Causes of Industrial Backwardness in Pakistan.

The causes of industrial backwardness in Pakistan are varied and complex. The government of Pakistan since 1947 is trying hard to develop industries and infrastructure facilities for the growth of industrial sector, yet it has not achieved success to the desired extent . In the last over three decades, the contribution of industrial sector to GDP is only 18.5% which by any standard is not satisfactory. The main obstacles which have slowed and retarded industrial development in Pakistan are as follows:

1. Controversial Industrial Development Strategies:

In the past, there have been rapid change in industrial development strategies because the planners have not been able to resolve the following issues: (a). The extent of interdependence between agriculture and industry, (b) . The rate of economic growth with or without equal distribution of wealth, (c) . Establishment of capital intensive or labor intensive industries, (d) . Industrial development through public or private sector investment, (e) . Small scale or large scale industries to be patronized, (f) . Industries to be nationalized or denationalized and deregulated etc. In the absence of a clearcut industrial strategy, the growth of our industrial sector has been very slow.

2 . Lack Of Capital:
The second major problem of industrialization in Pakistan is the lack of capital . In capital intensive industries like steel and iron , chemical , automobile etc . the amount of capital required per worker is quite high . In industries like textile , carpet , sugar , paper board etc huge amount of capital is required to establish and expand these industries . Pakistan allocated a sum of Rs. 162.2 corer in the first five year plan for the development and growth of industries . In the sixth five year plan , an amount of Rs.18.1 billion had been placed for the growth of industrial sector in public sector and Rs.16.0 billion in the 7th plan . The amount is still insufficient to meet the necessary preconditions for economic take off.

3 . Narrowness Of Market:
The narrowness of home and foreign markets for the manufactured goods is also a major obstacle in the expansion and growth of industrial sector in Pakistan . The low purchasing power of the people , the production of substandard goods and the higher cost of production limit the size of market at home . The advanced countries , due to poor quality of the manufactured goods of the developing countries , are reluctant to purchase their manufactured goods . Pakistan , in order to avail of the economics of large scale production and enlarging home markets should establish import substituting industries . The quality of the products should also be improved to the international level so that the market opportunities in developed world are explored , developed and captured

4 . Poor quality of industrial labor:

The industrial labour in Pakistan like other workers is mostly conscious of its rights but not of duties . it may not be inferred that the labour is inherently incapable and inefficient in the performance of duties . The fact , however , is that they are not properly trained . The spirit of work is not included in them . The political parties patronize them to meet their own ends . the spirit of japanese workers , love for work , love for the country , should be inclulcated not only in the industrial labour but also in all the Pakistanis . The change in the attitude towards work will increase production and the country will attain rapid rate of economic growth in a short period of time .

5 . Lack of infrastructure facilities :

The infrastructure facilities for building up a sound industrial base are inadequate in Pakistan . The sources of power , thermal , solar , atomic etc . are insufficient to meet the industrial requirements of the country . The transport and communication facilities which are vital for the expansion of industry are costly and also do not fully meet the industrial and commercial requirements of the country .

6 . Lack of technical know-how :

Another problem which is standing in the way of rapid industrialization of the country is the lack of skilled persons . The capital intensive industries need highly trained technical personnel . The country at present is deficient of them . The import of technicians from the advanced countries is not only costly but also against the interest of the country .

7 . Lack of industrial consultancy firms :

The investment in modern industries is not only costly but also risky . The capitalists are often shy and hesitant in investing their capital in new industrial ventures. If marketing and industrial consultancy firms are available to the capitalists for channelizing their investment among competing industrial units , they can come forward in investing the capital in different ; avenues . Realizing the importance of professional and institutional services, the government has set up an industrial advisory centre of Pakistan ( IACP ) . The IACP is very helpful in guiding overseas Pakistani is who are keen to invest in profitable industries in Pakistan .

8. Racial disturbances:
The ethnic disturbances particularly in Karachi and Hyderabad have slowed down the production in the manufacturing sector . In addition to this flood , political instability and shortae of raw material have an adverse effect on production .

Causes of Backwardness of Industry in Pakistan

Following are the causes of the lack of industrial progress in Pakistan.

(I) Industrial Policies of Different Governments

When new government takes over it disposes of all policies of previous government. Due to this our country faces great problems and causes lack of progress.
(II)

Decrease in the Capital

Every industry wants a large number of capitals but due to lack of capital industry will not progress.

(III) Limited Markets

Limited markets are also the cause of lack of industrial progress.

(IV) Decreases in the Productive Capabilities of the Labour

When labor will works hard then any industry makes progress and production will also improve and increase. If the labor will not work then industry will deteriorate. @import "/extensions/GoogleAdSense/GoogleAdSense.css";

(V) Lack of Means of Transportation and Communication

Communication plays an important and vital role in industry's progress. If communication system is in disorder then our product is out of order. That's why lack of communication and transportation also causes the industry failure.

(VI) Expensive Means

Expensive means of transportation and communication.

(VII) Lack of Technical Knowledge

If workers are not technical minded then our industry will not progress. Lack of our technical workers is the downfall of our industries.

(VIII) Shortage of Entrepreneurs

Because of shortage of entrepreneurs industry will not progress.

(IX) Lack of Education

Lack of political coordination and political stability is the cause of industry's failure.

(X) Non-Availability of Electricity

Non-Availability of Electricity in many regions.
(XI)

Common Load Shedding

Electricity plays an important role in Pakistan's progress. Pakistan is not self sufficient in electricity that's why common load shedding also causes failure in industry's progress.

(XII) Economic Restrictions Imposed by Other Countries

An economic restriction imposed by other countries also causes failure of industry's progress.

(XIII) Lack of Effective Exploration of the World Market

Population explosion is a global problem. It is equally true of Pakistan. Everyday we come across the oft-repeated phrase, Population Bomb is ticking. A state based on Islamic ideology should be an ideal state. Since its inception Pakistan had to face the problems of illiteracy, poverty, pollution, unemployment, lawlessness & terrorism, inflation, loans, corruption, defective tax structure, government instability and many more chronic problems. Unless we achieve a control on population, these related problems will not be easily solved.