Assignment # 03

Pakistan Studies

Haider Ali FA22-CVE-054

Danyal Aziz FA22-CVE-056
Muhammad Shahzaib FA22-CVE-042
Muhammad Huzaifa FA22-CVE-043
Muhammad Akif FA22-CVE-014
SUBMITTED BY
HAIDER ALI

SUBMITTED TO:
Ms Rabia Shafqat

DEPARTMENT OF CIVIL ENGINEERING

 Table of Contents
1 Abstract:…………………………………………………………………3
2 Introduction: …………………………………………………………….4

2.1 CONSEQUENCES OF KASHMIR WAR (1947– 1948) ………………...4

2.2 PROGRESS OF INDUSTRIAL SECTOR FROM 1950-1963 DURING PEACE

TIME ………………………………………………………………………………5

2.3 STRESS ON INDUSTRIAL SECTOR DUE TO OPERATION

GIBRALTAR………………………………………………………………………………………………….6
2.4 INDUSTRIAL DAMAGE DUE TO 1965 WAR………………………………… 7

2.5 LOSS OF INDUSTRIES DUE TO 1971 WAR …………………......................... 7

2.6 COST OF KARGIL WAR (1999) IN SHAPE OF INDUSTRIES ……………….. 9

2.7 DOWNFALL OF INDUSTRIAL SECTOR DUE TO TERRORISM

(2000- onwards).... 10

3 IMPORTANCE OF INDUSTRIAL SECTOR IN PAKISTAN ……………………………… 13

3.1. INCREASE IN NATIONAL INCOME ……………………………………... 13

3.2. HIGH STANDARD OF LIVING …………………………………………....13

3.3. ECONOMIC STABILITY ……………………………………………………13

3.4. IMPROVEMENT OF BALANCE OF PAYMENT……………………………. .13

3.5. PROGRESS IN OTHER SECTORS ……….………………………………..14

3.6. INCREASE IN EMPLOYMENT ,……………………………………………. 14
3.7. CONTROL OF POPULATION ………………………………………………14

3.8. INCREASE IN INVESTEMENT…………………………………………….. 14

3.9. PRICE STABILITY………………………………………………………….. 14

3.10 INCREASE IN GOVERNMENT INVESTMENT………………………………. 15

4 TRENDS IN INDUSTRIAL SECTORS IN 2010-2011 …………………………………15

5. TRENDS IN INDUSTRIAL SECTORS IN GDP GROWTH 2018-2022 …………………16

6. SUGGESTIONS ……………………………………………………………………….16

7 OVERVIEW OF INDUSTRIAL SECTORS……………………………………………….. 18

8 SOLUTIONS/RESULT …………………………………………………………………19

9 REFERENCES………………………………………………………………………….20

Current Social, Economic and Political Challenges related to

Industrial sector of Pakistan

(Evolution of Industries since the creation of Pakistan)

[Link]:

Basic purpose to make this study to find out the determinats of

industrial sector growth in Pakistan. Factors were collected from the
existing empirical literature. Annual data from 1950 to 2017 was
chosen to make the analysis. Trade (% of GDP) and Personal
remittances, received (% of GDP) showed positive and significant
association with Industry, value added (% of GDP) and lag value of
industry, value added (% of GDP) showed negative and
significant relationship with Industry, value added (% of GDP) in long
run. But in short run we also went through a lot of security issues
during different times. Like the Pakistan went through wars with India
in 1998, 1965, 1971 and then we went through terrorism from 2011to
2017. Graphs are shown to represent the downfall of our industry
during those crucial times.

[Link]:

One of the biggest challenge to the industry of Pakistan is “Security

issues”. Security has always been a threat to industrial sector of
Pakistan. Pakistan began from exceptionally feeble industrial base and
current circumstance is likewise not excellent. Pakistan at the hour of
parcel in 1947 had an egligible industrial base. It got just 34 industries
out of all out 955, while remaining were held by India. Such few
industries were insufficient for a recently conceived country to face the
industrialized world. With the progression of time Pakistan used it’s all
available resources homegrown as well as outer for quick advancement
of assembling sector. But due to battles in 1948,1965,71 and 1998
reason’s extraordinary loss of economy of Pakistan and it also adversely
influences the industrial sector of Pakistan.

2.1 CONSEQUENCS OF KASHMIR WAR (1947-1948)

The Indo-Pakistani Conflict of 1947-1948, in some cases known as the

Main Kashmir War, was fought among India and Pakistan over the regal
territory of Jammu and Kashmir from 1947 to 1948. It was the first of
four Indo-Pakistan Wars battled between the two newly independent
countries. In the wake of getting freedom Pakistan had exceptionally
powerless economy and war of 1947-1948 following not many months
annihilated the generally delicate economy of Pakistan. Pakistan got all
out portion of right around 200 million out of 40-50 % of that offer was
consumed in war and there was insufficient cash to be put resources
into industrial area of Pakistan. In 1947 it was suggested in the
Industrial meeting of Pakistan to lay out industries, which use locally
produced unrefined substance like jute, cotton, stow away and skins
however Pakistan neglected to accomplish that targets because of
battle following not many long periods of birth of Pakistan. In 1947
Pakistan didn’t have any building for offices. Office were being treated
in tent which was less productive and most of people likewise didn’t
have any desire to put resources into Pakistan since Pakistan was
immature and there was part of security issues. Security issue was most
serious issue in industrial advancement of country and therefore. The
commitment of industrial area was simply 6.9% to GDP in 1950.

2.2 PROGRESS OF INDUSTRIAL SECTORFROM 1950-1963 DURING PEACE

TIME:

Because of no conflict from 1950-1963 industrial area of Pakistan gain a

ton of headway. In 1952the Government stepped up to the plate and
laid out Pakistan Industrial Development Corporation (PIDC) to put
resources into those ventures which require weighty beginning
investment. PIDC significant speculation was in endlessly paper board,
concrete, manure, jute plants and the Sui Karachi gas pipeline. The
Public authority likewise set up an Industrial Money Corporation and an
Industrial Venture and Credit Corporation. The creation limit of the
already existing units like manures, jute and paper was extensively
extended. The decrease of export obligations and the presentation of
Product Reward Plan in 1958 expanded commodity of the
manufactured merchandise. There was all over development of
ventures especially in agricultural handling food items and textiles.
Besides, In 1955-1956 to make skilled human work for fast industrial
development, a Swedish Pak organization of technology was
established. Pakistan industrial technical assistance corporation (PITAC)
was likewise settled in1957 in a joint effort with UN USAID. The
industrial strategy of 1959 guaranteed that the maximum degree would
be given to private venture in the development of countries resources
and for sure dropped one of two resumptions which were set down in
1948 in respect of the confidential area. Industrial strategy of 1959 was
laid reestablished accentuation on private sector and development of
agro based enterprises with a specific spotlight on send out industries.
The portion of industrial area to Gross domestic product rose from
9.7% in 1954-55 to 11.9% in 1959-60. In 1960’s there was a change in
the foundation of buyer products enterprises to weighty industries such
as machine devices, Petro-compound, electrical complicated and iron
and steel. The industrial performance in terms of growth, export and
productivity increased during the Second Five Year Plan period.

2.3 STRESS ON INDUSTRIAL SECTOR DUE TO OPERATION GIBRALTAR

After a great progress of industrial sector of Pakistan during time period

between [Link] more jerk was given to industrial sector of
Pakistan in [Link] 1964 Gibraltar Operation was begun by general
Musa. In spite of the fact that Pakistan got succeed and won territories
of India yet truckload of cash was consumed in that operation and less
cash was contributed in industrial sector of Pakistan. The portion of
industrial sector to GDP additionally diminished in that year. From
‘1950-1960 development pace of enormous scope producing was 15.4
however it was diminished to 13.1 in 1963-1964.
2.4 INDUSTRIAL DAMAGE DUE TO 1965 WAR:

One more jerk was given to industrial area of Pakistan in 1965. In this
year an extraordinary second war was battled among Pakistan and
India which bring about death toll as well as our economy was
unfavorably affected because of this conflict. Commitment of industrial
area to our GDP was especially high from 1955-1964 yet as a conflict an
extraordinary conflict was battled between Pakistan and India so in
1965-1966 commitment of industrial area to GDP was diminished from
11.9to [Link] portion of huge scope manufacturing area in GDP
likewise got diminished from 13.1 to12.2 in 196-1966. Economy of
Pakistan was prospering during time span of 1955-1964 but suddenly
got upset because of military conflicts and activities. Hence affirms that
security issue is an extraordinary issue of economy of Pakistan and it
endured a great deal during wars. The most far arriving at outcome of
the conflict was the wide-scale economic stoppage in Pakistan. The cost
of the 1965 conflict shut down the great economic development
Pakistan had witnessed during the mid 1960s. The conflict in 1965 had
ended up being excessively expensive for our economy. It was mainly
the post 1965 war related socio-economic and political crisis that had
led to the 1971 war which further changed the economic environment
forcing the residual Pakistan to face economic stagnation for the next
five years.

2.5 LOSS OF INDUSTRIES DUE TO 1971 WAR:

Following 5 years of 1965, the third conflict was battled among India
and Pakistan that did a great loss to economy of Pakistan. As economy
of Pakistan was prosper before 1965 conflict but during time of next
decade (1965-1975) the portion of industrial area GDP got decreased.
The industrial execution as far as development, commodities and
creation was frustrating from 1971 to 1977. There were different
explanations behind the lackluster showing of the manufacturing area.
One wing of the country (East Pakistan) was effectively isolated. The
Country needed to battle a conflict with India in 1970. The suspension
of unfamiliar guide, loss of indigenous market (East Pakistan), fall in
sends out, cheapening to the degree of 131%nationalization of
industries work turmoil, horrible speculation environment, floods,
downturn in world exchange and decrease venture incentives caused a
fall in the result of enormous scale industries. The yearly development
rate tumbled to 2.8% in the industrial area in this period. From July,
1974 to 1977, the Public authority started countless measures to
amend the economy. Cotton ginning rice husking and flour processing
were denationalized. The private sector was urged to put resources into
huge scope industries. The yearly development rate in manufacturing
area was 8.2% in the 1971’s. The development of huge scope
manufacturing slowed down to a normal of 4.7% in the main half and
further to 2.5% in the second 50% of the1970’s. The oil value shock of
the 1970s as well as dry spells, floods and the withdrawal of external
help didn’t help what is going on, by the same token. The development
rate during the 1970s tumbled to 3.7 percent per annum from the 6%
kept in the [Link] of all, the principal board on which the Bhutto
government came to drive civil rights ended up being incredibly weak.
Income imbalances rose contrasted with the past time frame while
expansion accelerated, averaging 16% between 1971 to 1977, in this
way harming the poor. 15 The large scale manufacturing area
performed drowsily, getting a development pace of just 3 percent.

TABLE: INDUSTRIAL SECTORS DETAILS

Period Small Industrial Large Industrial Total Industrial

sector sector sector
1949-1955 5.5 3.3 8.8
1955-1960 5.1 6.9 12.0
1960-1964 6.6 12.5 19.1
1965-1970 5.3 10.4 15.7
1971-1980 4.6 10.7 15.3
1980-1990 4.9 10.1 15.0
1990-1997 5.2 10.6 15.8
 GRAPH: SECTOR CONTRIBUTION TO GDP (%)

2.6 COST OF KARGIL WAR (1999) IN SHAPE OF INDUSTRIES:

The Kargil War, otherwise called the Kargil struggle was an equipped
clash between India and Pakistan that occurred among May and July
1999 in the Kargil region of Kashmir and elsewhere along the Line of
Control (LOC). Kargil war likewise impact the economy of Pakistan and
portion of modern area to GDP Of Pakistan was additionally diminished.
As war between two

Nations upset the two nations and set them 5 years back. The GDP
growth rate decelerated to 4 percent. While the agriculture area
recorded higher result, growth of the manufacturing area was low. The
venture proportion tumbled to 13.9 percent during 1998 and 1999as
unfamiliar reserve funds, which previously overcame any issues
between public reserve funds and investment, dried up in May
[Link] constancy of financial (over 7 percent of GDP) and outside
deficits(4 to 5 percent of GDP) prompted the gathering of huge degrees
of homegrown and outer obligation consistently. Improvement uses
endured a significant shot and GDP dropped to 3 percent from 8
percent in the main portion of the 1990s. Social area consumptions
were pressed to oblige higher obligation administration and protection
uses. All out outer obligation levels became impractical, rising from$20
billion out of 1990 to $43 billion (47.6 percent of GDP) [Link]
inefficient utilization of homegrown asset was 5% in [Link]
deteriorated and Pakistan lost its piece of the pie in a light world
exchange environment.

2.7 DOWNFALL OF INDUSTRIAL SECTOR DUE TO TERRORISM (2000-

ONWARDS):

Pakistan has been battling the conflict on terror, as a bleeding edge

state, since September 2001. Up until this point, the conflict has carried
colossal destruction to Pakistan by dialing back the monetary growth.
This paper endeavors to concentrate on the social, political, and
financial impacts of the conflict on terror on Pakistan from 2009 to
2011. Terrorism influences the monetary development of a country by
lowering foreign direct speculation, capital formation, venture and
increments risk discernment. More terrorist assaults at private
residents, property, transport and air terminals are connected with
lower capital formation and low Gross domestic product per capita
development. The conflict has cost the country other than destruction
of framework and $67.93 billion direct monetary loss. Pakistan is
confronting terrorist attacks including self destruction bombarding
which has crumbled rule of peace and law circumstance and the foreign
investors are hesitant to put resources into Pakistan that danger the
business of Pakistan in serious manner. Pakistan is an agrarian economy
and 45% percent of the populace depends on agriculture for acquiring
occupation. Our Horticultural industry likewise neglected to gain
ground due to terrorism.In2010-11 a huge scope businesses contribute
4.4 % and limited scope industries contribute 7.5% to Gross domestic
product of Pakistan. During 2009 to 2011 the burden of continuous
curfews, shelling and discharging annihilated products of the soil
horticulture items in Smack valley. It a negatively affected the nearby
economy and furthermore caused joblessness. From 2009 to
2011foreign direct venture diminished as terrorism spread dread
among individuals and foreignerswere hesitant to put resources into
Pakistan. The Service of Money, legislature of Pakistan has declared the
Industrial loss of the country, because of battle on terror, as $67 billion
yet it did not mention how the expense was determined. Because of
less ventures in Pakistan unemployment increased from 3.12 million
out of 2009-10 to 3.40 million of every 2010-11. The aggregate expense
of the war on terror from 2001-2002 to 2010-2011 is $ 67.9
billion.In2004-05 the immediate expense of war on terror for Pakistan
was Rs 67 billion which expanded to Rs 78 billion of every 2005-06 and
to Rs262 billion out of 2009-10. Also, the aberrant expense expanded
from Rs 192 billion out of 2004-05to Rs 707 billion out of [Link]
that much sum was to be put resources into Businesses then our
industries will be at their pinnacle. This deficiency of cash makes
extraordinary misfortune industrial area of Pakistan. Terrorism in
Pakistan did a tremendous misfortune to economy of Pakistan and
industrial sector really got upset during these years. The ongoing rush
of terrorism is accepted to have started in 2000 and terrorism crested

during 2009.

ACTUAL COST OF WAR OF TERROR ON PAKISTAN FORM 2010-2011

YEARS Billion ( $) Billion (Rs) %Change

2001-2002 2.669 163.9 -
2002-2003 2.749 160.8 3.0
2003-2004 2.932 168.8 6.7
2004-2005 3.410 202.4 16.3
2005-2006 3.986 238.6 16.9
2006-2007 4.670 283.2 17.2
2007-2008 6.940 434.1 48.6
2008-2009 9.180 720.6 32.3
2009-2010 13.560 1136.4 47.7
2010-2011 17.830 1528.0 31.5
 GDP GROWTH ANNUAL (%)

TRENDS IN POVERTY DUE TO LOSS IN INDUSTRIAL SECTOR

3 IMPORTANCE OFINDUSTRIAL SECTOR
INPAKISTAN

3.1 INCREASE IN NATIONAL INCOME

Industrialization makes conceivable the best usage of the restricted

assets of the country. It helps in expanding the quantity and nature of
different sorts of made merchandise and in this way makes bigger
commitment to net national product.

3.2 HIGH STANDARD OF LIVING

The Industrialization helps in expanding the worth of result per work.

The expectation for everyday comforts of individuals is improve with
the assistance of industrialization.

3.3 ECONOMIC STABILITY

Industrialization is the most effective way of giving monetary solidness

to the country. A nation which relies on the creation and product of
unrefined substance alone can't accomplish a fast rate of financial
growth. Many of the chances of venture is given to the people.

3.4 IMPROVEMENT OF BALANCE OF PAYMENT

It assists in expanding the commodity of fabricated products and

accordingly with procuring foreign exchange. Then again, the handling
of unrefined substance at home restricts the import of products and
helps in saving foreign exchange.
3.5 PROGRESS IN OTHER SECTORS

Industrialization energizes progress in different areas of the economy.

An improvement of one industry prompts the turn of events and
development of different businesses.

3.6 INCREASE IN EMPLOYMENT

Industrialization expansion in work in the country. It likewise gives

venture an open door to the people and reserve funds of the people
increment.

3.7 CONTROL OF POPULATION

Industrialization leads to migration of surplus labour from farm sector

to the industries mostly situated in urban areas. In cities, improved
facilities of sanitation and health care are available.

3.8 INCREASE IN INVESTMENT

Industrialization increment the pay of the workers. It works on their

ability to save. It gives speculation opportunity to the people.

3.9 PRICE STABILITY

The value security can be kept up with in the market with the
assistance of creation of industrial products. More creation of industrial
sector eliminates the deficiency of supply of goods.
3.10 INCREASE IN GOVERNMENT INCOME

Industrialization builds the stock of goods both for inward and outer
business sectors. The product of goods gives foreign exchange. It
additionally gives advantage and pay to the government.

4. Trends in Industrial sectors in 2011-2017:

 5 TRENDS IN INDUSTRIAL SECTOR OF GDP GROWTH IN 2019-
2022

6. SUGGESTIONS:

Here are some suggestions to stabilize the industrial sector:

 Government should uncover a strong industrial policy keeping in

view the worldwide necessities.
 To expand the portion of the industrial sector in the GDP there is
critical need to lay out new industrial domain in the country.
 To upgrade the commitment of existing industrial estates in the
economy they ought to be worked with by the government
policies
 Industrialists be given advances on simple portions, so as they
could run industries easily.
 New business sectors for the neighborhood items are investigated
and the nature of nearby items be improved to expand the
interest abroad.
 A reasonable arrangement ought to be conceived by the Pakistani
government that permits an exclusion of some kind/concession
like in India; the Commodity Import Bank was set up to back and
working with the enterprises, particularly material.
 New specialized universities and organizations be laid out for the
direction of the work and furnish them with the advanced
strategies being utilized in the industry.
 Method for correspondence and essential foundation expected
for industry like roads, transportation and so on ought to
improved and upgraded to make the entrance simple.
 New and arising business visionaries should be urged to lead the
industrial sector and make speculations.
 The crisis of energy must be resolved on priority basis and
interrupted supply of energy to industry be ensured.
 The rule of law circumstance be improved to charm the financial
backers to put away their cash and time.
 More attentions should be given to increase export.
 Import replacement items are created to urge people to utilize
neighborhood items.
 Sensible and exceptional insights is given to this area.
7 OVERVIEW OF INDUSTRIAL SECTORS

1960 1970 1980 1990 PRESENT

Political Military Socialist Military Democrati War on
Environmen rule regime,Separat rule c rule, terror
t ion of Nuclear Semi-
Bangladesh test military
frequent rule
governme
nt changes
Industrial Import Nationalization Privatizati Privatizatio
Privatizati
substitution
Orientation on n on, Public-
industrilization
private
Partnershi
p
Trade Protectionis Free trade Free trade, WTO
m, Export Liberalizati Regime
subsidy on
GDP 6.80% 4.80% 6.50% 4.60% 8.4%
Growth (04/05)
Manufacturi 9.90% 5.50% 8.20% 4.80% 12.5%
ng sector (04/05)
Investment 15.90% 17.00% 16.60% 15.3%
ratio as % of (04/05)
Of which 10.30% 9.20% 7.50% 4.4%
public (04/05)
investment
Of which 5.60% 7.80% 9.10% 10.9%
private (04/05)
investment
8. SOLUTIONS/RESULTS:

 Security, first and foremost, issue in Pakistan should be

controlled. Gatecrashers coming from Afghanistan should be
halted. Government should make serious moves with respect to
the issues and grumblings of Baloch and Pushtoon populace of
Pakistan
 Basically unfamiliar knowledge organizations persuade our young
population against Pakistan and Pakistan’s law and order and they
begin playing in terrible hands. To counter this government
should give serious worry to give training to the youngsters and
furthermore there should be mindfulness development in far off
region to alarm them from the attitude of foes.
 Our foreign policy should be areas of strength for too it can depict
positive picture of Pakistan to the world to counter global media
which is occupied in getting out bogus word about people of
Pakistan.
 The fencing on boundaries of Afghanistan and Iran should be
finished quickly to stop enemies and spies encroaching in our
country.
 Workshops should be organized in educational establishments by
our military to show them reality based realities in regards to the
presentation of our military. Furthermore, they should caution
our kin from new dangers like Manzoor Pashteen, BLA… etc.
 Our government ought to hold gatherings with foreign investors
and ought to persuade them to put resources into Pakistan and
this would assist us with blasting our industrial sector.
 Pakistan has extraordinary chance to persuade foreign investors
as CPEC has concentrated entirely on Pakistan to make industrial
zones at better places.
 Foreign investors and nearby investors should have a solid sense
of reassurance to run various ventures and it is conceivable on the
off chance that our
 Security organizations by and by proceed to guarantee them
security and serene climate.
9 REFERENCES

 WORLD BANK REPORT 2017.

 IMF CHECH ON INDUSTRIAL SECTOR OF PAKISTAN 2015.
 FINANCE MINISTRY OF PAKISTAN. RAWALPINDI CHAMBER OD
COMMERCE AND INDUSTRY.
 “FINANCE DEVELOPOMENT AND TEXTILE SECTOR”
 COMPETETIVENESS: A CASE STUDY OF PAKISTAN BY
MYHAMMADNADEEM HANEEF/ SABINA KHURRUM JAFRI.
 CONSTRAINTS FACED BY INDUSTRY IN PUNJAB PAKISTAN
BY SYEDTURAB
 HUSSAIN/USMAN KHAN/KASHIF ZAHEER MALIK/ADEEL
FAHEEM.
 THE SOCIAL POLITICAL AND ECONOMIC EFFECTS OF WAR ON
TERROR,PAKISTAN(2009-2011),
 BUSSINESS CLIMATE IN PAKISTAN CHALLENGES AND
REMEDIES BYICMAPAKISTAN.
 PAKISTAN ECONOMY AND NATIONAL SECURITY BY DR. ASHFAQ
AHSANKHAN
 NUST ISLAMABAD.
 THE POLITICAL ECONOMY OF INDUSTRIAL POLICY IN PAKISTAN
(1947-1971)
 MUSHTAQ HASSAN KHAN SOAS, UNIVERSITY OF LONDON.
 ECONOMY OF PAKISTAN CHALLENGES AND PERSPECTIVE