Industrial Development
Secondary Industry
• The secondary industry is responsible for creating finished or semi-finished products from the primary sector or secondary products.
• The inputs, outputs, and processes shown in the image above can be grouped into:
Capital:
• It is the money or finance that is used to manage and establish factories.
Enterprise:
• It is business skills that are required to come up with new ideas for products as well as to market and manufacture these products successfully.
Land:
• The physical location where industry/factory is located.
Raw Material:
• It is the material required to be transformed by industry processes.
Power:
• Industry requires power to perform their processes. E.g. stitching requires less power while smelting consumes more power.
Labour:
• The workforce numbers are skills required.
Factors Affecting Industrial Location:
• There are many physical and human factors that must be considered while choosing a location for the Industry.
Physical Factors:
• Site requirements i.e. the land selected is usually cheap, have the correct area or can be altered according to needs.
• Natural routes i.e. to have cheap transportation for the supply of industrial goods and raw materials.
Human Factors:
• Easy access to the market.
• Capital – is there enough financial resources for the development of the industry.
• The government offers many benefits and incentives for starting a new industry or not.
• Power supply.
• The skilled workforce is available or not.
• Raw material.
• Industrial linkage.
Types of Secondary Industry
• There are three types of secondary industries:
1. Small-Scale Cottage / Craft Industry:
• It is a traditional industry that does not utilize modern/advanced technology.
• It is usually handled or run by families.
2. Small and Medium Scale Factory:
• This type of industry utilizes modern technology.
• It is transformed into firms/companies that operate workshops, factories or plants.
3. Large-Scale Factory:
• It has standardized methods for mass production and automation.
• It produces greater output per worker.
• It transforms raw materials like rubber, cotton, timber, copper, limestone, and bauxite.
• This type of industry varies greatly in size and complexity.
• It may work as a small-scale industry or may run like a multinational company. E.g. I.C.I.
Cotton Textile Industry:
• It is the biggest industry in Pakistan.
• It provides 50% of the employment to the labour force.
• It accumulates to 60% of the total export of Pakistan.
• It utilizes local raw materials, therefore, no need for imports.
Location:
• Faisalabad, Hyderabad, and Karachi have the biggest textile industries.
Importance:
• It accumulates to a total of 60% of Pakistan’s exports.
• It offers mass employment.
• It contributes to Pakistan's GDP by around 7%.
• Cotton textiles are value-added products.
• The cotton textiles increase farmers' income and promote raw cotton production.
• The required labour workforce is available to work in the cotton textile industry.
• Pakistan’s cotton textile has high international demand.
• It also meets the local demands of cotton products.
Problems:
• The leaf curl virus in four consecutive years has reduced the raw cotton production greatly.
• The international market has faced a recession.
• Pakistan's cotton textile industry is facing great competition from Egypt, Thailand, Hong Kong, South Korea, and Taiwan.
• It needs to use modern technology to face international competition.
• Pakistan has faced export restrictions because of child labour and environmental issues.
• Pakistan has scanty water that is depleting, and cotton production is affected by it.
Sugar Industry:
• It is one of the important industries of Pakistan.
• Sugar is produced from sugar-cane juice.
• Sugar mills are required to be close to the sugarcane fields because it loses its sugar content continuously with time and because it is costly to transport.
• There are two important by-products of the sugar industry namely, bagasse and molasses.
• Bagasse is used as animal feed, the raw material to make paper and chipboard as well as it can be used as a fuel in sugar mills.
• Molasses is used in the manufacturing of various acids.
Location:
• KPK, Punjab, and Sindh have sugar mills.
Fertilizer Industry:
• In 1960 after the Green Revolution the consumption of chemical fertilizers has increased.
• It is an integral chemical mixture that increases the output of agricultural products.
• Various fertilizers are made using raw materials like gypsum, phosphate, and Sulphur.
• Natural gas is now the main raw material for fertilizer production.
• The soil in Pakistan is deficient in nitrogen, as a result, nitrogenous fertilizer is widely used and produced.
Location:
• Dharki in Upper Sindh, Faisalabad, Daud Khel, and Haripur have Fertilizer Industries.
Cement Industry:
• The raw materials for cement production are locally available e.g. Sulphur, limestone, and gypsum.
• As a cheap fuel option, natural gas is utilized in cement industries.
• It has a high demand for the development of cities e.g. construction of barrages, bridges, dams, houses, etc.
Location:
• Karachi, Salt Range, and Hyderabad have cement industries.
Importance:
• It is high in demand because of the increase in population and the need for development.
• It is used in the improvement of infrastructure e.g. roads, bridges, etc.
• It is a firm material for construction as it offers durability and modern appearance.
Steel Industry:
Pakistan Steel Mill Corporation:
• It is at Pipri.
• It was established with the help of Russia.
• It produces raw steel, galvanized products, coke, rolled billets, cast billets and pig iron/hot metal.
• It supplies raw material to the construction and engineering industries.
Heavy Mechanical Complex Ltd (HMC):
• In 1979, with the help of Chinese, it was established at Taxila.
• It is the main heavy engineering center in the country.
• It manufactures and designs the machinery and industrial plants.
• It also has a Heavy Force Factory (HFF) that caters to the country’s defense production needs.
• HMC is also manufacturing equipment for gas and oil processing plants, hydro-electric power plants, petrochemical plants, chemical plants, sugar mill machinery, and thermal power plants.
• All products made at the complex are of international standards.
Importance:
• It contributes greatly to Pakistan’s GDP.
• It is providing raw materials to many industries including the construction industry and agricultural industry etc.
• It provides cheap steel because of no custom duty.
• It promotes industrialization.
• It provides industrial employment.
Problems:
• It requires few imported raw materials like manganese, iron ore and manganese.
• It requires the setting up of infrastructure.
• It lacks skilled labours.
• It is contributing to the pollution.
• It requires a constant power supply.
Industrial States:
• They are special reserve areas for the establishment of industries.
• The government offers special infrastructure facilities.
• They are reserved to promote industrialization and entrepreneurship.
Special Industrial Zones:
• It can be developed where infrastructure facilities are not available.
• The government assists investors to develop special industrial zones.
Nationalization of Industries:
• In 1972, Bhutto transferred industries from public to private sector i.e. nationalization.
• The nationalization slowed down the industrial development in the country.
• In 1977, Zia-ul-Haq denationalized the industries i.e. transferred them back to their owners.
• In 1991, privatization of industries was done, and it is still possible i.e. industries are allowed to be owned by private companies.
Formal and Informal Sectors:
Importance:
• They assist by providing industrial goods and fulfilling domestic market needs.
• They create employment.
• The informal sector utilizes local raw materials.
• The formal and informal sectors’ many products are exported.
• The informal sector does not need imported machinery.
Differences in Formal & Informal Sector:
• The informal sector is self-employed while the formal sector is employed by the institution.
• The informal sector does not use modern machines and most work is done manually while the formal sector is mechanized, requires capital and uses less manual labour.
• The informal sector has irregular work hours and wages while the formal sector has regular working hours and wages.
• The informal sector often produces low-quality goods while the formal sector produces a high standard of goods.
• The informal sector is usually non-registered while the formal sector is registered and legal.
• The informal sector mostly employs women and children while the formal sector employs males.
Importance of Cottage/Craft & Small-Scale Industry:
• It creates employment.
• It employs women as labour.
• It fulfills local demands as a result saves foreign exchange and restricts imports.
• It exports goods like carpets.
• It prevents rural to urban migration.
• It contributes to the development of rural areas.
• It does not require heavy machinery.
• It utilizes waste from large-scale industries.
• It contributes to Pakistan’s GDP.
Examples:
• Embroidery, carpets, wood carving, sports goods, jewelry, and surgical goods are examples of cottage/craft and small-scale industries.
Problems:
• It generates limited revenue.
• It is failing to achieve the economy of scale.
• It lacks quality.
• It utilizes outdated methods and machinery.
• The middleman makes the profit.
• Lack of electricity in villages; villagers only in daylight.
• It lacks proper finance and marketing.
• It is using child labour.
Government Policies for Cottage & Small-Scale Industries:
• The governmental organizations are carrying out the following duties:
• They are establishing small industrial estates.
• They are providing marketing facilities.
• They have established technical centers.
• They are providing pre-investment guidance and counseling.
• They are proving easy installment loans.
• They are working for rural electrification.
• They are providing provisions for roads.
• They have established the handcraft development centers.
• They are providing better communication facilities.
Industrial Pollution:
• It is affecting people's health in the form of diseases.
• It has contaminated the sub-soil water which is affecting crop production and people's health.
• It is a threat to marine habitats.
• It is a threat to mangrove forests and the reproduction of fish.
• It is also contributing to the noise pollution that is resulting in deafness.
Steps to Control Industrial Pollution:
• An effective disposal mechanism should be in place for industrial waste and smoke.
• Waste treating machines should be imported and utilized.
• Massive tree plantation must be conducted to control and reduce the effects of industrial pollution.
• Industries should be far from localities.
• Awareness programs must be started regarding pollution hazards.
• In 1997, the Pakistan Environmental Protection Act was passed to check environmental pollution.
Tertiary Industry
• It is also known as the service industry.
• It provides services.
• Tourism is a major example of tertiary industry.
Tourism:
• It is an industry that deals with accommodation and recreational facilities for people who come to visit or stay for a limited period.
Advantages:
• It generates greater income as compared to exports.
• It creates employment and is labour intensive e.g. guides.
• It promotes cottage and craft industries.
• It promotes the local food market.
• It provides locals to enjoy tourism facilities too.
• It promotes cultural linkage.
• Tourism is a sustainable industry.
Disadvantages:
• Tourism industry id affected by economic and politic situations.
• After 9/11, Pakistan experienced a sudden decline in tourism.
• The employment created by the tourism industry is seasonal.
• Six months, from May to October is the peak season.
• Tourism opens a need for hotels that can negatively affect local people and their livelihood.
• It can destroy the local culture.
• During the peak tourism season, necessity items’ prices increases.
• For the construction of hotels, environmental can take a toll e.g. deforestation in Kalam.
Factors Affecting Tourism Development:
• Security for tourists.
• The number of tourist attractions.
• Capital for the development.
• Provision of infrastructure facilities.
• Marketing.
International Visitors:
• Different types of foreign visitors come to Pakistan.
• These visitors include corporate visitors, visitors to attend trade delegations, diplomatic delegation members, UNO officials, foreign tourists and people visiting family.
Natural Tourist Attractions:
• Swat Valley – It has rushing torrents, flower-bedecked slopes, and fruit-laden orchards.
• Skardu - the capital of Baltistan. It is the starting point if you wish to begin your journey towards
K2.
• Gilgit Valley – It has beautiful scenery all over.
• Hunza Valley – Snow covered mountains in the background and wheat field are the highlight.
• Chitral – The Kalash valleys are the highlight.
Cultural Attractions:
• The salt mines at Khewra.
• Harappa, Taxila and Moen-jo Daro are archeological sites.
• Khyber Pass, Shalimar garden, the tomb of Chaukandi, the tomb of Ranjit Singh and the tomb of Iqbal, Badshahi mosque are historic sites in Pakistan.
Call Centers:
• It is also a tertiary (service) industry.
• It is responsible for handling inbound and outbound calls (telephone mostly).
• Inbound calls are from customers to the company while outbound calls are from company to customers.
• It can handle a huge amount of calls simultaneously using a computer system.
• It also helps large organizations and telemarketing companies to handle their calls at cheap rates.