Pakistan

Studies
Economic
development
For Matric class
Written by:
mubashir raza
gabol
 Economic development
6.1.1: describe different kinds of industries in
Pakistan i.e. cottage, small scale and large
industry.

Cottage industry: An industry or act of production which is

carried out in homes or on a small scale falls in the category of
cottage industries. Cottage industries usually include those
industries in which Pakistani craftsmen use old fashioned,
simple tools and traditional methods. Local raw material is used
in these industries. Cottage industries play an important role in
the industrial development of a country.
These are major features of cottage industry in Pakistan:
➢ The products of cottage industry form 30% of the
exports of Pakistan.
The famous products of cottage industry are
as follow:
• Craft of spinning with a spinning wheel.
• leather goods manufacturing
• different items of daily use from leaves and cane
• Craft of making clay utensils.
➢ Capital investment in cottage industries is negligible.
➢ Cottage industries are located in both rural areas as
well as urban areas.
Small scale industry: Small industry
means that industry which employs 2 to 9 workers
and manufactures different items. In the industrial
sector of Pakistan, a large number of people are
associated with small industries.
The small scale industries in Pakistan are as follow:
• . dairy farm industry
• sports good manufacturing industry
• utensil making industry
• carpet weaving
➢ Small scale industries are closely linked or
allied to agriculture.
➢ Small scale industries are organized they
can be a good source of reducing migration
of rural
Large scale industry: the industries in
which thousands of people are employed
and also backbone of the economy of
country.
These are large scale industries of Pakistan:
• textile and textile related industries
• sugar industry
• i. Iron and steel industry
• petroleum and petroleum products
industry
 • paper and paper products industry
• Refrigerator, air-conditioner industry
and machinery, T.V. sets industry.

6.1.2: locate the important industries on the map of Pakistan (cement, cotton,
sugar, iron and steel, sports goods, and surgical instruments);

(1)Cement industry: Limestone and gypsum is used in manufacturing of

cement.
In Punjab the cement factories are located in ( Dandot, Wah, Daud Khel,
Rawalpindi).

In Sindh these are located in (Karachi, Hyderabad, Thatta, Nooriabad).

In KPK are located in (Kohat, Haripur, Nowshehra).

In balochistan ( Darwaza and other).

(2) Sugar Industry: It is one of biggest industries in the country.

The biggest sugar industries are located in Rahwali near Gujranwala

and Takht Nhai in KPK.

Punjab has 40 sugars mills, 32 in sindh and 6 in KPK.

(2) Iron and steel industry: Most common industry of Pakistan and built
at Karachi (Pakistan steel mill limited) and Heavy Mechanical
Complex in Taxilla.

6.1.3: analyse the factors that are responsible for the setting up of an
industry in a particular region;
The two certain factors are divided in two categories:
1) Physical factors
2) Human factor or economical factor.
Human factors are as follow:
➢ Availability of raw materials.
➢ Access to local or national market.
➢ Power supply (hydro-electric and thermal).
➢ Huge or small investment.
➢ Technicians and labor skills.
Physical factors are as follow:
 ➢ Site location for industry.
➢ Natural land and climate of that area.
➢ Availability of raw materials.

6.1.4: describe the importance and contribution of

small scale and cottage industries;

➢ Employment potential.
➢ Meets the demands of local market.
➢ Source of foreign exchange income.
➢ Gainful employment of women.
➢ Reduces rural-urban migration.
➢ Makes use of industrial waste.
➢ Little burden on imports.
➢ Good use of local raw material.

6.1.5: evaluate reasons for economic disparity amongst

different regions of Pakistan and the problems caused by it;
These are several reasons and causes of economic disparity in
Pakistan:
➢ Pakistan’s population is increasing quickly. Compared to
this, there is less increase in production capacity.
➢ Due to energy crisis, employment opportunities are limited.
➢ Illiteracy and lack of technical education.
➢ Economic development is slow and trade activities are
limited
➢ There are few opportunities for local and foreign
investment due to the country’s condition.
➢ Rate of inflation is high.
6.1.6: suggest remedies to overcome the economic disparity in
Pakistan;
Solutions to overcome economic disparity in Pakistan:

➢ Job opportunities should be created in different

departments.
➢ Loan schemes for youth to starting their business
from government.
➢ Citizens should be provided with basic facilities.
➢ Poor people should be helped with finances from
Bait-ul-Maal and Zakat funds.

6.2 Trade and Commerce

6.2.1: describe the terms trade, commerce, foreign exchange,
balance of trade and balance of payment.
Trade: Trade means the process of buying and selling or
exchanging goods within a country or between countries. The
term also refers to a particular business or industry such as
cotton industry.
Commerce: Commerce literally means the buying and selling of
goods and services.
The development of trade and commerce is a precondition for
overall progress and development of a country.
Foreign exchange:
Balance of trade

➢ The difference between the value of exports and

imports of any country in a given time frame is
called balance of trade.
➢ If the value of exports is higher than value of
imports then this balance of trade is profitable for
a country.
➢ If the value of imports is higher than the value of
export then this is called trade deficit.
6.2.2: explain the importance of trade and commerce activities
for the economic development of a country.
➢ To increase productive activity and national income and
national savings.
➢ To provide employment to more and more people.
➢ To reduce disparity among different income levels and
regions of the country.
➢ To increase the GDP (Gross Domestic Production) and GNP
(Gross National Production) of a country.
 ➢ To develop domestic resources and minimize dependence
on foreign loan.
➢ To provide social services and especially population welfare
and planning.
6.2.3: state Pakistan’s main trading partners and the
goods Pakistan exports or imports from them.

There are many countries in the world have a large quantity of

mineral reserves, some countries are advanced in the field of
agriculture and so other when they completely meets the
demands of their citizens or national level than these countries
exports there goods and services to other countries and earn
foreign exchange. Pakistan is one of them.

Export of Pakistan
The important exports of Pakistan are as follow:
Rice: Pakistan produces excellent qualities of rice. Pakistan has
Rice trading corporation which is organized by under the
government of Pakistan. This corporation buys rice from
companies and factories and export to other countries such as
Saudi Arabia, United Arab Emirates, Kuwait, Abu Dhabi, Iraq,
Iran, Brazil, Libya, Sri Lanka, Singapore, Indonesia, Britain,
Canada, Germany and America.
Cotton: There are many types of cotton which are cultivated in
Pakistan. These are:

• Raw cotton
• Cloth cotton.
• Cotton yarn
• Readymade garments.
Pakistan exports these cottons to other countries such as
America, Canada, Hong Kong, Germany, Malaysia, Britain,
France, Italy, Poland, Sri lanka, Afghanistan, Russia, south
Africa and Iran.
Sports goods: The cities of Pakistan like Sialkot and
Lahore are famous in manufacturing the sports
goods. They manufacture the equipments of foot
ball, volley ball, badminton, and cricket. They export
the sport goods to other countries like Germany,
Holland, France, Italy and Britain
Leather and Leather products: Leather has helped in the
development of the shoe making industry and goods like
suitcases, bags, jackets, sacks and other products. Leather
goods are mostly exported to Japan, Germany, France, Britain,
America, Italy, Russia, Spain, China, and Bangladesh.
Dry Fruits, fruits and vegetables.
Pakistan exports dry fruits to Italy, Britain, America, Arab countries, Sri Lanka,
Singapore and Malaysia. Fruits and fresh vegetable are exported to Iran, Germany,
Middle East and some countries of Europe.
Pakistan also export surgical instruments, carpets, furniture,
chemical and pharmaceutical products to other countries and
earn foreign exchange.
Imports of Pakistan

Pakistan import petroleum and petroleum products from

Saudi Arabia, Dubai, Abu Dubai, Kuwait, and Iran.
As well as Pakistan import iron and steel, Machinery,
Fertilizer from other countries.
6.3 Transport and Communication.
6.3.1: describe the modes of transport used in Pakistan i.e.
land, air and water.
Land transportation has three main types:

1) Roads
2) Railways
3) Motorways.
Roads: Transportation by roads is more useful and
more important than railways. At present road
network in Pakistan has total length of 249,959km.
This total includes 138726 km good quality roads and
111, 233 km low quality roads.
Motorways: Pakistan has a great system of
motorway at various areas. The Lahore-Islamabad
motorway is first phase of the grand Pakistan
Motorway project and this motorway known as M-2
motorway as well as there are many project are
completed such as Hyderabad-Karachi Motorway
and so other.
Water Transportation
Pakistan has great system of water transportation
through oceans and sea-ports for international
transportation due to short level of water at the
rivers the transportation under the country level is
very difficult. The main sea-ports of Pakistan are
Muhammad Bin Qasim and Gawadar port.
Air Transportation
Air transportation is the most modern, the quickest
and the most comfortable medium of
communication, especially for long distance and
overseas travelling. There are many areas of
Pakistan which have no any good system of air
transportation like Gilgit and chitral. There are 36
operational civil airports in Pakistan. Karachi, Lahore
and Islamabad airports are more common with
modern facilities.
6.3.2: assess the advantages and disadvantages of road,
rail, air and water transport within or outside Pakistan for
both goods and people.
Advantages of road
➢ Farm produce carried by road from villages to
market places and raw materials to the
factories.
➢ Through roads the timely supply of fertilizers
and seeds to the farmers is made possible.
➢ The trading of goods and services through roads
is very easy.
Disadvantages of roads
➢ The huge loss of goods and services and loss
of life has been observed due to accidents.
Advantages of Rail
➢ The biggest source of trading petrol and
diesel and raw material from one city to
another or one province to another.
➢ People travel from one city to another in
very short rates.
Disadvantages of railways
➢ Due to accidents the huge loss of products
and raw material has been observed.
Advantages of Air Transportation
➢ Airports are comfortable for communication
and for long distances and overseas
raveling.
Disadvantages
➢ Air transportation is very expensive in their
rates.
➢ There are many chances of crashing due to
technical problems.
Water Transportation
 Advantages
➢ Great source of export and import the goods and
services from one country to another and big source of
international trading.
Disadvantages
➢ There are many chances of robbery in water
transportation.

6.3.3: locate on the map of Pakistan; Keamari,

Port Qasim and Gawadar port and the cities with
international airports
Sea ports: The Jiwani, Pasni and Gawadar are
located at Baluchistan where Bin Qasim port is
located at Karachi.

Dry fruits, fruits and

International Airports

D
This map shows important airports of Pakistan like
Karachi airport in Sindh, Lahore Airport, Allama Iqbal
International airport In Islamabad, Quetta Airport in
Baluchistan, and Peshawar Airport in KPK.
6.3.4: assess the feasibility of development of Gawadar port
and its importance in the economic development of Pakistan.
➢ Gwadar with the help of China for purposes of
trade, ships hold great importance along with
facilities provided by seaports. Ships are under
the responsibility of Pakistan National Shipping
Corporation. To carry trade goods to foreign
countries, Pakistan has more than 50 cargo
ships. These are not very big but can travel to
distant sea routes easily.
➢ These ships transport goods to Japanese and
Chinese seaports in the East, and to Muslim
countries, European countries, and Britain and
American seaports in the west. Then they
transport the goods from these countries to
Pakistan and earn huge profits.