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Causes of Industrial Backward Ness

The document discusses the causes of industrial backwardness in Pakistan. It identifies three main obstacles: 1) controversial industrial development strategies that have changed rapidly without resolving key issues, hindering growth; 2) a lack of sufficient capital investment in capital-intensive industries; and 3) a narrow domestic and foreign market for manufactured goods due to low purchasing power, poor quality, and reluctance of advanced countries to buy Pakistani goods. The government has tried for decades to develop industries and infrastructure, but the industrial sector has only contributed 18.5% to GDP, below expectations.

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734 views2 pages

Causes of Industrial Backward Ness

The document discusses the causes of industrial backwardness in Pakistan. It identifies three main obstacles: 1) controversial industrial development strategies that have changed rapidly without resolving key issues, hindering growth; 2) a lack of sufficient capital investment in capital-intensive industries; and 3) a narrow domestic and foreign market for manufactured goods due to low purchasing power, poor quality, and reluctance of advanced countries to buy Pakistani goods. The government has tried for decades to develop industries and infrastructure, but the industrial sector has only contributed 18.5% to GDP, below expectations.

Uploaded by

Fawad Abbasi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as RTF, PDF, TXT or read online on Scribd
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Industrial Development In Pakistan

Tuesday, November 9, 2010


Causes Of Industrial Backwardness In Pakistan .
The causes of industrial backwardness in Pakistan are varied and complex . The government of
Pakistan since 1947 is trying hard to develop industries and infrastructure facilities for the growth
of industrial sector , yet it has not achieved success to the desired extent . In the last over three
decades , the contribution of industrial sector to GDP is only 18.5% which by any standard is not
satisfactory . The main obstacles which have slowed and retarded industrial development in
Pakistan are as follows :
1 . Controversial Industrial Development Strategies :
In the past , there have been rapid change in industrial development
strategies because the planners have not been able to resolve the following issues :
(a) . The extent of interdependence between agriculture and industry ,
(b) . The rate of economic growth with or without equal distribution of wealth ,
(c) . Establishment of capital intensive or labour intensive industries ,
(d) . Industrial development through public or private sector investment ,
(e) . Small scale or large scale industries to be patronized ,
(f) . Industries to be nationalized or denationalized and deregulated etc . In the absence
of a clear-cut industrial strategy , the growth of our industrial sector has been very slow .
2 . Lack Of Capital :
The second major problem of industrialization in Pakistan is the lack of capital . In
capital intensive industries like steel and iron , chemical , automobile etc . the amount of capital
required per worker is quite high . In industries like textile , carpet , sugar , paper board etc huge
amount of capital is required to establish and expand these industries . Pakistan allocated a sum
of Rs. 162.2 crore in the first five year plan for the development and growth of industries . In the
sixth five year plan , an amount of Rs.18.1 billion had been placed for the growth of industrial
sector in public sector and Rs.16.0 billion in the 7th plan . The amount is still insufficient to meet
the necessary preconditions for economic take off .
3 . Narrowness Of Market :
The narrowness of home and foreign markets for the manufactured goods is also a
major obstacle in the expansion and growth of industrial sector in Pakistan . The low purchasing
power of the people , the production of substandard goods and the higher cost of production limit
the size of market at home . The advanced countries , due to poor quality of the manufactured
goods of the developing countries , are reluctant to purchase their manufactured goods . Pakistan
, in order to avail of the economics of large scale production and enlarging home markets should
establish import substituting industries . The quality of the products should also be improved to
the international level so that the market opportunities in developed world are explored ,
developed and captured .
Posted by alik at 5:22 AM
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* ▼ 2010 (7)
o ▼ November (7)
+ Government Measures For Industrial Development .
+ Causes Of Industrial Backwardness In Pakistan 3 .
+ Causes Of Industrial Backwardness In Pakistan . 2
+ Causes Of Industrial Backwardness In Pakistan .
+ Industrial development pakistan .
+ Industrial development pakistan .
+ Industrial Revolution .

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