Industrial sector of Pakistan

Industrial sector of Pakistan
M.Faraz Ishaque (group Leader)                         Mi10MBA073
Syed Ghazanfar Ahmad                                   Mi10MBA013
Uzman Ali                                              Mi10MBA021
M.Sajid Bashir                                         Mi10MBA036
M.Shahzad Anwar                                        Mi10MBA040
                 Hailey College of Banking & Finance
                        Punjab University
Industrial sector of Pakistan
“Industry refers to that sector
 of economy which is related
 with manufacturing and
 production of different
 products”
 Industrial Sector is of great importance for economic
  development of country.

 Industrial Sector is of great importance for economic
  development of country. It is historical fact that
  countries with strong industrial sector have showed
  more economic growth and development industrial
  sector have shows improvement in national income
  and promoted living standard of population.
Textile industry
                      Defense industry
 Sports industry
                    Auto mobile industry

Telecom industry
                      Fashion industry

Cement industry
                     Fertilizer industry
Surgical industry
                    Oil & Gas Industries
 Sugar industry
                     Chemical industry
Historically, Pakistan’s textile industry and clothing sector
has always been a major contributor to the foreign
exchange earner and still contributes
   4th largest grower of
    cotton after USA, China
    and India

 3rd largest consumer of
    cotton

 3rd largest exporter of
    cotton textiles

 2nd largest supplier of
    cotton yarn with 26%
    share of the international
    market
Wool fabrics
                 Power loom products
                 Scarf

Blanket
                               Textiles products
Winter shawls
                               Handicrafts
Hand embroidered shawls
Over 1.3 million farmers, out of total of 5
million are involved in cultivation of this crop.




Industrial Sector is the second largest individual
 sector of the economy accounting for
 24% of the GDP
Industrial sector of Pakistan
Fertilizer is any organic or
inorganic material of
natural or synthetic origin
(other than liming
materials) that is added to a
soil to supply one or more
plant nutrients essential to
the growth of plants.
1. Urea
2. DAP
3. NP
4. CAN
5. SSP
6. Others
Fauji Fertilizer Ltd
           Engro Chemical Ltd
           Sitara Chemicals Ltd



GDP Contribution           Employments
14%                        4.7 million
Cement industry is one of most prominent and energetic
organization having operations and interactions with cement
industry
Pakistan is ranked            Pakistan exports
         5th in the world’s          increased by 47% in
          cement exports                last fiscal year.


5th position leaving           2008-09          Exported
 Germany behind               (20.28 mt)    $700m in past year
 23 cement companies
 4 foreign companies
 3 controlled by the armed force
 19 companies are listed on the stock exchange.



  GDP:-
              3.5% Contribution
 At the time of independence in
  1947, there were only two sugar
  factories in Pakistan.

 At present there are 106 sugar mills
  operating in Pakistan.

 It is the 2nd Largest industry in
  Pakistan after Textile Industry
Sugarcane acreage in
                            Pakistan is 5th   Pakistan ranks 15th
total of 106 sugar
                          in the World and     in the World for
        mills
                        it is grown on over   sugarcane
   in the country
                         1 million hectares   production

         GDP contribution
                                       PER CAPITA
              (0.7%)
                                      CONSUMPTION
           Employment
                                          (26kg)
            (1million)
Alcohol (used by pharmaceutical
   industry)

Ethanol (used as a fuel)
“Sports' are all forms of physical activity which, through casual
or organized participation, aim at expressing or improving
physical fitness and mental well-being, forming social
relationships or obtaining results in competition at all levels”
Football
Cricket bats
Hockey sticks
Boxing gloves
Volley balls
Swimming suits
Golf balls
Badminton rackets
Basketballs
   The export of sports goods,
    increased by 7.85% from
    US$39.180m →US$42.257m
    last year

  Sialkot export 70% of
  total world demand for
  hand-stitched inflatable
  soccer balls (footballs).
 40 million balls annually
  worth US$210 million.
Companies of various sizes 2,400
Employments more than 200,000
Exporting goods worth US$450 million


Large exporters (more than 250 employees)
Medium exporters (100–250 employees)
Small exporters (10–100 employees).
Commercial exporters (1–9 employees).
Telecommunication is the
transmission of information over
significant distances to
communicate

Main Categories

  Telephone
  Mobiles
  Internet
In 2008 Pakistan was the world’
s third fastest growing telecommunications market


 Fixed-line subscriptions declined from a peak of
 5.2 million in 2005-06 to 3.4 million in 2009-10


  Pakistan traffic volume grew by 253 percent
  compared to last year during the same period
5% of its
Gross Domestic Product


                has created 220,000
            high-paying jobs in Pakistan


                           Pakistan is now a leader
                         in mobile usage in south Asia
PTCL   Ufone   Warid


  Telenor   Zong   Mobilink
 The glass industry in Pakistan, though
 developed, still has space for
 improvement.


 There are about 37 glassworks in the
  organized sector, with the production
  capacity ranging between 10 tonnes
  and 200 tonnes per day.
The major ceramics industry are Karam
Ceramics, Swat Ceramics, Master Tiles,
Shabbir Tiles and Emco Industries.



Punjab               Baluchistan               GDP
                                            Contribution
 73%                        3%
          Sindh                          NWFP
           5%                             19%
Glass industry in Pakistan
                         comprises sixteen
                         manufacturers in the
(PAGMA)                  organized sector which
Pakistan exported        produces over 90 per cent of
glass products worth     the indigenous production
 Rs 60 million to        within the country.
 Rs 120 million
per annum during imports of various glass
2005-2010,         from Rs 975 million to Rs 1,782
                   million, during last five years

                  83%. increase
Industrial sector of Pakistan
JavaScript

 The leather made ups and
 finishing industries symbolize
 an important division in
 Pakistan,
 Earning approximately more
 than 8 million $ as a foreign
 exchange earnings to the
 country.



                      Web application
Leather Garments

                   Leather Goods

    Footwear

                    Leather Shoe

     Uppers

                       Tanning

  Leather Gloves
Production Capacity Production
Tanned Leather        90 million ft2      60 million ft2
Leather Garments      7 million pieces    5 million pieces
Leather Gloves        10 million pairs    5 million pairs
Leather Footwear      200 million pairs   100 million pairs
•The difference in production capacity and present
 capacity is due to various reasons.
Source: Pakistan Tanners Association
    Italy, Spain, Portugal, South Korea, Germany,
    France, UK, USA and UAE.




                                    Provide employment
        More than 2300
                                  to about 500,000 people
    leather processing units
PAKISTAN SURGICAL INDUSTRIES (PVT) LIMITED
was established in 1974 and now has become one of the leading
manufacturers of Surgical.
JavaScript



Surgical Instruments


Dental Instruments

                     Web application
Beauty Instruments

                     Web application
Indicator                           Value
 To GDP(%)                          0.42%
 To Direct Employment (Numbers)     400-500,000
 To Indirect Employment (Numbers)   600-,750000
 To Exports (%)                     1.21%
Over 99%
 production is    2300 companies
done in Sialkot    are working in
                     this sector

Produces over
    150m           Out of the total
 pieces/year        production
 worth Rs 22        over 95% is
   billion           exported
The business of producing and selling self-powered
vehicles, including passenger cars, trucks, farm
equipment, and other commercial vehicles
Light Vehicles


        Cars
                 Jeeps
                         Tractors
                                    Trucks
                                             Buses   Motor
                                                     Cycles
2007 2012
2.8%   5.8%
       Expected
Automotive engineering is a driving force of large
scale manufacturing, contributing US$ 3.6 billion to
the national economy and engaging over 192,000
people in direct employment.
FACTS AND FIGURES
GDP Contribution of Different
          Sectors of Economy
 Agriculture                                            20.47%
    Crops                                      9.90%
    Livestock                                  9.97%
    Fishing                                    0.33%
    Forestry                                   0.25%

 Industry                                               23.93%
    Manufacturing                              17.53%
    Mining                                     2.39%
    Construction                               2.19%
    Electricity & Gas                          1.80%

 Services                                               55.60%
    Wholesale & Trade                          17.25%
    Transport                                  11.80%
    Finance & Insurance                        3.59%
    Ownership & Dwelling                       2.22%
    Public Administration & Defense            5.4%
    Community & Social Professional Services   10.22%
Comparison of
Industrial Sector
   with other
   Countries
Asian Countries
   Pakistan      23.93%
   India         26.3%
   Bangladesh    28.5%
   China         46.9%
9


8


7


6
                                                GDP Growth

5


4


3


2


1


0


    Pakistan   India   Bangladesh   Sri Lanka
$6,000




$5,000




$4,000




$3,000




$2,000




$1,000




   $0

         Pakistan   India   Bangladesh   Sri Lanka
35%



30%



25%



20%



15%



10%



5%



0%
      Pakistan   India   Bangladesh   Sri Lanka
Bad law and order situation
     Power shortage              resulting in lower investment
                                    Changing political and
Lack of trained manpower              economic policies

      Import trend                    Higher interest rate

      Inefficiecny                       Labor Unrest

         Lack of products innovation resulting in
        concentration of industries in some specific
                          sectors.
       Corruption in related government agencies and
            so many govt. agencies intervention
Gap between targets and
     achievements:

                     Under-utilization capacity:

Concentration of economic
         power:

                          Elite-oriented consumption:


 Performance of public sector:


                      Growth of regional imbalances:
Foreign Investment:

            Small & Medium Enterprises (SMEs)

     Micro Credit

                       :Privatization


EPZs(Export Process Zone)

              Subtitute of powers(coal,gas,windmills)
Revival of Industrial policy

                       Innovative technology

 Containment of skilled labor

                  Theory of Comparitave advantage

Participation in international galas

                       Research & Development

          Govt projects
THANK YOU
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Industrial sector of Pakistan

  • 2. M.Faraz Ishaque (group Leader) Mi10MBA073 Syed Ghazanfar Ahmad Mi10MBA013 Uzman Ali Mi10MBA021 M.Sajid Bashir Mi10MBA036 M.Shahzad Anwar Mi10MBA040 Hailey College of Banking & Finance Punjab University
  • 4. “Industry refers to that sector of economy which is related with manufacturing and production of different products”
  • 5.  Industrial Sector is of great importance for economic development of country.  Industrial Sector is of great importance for economic development of country. It is historical fact that countries with strong industrial sector have showed more economic growth and development industrial sector have shows improvement in national income and promoted living standard of population.
  • 6. Textile industry Defense industry Sports industry Auto mobile industry Telecom industry Fashion industry Cement industry Fertilizer industry Surgical industry Oil & Gas Industries Sugar industry Chemical industry
  • 7. Historically, Pakistan’s textile industry and clothing sector has always been a major contributor to the foreign exchange earner and still contributes
  • 8. 4th largest grower of cotton after USA, China and India  3rd largest consumer of cotton  3rd largest exporter of cotton textiles  2nd largest supplier of cotton yarn with 26% share of the international market
  • 9. Wool fabrics Power loom products Scarf Blanket Textiles products Winter shawls Handicrafts Hand embroidered shawls
  • 10. Over 1.3 million farmers, out of total of 5 million are involved in cultivation of this crop. Industrial Sector is the second largest individual sector of the economy accounting for 24% of the GDP
  • 12. Fertilizer is any organic or inorganic material of natural or synthetic origin (other than liming materials) that is added to a soil to supply one or more plant nutrients essential to the growth of plants.
  • 13. 1. Urea 2. DAP 3. NP 4. CAN 5. SSP 6. Others
  • 14. Fauji Fertilizer Ltd Engro Chemical Ltd Sitara Chemicals Ltd GDP Contribution Employments 14% 4.7 million
  • 15. Cement industry is one of most prominent and energetic organization having operations and interactions with cement industry
  • 16. Pakistan is ranked Pakistan exports 5th in the world’s increased by 47% in cement exports last fiscal year. 5th position leaving 2008-09 Exported Germany behind (20.28 mt) $700m in past year
  • 17.  23 cement companies  4 foreign companies  3 controlled by the armed force  19 companies are listed on the stock exchange. GDP:- 3.5% Contribution
  • 18.  At the time of independence in 1947, there were only two sugar factories in Pakistan.  At present there are 106 sugar mills operating in Pakistan.  It is the 2nd Largest industry in Pakistan after Textile Industry
  • 19. Sugarcane acreage in Pakistan is 5th Pakistan ranks 15th total of 106 sugar in the World and in the World for mills it is grown on over sugarcane in the country 1 million hectares production GDP contribution PER CAPITA (0.7%) CONSUMPTION Employment (26kg) (1million)
  • 20. Alcohol (used by pharmaceutical industry) Ethanol (used as a fuel)
  • 21. “Sports' are all forms of physical activity which, through casual or organized participation, aim at expressing or improving physical fitness and mental well-being, forming social relationships or obtaining results in competition at all levels”
  • 22. Football Cricket bats Hockey sticks Boxing gloves Volley balls Swimming suits Golf balls Badminton rackets Basketballs
  • 23. The export of sports goods, increased by 7.85% from US$39.180m →US$42.257m last year  Sialkot export 70% of total world demand for hand-stitched inflatable soccer balls (footballs).  40 million balls annually worth US$210 million.
  • 24. Companies of various sizes 2,400 Employments more than 200,000 Exporting goods worth US$450 million Large exporters (more than 250 employees) Medium exporters (100–250 employees) Small exporters (10–100 employees). Commercial exporters (1–9 employees).
  • 25. Telecommunication is the transmission of information over significant distances to communicate Main Categories  Telephone  Mobiles  Internet
  • 26. In 2008 Pakistan was the world’ s third fastest growing telecommunications market Fixed-line subscriptions declined from a peak of 5.2 million in 2005-06 to 3.4 million in 2009-10 Pakistan traffic volume grew by 253 percent compared to last year during the same period
  • 27. 5% of its Gross Domestic Product has created 220,000 high-paying jobs in Pakistan Pakistan is now a leader in mobile usage in south Asia
  • 28. PTCL Ufone Warid Telenor Zong Mobilink
  • 29.  The glass industry in Pakistan, though developed, still has space for improvement.  There are about 37 glassworks in the organized sector, with the production capacity ranging between 10 tonnes and 200 tonnes per day.
  • 30. The major ceramics industry are Karam Ceramics, Swat Ceramics, Master Tiles, Shabbir Tiles and Emco Industries. Punjab Baluchistan GDP Contribution 73% 3% Sindh NWFP 5% 19%
  • 31. Glass industry in Pakistan comprises sixteen manufacturers in the (PAGMA) organized sector which Pakistan exported produces over 90 per cent of glass products worth the indigenous production Rs 60 million to within the country. Rs 120 million per annum during imports of various glass 2005-2010, from Rs 975 million to Rs 1,782 million, during last five years 83%. increase
  • 33. JavaScript  The leather made ups and finishing industries symbolize an important division in Pakistan,  Earning approximately more than 8 million $ as a foreign exchange earnings to the country. Web application
  • 34. Leather Garments Leather Goods Footwear Leather Shoe Uppers Tanning Leather Gloves
  • 35. Production Capacity Production Tanned Leather 90 million ft2 60 million ft2 Leather Garments 7 million pieces 5 million pieces Leather Gloves 10 million pairs 5 million pairs Leather Footwear 200 million pairs 100 million pairs •The difference in production capacity and present capacity is due to various reasons. Source: Pakistan Tanners Association
  • 36. Italy, Spain, Portugal, South Korea, Germany,  France, UK, USA and UAE. Provide employment More than 2300 to about 500,000 people leather processing units
  • 37. PAKISTAN SURGICAL INDUSTRIES (PVT) LIMITED was established in 1974 and now has become one of the leading manufacturers of Surgical.
  • 38. JavaScript Surgical Instruments Dental Instruments Web application Beauty Instruments Web application
  • 39. Indicator Value To GDP(%) 0.42% To Direct Employment (Numbers) 400-500,000 To Indirect Employment (Numbers) 600-,750000 To Exports (%) 1.21%
  • 40. Over 99% production is 2300 companies done in Sialkot are working in this sector Produces over 150m Out of the total pieces/year production worth Rs 22 over 95% is billion exported
  • 41. The business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles
  • 42. Light Vehicles Cars Jeeps Tractors Trucks Buses Motor Cycles
  • 43. 2007 2012 2.8% 5.8% Expected
  • 44. Automotive engineering is a driving force of large scale manufacturing, contributing US$ 3.6 billion to the national economy and engaging over 192,000 people in direct employment.
  • 46. GDP Contribution of Different Sectors of Economy  Agriculture 20.47%  Crops 9.90%  Livestock 9.97%  Fishing 0.33%  Forestry 0.25%  Industry 23.93%  Manufacturing 17.53%  Mining 2.39%  Construction 2.19%  Electricity & Gas 1.80%  Services 55.60%  Wholesale & Trade 17.25%  Transport 11.80%  Finance & Insurance 3.59%  Ownership & Dwelling 2.22%  Public Administration & Defense 5.4%  Community & Social Professional Services 10.22%
  • 47. Comparison of Industrial Sector with other Countries
  • 48. Asian Countries  Pakistan 23.93%  India 26.3%  Bangladesh 28.5%  China 46.9%
  • 49. 9 8 7 6 GDP Growth 5 4 3 2 1 0 Pakistan India Bangladesh Sri Lanka
  • 50. $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Pakistan India Bangladesh Sri Lanka
  • 51. 35% 30% 25% 20% 15% 10% 5% 0% Pakistan India Bangladesh Sri Lanka
  • 52. Bad law and order situation Power shortage resulting in lower investment Changing political and Lack of trained manpower economic policies Import trend Higher interest rate Inefficiecny Labor Unrest Lack of products innovation resulting in concentration of industries in some specific sectors. Corruption in related government agencies and so many govt. agencies intervention
  • 53. Gap between targets and achievements: Under-utilization capacity: Concentration of economic power: Elite-oriented consumption: Performance of public sector: Growth of regional imbalances:
  • 54. Foreign Investment: Small & Medium Enterprises (SMEs) Micro Credit :Privatization EPZs(Export Process Zone) Subtitute of powers(coal,gas,windmills)
  • 55. Revival of Industrial policy Innovative technology Containment of skilled labor Theory of Comparitave advantage Participation in international galas Research & Development Govt projects