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Industry in Pakistan

Manufacturing is the third largest sector the economy accounting 18.5 percent of cross domestic product and 13% of total employment. The share of Large Scale Manufacturing is 12.2% of GDP whereas Small Scale Manufacturing accounts 4.9% of total GDP.

History of Industrial Development in Pakistan

Before the 19th century, the subcontinent of Pakistan and India was not backward and undeveloped. Before the arrival of East India Company (British), it was an industrially developed region of Asia and was famous the world over. The major industries of this region were textile, metals, handicrafts, and constructions.

After the industrial revolution in the west, our industries could not compete with them. On the other hand, East India Company was playing very cleverly in the markets. It was increasing the sale of products made in U.K. It was the purchaser of agriculturally produced raw material in Indian and seller of processed goods in the whole region. Due to the policy of East India Company, industrialization was not encouraged in the sub-continent.

At the time of partition in 1947, Pakistan had a negligible industrial base. The contribution of industry towards GDP was only 7,7% In 1949-50. Since partition, the government has been utilizing all available resources for rapid development of the manufacturing sector. Pakistan has now attained consumer goods to chemical, steel, heavy engineering, machines and tool industries.

Domestic production of items such as refined sugar, steel, fertilizer, cement etc., has helped in import substitution and has   substantial amount of foreign exchange. This sector now employees 10.5% of the total labor-force and its contribution to G.D.P. has remained 17%.

The industrial development of Pakistan in terms of growth productivity can be reviewed in the following periods ;

  • Growth of Industrial Sector from, 1947-1 950.
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  • Growth of Industrial Sector from, 1950-1960.
  • Growth of Industrial Sector from, 1961-1970.
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  • Growth of Industrial Sector from, 1971-1977.
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  • Growth of Industrial Sector from, 1978-2008.

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