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Major industries of Pakistan

The economy of Pakistan is relying on various major industries which are being established in
Pakistan, amongst which few of them are very much significant which are contributing a lot in
the annual GDP of the state. Below mentioned are the few very much significant and important
industries which are running in the country and are playing the vital role in stabilizing the
economy of the country.

1) Textile Industry: The textile industry is the largest industry of Pakistan. At the time of
partition, Pakistan received only 17 textile units in its share. The production of textile was very
low and a large quantity of textile had to be imported to meet the domestic, requirements. Now,
Pakistan is a prominent country for the production of textile. The textile industry accounts for
17.3% of value added, 32.2% of industrial employment and 60% of total exports. There were 354
mills operating in the textile industry in 2001-02. The installed capacity of spindles was 8841
thousand and installed capacity of looms was 10 thousand in the same year. The production of
cloth was 558 million square meters by the organized mills sector. Various steps have been taken
by the Government for the growth of the textile industry e.g. the provision of incentives, freedom
to acquire technical assistance from abroad, directly financing institutions and improvements in
management and labor efficiency etc.
2) Leather Industry: The second largest industry in regard to exports is the Leather Industry.
Contributing more than $800 million in 2009 to the foreign exchange in Pakistan, this industry
has the potential of delivering more and providing a large number of jobs by diversifying product
range and improving quality.
The leather industry in Pakistan is as old as the history of the country. During the colonial era
just a few number of tanneries were working in large cities such as Karachi, Lahore, New Delhi
etc. In the 1950s the number of well-equipped tanneries increased in Karachi, Lahore and other
major industrial cities. This number continued to rise for due to increase in demand of finished
products as well as raw material in the national and international market. There are as much as
800 Tanneries in the country engaged in producing best quality finished leather of Cow, Buffalo,
and Sheep & Goat skins.. Leather manufacturers & exporters are determined to increase export
of quality finished leather and leather products.. Leather is one of a prolific contributor to the
countrys GDP and foreign exchange earnings, The Leather Industry of Pakistan is employing
more than 500,000 people directly or indirectly at this time of age
Leather industrys core products in Pakistan are leather garments, gloves, tanned leather and
footwear. In the 50s and 60s most of the tanned leather was exported in raw form but soon after
the local tanning industry making semi-finished leather made rapid progress in making finished
products due to availability of raw material, labor and growing demand in the foreign market.

More than 450 units of leather garment manufacturers in Pakistan are producing approximately
5 million pieces against the production capacity of exceeding 7.5 million pieces. Similarly a key
sector in leather industry is the leather footwear industry which is capable of producing 200
million pairs annually and its current production is just 100 million pairs. Pakistans share in the
global skin and hides production is around 7% annually which can be doubled with just the right
amount of time and effort. One can assess that these statistics show the industrys capabilities
which are highly under-utilized.
3) Steel industry: After independence in 1947, it did not take long for Pakistan to come to the
realization that progressive industrial and economical development would be impossible without
the possession of a self reliant iron and steel making plant. The dependence on imports would
cause serious setbacks to the country along with an extortionately high import bill which would
be impossible to support.
The initial idea for a domestic iron and steel mill was put forward in the first five year plan of
Pakistan (1955 1960..In 1968 besides other factors, it was considered by the Government of
Pakistan that a basic steel industry should be established in the public sector, as public
sponsorship of the project would enable integrated development of the steel industry in the
country.
Pakistan Steel Mills: In January, 1971 Pakistan and the USSR signed an agreement under which
the latter agreed to provide techno-financial assistance for the construction of a coastal based
integrated steel mill at Karachi. The foundation stone for this massive project was laid on the
30th of December, 1973. Foundation stone of Pakistan Steel was laid on 30th December, 1973.
Pakistan Steel is Pakistan's largest industrial complex, comprising component units numbering
more than 20. Pakistan Steel is strategically located 40km south east of Karachi in close vicinity
to port Muhammed Bin Qasim. Pakistan Steel is a costal site which lies on the National Highway
and is linked to the railway network. Spread over an area of 18,600 acres (29 square miles) with
10,390 acres for the main plant, 8070 acres for the township and 200 acres for the water
reservoir.
Pakistan Steel specialize in the production of flat steel products including, billets, slabs, hot
rolled coils, cold rolled coils, galvanized sheets/coils/formed sections and corrugated sheets. We
are vital to the supply of high quality and cost effective steel products to the domestic market.
Pakistan Steel's constant efforts in continuous improvement and quality management have
resulted in accreditation in ISO 9001, 14001, 17025, SA 8000 and OHSAS 18001.
Some Facts about Pakistan Steel Mill.
Organization Name: Pakistan Steel Mills Corporation (PVT) LTD.
Foundation Stone: Laid on 30th December, 1973
Location: 40 km East of Karachi
Production Capacity: 1.1 Million Ton of Steel Expandable upto 3.0 Million Ton per annum.

Main Products: Coke, Pig Iron, Billets, Cold Rolled Sheets, Hot Rolled Sheets, Galvanized
Sheets.
Steel Mills in Private Sector: there are more than 140 steel melting induction furnaces
installed in different areas of Pakistan who are producing good quality steel to meet Pakistan's
steel requirements. Pakistan Steel mills is producing about 1 million ton per year steel where
private sector is producing 30 million ( including billet, rebars, channel and angle etc) The
other requirements are fulfilled with ship breaking and other steel products.
4) Vegetable Ghee and Cooking Oil Industry: At the time of independence oil industry was
very poor. Now there are 150 vegetable ghee and cooking oil factories in Pakistan. Out of these
26 are in the public sector with an installed capacity of 500 thousand tonnes of ghee and cooking
oil. Total production of ghee and cooking oil was 774 thousand tonnes in 2001-02. A large
quantity of cooking oil is imported to meet the domestic needs. The decline in the production of
vegetable ghee is due to lower scale turnover and operational difficulties & closing down of two
units in N.W.F.P.
5) Sugar Industry: In 1947, there were only 2 sugar factories in Pakistan, but at present there
are 77 sugar factories in the industry. During the year 2001-02 total production of sugar was
3247 thousand tonnes. Revolutionary steps are required to expand the working capacity of this
industry, which must be expanded and facilities should be provided to farmers for the production
of better crops.
6) Fertilizer Industry: There are 10 fertilizer units (6 in the public sector and 4 in the private
sector) in the country, having an installed capacity of 42,98,000 N. Tonnes (16,74,000 N. Tonnes
in the public sector and 26,24,000 N. Tonnes is the private sector). Total production of fertilizers
in 2001-02 was 5012 thousand tonnes. The low production was caused, by operational
difficulties, decline in working hours and power failure/load shedding. A number of concessions
are provided for the growth of this industry.
7) Cement Industry: At present 24 cement factories are operating in the country, out of these 4
factories are in public sector and 20 are in private sector. The installed capacity of cement is
16,300 thousand tonnes out of which 9935 thousand tonnes of cement was produced in 2001-02.
This industry has been allowed duty free import of plant and machinery.
8) Chemical Industry: There are 12 chemical factories in the country producing, soda ash,
sulphuric acid, caustic soda, chlorine gas and other chemicals. The contribution of the chemical
industry towards GNP is only 3%. This industry is not fulfilling domestic requirements, so a
large amount of foreign exchange is spent on the import of different chemicals every year.
During the time of independence, chemical industry in Pakistan was almost non-existent. Some
traditional sectors have been developed over the years. However; the Chemical Industry in
Pakistan is still at an emerging phase.
As far as the classification of the Chemical industry development of Pakistan is concerned, it can
be classified into two sectors.

1) The primary sector and

2) The secondary sector.
Primary sector industries are at a large-scale. They are capital intensive industries that comprise
refineries, natural gas, petrochemicals, metallurgical and projects based on mineral. They also
supply feed stocks to the secondary chemical industry. Secondary industries are based on feed
stocks which are either derived from primary sector of industries, or other different sources of
raw materials. These industries are less capital intensive and they are based on high, medium or
less advanced technologies.
By tradition, exports from Pakistan are basically the goods produced with low technology, feed
stocks including resources like cotton, textiles, readymade garments and leather. These include
60% of total exports. The composition and contribution in exports of average and high products
based on technology, containing chemicals, petrochemicals and other manufactured products is
very small. It has varied between 8-10% of total exports from Pakistan. On the other hand,
Pakistan possesses a very high addiction of imports of goods which are high value-added, and
are expensive. Chemicals, medicines, drugs, dyes, capital plant, equipment and machinery,
jointly account for about 40% of total imports.
Chemical industry in Pakistan is widespread, in organized & unorganized sector. It has
approximation of investment in chemical sectors between Rs.550-600 billion. The chemical
related imports constitute about 17% of the total import bill.
According to the Chemical Industry Vision 2030 the chemical industry in Pakistan has been
classified into two categories which are as follows:
1. The Primary Chemical Industry: Primary chemical industries are refineries, petrochemicals,
natural gas, metallurgical and mineral based projects. They also provide feedstock for the
secondary chemical industry.
2. The Secondary Chemical Industry: Secondary chemical industries are based on feedstock
either derived from primary industries or other alternative sources of raw material like coal,
limestone, gypsum, rock salt, silica and sulphur.
The principal objective of Secondary sector industries is to maintain connectivity between
products and materials produced by the Primary industries and are of practical use for the
national economy. The chemical industry comprises of companies that produce industrial
chemicals which are important for the economy, as it converts raw material into more than
70,000 different products.
This implies that the secondary industries rely on the primary industries for feedstock and raw
material to be used in manufacturing, processing, blending, fabricating plants for petrochemical
intermediates, polymers, plastics, steel, non-ferrous metals, minerals, agricultural and other
miscellaneous products.

These industries use medium- to highly sophisticated technology and have a range from light to
medium categories. The chemical industry is more varied than any other industry because its
products are universal.
Chemicals are important as they play the role of a building block to produce products in order to
fulfill the basic needs like, shelter, food and health.They also are central to the world of
technology, telecommunications and ofcource biotechnology. These are used to make a large
variety of consumer goods and have inputs in agriculture, manufacturing, construction and
services industries.
Chemicals in particular, are a keystone of world manufacturing, as they are an integral
component of all the manufacturing sub-sectors, including pharmaceuticals, automobiles,
textiles, furniture, electronics, construction and appliances.
Economically the market of chemicals is divided into four main categories.
Basic Chemicals which are the commodity materials including flexible material, Polymers,
Petrochemicals and other derivatives and inorganic chemicals which makes.10 35-37% of the
chemical market.
Life Sciences Include differentiated chemical and biological substances, pharmaceuticals, health
products, and crop protection chemicals makes 30% of the chemical market.
Specialty Chemicals These are high value-added chemicals with diverse end-product market.
Products include electronic chemicals, industrial gases, adhesives, sealants and catalysts.
Specialty Chemicals are sometimes referred to as fine chemicals make 11 20-25% of the
chemical market.
Consumer Products include soap, detergents, and cosmetics are only 10% of the chemical
market.
9) Jute Industry: At the time of independence there was not a single jute factory in Pakistan. By
the cooperation of PIDC, 32 factories were setup in East Pakistan and one in West Pakistan by
the time of separation of East Pakistan in 1971. At present there are 12 Jute mills in the country.
Total production of Jute goods was 81.7 thousand tonnes during 2001-02. Now a large quantity
of Raw Jute is imported from China and Bangladesh every year to meet the domestic
requirement.
10) Engineering Goods Industry: The engineering goods and capital goods produced
domestically are very helpful for economic development of a country. This industry was given
importance in the 3rd five year plan. Now we have 4 heavy engineering industries.
(1) Heavy Mechanical Complex, Texila
(2) Heavy Foundry Project, Taxila
(3) Pakistan Machine Tools Factory, Landhi
(4) Pakistan Steel Mills, Karachi.

All these are in the public sector. There are also a number of light and medium engineering
goods industries producing a lot of items.
11) Ship Building Industry: Ships are constructed at Karachi. A number of small and large
ships are made by Karachi yard and Engineering works. This factory was establised by PIDC.
Now Pakistan is selling ships and boats abroad. In all the five year plans, this industry is given
much importance.
12) Woolen and Worsted Textile Industry: There are 16 woolen mills in Pakistan. These are
located at Karachi, Nowshera, Lawrencepur, Quaidabad and Hamai. This industry is not only
meeting the worsted and woolen yam requirements of the country, but it is also exporting a large
quantity of worsted cloth and carpets to foreign countries.
13) Cigarette Industry: At present 22 factories are producing cigarettes and Biri. Our country is
self sufficient in the production of cigarettes. The raw tobacco used in the manufacturing of
cigarettes is produced domestically. During the year 2001-02, 55,318 million cigarettes were
produced in the country.
Pakistans Telecom Sector: The development of Pakistan Telecom was done from scratch. The
first step was taken by Gen Ayub Khan when Pakistan Post and Telecom were made two separate
departments to focus on their own personal and focused growths. Pakistan Telephone and
Telegraph (PT&T) was the department created to focus on telecommunication in 1962. Later in
1990 PT&T was formally transformed into Pakistan Telecommunication Corporation (PTC).
PTC formed Pakistan Telecommunication Company Limited (PTCL) to formally take care of the
telecommunication business in 1996.
Telecommunication Sector is split into four administrations that are further explained as:
Pakistan Telecommunication Company Limited: It is the primary provider of all the telecom
related services in Pakistan.
Pakistan Telecommunication Authority: It is the regulatory authority which monitors the
business and operations of private telecom, internet and pay card phone companies. It is also the
issuer of license to the new entering companies.
National Telecommunication Corporation:
government organizations and armed forces.

It provides telecommunication services to

Frequency Allocation Board: It allocated frequency to the operational companies

Current Telecom Players of Pakistan:

Currently there are five players in the telecommunication sector of Pakistan, who are providing
the best possible services to the people of Pakistan. The competition among these five has
resulted in the benefit of consumer. The call rates are so low in comparison of the initial call rates
and introduction of new packages each day have also provided customers with customized
packages according to their needs.
They players mentioned according to the years founded include:
1) Mobilink
2) Ufone
3) Telenor
4) Warid 2004
5) Zong
Mobilink 030X: Mobilink was founded on June 11, 1994 as a Public Limited
Telecom Company of Pakistan. Headquarter of the company is located in
Islamabad, Pakistan. The company is first GSM based company in South Asia.
Mobilink provides pre-paid and post-paid services to individual and corporate
clients. In addition to that Mobilink also has an online banking service known
as MobiCash.
Mobilink was the only player in the market for a long time and has always has the first movers
monopoly in the market. Mobilink won 10 MHz block for 3rd Generation spectrum on 23 April
2014 and has launched its 3G services in major cities of Pakistan and now expanding the 3g
coverage areas. Based on Subscribers Mobilink is at the top of all five telecom players. It is
leading the market with 33.42 million subscribers.
Zong 031X : Zong CMPAK formerly known as Paktel, It was the biggest
foreign acquisitions when China Mobile Launched Paktel as Zong in 2008 and
in a short time period it gained great response from people. Currently with
22.10 million mobile phone users Zong is the second largest telecom
company in terms of subscribers. Zong initially came up with aggressive
marketing campaigns but better quality and customized packages attracted
customers. Zong Headquarter is in Chak Shahzad, Islamabad. Zong is
providing voice and data services including pre-paid, post-paid, 2g, 3g, 4g,
separate internet facilities and online banking system known as Time Pay

Zong is the only network that has coverage throughout motorway in Pakistan and provides 4g
internet through out. Zong has installed solar powered cell sites in various locations. It has
countrys largest solar power telecommunication network. Its network base stations, microwave
links, IT support and transmission towers are maintained and provided by ZTE Pakistan.
Zong got 10 MHz spectrum in 2.1 GHz frequency for 3G and 10 MHz spectrum in 1.8 GHz
frequency for 4G making it Pakistans first 3G and 4G operator and paid $516 million. Zong is
powered internet services to Daewoo Buses throughout motor way
Telenor 034X : Started its operations on 15 March 2005 and currently has
31.49 million subscribers. Telenor is a private, Norwegian multinational
telecommunications company and started its operations in Pakistan in year
2005. When Telenor came to Pakistan it also got the management from
headquarters which introduced the concept of flat management in Pakistan.
It is a fast growing telecom company in Pakistan standing at the second
position in terms of number of subscribers.
It is also operating Easy Paisa as its online transaction banking system, Telenor has been very
socially responsible in Pakistan and on 23rd April, 2014 acquired 3G license and aims to cater
Pakistanis with the slogan of Internet For All.
Ufone 033X: Founded on January 29, 2001 Ufone was completely owned by PTCL, while in
2006 it became part of Ehtisalat in 2006. Ufone is one of the largest GSM services providers of
Pakistan with 17.80 million customers Ufone is at the fourth position in Pakistan. The Company
is also known for the most creative TVC productions for their latest packages and promotions.
Ufone is also having an online branchless banking system known as U-Paisa in competition to all
the players of telecom who have introduced online banking services. Ufone provides post-paid,
pre-paid and data services to individuals and corporate clients in Pakistan.
Warid 032X: Warid is owned by Middle East based Abu Dhabi Group which is
a major investor in Pakistani telecom industry. With 9.91 million subscribers
Warid stands at number fifth among all. Warid provides prepaid, postpaid,
and youth plans branded as zem, zahi, and glow. Warid also offers data plans
and branch-less banking known as Mobile Paisa. Mobile Paisa is collaboration
with Bank Alfalah, Mobile paisa allows its users to pay utility bills, transfer
money to specified recipients anywhere in the country, deposit and withdraw
cash and carry out account transfers.
Warid has its headquarter in Karachi, Warid has been focusing on its services as well as social
responsibilities towards Pakistani society as well, in 2014 Warid was awarded the Corporate
Social Responsibility Award.

14) The pharmaceutical industry in Pakistan has grown during the last few decades. At the
time of the independence of Pakistan in 1947, there were few production units in the country.
Currently Pakistan has more than 800 large volume pharmaceutical formulation units, including
those operated by 25 multinationals present in the country. The Pakistan Pharmaceutical Industry
meets around 90% of the country's demand of finished dosage forms and 4% of Active
ingredients.
The National pharma industry has shown growth over the years, particularly over the last decade.
The industry is trying to upgrade itself and today the majority industry is following local Good
Manufacturing Practices (GMP) laws, with a few in accordance with international guidance.
Currently the industry has the capacity to manufacture a variety of traditional products ranging
from simple pills to capsules, ointments and syrups.
15) The Automotive industry: has been an active and growing field in Pakistan for a long time,
however not as much established to figure in the prominent list of the top automotive industries,
having a stable annual production of 100-170 thousands only. Despite being the sixth most
populous country in the world, there has been no transfer of technology and local manufacture of
vehicle components is minimal. In total, only a few car models are being assembled in the
country. The lack of competition in the local auto industry due to the presence of just three
assemblers - and only one small car assembler - has resulted in technological stagnation of the
industry; small cars produced by Pak Suzuki, the country's largest auto assembler and a
subsidiary of Suzuki Motor Corp., in the country are globally retired models using obsolete
technology and not offering any safety features. To date, Pakistan has not enforced any
automotive safety and quality standards.
Only three international brands have passenger car assembling operations in Pakistan that
includes:
1) Toyota
2) Honda
3) Suzuki
In addition, the following brands are presently assembling heavy transport and commercial
vehicles.
1) Nissan by Gandhara Nissan
2) Kia by Dewan Farooq Motors Ltd.
3) Sinotruk by Dysin Automobile Limited

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4) Changan
16) Energy and Utilities The energy and utilities industry is one of Pakistans key economic
divisions and has received massive attention from the public and private sectors. Recently
however, the sector has come under scrutiny for falling short in its efforts to bridge the gap
between the national demand and supply. That combined with the challenges of shortages in
skill, expertise, cost pressures and the need to present a unique window of opportunity.
Noteworthy here are two things; first that there is massive potential for growth and profit where
energy is concerned in Pakistan, and second that Pakistan is sitting on one of the largest coal
reserves in the world. The sector, thus, promises a substantial potential for growth and profit.
Sector

Sub Sector

Exploration and
Production

Oil, Gas, Integrated

Refineries

Refineries

Plant and Equipment

Pipelines, Refinery Equipment, Renewable Energy Equipment, Other

Energy Plant & Equipment

Alternative Energy

Renewable Energy Producers, Alternative Fuels

Power Producers

State Owned Entities, Private Power Producers

Utilities

Power Transmission & Distribution, Gas Transmission &

Distribution, Water, Multiutilities/ Integrated Utilities

OMCs

Oil Marketing Companies

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17) Electricity sector in Pakistan : Electricity in Pakistan is generated, transmitted, distributed,

and retail supplied by two vertically integrated public sector utilities: Water and Power
Development Authority (WAPDA) for all of Pakistan (except Karachi), and the Karachi Electric
(K-Electric) for the city of Karachi and its surrounding areas. There are around 20 independent
power producers that contribute significantly in electricity generation in Pakistan.
For years, the matter of balancing Pakistan's supply against the demand for electricity has
remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its
network responsible for the supply of electricity.
Electricity generation in Pakistan has shrunk by up to 50% in recent years due to an over-reliance
on fossil fuels. In 2008, availability of power in Pakistan falls short of the population's needs by
15%[, Pakistan was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts
and massive blackouts followed suit. Load Shedding and power blackouts have become severe in
Pakistan in recent years. The main problem with Pakistan's poor power generation is rising
political instability, together with rising demands for power and lack of efficiency. Provincial and
federal agencies, who are the largest consumers, often do not pay their bills.
The country has begun diversifying its energy producing capacity by investing in wind and solar
energy parks to help offset the energy shortage while larger projects such as the Diamer-Basha
Dam and new nuclear plants are under construction.
Installed capacity

Electricity total installed capacity: 22,000 MW (2014)

Electricity Sources (2014)

o Fossil fuel 14,635 MW 64.2% of total(oil-35.2% + gas-29%)
o hydro 6,611 MW 29% of total
o nuclear 1,322 MW 5.8% of total
o average demand-17,000 MW
o shortfall-between 5,000 MW and 6,000 MW

There are four major power producers in country: WAPDA (Water & Power Development
Authority), KESC (Karachi Electric Supply Company), IPPs (Independent Power Producers) and
PAEC (Pakistan Atomic Energy Commission).