The initial experience revealed that private
sector, was interested only in high profit earning light industries, and due to
lack of capital, technical expertise and absence of entrepreneurship, etc., was
hesitating to invest in heavy industries. So to over come these problems
Government of Pakistan established Pakistan Industrial Development Corporation
(PIDC) in 1952. The PIDC made investment in those industries, which required
heavy initial investment, a high degree of technical expertise and had a long
gestation period to yield a return.
The PIDC, by June 1971, made investment in 59
industrial units. Its major investment was in cement, fertilizer, Jute, paper
and paperboard. shipyards and the Sui Karachi gas pipeline. It enabled the country to have a self-sustained growth in
the field of industry.
In the first 5 years plan (1955-60), a sum of
185.11 crore was allocated and new industrial units, like paints, varnish,
glass, woolen & worsted yarn, tyres and tubes were established. Due to all
these efforts, the share of industrial sector in G.D.P., rose from 9.7%-11.9%
by the end of 1959-60.
The reduction of export duties and the introduction
of Export Bonus Scheme in 1958 increased of manufactured goods. There was all
round development of industries particularly in agricultural processing, food
products, and textile.