Industrial Development

Question 1

Importance

Answer 1

Definition:
Industrialization is crucial for economic growth and overall prosperity.
Considered the backbone of a strong and stable economy.
Role in Economy:
Basis for modernization and state development.
Enhances a nation’s international standing and promotes self-reliance.
Strengthens trade, saves foreign exchange, and provides raw materials for agriculture.
Improves quality of life, aids in poverty reduction, and generates employment.
Significant impact on defense and national security.

Question 2

Historical Overview

Answer 2

Initial Conditions (1947):
Pakistan inherited a small industrial infrastructure, about 4% of India’s industry.
Establishment of initial industries such as sugar mills, biscuit factories, and steel rolling units.
Priorities Set Out:
Indigenous raw materials for industry.
Manufacturing consumer goods to meet immediate needs.
Encouraging private initiative with state support.
Formation of the Industrial Development Board in 1948.
Institutional Arrangements:
Establishment of PIDC, IDBP, PICIC, and Investment Promotion Bureau.
External financial and technical support from international organizations.
Nationalization of the Seventies:
Ten basic industries were nationalized, impacting industrial output.
Led to flight of capital and challenges in economic management.
Since the Early 1990s:
Shift in policy towards denationalization, privatization, and a free-market economy.
Emphasis on foreign investment, non-governmental initiatives, and FDI.

Question 3

Major Industries

Answer 3

Textiles:
Major industry based on agriculture, with significant centers in Faisalabad, Multan, Lahore, and Karachi.
Sugar:
Significant progress in agro-based industry, located in Sindh, Punjab, and NWFP.
Cement:
Over 20 factories catering to Pakistani needs, concentrated in Dandot, Daud Khel, Wah, Rori, and Karachi.
Vegetable Ghee:
Significant expansion in Sindh, Punjab, and NWFP, achieving self-sufficiency.
Iron and Steel:
Steel Mill near Karachi with Soviet assistance, faced challenges with poor-quality iron ore.
Paper:
Post-1971, located in Noshera, Charsada, Gujranwala, Lahore, and Gharo.
Machine, Tools:
Heavy Mechanical Complex (HMC) Texla established with Chinese cooperation.
Defence Industry:
Wah Ordnance Complex, HMC, and Kamra Aircraft Rebuild Factory involved in weapons, armaments, and aircraft production.
Other Industries:
Fertilizer, Tobacco, Oil Refineries, Cars and Tractors production, Shipbuilding (Karachi Shipyard, Ship breaking).
Cottage Industry:
Small-scale industries involving limited resources, e.g., Carpets, sports goods, toys, handicrafts.

Question 4

Future Directions

Answer 4

Industrialization Necessity:
Industrialization is essential for prosperity and development.
Pakistan follows a mixed economy with an emphasis on private initiative.
Conditions for Privatization and Foreign Investment:
Political and economic stability.
Infrastructure development.
Addressing corruption issues.
Low-interest loans and state support.
Ensuring security of investment.