Pakistan Studies

(C) CEMENT INDUSTRY

Introduction:

Cement is one of the vital resources needed by a developing country .The cement industry is one of the heavy industries of Pakistan.This industry has recorded satisfactory progress in the past because specific raw material of this industry i.e.gypsum,limestone and a particular soil is quite abundant in Pakistan.That is why Pakistan can not only become self-sufficient in cement productio,but can also become an exporter of cement.However,in view of the large amount of capital required in this industry,Pakistan has so far been producing cement to meet the domestic requirements only.The groeth of this industry is well reflected in the establishment of a number of new cement projects in the country. 

Review of growth:

Position at the time of Establishment:

The cement industry is the only industry which was luherited by Pakistan because at the time of independence there were 4 cement factories in the country: 
1.Dalmian Cement Factory-Karachi. 160,000 tonnes 
2.Dalmian Cement Factory-Dandot. 500,000 tonnes 
3.Associated Ltd.Cement Factory-Wah. 90,000 tonnes 
4.Associated Ltd. Cement Factory-Rohri. 180,000 tonnes 
Total production capacity of all the 4 factories = 4,80,000 tonnes. 

First Phase of Development:

The investment in the cement industry of Pakistan was initiated by the PIDC with the setting up of 2 cement plants of which 1 was set up at Daud Khel.Its name was Maple Leaf cement plant,with the annual production capacity of 300,00 tonnes.The 2nd,Zeal Pak cement plant was set up at Hyderabad in 1965 which was later expanded in 3 stages and now has an installed capacity of 108,000 tonnes. 

The Second Phase of Development:

The second phase of development of cement industries started during the sixties with the setting up of 3 cement factories in the private sector. 
The demand for cement had been steadily increasing which induced the private investors to further invest in this industry .Consequently,the annual production capacity of cement which was 10,00,000 tonnes in 1959-60 increased to 2.7 million tonnes in 1969-70 ,registering an increase of 165% during a period of 10 years. 

Impact of Nationalization in 1972:

In 1972,the units of cement industries were also nationalized along with other industrial units consequently,the production of cement was limited between 2.7 million tonnes to 3.1 million tonnes.All cement industries were given under the control of a corporation named “Pak State Cement Corporation”.As a result cement had to be imported to meet the domestic demand. 

Performance upto the End of the 6th Plan:

In 1978,the government undertook various development projects for the reactivation of the private sector such as the completion of steel mills,port qasim,construction of new dams,railway lines,expansion of highways,development of the under developed regions.Those projects caused unprecedented increase in the domestic demand for cement in the country and we had to depend on large scale import of cement to meet this increased demand.Consequently ,in 1981-82,900,000 tonnes of cement was imported,while in 1982-83,6,20,000 tonnes was imported. 
In view of the steadily increasing demand for cement ,the private sector was induced to invest in this industry.In addition to that ,the production capacity of cement units in the public sector was also expanded during the 5th and 6th five Year Plans.Consequently ,by the end of the 6th plan,the total production of cement increased from 3.40 million tonnes in 1977-78,to 6.7 million tonnes in 1986-87. 

Installed Capacity:

At present 23 cement units are operating in the country with a capacity of 8135 thousand tonnes .Out of these,12 units with a capacity of 5169 thousand tonnes are in the public sector and 11 units with a capacity of 2966 thousand tonnes are in the private sector. 

Production(000 tones):

1989-90- 7488 
1990-91 – 7762 
1991-92 – 8095 
(July-March) Provisional 

Exports(Rs.million):

1989-90- 31 
1990-91 – 159 
1991-92 – 42 

(D)PAPER INDUSTRY

Introduction:

Paper was first invented in 100 A.D.in china.Before the existence of Pakistan there was no paper industry in our country.All the paper requirements were imported from abroad.Domestic raw materials like bamboos,rice and wheat straws,jute stalks etc.Were lying un-utilized and in abundance in the eastern wing.Two big paper mills were established in East Pakistan which not only made Pakistan self sufficient in writing,printing and wrapping papers but also placed it in a position to export.There were only a few paper mills in the western wing.After 1971,the supply of paper from Bangladesh stopped and we had to depend on imported paper.However with the passage of time,many paper mills were set up in Pakistan. 

Important Paper Mills:

At present,following are the paper mills in our country: 

1.Adamjee Paper Mills (Nowshera)N.W.F.P:

There is a hard board industry at Nowshera (N.W.F.P).Its producing capacity is 5000 tonnes of hardboard which is mostly needed for packing purposes.The waste of sugarcane (bagasse) is used as raw material which comes from sugar industry ,Mardan. 

2.Charsada Paper Mills (Charsada,Mardan)N.W.F.P:

Wood pulp is used as raw material. 

3.Gharoo Paper Mills (Gharoo)Sindh:

It uses waste of rice as raw material. 

4.Packages Industry (Lahore)Punjab:

Uses wood pulp as raw material. 

5.Rahwali Paper Mills(Gujranwala)Punjab:

It produces hardboard and brown paper. 

6.Hyderabad Plant Paper(Sindh):

A plant of paper has been recently completed at Hyderabad to meet the newspaper requirements which uses the waste of rice as raw material. 

Imports of Paper and Paper Board:

During July-March 1990-91,the value of paper and paper board imported stood at dollar 99.85 million.During the same period in 1991-92 the value of imports stood at dollar 111.88 million. 

(E) CIGARETTES INDUSTRY

A large amount of tobacco is being cultivated in various parts of our country and we produce enough amount of tobacco every year.In the beginning there was no factory for the manufacturing of tobacco products and we had to export most of our tobacco in raw shape and had to import tobacco products from other countries. 
Thus the government allowed to set up a number of factors for the manufacturing of tobacco products,so we saved a large amount or foreign exchange.Today we have not only become self sufficient in our tobacco to other countries. 
There are 25 cigarettes manufacturing units situated at Jhelum Multan,Lahore(Punjab),Karachi (Landhi,Maripur,Sukkar,(Sindh),Nowshera(N.W.F.P) 

Production(Million Nos.):

1989-90- 32279 
1990-91 – 29887 
1991-92 – 22575 
(July-March)