Over view of Pakistan Industry

Essay by 030020C+, October 2006

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We can divide the progress of industries of Pakistan into 6 time phases

The first phase was from 1947 to 1958. This phase can be called the transition phase. In 1947 only 5 percent of the large-scale industrial facilities in British India were present in what became Pakistan. The country started with virtually no industrial base and no institutional, financial, or energy resources.


The second phase was from 1958 to 1968. During this period there was a war between North Korea and South Korea. The pace of industrialization since independence had been rapid, although it has fluctuated in response to changes in government policy and to world economic conditions. During the 1950s, manufacturing expanded at about 16% annually; during the first half of the 1960s, it expanded at around 11% a year. The pace slowed to under 7% a year in the second half of the 1960s. Studies by economists in the 1960s indicated that the forty big industrial groups owned around 42 percent of the nation's industrial assets and more than 50 percent of private domestic assets.

Eight of the nine major commercial banks were also controlled by these same industrial groups.

The third phase was from 1968 to 1972. In this era there was no significant change. This era was not considered that important. The industries were going steady and there was very little growth rate.

The fourth phase was from 1972 to 1977. This phase was also called the dark era. During this time Bhutto came in power. Bhutto brought with him the nationalization movement. In 1972 Bhutto's government nationalized thirty-two large manufacturing plants in eight major industries. The industries affected were iron and steel, basic metals, heavy engineering, motor vehicle and tractor assembly and manufacture, chemicals, petrochemicals, cement, and public utilities. Subsequently, domestically owned...