2.

2 Pakistan economy
secondary, tertiary/quaternary
sectors and transport systems
SECONDARY INDUSTRY

• Secondary industry is concerned with changing raw material from the

• • Smelting
• • Weaving
• • Spinning
• • Checking
• • Dyeing
• • Printing
• • Canning
• • Moulding
• • Mixing
• • Stitching
Output

• • Cement
• • Fertilizers
• • Cotton yarn
• • Sugar
• • Iron (pig)
• • Coils
• • Drugs
• • Fans
• • Tractors
• • Galvanized sheets
Types of secondary industry
Cottage
• • Home based
• • Family labor
• • Inherited knowledge
• • Traditional tools
• • Low capital invested
• • Very small output
• The traditional or craft industry normally does not use modern
technology and is often organised on a family basis. Cottage or household
industries hold an important position in the 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 their 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.
Small scale
• • Small amount of land
• • Small amount of machinery
• • Small amount of capital (up to 10 million rupees)
• • Small amount of labor (10 people)
• • Small amount of raw material
• • Small outputs
• • Small profit
• 1. The Brick Kilns Industry Brick making is an important industry to
Pakistan providing employment in rural areas where agriculture may
not be enough to sustain all the people. Suitable clays for
manufacturing bricks exist mainly in Punjab and the brick, making
process can be done with simple manual methods.
• 2. Handicrafts Cottage and small-scale industries include carpets,
textiles, embroidery, jewellery, ceramics, woodwork, metalwork etc.
• 3. Sports Goods Industry The sports goods industry, located in Sialkot,
is one of the main medium/small industries, which is export
orientated.
Importance
• In a developing country like Pakistan, the small scale industries play a
very important role in generating employment, improving the
financial status of people, development of rural areas and removing
the regional imbalances.
Large scale
• • Large amount of bulky raw materials
• • Large amount of power
• • Large amount of machinery
• • Large amount of labor
Labor intensive
• • This is where skills of labor is more important than machinery)
• • For example: Cottage industry.
Capital intensive
• • This is where machinery is more important than labor
• • For example: large scale industry like steel and ship making
• As the name suggests, everything needed in large scale industries is in
bulk or large amounts.
• All the different resources like workforce, the influx of capital, raw
materials, the infrastructure required for the setup and execution of
large-scale industry is enormous.
• It includes various types of industries. The heavy industry like steel,
textile, and automobile manufacturing industry falls under the category
of large-scale industry. It is also observed that IT has boomed in recent
years. A large amount of revenue is generated from the IT industry;
thus, the IT industry also comes under the large-scale industry
Factors Influencing the Location of
Secondary Industry
• Industries in Pakistan are mainly located in Punjab and Sindh. There
are relatively few industries in the less developed areas, such a
Balochistan
• Physical and human factors
Physical factors
• Water; a large quantity of water is needed in steel manufacture / so
the factory would be sited near to a large source of water e.g. a river or
lake. In Pakistan steel industry is located near the Arabian Sea coast.
• Land; flat land is required; as it is easier to build on / unused land is
preferred as money does not have to be spent cleaning up the land first
s/ large area of land so there is room for expansion and storage if
needed in the future; cheap land / so that it is affordable for businesses
and loans do not have to be taken out. In Pakistan flat areas of upper
and lower Indus plain are ideal for locating secondary industries
• • Industries tend to be located in areas of low relief as this makes it to
construct industrial buildings and infrastructure, therefore reducing
costs. In Pakistan, the relatively flat Indus valley and flood plain provide
more suitable industrial locations than the upland areas of the
Northern provinces or Balochistan.
Human factors
• Finance/Capital: Industries are located in cities and regions where
there is finance available to allow the establishment and investment
in industries. Karachi is the financial centre of Pakistan, and this helps
to explain why shipyards, steel mills and industrial parks are located
there
• Power; situated near to a thermal or nuclear power station / is
preferred so that energy supplies will be uninterrupted;
• • Raw material; heavy and bulky to transport / so factory would be
best located close to the source of the raw material in order to reduce
cost of [Link] such as textile production are located
near to the source of raw materials. In Pakistan cotton grown in canal
irrigated areas of Punjab and Sindh provinces, near to the main textile
manufacturing areas such Faisalabad as this reduces transport costs
• Labour; skilled and unskilled labour is required so located near to a
large town or city / so that labour can access the factory. Faisalabad is
Pakistan’s textile centre. The city has a population of more than 3
million, which supplies a large skilled and semi-skilled work force.
• Market; located to large towns and cities / railways / ports / so that
the products can easily be transported for sale or export. Karachi is a
port city of Pakistan so most of manufacturing industries are located
here to export the products (semi-finished, finished) to trading
partners.
• • Communication; availability of mobile networks or good IT
infrastructure / so that marketing of the goods can be done and deals
can be made within Pakistan or beyond;
• • Transport; near to main road and rail network and ports for the
movement of raw material in / finished products out / and for
workers / large and bulky raw material needs to be near factory;
FACTORS INFLUENCING THE
LOCATION OF SMALL-SCALE
COTTAGE/CRAFT INDUSTRY
• 1. Local raw materials This industry uses available raw material in the
villages like rubber, wood pulp, stitching thread, leather, clay, water
and coal.
• 2. Labour For cottage industry skilled labour is not required. The
labour is mostly unskilled like children, women, and Afghan refugees.
• 3. Less Capital. Very little amount of money is required for cottage
industry,
• 4. Venue The place for manufacturing could be a house or even a
street.
TERTIARY INDUSTRY
• Tertiary industry is concerned with providing a service.
• such as public administration, transport, defence and tourism.
characteristic
• Usually involves provision of services.
• Can involve selling goods and products from primary and secondary
industries
• Dominant in developed countries/urban areas/cities
• Workers usually need to be highly skilled /qualified.
• White-collar workers.
Factors that affect the location of
tertiary sector activities.
• Transport links to ensure workers can access the site.
• Fast communications provision as usually telecommunications
(internet) are an important component of operations.
• Access to skilled labour to ensure suitable workers are available.
• Reliable power supply as often this is needed for technology involved.
• Access to market to ensure it remains profitable.
QUATERNARY SECTOR
• (Knowledge based) Industry This is a new economic sector based on
expertise that includes activities related to the creation, distribution
and manipulation of information, also social, cultural and economic
innovation and research.
• Workers in these fields need special training and high levels of
expertise. It is highly skilled, information-based services; usually
includes management.
Factors that affect the location of
quaternary sector employment.
• Good transport connections as companies need good access to road
and rail connections to allow a skilled workforce to reach them.
• Reliable internet access as many companies rely on this to operate
their business.
• Proximity to a university as they can provide a skilled workforce
suitable for the sector.
• Large area of land available to allow room for growth.
Formal and informal
• Formal sector as activities which are taxed and monitored by the
government and the activities involved are included in the Gross
Domestic Product (GDP). Informal sector is neither taxed nor included
in the GDP
Informal sector
• Small-scale industries and other enterprises remain unregistered to avoid paying tax. Many
of these informal industries operate at very low-profit margins such as making cooking
pots and therefore remain unregulated as regulation would make them uneconomic.
• Child labour is common in the informal economy. Pakistan’s only child labour survey (1996)
showed that 3.3 million under the age of 14 years were working in Pakistan. Rural and urban
poverty, food insecurity and a range of other factors have increased the dependence of a
large percentage of Pakistan’s population on informal industries.
• Many small scale and even larger informal industries, such as seasonal wheat mills, remain
unregulated because they only operate for a relatively short periods of the year and
government officials either do not have time to inspect them, or more commonly are bribed
not to do so.
• Unemployment in urban areas, due to rural- urban migration, has encouraged the
development of the informal sector in urban areas.
Disadvantages of informal
employment:
• Money earned from informal employment does not contribute to tax
systems so does not benefit overall economy.
• Often involves unsafe work and there are no regulations to protect
workers in such conditions.
• It is often poorly paid and often holds no legal contract.
• Does not provide the employee with health or unemployment
benefits and therefore does not provide security.
• Where children are involved it prevents them from going to school
which damages their chance of gaining more skilled employment.
• Example of occupation in an informal service. Carpet making •
Embroidery • Shoe cleaning • Vehicle/car washing • Brick making
• Occupation in the formal tertiary sector Scientist • Doctor • Engineer
• IT specialist • Solicitor • Web designer • Banking