Industrial Problems Of Pakistan 22451v

INDUSTRIAL PROBLEMS OF PAKISTAN

Importance of Industrial Development • Industrial development can play a very significant role in the economic development of any country due to following: Increase in National Income  Higher standard of living  Economic stability  Improvement in Balance of Payment  Stimulates progress in other sectors  Increased employment opportunities

Importance of Industrial Development  Promotion of specialization  Rise in agriculture production  Industrial activity is easy to be controlled by human efforts  Large scope for technological progress  Reduction in the rate of population growth  Increased savings and investment  Provision of Defense  Increase in government revenue

Causes of Industrial Backwardness in Pakistan Controversial Industrial Development Strategies. The slow growth in industrial sector is mainly due to rapid changes in the industrial development strategies. The planners have yet not been able to solve the central issues such as the following:o Sectoral Balance i.e. balance between the agricultural and industrial sector o Regional Balance between provinces

Causes of Industrial Backwardness in Pakistan o Growth Versus welfare strategies o Small scale versus large scale industries o Capital intensive versus Labour intensive methods of production o Public versus private sectors o Rural versus urban sectors o Nationalization versus privatization / deregulation of industries o Absence of clear demarcation of industries between public and private sectors

Causes of Industrial Backwardness in Pakistan  Law and order situation  Security of capital  Bureaucratic control  Clear policy about local and foreign investors  Lack of capital  Narrowness of market  Poor quality of industrial labour  Lack of infra-structural facilities  Lack of technical know-how  Lack of Industrial consultancy firms  Racial / sectarian disturbances  Frequent breakdown of electricity

SOLUTION TO THE INDUSTRIALPROBLEMS • Following measures are recommended to eradicate the problems faced by the industrial sector and its rapid development:Capital formation through increased saving Provision of training facilities for manpower Improvement in the techniques of production through improvement in the technical know- how Establishment of organizations to carry out industrial research (PCSIR) Encouragement of foreign investment

SOLUTION TO THE INDUSTRIALPROBLEMS Increase in industrial credit and judicious distribution Strict quality control measure Ensuring regular and timely supply of raw materials Establishment of basic industries like steel, plastic machines and tools industries etc

SOLUTION TO THE INDUSTRIALPROBLEMS Tax exemption, holidays, rebates and concessions Avoiding frequent changes in industrial policies about nationalization, privatization and deregulation Establishment of industrial estates Protection to domestic industries from aggressive foreign competitors