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Cottage Industry in Pakistan: Assignment 2

Cottage industries have long played an important role in Pakistan's economy. They provide income for many rural families and employ a large portion of the country's workforce. Cottage industries utilize local resources to produce goods like carpets, brassware, and textiles. They are an important source of foreign exchange and help reduce regional economic disparities. The government is now promoting cottage industries' development through initiatives like Digital Pakistan that aim to enhance access to technology and markets. Key cottage industries in Pakistan include textiles, embroidery, jewelry, ceramics, and woodwork.

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Hafsa Yaqoob 8296-FMS/MBA/F20
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81 views

Cottage Industry in Pakistan: Assignment 2

Cottage industries have long played an important role in Pakistan's economy. They provide income for many rural families and employ a large portion of the country's workforce. Cottage industries utilize local resources to produce goods like carpets, brassware, and textiles. They are an important source of foreign exchange and help reduce regional economic disparities. The government is now promoting cottage industries' development through initiatives like Digital Pakistan that aim to enhance access to technology and markets. Key cottage industries in Pakistan include textiles, embroidery, jewelry, ceramics, and woodwork.

Uploaded by

Hafsa Yaqoob 8296-FMS/MBA/F20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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COTTAGE INDUSTRY IN

PAKISTAN
Assignment 2

SUBMITTED TO:
AFSHEEN JALIL
SUBMITTED BY:
HAFSA YAQOOB
8296/FMS/MBA/F20
Cottage industry
Definition:
Cottage and small-scale industries in Pakistan In Pakistan cottage or household industries hold an
important position in rural set-up. Most villages are self- sufficient in the basic necessities of life.
They have their own carpenters, blacksmiths, potters, craftsmen and cotton weavers. Many
families depend on cottage industries for income. Cottage industries have also gained immense
importance in cities and towns. There is great demand for hand- woven carpets, embroidered work,
brassware, rugs and traditional bangles. These are also considered important export items and are
in good demand in international markets. Why it is important to encourage cottage and small-scale
industries.

History of cottage industry:


In ancient times, rural families were mostly involved in cottage industries. It involved along
with the agricultural income to make products at their homes. Merchants used to provide raw
materials, and this marketed the finished products. In cities, cottage industries were
developed by 1870. Workers were employed at meager wages, and the system lasted till
1920. With the rise in the hand-decorating of items and sewing, highly operational activities
were started in cottage industries.

Importance of cottage industry:

1. Largest source of industrial labour force


2. Productive involvement of women
3. Utilization of local resources
4. Source of foreign exchange earning
5. Reduction in regional disparity
6. Reduction in Rural Urban Migration
7. Fulfillment of needs at local level
8. Cost effectiveness

Cottage industries in Pakistan:

In Pakistan, there are more than 3.3 million small and medium scale industrialists or cottage
industry workers. They further employ about 78% of the non-agricultural labor force and
makes 25% of manufacturing exports. Talking about their contribution to GDP, it is recorded
to be more than 30% as indicated by The News (2020).
The government of Pakistan has also launched the "Digital Pakistan" initiative that ensures
digital systems implementation. This is how information asymmetry will be eliminated, and
it can produce creative avenues for SMEs to reap the benefits. Some of these benefits include:
▪ Modern Networking
▪ Enhanced Processes
▪ Access to Tools
▪ Top-Notch Techniques

Essential types of cottage industries:

▪ Textiles
▪ Embroidery
▪ Jewelry
▪ Ceramics
▪ Cutlery
▪ Woodwork
▪ Sports good
▪ Surgical instruments

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