Industrial development

Question 1

types of industries

Answer 1

primary

secondary

tertiary

Question 2

primary industry

Answer 2

related to collecting/making available natural products eg those obtained from fishing, mining, forestry and agriculture

Question 3

secondary industry

Answer 3

converts raw materials supplied by the primary sector/ industry to form a semi finished/finished product

Question 4

tertiary industry

Answer 4

consists of various services eg tourism, education, health and banking

Question 5

secondary industry as a system w imputs, processes and outputs

Answer 5

inputs:

capital: finance to establish and manage factories

enterprise: business skills to develop ideas for products and to manufacture and market them

land: the place where the industry is located

raw materials: basic commodities that are transformed by industrial processes

power: every industry uses power, some like iron smelting, use a lot while others like stitching use a lot less

labour: the number, skills, and other characteristics of the workforce

processes:

smelting (melting metals at high temp)

spinning to make cotton yarn

weaving to make cotton fabric/cloth; knitting, stitching, packaging

dyeing the cotton fabric

crushing, mixing and heating of raw materials in cement industry

outputs:

processed and manufactured goods eg cement, sugar, cotton, yarn, footwear

many products = raw materials for other industries or sold directly to customers eg bottles, cloth, nuts bolts

some products solely used as raw materials for other industries eg axles machine parts etc

consumer goods eg drugs washing machines, bakery products

products of construction industry eg cement, iron grids and bricks, for building offices houses and other buildings

profits earned from the sale of these products are invested back as capital

Question 6

raw material

Answer 6

it is the basic ingredient that undergoes changes to become a new product that may be partly or fully finished or refined

Question 7

types of raw material

Answer 7

renewable: agricultural output eg wheat, grain, milk and hides; products of fishing and forestry, eg wood and fish; water, wind and sunlight as power resources

non renewable: coal, oil, gas for power; metallic and non metallic minerals eg iron ore, chromite, limestone, rock salts for various large industries

secondary products: various processed products eg: cotton yarn and wheat flour; manufactured products eg cotton cloth, engine, steel coils and machine parts

value addition: it is a phenomenon in which the quality of a product is further improved to add its value so that a great profit is earned from its sale. eg, from raw cotton to cotton yarn to cotton cloth to readymade garments; from iron ore to pure iron to steel to huge variety of instruments and machinery

Question 8

industrial infrastructure

Answer 8

set of essential prerequisites to develop an industry. it includes capital investments, roads, railways, power, gas and water supply and sewerage

Question 9

types of secondary industries

Answer 9

small scale cottage/craft industry: family/home based industry not using modern technology; belongs to the informal sector

small and medium scale industry: uses modern technology, organized into firms/ companies with plants/workshops and offices

large scale factory industry: converts raw materials into finsihed/manufactured goods; involves greater degree of automation; ensures standardized mass production on large scale; require huge capital investment and area; employs several hundred/thousand workers; belongs to formal sector

Question 9

difference bw formal and informal sector industry

Answer 9

formal:

employement by instituion

capital intensive (uses mainly modern machinery with fewer workers)

registered w the govt

mainly male workers

regular workin hours and well defined wages/salaries

better quality goods in a better environment

work in properly built factories

informal sector:

self employement

labour intensive (mainly manual work, less use of machinery)

uncertain/variable wages

more female workers

usually unregistered

irregular workin hours

low standard in quality of goods

usually located at homes

Question 9

contribution of formal and informal sectors to development of industries

Answer 9

formal: many local and multi national companies which are registered w the govt

steel mills, cotton textile mills, pharmaceutical companies etc which use modern tech, follow international standards and produce standardized goods

informal: local industries

not registered w govt

eg cottage industries eg carpets, embroidery, ceramics etc

substandard industrial products

lack of standardisation

no quality control

reduced demand

low priced goods = expands

Question 10

advantages and disadvantages of informal sector

Answer 10

advantages:

meets local demands (low priced industrial goods)

employement

makes use of local raw materials ( no imports)

industrial waste utilized to make more industrial goods

door to door

disadvantages:

not registered w govt - no revenue to govt in form of taxes

sub standard goods sometimes

unskilled labor + limited capital = lil potential

child labour = child deprived of education

labor laws not followed = health problems

poor working environment and low wages

Question 11

cotton textile industry

Answer 11

largest industry

40% industrial labour force

Karachi,Hyderabad, Faisalabad

many exports

karachi:

sufficient labour

imported machinery

no extra transport charges

port

large domestic market

demand (climate)

efficient transport system

experienced entrepreneurs

Faisalabad:

close to cotton belt of Punjab

labor from adjoining areas

large local market in Punjab

favorable govt policies

Hyderabad:

cotton producing areas

large local market in Sindh

not far from port of Karachi

process:

fibres spun intro threads

threads arranged lengthwise on loom = warp and other threads (weft) woven crosswise (weaving)

importance:

great export potential (65%)

employement

8.5% GDP

value added products = more foreign exchange than for raw cotton

local raw materials = less imports

promotes production of raw cotton by increasing farmers income

good demand in international market

labor

produced on large scale

meets domestic demand

problems:

leaf curl virus = shortage

recession in international market

shortage of water

outdated machinery

expensive imported machinery

frequent power shortages

terrorist activities

strong competition

further modernisation needed to sustain it in international

poor infrastrucutre

frequent changes in govt policies

Question 12

sugar industry

Answer 12

sugarmills: Punjab KPK and Sindh

none in Balochistan

have to be close to sugarcane fields bec

• expensive to transport
• loses sugar content immediately after harvest

by products:

bogasse: fuel in sugar mills, chipboard, paper, animal feed

molasses: various acids

Question 13

fertiliser industry

Answer 13

urea most widely used (adds nitrogen to soil to speed up growth and increase protein content)

essential

raw materials: gypsum, phosphate, sulfur, natural gas

main locations: Faisalabad and Daud Khel in Punjab, Haripur in KPK and Dharki in upper sindh

2018: 8M tonnes of fertiliser a year produced in 21 factories

located near gasfield or gas pipes as natural gas = raw

mari gasfield in northern sindh = 15M cubic metres of gas per day to three major producers located within 60km radius

govt supports it w tax breaks and subsidies farmers on each bag of fertilizers

competition for gas supplies = new sources of raw material need to be found

Question 14

cement industry

Answer 14

favorable factors:

raw material available (limestone, gypsum)

domestic markets w high demand

natural gas = cheap fuel

Question 15

steel industry

Answer 15

1st steel mill, PSM set up in dec 1973, 40 km East of Karach at Gharo creek, near port Qasim, with soviet assistance location; pipri (closed in 2015 cuz it was expensive to run)

steel essential for building infrastructure such as bridges, power lines, dams etc

raw material for engineering and consumer industries

products of steel mills: coke, pig iron/hot metal, rolled and cast billets, galvanised products and raw steel

2nd iron industry at taxila: HMC (heavy mechanical complex), established in 1979 w chinese assistance

major heavy engineering cetre of pak

HFF (heavy forge factory) manufactures defence equipment

(machinery for HEP plants, thermal pllants, oil and gas processing plants and chemical and petro-chemical plants

Question 16

factors for location of iron and steel industry

Answer 16

PSM: flat and cheap land of pipri near coast

conected to port qasim

fresh water supply from lake haleji

cheap labour from karachi

limestone from murali hills , thermal and nucleur power

karachi largest market well connected to rest of pak by road and rail

capital provided by USSR (russia)

HMC: flat land of potwar plateau

limestone and iron ore deposits in the region

hydroelectric power from tarbela

cheap labour from neighboring cities

located between GT road and main Peshawar-Karachi railway route

huge markets of Punjab and KPK around Taxila

capital supplied by China

iron and steel industries operating under priv sector eg ittefaq industries, Malik steel, Mughal steel in lahore

Question 17

advantages of iron and steel industry

Answer 17

source of large scale employment

reduced import spendings as products manufactured locally

satisfies needs of many other industries eg engineering, costruction etc

potential for exports if many units are set up in various parts of pak = more export earnings = improved BOP

Question 18

disadvantages of iron and steel industry

Answer 18

power shortage crisis

huge area required = more deforestation

huge capital investment = foreign assisstance

air pollution due to release of heat ans smoke, noise pollution by heavy machinery, land and water pollution by untreated waste

Question 19

what is an industrial estate?

Answer 19

areas reserved exclusively for various industries

infrastructure developed by govt eg powerm gas, water, health and edu facilities etc

incentives offered to industrialists eg cheap rate of power and gas supply, land and concession in taxes on sale, imports and exports

priv sector encouraged to develop its own power plants

eg: SITE (Sindh Industrial Trading Estate)

special industrial zones: same as industrial estates except that the infrastructure facilities that the investors are encouraged to develop

incentives same as those for estates

eg proposed zones along motorway

why r industrial estates and special industrial zones set up?: to boost industrial development , attract investment, encourage entrepreneurs by offering them incentives

Question 20

EPZs

Answer 20

an industrial area where export oriented industries are set up

products mainly for export and if supplied to local market then same price of goods as that for export

eg: EPZ at landhi, Karachi, EPZ in Sambrial, Sialkot, Risalpur and Gujranwala

Question 21

advantages of industrial estates

Answer 21

large scale employment

growth of industries

attraction of investors thru variety of incentives eg reduced taxes, cheap rates of land, power and gas

improved quality due to competition bw various owners of same industries

potential for export if production exceeds local needs

improved GDP and GNP

Question 22

disadvantages of industrial estates

Answer 22

deforestation on large scale

huge investment needed

pollution of various types

power shortage crisis = stumbling block in development of industry and industrial estates

Question 23

aims of setting up EPZs

Answer 23

boosting industrial activity

increasing export earnings

attracting investors

creating jobs

transferring hi tech from the developed countries like US, Japan and EU countries

Question 24

govt policies towards industrial sector since 1947

Answer 24

1955: PIDC (Pak Industrial Development Corporation) to set up public sector industries

1960s: priv sector encouraged during Ayub’s regime as various incentives were offered to investors

self sufficiency in agro based industries

1970s: process of nationalization by Z.A Bhutto, several priv sector industries taken over by govt = slow pace of industrialization

priv investors = discouraged

1980s: denationalization by general zia, nationalized unit returned to their owners

1990s: privatization of SOEs (State Owner Enterprizes) by the Sharif govt, partial privatization of Pak’s railways to improve its working

Question 25

sports goods

Answer 25

mainly made in sialkot

main small to medium industry

export oriented

easily available skilled labour and raw material (local and imported) eg wood, leather, rubber etc

formal and informal style eg stitching and cutting under primitive conditions

meets international standards

Question 26

surgical instruments

Answer 26

mainly industries in lahore and sialkot

repair to manufacture of simple and advanced instruments

local supply and export

competition w some of the developing countries despite the issue of child labour

Question 27

brick kiln industry

Answer 27

location: usually outskirts of major and small cities

inputs: clay, water, power, manual labour (pak: child labour and bonded labour main source)

processes: mixing clay w water, using moulds to shape rectangular blocks, drying in sunlight, baking in fire to impart hardness to the soft mixture

output: bricks of various sizes and thickness

uses: main construction material, lining of canals, sewerage drains in rural areas, protecting underground electric, telephone cables and pipelines, making footpaths etc

Question 28

importance of brick kiln industry

Answer 28

source of employment to skilled and unskilled ppl, construction material on cheap rate, use of cheaply available raw materials

Question 29

disadvantages of brick kiln industry

Answer 29

adverse effects on environment, causing air pollution through smoke from chimneys, heat,dust, toxic gases

consumption of coal as main power source

ill effects on workers who work in unhygienic conditions (40 degrees celcius and above temp, smoke, polluted air)

workers underpaid and overworked and poorly nourished

usually deprived of sufficient sleep

workers may suffer from asthma, tuberculosis and other respiratory and skin disorders due to exposure to heat and pollutants released from burning coal, tyres and organic matter

kilns due to relying on old methods, contribute to global warming and environmental degradation

Question 30

measures to improve brick kiln industry

Answer 30

enforcing environment protection laws

eliminating child and bonded labour

Environment Protection Agency (EPA) tryinng to replace coal w natural gas

safety devices provided to workers (masks, adequate clothing, food etc)

fixing chimneys at greater height, replacing manual labour w automatic baking machines to reduce time of baking and drying processes

installing air filters, precipitators, trees to reduce pollution

clean coal technology, loans to owners to improve working conditions

Question 31

small scale cottage and craft industry

Answer 31

informal sector

home based (family members, nominal electric power)

widely distributed thru out Pak

GB province specially known for this industry

eg embroidery, straw, wooden, ceramics, jewelry etc

Question 32

factors influencing establishment of small scale and cottage craft industry

Answer 32

availability of raw material

climatic conditions

traditional skills

local specialization in the organized factory sector

local and foreign demand eg decline in export of non cotton products due to concerns expressed by west abt child labour, environmental pollution and poor health standards

Question 33

advantages of cottage and craft industry

Answer 33

means of self employment

no huge investment needed

less power consumption

no imported raw material; waste products of many local large scale industries used as raw material

source of women employment- discourages child labour

potential to diversify exports and thus increases paks export earnings

if supported by govt they can improve living conditions of rural communities and reduce disparity bw rural and urban areas

Question 34

disadvantages of cottage and craft industry

Answer 34

limited profits which are usually spent on daily expenses

use of primitive methods and machinery

lack of standardization and quality control

exploitation of owners by the middleman and whole sale dealers; craftsmen and owners feel discouraged when they earn lesser profit

w out power in rural areas it is difficult to develop and run these industries, in cities load shedding and power breakdown adversely affect production and damages machinery

no institutional training/ inherited skills

no economies of scale, high production cost, difficult to compete in open market

Question 35

govt policy towards small scale industries

Answer 35

various bodies to develop these industries:

Pak Small Industries corporation (PSIC) and provincial bodies eg PSIC SSIC SIDB (small industries development board) and DSIB (Directorate of small industries balochistan)

establishment of TEVTA (technical education and vocational training authority) to impart technical edu

SMEDA ( small and medium enterprises development authority)

these bodies:

provide technical and financial help

provide marketing facilities

set up handicrafts and carpets development centres

set up technical service centres

Question 36

industry and environment

Answer 36

air and aquatic pollution by chemical units (brick kilns, factories, traffic) = respiratory disorders eg throat infection, asthma, allergies and skin problems

release of smoke and toxic gases = pollution

contamination of subsoil water causes digestive disorders when this water is consumed

running of heavy machinery causes noise pollution

land pollution due to dumping waste and burnin it - toxic smoke

contamination of crops by industrial water waste

impact on marine life:

disposal of industrial waste from korangi industrial area, Karachi

high proportion of lead in marine life, when consumer by humans = anemia, kidney failure, damage to nervous system

threat to growth of magroves

contamination of sea water by pumped out bilges and refuse at the terminal, pollution by export industries near port due to release of untreated effluents in sea

Question 37

measures to control industrial pollution

Answer 37

efficient mechanism for disposal of effluents and waste onto grounds or into drains and canals

importing machinery to treat waste

installing precipitators & catalytic convertors

utilizing our own resources against pollution, planting trees on extensive scale to minimize pollution and poisonous effects

enforcement of strict laws to discourage corrupt officials and multinationals from dumping untreated waste in the sea; industries should not be allowed in city limits

awareness among ppl abt value of clean environment

passage of PEPA (Pak Environment Protection Act) and NEQS (National environment quality standards) to reduce effects of pollution

Question 38

govt policies for developing secondary industry

Answer 38

no major development for industrial development from 1947-60 except for Jinnah’s industrial policy announcement in 48 and establishment of PIDC in 1950s

Ayubs industrial reforms boosted industrial growth in 1960s

Z.A Bhutto’s nationalization of priv sector industries = slow industrial growth rate in 1970s

Zia’s policy of denationalization = improvement in industrial growth which was accompanied by a start of power shortage crisis from 1985 onwards

privatization of SOE (state owner enterprises) 1988 onwards esp by sharif govts of 1990-93 and 97-99

objectives of privatization:

expansion of priv sector for better performance

improving quantity and quality of production

reducing burden on govt

ensuring rapid industrialization

Question 39

tourism

Answer 39

tourism is a whole business of providing accommodation and recreation to visitors who stay at or visit a place for a limited period of time

international visitors to Pak come for business/political rzns, visiting families or as tourists

for business:

mainly from Europe and US

come to attend trade delegations or for educational purposes eg foreign students and tchrs or also as staff of multinationals eg major banks, major restaurants etc. they may also come as UN officials eg UNHCR, WHO, WFP or members of diplomatic teams

international visitors mainly from Middle East, US, EU, Canada and Australia

expatriate Pakistanis = families

Indian Muslims = relatives in Pak

number of foreign tourists declined due to wave of terrorism in several parts of Pak including the mountainous areas; inadequate security and mismanagement of tourist sites

lack of interest shown by various govts to promote this industry

Question 40

main sources of overseas visitors to Pak

Answer 40

Uk and India

Germany, Japan, Russia, CARs, China, NA, Australia and Middle East

Question 41

tourist attractions in Pak

Answer 41

. scenic beauty

kaghan and many other valleys

shogran

snow capped peaks

gilgit valley (1454)

Skardu (starting point of expeditions to K2 and other high peaks)

Hunza valley due to meadows, wheat fields, snow capped peaks

chitral along w Kalash valley civilization and Shudur polo festivals- worlds highest polo ground located here

Murree and Galiat- murree losing charm due to overcrowding and mismanagement- galiat further higher do attract tourists

2, cultural/historical

Indus valley civilization of moenjo Daro and Harappa; Gandhara civiliation of Taxila to peshawar

forts, mosque, tombs of Jahangir, noor jehan, allama iqbal, ranjit singh etc

modern buildingd eg faisal mosque, meenar i pak

dams and barrages

khewra salt mines and museums

Question 42

advantages of developing tourism

Answer 42

greater foreign exchange = improves BOP

Labour intensive hence employement (hotels, resorts as guides)

promotes cottage and craft

increases production of food and other commodities

local population can avail many of the tourist facilities

reduces rural to urban migration as income from tourism may be spent on local development

cultural interaction w other countries

sustainable industry– tourist attractions remain there and only need regular maintenance to preserve natural beauty

Question 43

disadvantages of developing tourism

Answer 43

capital required for tourism may be spent on other basic sectors eg mining power resources, developing secondary industry etc

high adventure tourism = healthy young adults not families = limited income

development an construction of buildings = locals lose homes and their old means of earning eg fishing when buildings constructed near rivers

seasonal employement (northern mountains) (landslides and snowfall restrict tourism)

adverse effect on local culture; frustration among locals = terrorism, drugs, theft an other anti social tendencies

unaffordable facilities for domestic tourists as prices of daily commodities of life are unusually raise by local traders

local and global disturbances that have affected Pak significantly (sharp decline after 9/11)

Question 44

factors determining the feasibility of developing tourism

Answer 44

presence of tourist attractions

adequate security for tourists

availability of capital to develop and maintain infrastructure of tourist sites eg roads, transport, water and power supply etc

transport and communication (metalled roads, arrangements against landslides)

management (eg murree too congested to enjoy comfortably)

marketing and publicity (telecommunications may greatly help, use of Social media to highlight a better image of Pak)

PATO (Pak Association of Tourism Operators) is advising the govt to create an alternative body to PTDC

govt priorities (sustained and uniform) curse of terrorism should be eliminated on priority basis

policy of targeted tourism should be adopted - targeting those tourist points that can be developed w lesser cost

Question 45

call centres

Answer 45

newly emerging tertiary industry

call centre: the office of the organization that handles telephone calls to and from other companies

calls both inbound and outbound

inbound: customer -> company

outbound: company -> customers

centre can handle a huge volume of calls at the same time w help of computer data system

calls filtered and forwarded to qualified employees called agents

agents transfer calls to relevant companies; cheaper for various companies to handle sm calls

Question 46

call centre business in Pak

Answer 46

govt decision to establish several call centres

toll free telephone number, 0800 provided by govt

common services: airline booking, banking, reservations in advance etc

calls by domestic and overseas customers routed to call centres in major towns like Karachi, lahore, Islamabad; PTCL facilitating cnnections for call centres

involves efficient and quick response to handle several calls simultaneously