 1964-65 the number of factories was more than 120.As regards to production of yarn,It increased to 14.5 yds.in 1967-68. 
After 1974,this industry faced a severe recession due to both to domestic and international factors.Pakistan had suffered particularly,because this industry is export oriented.Both production and exports of its products had drastically fallen during these years.The major causes of the crises of the cotton textile industry had been : 
1) Tall in demand for the products of this industry in the international market in the face of glut in production in several countries. 
2) Domestically there were several unfavourable developments;such as rise in price of cotton due to fall in cotton production,and increase in wages of labour along with the reported fall in its productivity.Today we have 200 cotton textile mills in recognized sector. 

Cotton Textile Centres:

Karachi,The Biggest Textile Centre:

After the establishment of Pakistan,the first mill named as Valika Cotton Textile Mill was established at Karachi in 1948.Although ,Karachi is not located in cotton growing area.Yet it soon became and is still,the biggest centre of cotton textile industry in Pakistan.Many factors were responsible.It had the advantage of availability of capital ,banking facilities,bussiness ability of families which migrated to Karachi,fine labour,railway and road links with cotton growing areas,humid climate,easy availability of sui gas etc. 
In addition to Karachi ,now in every big city of all the four provinces,cotton textile mills have been set up.These are as follows: 

1.Sindh:

Karachi,Hyderabad,Tando Adam,Tando Jam,Khairpur,Larkana,Tando Mohammed Khan,Kotri etc. 

2.Punjab:

Faisalabad,Lahore,Multan,Rawalpindi,Sheikhupura,Jhelum,D.G.K,Sargodha,Okara,Rahimyar Khan,Harappa. 

3.Baluchistan:

Quetta,Lasbela,Anthar. 

4.N.W.F.P:

Peshawar,Nowshehra,D.I.K,Kohat,Bannu,Haripur,Hazara,Charsadda. 

Installed Capacity

Installed Capacity of Textile Industry ( in thousands)

Year…………….Spindles Installed……Spindles Working…..Looms Installed…..Looms Working 
1989-90……………..5195………………..4416……………….16……………….8 
1990-91……………..5569………………..4827……………….15……………….8 
1991-92……………..6141………………..6465……………….15……………….8 
(July-March) 

Production:

(a) Production of Cotton Yarn(thousand Kg.):

Year- Production 
1989-90 – 911,588 
1990-91 – 1,041,248 
1991-92 – 861,819 

(b) Production of Cotton Cloth (thousand Sq.Metre):

Year- Production 

1989-90 – 294,839 
1990-91 – 292,911 
1991-92 – 233,997 
(July-March) 

Position of Trade:

The country is now self-sufficient in varieties of cotton cloth and cotton yarn.We are now excited from the list of importers in this connection.The major export markets of Pakistani cotton fabrics are EEC,U.S.A,U.S.S.R,Australia,Iran,Canada and Saudi Arabia. 

Exports(July-March):

…………………Quantity(MT) …………………………Value (Million $) 
…………………1990-91…1991-92 …………………1990-91…..1991-92 
Cotton Yarn….346615…..332100………………….810.73……786.53 
Cotton Fabrics…782…….860……………………486.92……587.65 

(B) IRON AND STEEL INDUSTRY

Introduction:

In the first phase of Industralization in Pakistan,the emphasis was on the development of consumer goods industry.It was soon felt that the establishment of basic industries like Iron and Steel were essential for the economic development of the country.A vigorous search for iron ore and other minerals was started. 
At present ,Pakistan heavy engineering industry comprises of the following units: 

1.Heavy Mechanical Complex-Taxila:

HMC Taxila is one of the most important industries of the 3rd five year plan of Pakistan in the overall scheme of establishing basic and key industries in the country. 
It was completed in 1970 with the technical and economic assistance of the people’s Republic of China involving a total cost of Rs.240 million.Its annual production capacity is 17,000 tonnes of various types of complete machines and plants which include sugar and cement plants,chemical and petro chemical plants,road bulldozers,railway wagons,axles of wagons,overhead traveling cranes and boilers.At present 12 cement plants and 19 sugar plants produced by the complex have been installed.A cement plan has been exported to Bangladesh and 3 sugar plants to Indonesia and Bangladesh.Export orders which are under process have also been received from Bangladesh,Syria,Iran,Kenya and Azerbaijan. 

2.heavy Foundry and Forge Project-Taxila:

This project was set up with the technical and financial assistance of the people’s Republic of China in 1972 and is one of the biggest project of this kind in Pakistan. It is planned to provide a metallurgical base to the heavy engineering sector.The project,when in full production,will be able to fully meet the requirements of heavy castings and forgings of the engineering units of Pakistan. 

3.Pakistan Machine tool Factory-Landhi:

This factory was established in collaboration with a.swiss firm at Landhi in Karachi.It is a highly sophisticated engineering facility which is producing transmission components and automobile parts since 1968.Its major products are gear boxes,audaxles for trucks,jeeps,tractors etc. 

4.Pakistan Steel Mill (Karachi):

The foundation stone of Karachi Steel Mill was laid down on December.30, 1973.It was completed at a cost of Rs.2,55,500 million with the economic and technical assitance of U.S.S.R. 
This biggest industrial enterprise in the country is the precursor of countless economic benefits.The completion of the steel mill is a shining milestone which leads the way to a new era of progress in the nation’s economy. 

Employment:

The employment level at Pakistan Steel was 23,842 as on March 31,1992 compared with 23,965 on December 31,1991. 

Installed Capacity:

Pakistan Steel is a huge engineering complex and is producing coke,pig iron,billets,hot rolled sheets/plates,cold rolled sheets/plates,galvanised sheets etc.It has a production capacity equivalent to 1.1 million tonnes of raw steel per anum with a built in potential to expand to over 3 million tonnes. 
The average capacity utilization in terms of raw steel was 76% during 1991-92. 

Production Performance(000 tonnes):

Items……………………….1990-91………………….1991-92(July-March) 
Coke…………………………….712…………………………..660 
Pig Iron…………………………1013………………………….766 
Rolled Billets…………………….252………………………….176 
Cast Billets……………………….81…………………………..48 
Hot Rolled Coils……………………386………………………….296 
Cold Rolled Coils…………………..111…………………………..99 
Galvanized Coils…………………….42…………………………..35 
Formed Sections……………………..1……………………………— 

Sales Turnover:

The sales turnover of Pakistan steel increased from Rs.6500 million during July-March 1990-91 to Rs.6669 million during July-March 1991-92 as compared with Rs.32 million in July-March,1990-91.