Evolution Of Industries In Pakistan
In 1947 at the time of partition, Pakistan had a negligible industrial base. Out of 950 industries in British India Pakistan only got 35 industries which are 3.86% of the total industries established in the Subcontinent. The rest were located in India. The industries which came into Pakistan’s share were comparatively small, these industries included small sugar mills, cotton-gaining factories, flour mills, and rice husking. In 1947 industrial conference of Pakistan suggested setting up more industries, which use locally produced raw materials. Industrial Finance Corporation and an industrial investment and credit corporation were set up in 1948 by the Pakistani government. The contribution of the industrial sector was 6% of the Gross domestic product (GDP) in 1950.
In 1952 the Government established the Pakistan Industrial Development Corporation (PIDC) purpose of this institution was to invest in those industries which required heavy initial investments. PIDC had completed 59 industries by 1971. A large number of new industries were established, and the production of existing industries also expanded, due to the export bonus scheme in 1958 exports were also boosted.
In the 1960s there was a shift in the establishment of consumer goods to heavy industries. The share of Industries to Gross National Product (GNP) went up to 11.8%. The industrial performance of the industrial sector from 1971 to 1977 was disappointing in terms of exports and production. One wing of the country was forcibly separated due to the suspension of foreign Aid and exports the annual growth rate fell to 2.8% in the industrial sector.
From 1977 to 1980, the Government initiated a large number of measures to reform the industrial sector. The private sector was encouraged to invest in large-scale industries. The growth rate was 8.9% in 1990. The industry is the second largest and most important sector in the economy accounting for 25% of the GDP. It comprises of large to middle-scale manufacturing, mining & quarrying construction, and electricity & Gas distribution. Read more
Leave a Comment