Industrial Development


Pakistan Studies 2059

Industrial Development

Industrial Development

Secondary Industry 

The secondary industry is responsible for creating finished or semi-finished products from the primary sector or secondary products. 

The inputs, outputs, and processes shown in the image above can be grouped into: 


It is the money or finance that is used to manage and establish factories. 


It is business skills that are required to come up with new ideas for products as well as to market and manufacture these products successfully. 


The physical location where industry/factory is located. 

Raw Material: 

It is the material required to be transformed by industry processes. 


Industry requires power to perform their processes. E.g. stitching requires less power while smelting consumes more power. 


The workforce numbers are skills required. 

Factors Affecting Industrial Location: 

There are many physical and human factors that must be considered while choosing a location for the Industry. 

Physical Factors: 

Site requirements i.e. the land selected is usually cheap, have the correct area or can be altered according to needs.  

Natural routes i.e. to have cheap transportation for the supply of industrial goods and raw materials. 

Human Factors: 

Easy access to the market. 

Capital – is there enough financial resources for the development of the industry. 

The government offers many benefits and incentives for starting a new industry or not. 

Power supply. 

The skilled workforce is available or not.  

Raw material. 

Industrial linkage. 

Types of Secondary Industry

There are three types of secondary industries: 

1. Small-Scale Cottage / Craft Industry: 

It is a traditional industry that does not utilize modern/advanced technology. 

It is usually handled or run by families. 

2. Small and Medium Scale Factory: 

This type of industry utilizes modern technology. 

It is transformed into firms/companies that operate workshops, factories or plants. 

3. Large-Scale Factory: 

It has standardized methods for mass production and automation. 

It produces greater output per worker. 

It transforms raw materials like rubber, cotton, timber, copper, limestone, and bauxite. 

This type of industry varies greatly in size and complexity. 

It may work as a small-scale industry or may run like a multinational company. E.g. I.C.I. 

Cotton Textile Industry: 

It is the biggest industry in Pakistan. 

It provides 50% of the employment to the labour force. 

It accumulates to 60% of the total export of Pakistan. 

It utilizes local raw materials, therefore, no need for imports. 


Faisalabad, Hyderabad, and Karachi have the biggest textile industries. 


It accumulates to a total of 60% of Pakistan’s exports. 

It offers mass employment. 

It contributes to Pakistan's GDP by around 7%. 

Cotton textiles are value-added products. 

The cotton textiles increase farmers' income and promote raw cotton production. 

The required labour workforce is available to work in the cotton textile industry. 

Pakistan’s cotton textile has high international demand. 

It also meets the local demands of cotton products. 


The leaf curl virus in four consecutive years has reduced the raw cotton production greatly. 

The international market has faced a recession. 

Pakistan's cotton textile industry is facing great competition from Egypt, Thailand, Hong Kong, South Korea, and Taiwan. 
It needs to use modern technology to face international competition. 

Pakistan has faced export restrictions because of child labour and environmental issues. 

Pakistan has scanty water that is depleting, and cotton production is affected by it. 

Sugar Industry: 

It is one of the important industries of Pakistan. 

Sugar is produced from sugar-cane juice. 

Sugar mills are required to be close to the sugarcane fields because it loses its sugar content continuously with time and because it is costly to transport. 

There are two important by-products of the sugar industry namely, bagasse and molasses. 

Bagasse is used as animal feed, the raw material to make paper and chipboard as well as it can be used as a fuel in sugar mills. 

Molasses is used in the manufacturing of various acids. 


KPK, Punjab, and Sindh have sugar mills. 

Fertilizer Industry: 

In 1960 after the Green Revolution the consumption of chemical fertilizers has increased. 

It is an integral chemical mixture that increases the output of agricultural products. 

Various fertilizers are made using raw materials like gypsum, phosphate, and Sulphur. 

Natural gas is now the main raw material for fertilizer production. 

The soil in Pakistan is deficient in nitrogen, as a result, nitrogenous fertilizer is widely used and produced. 


Dharki in Upper Sindh, Faisalabad, Daud Khel, and Haripur have Fertilizer Industries.  

Cement Industry: 

The raw materials for cement production are locally available e.g. Sulphur, limestone, and gypsum. 

As a cheap fuel option, natural gas is utilized in cement industries. 

It has a high demand for the development of cities e.g. construction of barrages, bridges, dams, houses, etc. 


Karachi, Salt Range, and Hyderabad have cement industries. 


It is high in demand because of the increase in population and the need for development. 

It is used in the improvement of infrastructure e.g. roads, bridges, etc. 

It is a firm material for construction as it offers durability and modern appearance. 

Steel Industry: 

Pakistan Steel Mill Corporation: 

It is at Pipri. 

It was established with the help of Russia. 

It produces raw steel, galvanized products, coke, rolled billets, cast billets and pig iron/hot metal. 

It supplies raw material to the construction and engineering industries. 

Heavy Mechanical Complex Ltd (HMC): 

In 1979, with the help of Chinese, it was established at Taxila. 

It is the main heavy engineering center in the country. 

It manufactures and designs the machinery and industrial plants. 

It also has a Heavy Force Factory (HFF) that caters to the country’s defense production needs. 

HMC is also manufacturing equipment for gas and oil processing plants, hydro-electric power plants, petrochemical plants, chemical plants, sugar mill machinery, and thermal power plants. 

All products made at the complex are of international standards. 

It contributes greatly to Pakistan’s GDP. 

It is providing raw materials to many industries including the construction industry and agricultural industry etc. 

It provides cheap steel because of no custom duty. 

It promotes industrialization. 

It provides industrial employment. 


It requires few imported raw materials like manganese, iron ore and manganese. 

It requires the setting up of infrastructure. 

It lacks skilled labours. 

It is contributing to the pollution. 

It requires a constant power supply. 

Industrial States: 

They are special reserve areas for the establishment of industries. 
The government offers special infrastructure facilities. 

They are reserved to promote industrialization and entrepreneurship. 

Special Industrial Zones: 

It can be developed where infrastructure facilities are not available. 

The government assists investors to develop special industrial zones. 

Nationalization of Industries: 

In 1972, Bhutto transferred industries from public to private sector i.e. nationalization. 

The nationalization slowed down the industrial development in the country. 

In 1977, Zia-ul-Haq denationalized the industries i.e. transferred them back to their owners. 

In 1991, privatization of industries was done, and it is still possible i.e. industries are allowed to be owned by private companies. 

Formal and Informal Sectors: 


They assist by providing industrial goods and fulfilling domestic market needs. 

They create employment. 

The informal sector utilizes local raw materials. 

The formal and informal sectors’ many products are exported. 

The informal sector does not need imported machinery. 

Differences in Formal & Informal Sector: 

The informal sector is self-employed while the formal sector is employed by the institution. 
The informal sector does not use modern machines and most work is done manually while the formal sector is mechanized, requires capital and uses less manual labour. 

The informal sector has irregular work hours and wages while the formal sector has regular working hours and wages. 

The informal sector often produces low-quality goods while the formal sector produces a high standard of goods. 

The informal sector is usually non-registered while the formal sector is registered and legal. 

The informal sector mostly employs women and children while the formal sector employs males. 

Importance of Cottage/Craft & Small-Scale Industry: 

It creates employment. 

It employs women as labour. 

It fulfills local demands as a result saves foreign exchange and restricts imports. 

It exports goods like carpets. 

It prevents rural to urban migration. 

It contributes to the development of rural areas. 

It does not require heavy machinery. 

It utilizes waste from large-scale industries. 

It contributes to Pakistan’s GDP. 


Embroidery, carpets, wood carving, sports goods, jewelry, and surgical goods are examples of cottage/craft and small-scale industries. 

It generates limited revenue. 

It is failing to achieve the economy of scale. 

It lacks quality. 

It utilizes outdated methods and machinery. 

The middleman makes the profit. 

Lack of electricity in villages; villagers only in daylight. 

It lacks proper finance and marketing. 

It is using child labour. 

Government Policies for Cottage & Small-Scale Industries: 

The governmental organizations are carrying out the following duties: 

They are establishing small industrial estates. 

They are providing marketing facilities. 

They have established technical centers. 

They are providing pre-investment guidance and counseling. 

They are proving easy installment loans. 

They are working for rural electrification. 

They are providing provisions for roads. 

They have established the handcraft development centers. 

They are providing better communication facilities. 

Industrial Pollution: 

It is affecting people's health in the form of diseases. 

It has contaminated the sub-soil water which is affecting crop production and people's health. 

It is a threat to marine habitats. 

It is a threat to mangrove forests and the reproduction of fish. 

It is also contributing to the noise pollution that is resulting in deafness. 

Steps to Control Industrial Pollution: 

An effective disposal mechanism should be in place for industrial waste and smoke. 

Waste treating machines should be imported and utilized. 

Massive tree plantation must be conducted to control and reduce the effects of industrial pollution. 

Industries should be far from localities. 

Awareness programs must be started regarding pollution hazards. 

In 1997, the Pakistan Environmental Protection Act was passed to check environmental pollution. 

Tertiary Industry

It is also known as the service industry. 

It provides services. 

Tourism is a major example of tertiary industry. 


It is an industry that deals with accommodation and recreational facilities for people who come to visit or stay for a limited period. 


It generates greater income as compared to exports. 

It creates employment and is labour intensive e.g. guides. 

It promotes cottage and craft industries. 

It promotes the local food market. 

It provides locals to enjoy tourism facilities too. 

It promotes cultural linkage. 

Tourism is a sustainable industry. 


Tourism industry id affected by economic and politic situations. 

After 9/11, Pakistan experienced a sudden decline in tourism. 

The employment created by the tourism industry is seasonal. 

Six months, from May to October is the peak season. 

Tourism opens a need for hotels that can negatively affect local people and their livelihood. 

It can destroy the local culture. 

During the peak tourism season, necessity items’ prices increases. 

For the construction of hotels, environmental can take a toll e.g. deforestation in Kalam. 

Factors Affecting Tourism Development: 

Security for tourists. 

The number of tourist attractions. 

Capital for the development. 

Provision of infrastructure facilities. 


International Visitors: 

Different types of foreign visitors come to Pakistan. 

These visitors include corporate visitors, visitors to attend trade delegations, diplomatic delegation members, UNO officials, foreign tourists and people visiting family. 

Natural Tourist Attractions: 

Swat Valley – It has rushing torrents, flower-bedecked slopes, and fruit-laden orchards.  

Skardu - the capital of Baltistan. It is the starting point if you wish to begin your journey towards 

Gilgit Valley – It has beautiful scenery all over. 

Hunza Valley – Snow covered mountains in the background and wheat field are the highlight. 

Chitral – The Kalash valleys are the highlight. 

Cultural Attractions: 

The salt mines at Khewra. 

Harappa, Taxila and Moen-jo Daro are archeological sites. 

Khyber Pass, Shalimar garden, the tomb of Chaukandi, the tomb of Ranjit Singh and the tomb of Iqbal, Badshahi mosque are historic sites in Pakistan. 

Call Centers: 

It is also a tertiary (service) industry. 

It is responsible for handling inbound and outbound calls (telephone mostly). 

Inbound calls are from customers to the company while outbound calls are from company to customers. 

It can handle a huge amount of calls simultaneously using a computer system. 

It also helps large organizations and telemarketing companies to handle their calls at cheap rates. 

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