Table of Contents ACKNOWLEDGEMENT...........................................................1 Abstract..............................................................................2 Introduction........................................................................ !earl" De#elo$%ent &e$ort Anal"sis....................................

'
During 1961-62...........................................................................................................4 During 1962-63...........................................................................................................4 During 1963-64 ..........................................................................................................5 During 1964-65...........................................................................................................7 During 1965-66...........................................................................................................7 During 1966-67...........................................................................................................7 During 1967-68...........................................................................................................8 During 1968-69...........................................................................................................8 During 1971-72...........................................................................................................9 During 1972-73...........................................................................................................9 During 1973-74.........................................................................................................10 During 1974-75.........................................................................................................10 During 1975-76.........................................................................................................11 During 1976-77.........................................................................................................11 During 1977-78.........................................................................................................12 During 1979-80.........................................................................................................12 During 1981-82.........................................................................................................13 During 1982-83.........................................................................................................13 During 1983-84.........................................................................................................14 During 1984-85.........................................................................................................14 During 1985-86.........................................................................................................14 During 1986-87.........................................................................................................15 During 1987-88.........................................................................................................15 i

During 1988-89.........................................................................................................15 During 1989-90.........................................................................................................16 During 1990-91.........................................................................................................16 During 1992-93.........................................................................................................16 During 1993-94.........................................................................................................17 During 1995-96.........................................................................................................18 During 1996-97.........................................................................................................19 During 1997-98.........................................................................................................19 During 1997-98.........................................................................................................20 During 1999-2000.....................................................................................................20 During 2000-01.........................................................................................................20 During 2001-02.........................................................................................................20 During 2002-03.........................................................................................................20

(a)istan De#elo$%ent $lans..............................................22

First Five Year Plan (1955-60)-An rrati! "eginning t# $lanne% Devel#$&ent.......23 'e!#n% Five Year Plan (1960-65)- An ($eri&ent )n *Fun!ti#nal )ne+ualit,...........23 -.ir% Five ,ear Plan (1965-70)- A Pris#ner #/ (tra#r%inar, vents.......................23 F#urt. Five ,ear Plan (1970-75)- A n#n-starter /r#& t.e 0eginning. ......................24 Fi/t. Five Year Plan (1978-83)-A 1eturn #/ t.e 2e%iu& -er& Planning.................24 'i(t. Five ,ear Plan (1983-88)- Devel#$&ent #/ t.e $e#$le3 ", t.e $e#$le3 F#r t.e $e#$le.......................................................................................................................24 'event. Five Year Plan (1988-93)-Pre!urs#r #/ a l#ng -er& visi#n........................25 ig.t. Five ,ear Plan (1993-98)- An e(er!ise in 0etter &a!r#-e!#n#&i! 2anage&ent.............................................................................................................25

Conclusion.........................................................................2* &eco%%endations..............................................................2+ ,iblio-ra$."/..................................................................... 0

ii

ACKNOWLEDGEMENT

Praise is t# Alla. Al&ig.t,3 t.e #ne testing us all at all ti&es an% &a4ing %e!isi#ns a0#ut 5.at 5e %#n6t 4n#5 an% !an6t 4n#5. 7riting t.is re$#rt a$$eare% t# 0e a great e($erien!e t# us. )t a%%e% a l#t t# #ur 4n#5le%ge 5.ile 5e 5ere 5#r4ing #n t.is $r#8e!t. )/ 5e sa, t.at t.is $r#8e!t is #ne #/ #ur &e&#ra0le e($erien!es in stu%ent li/e3 t.en it 5#ul% n#t 0e 5r#ng. 7e #5e %ee$ a$$re!iati#n t# Mr. Shahid Hassan /#r sti&ulating #ur !reative a0ilities 0, assigning t.is re$#rt t# us. 7e are i&&ensel, #0lige% t# all #ur /ell#5 stu%ents 5.# gui%e% us in &a4ing t.is re$#rt3 5it.#ut 5.#se !#nsi%erate attenti#n an% interest3 it 5#ul% 0e %i//i!ult /#r us t# !#&$lete t.is $r#8e!t #n ti&e. 7.atever 5e .ave learnt /r#& t.e& an% t.is $r#8e!t re$#rt .as $ut $er&anent i&$ressi#n #n #ur &in%. )t is #ur !#nvi!ti#n t.at t.is learning e($erien!e 5ill al5a,s 0e a s#ur!e #/ .el$ in #ur $ra!ti!al li/e an% $r#/essi#nal !areer.

Abstract
The study about Pakistan Economy related to Industry sector. The project comprises on the finding of Annually development reports and five year plans from 19 !"s to #!!$. In this decade many up"s and do%n"s come in to the Industrial sector. Industrial sector is second largest sector in the economy of Pakistan in terms of it contribution in the &'P. In this discuss about the factors that totally affect or depend the industrial sector. (tatistical analysis of the consumer goods )(ugar* cement* jute goods and etc+ year to year is count and analy,e the factors that raise &-P or fall &-P. After getting familiar %ith the importance and yearly contribution of Industrial sector in Annual gro%th rate. The study includes some recommendations for future betterment of the industrial sector.

Introduction
Pakistan industries. The economy has suffered in the past from decades of internal political disputes* a fast gro%ing population and ongoing confrontation %ith neighboring India. Pakistan0s average economic gro%th rate since independence has been higher than the average gro%th rate of the %orld economy during the period. Average annual real &'P gro%th rates %ere .12 in the 19 !s* 3.12 in the 194!s* and .52 in the 191!s. Average annual gro%th fell to 3. 2 in the 199!s %ith significantly lo%er gro%th in the second half of that decade. T%o %ars %ith India in (econd 6ashmir 7ar 19 5 and 8angladesh 9iberation 7ar 1941 and separation of 8angladesh adversely affected economic gro%th. In particular* the latter %ar brought the economy close to recession* although economic output rebounded sharply until the nationali,ations of the mid.194!s. Pakistan is aggressively cutting tariffs and assisting e/ports by improving ports* roads* electricity supplies and irrigation projects. Islamabad has doubled development spending from about #2 of &'P in the 199!s to 32 in #!!$* a necessary step to%ards reversing the broad underdevelopment of its social sector. has a semi.industriali,ed economy* %hich mainly

encompasses te/tiles* chemicals* food processing* agriculture and other

!earl" De#elo$%ent &e$ort Anal"sis

Durin- 1+11212
The increase in industrial production in the #.%as about 11 percent* as compared to only percent during 19 1. 'uring the first #.5years of the plan period ):uly 19 !.dec 19 #+* the previous made in last industrial investment schedule )-ovember 19 !+ had been over committed to the e/tent of 3$ per against the total provision of rs.#13 crores the amount committed %ar s 3!4 crores. &uiding objective of government industrial policy to is to ma/imi,e the production of manufacturing goods %ithin the country and to accelerate e the development of the less developed regions. Protection from foreign competition and the various fiscal and monetary concession and facilities are some of the many aids %hich the government has provided to industry. &overnment policy to entrust the public sector %ith only such enterprises as the private sector is either unable or un%illing to undertake* because of large capital investment or lo% return. (pecial attention from government to the industrial development of less developed areas the establishment Projects of heave industries and the heavy sophisticated and first half of 19 y industries such as trucks* machine tools and electronics e;uipment have already been sanctioned.

Durin- 1+1221
In#est%ent sc.edule/ It %ill de seen from the above that the amount so far sanctioned has e/ceeded the provision made in the schedule by 3$ per cent. <f the 1!4 industries provided for in the schedule* provision in respect of 9 has either been fully committed or over utili,ed. (ome of the important items fro %hich allocation have been e/hausted are steel* pipes* cotton spinning and %eaving and processing of fish* and shrimps* edible oils and vegetable ghee. 4

Durin- 1+1 21'

The industrial policy of government continued to aim at rapidly e/panding the production of consumer* e/portable and producer goods* improving the industrial efficiency and ;uality of local products and accelerating the development of less developed regions. Production of large and medium industries during the first three years of the second plan period increased by $3 per cent and that of small industries by 15 per cent* against ! per cent and #5 per cent respectively aimed at during the entire plan period. Taking 1959. ! as the base year the inde/ of industrial production rose from 119.# in 19 1. # to 1$$. in 19 #. $ and is estimated to have increased to 15 .5 in the ;uarter oct to dec* 19 $.

West (a)istan industrial de#elo$%ent cor$oration/

3ea#" en-ineerin-/ the feasibility report on the heavy industry comple/* estimated to cost #5 crores has been received. Effort is also being made to associate foreign capital participation. C.e%ical fertili4ers/ The e/pansion %ill raise capacity from 5!=!!! tons to 1 lakh tons. >inancing arrangement s %ith the supplying countries is being made for the 9yallpur factory e/pansion aimed at raising the capacity by $ *!!! tone of super phosphate. Ce%ent factories/ a scheme for the 5th plan of the ,eal par cement factory to raise present capacity by another #* 1!*!!! tons per annum is in hand* %hile cement plant of 15*!!! tons capacity are in early stages of e/ecution. 5u-ar industr"/ 7.P.I.'.? has sponsored t%o sugar mills at bannu and bad in each %ith a capacity of 15*!!! to 11*!!! tons of %hite sugar per annum. 6ute/ This mill at jaran%ala in %est pak %ill manufacture 14*!!! tones of jute goods per annum.

s.i$"ard@ the e/pansion scheme form the 6arachi shipyard has been prepared by the corporation. it provides a second dry.dock and a second berth and constriction of ships of 1!*!!! tons per year.

Durin- 1+1'217
The efforts made both by the government and by private enterprises to achieve these objectives have met %ith a large measure of success. The increase in manufacturing output %as on less spectacular. Its inde/ %hich had risen by 1# per cent to 1$3.# in 19 #. $ rose by 1$.1 per cent to 15#.4 in 19 $. 3 and stood at 154. in oct. dec 19 3. Almost all industries contributed to the increase in production so much that self.sufficiency has been attained in a large number of consumer goods industries and attention is no% being focused on the development of heavy and more sophisticated industries like steel mills machine tools plant petrol chemicals and fertili,ers factories etc.

Durin- 1+17211
'uring 19 5.19 the pace of industrial gro%th %as slo%er because of the several factors like the effect of %ar %ith India %hich for sometime restricted the operation of some industries* suspension of foreign economic aid and conse;uent reduction in imported industries ra% material and spare parts and diversion of some national resources to defense. 8ut in.spite of these problems the industrial gro%th maintained. According to central statistics office the inde/ of production of manufacturing industries increased by 2 from#!1.4 in 19 3. 5 to #13.# in 19 5. . There %as significant increase in 5. in the production of sugar* vegetable ghee* cigarettes* jute goods* art silk and rayon cloth* some varieties of and some organic chemicals like sulphuric acid and chlorine gas. And ho%ever there %ere declines in the production of cotton* te/tile* ne%sprint* stra%* and paper board* packing and other paper* tea* sea salt* cement* tyres and tubes* paints* super phosphate and fe% fertili,er and soda ash.

Durin- 1+1121*
The production trend during this year appears to b encouraging %ith the e/pectation of chemical and cotton te/tile. The production of minerals increases very slo%ly. The inde/ of minerals production rose by 1.52 point from 143.5 to 14 during this year. It rose by .# points to 11#.# during . 4. The inde/ is estimated to rise by 92 to #$$ in . 4.

In#est%ent/ A comprehensive industrial investment schedule for the entire third plane period aimed ensuring fulfillment planes investment target of 1$! crores. It covered #!! items involving large medium and small industries the investment allocation is rupees 1!11.5$ crores in the private sectors* 51 .!4 crores 7est Pakistan and 5!#.3 crores for East Pakistan. Credits/ Aajor allocations during this year from >rance 1 .19 million B. C((D 9. 4 million B.C6 15.91 million B. 7<D9' 8A-6 9.11 million B and 8elgium 3 million B. Total allocation increase from 19.#1 million B in this year to 1#1.31 million B.

Durin- 1+1*218
The government entered into an agreement %ith the government of Poland %ill provide the e;uipment re;uired for the implementation of this project and it consists of #. crore e/penditure. In %estern Pakistan during this year 13$ miles of ne% forest roads and bridle paths %ere constructed and another 15! miles are e/pected to be constructed. This year government had given the attention to developed heavy and more sophisticated industries such as engineering* electrical e;uipment* machine tools and petro chemicals etc. 'uring this year there is increase in the production of tea* salt* cotton cloth and yarn* board* caustic soda* cement and cycle rubber tyres and tubes. The increase in the ;uantum inde/ of manufacturing industries from 1!! in 1959. ! to #!1.4 in 19 3. 5.

Durin- 1+1821+
&ro%th in 1. 9 %as 4.32 that %as previously 4.12. And in 39.5! the share go agriculture %as standing !2 %hich camEe do%n to 3 2 in 1. 9. This trend to%ards diversification is also reflected in the pattern of e/ports and imports the share of primary commodities* %hich %as 952 of our e/ports in 195! to 1951 decline to 92 in 3. 5 and future to 5$2 in 4. 1 the rest being accounted for by manufacture and semi manufacture. 'uring 19 4. 1 and 19 1. 9 the increase in manufacturing output in certain industries %as a ;uite impressive. Production of sea salt and cigarettes have already e/ceed the pain target* %hile the performance of ne%sprints and mechanical paper %as 342*

cotton yarn 49. 2* %hite sugar $.92* vegetable ghee 1. 2* juice goods 5$.3B2. 'uring 19 4. 1* substantial gains %ere also recorded by cotton yarn and cloth fertili,es and chemicals* %riting and printing paper etc. production of board and cycle tyres and tubes* ho%ever* declined during the year.

Durin- 1+*12*2
Industrial manufacturing is second largest sector in the economy in term of its contribution to the gross domestic products. ?urrently its account one . fifth of &'P. ?otton* Te/tile* ?ement* leather goods etc are the products through %hich Pakistan enter in the %orld markets. ?otton te/tile 312 added value in the sector and cigarettes 1!2* sugar 42* basic metals* electric and transport 52. Industrial gro%th is not smooth through out the history. (hortfall in the case of chemical and chemical fertili,ing because of different factor* %ar %ith India and tight credit polices and East Pakistan crisis. ?onditions are remaining unfavorable. The gro%th rate of large scale industrial decline from 1$.92 in 19 9.4! to #.1 in 194!.41 and sho%ed a negative gro%th rate of 5. percent in 1941.4#.

Durin- 1+*22*
Industrial sector had all along been leading sector in terms of sustain gro%th. Falue added fell by .12during 1941.4# compared to depress based of 194!.41 %hen the gro%th %as only 1.#2. &-P decline 1#.42 194!.41 to 11.42.in 1941.4#. >actors that affect &-P is loss of East Pakistan market and shortage of ra% material. -o% manufacturing is no% second largest sector after agriculture in terms of contribution in &-P. Da% material of capital goods accounted for 1!.5 2 of total imports and capital goods constituted 3#.32 of total imports. 3ea#" industr"/ A machine tool factory in 6arachi already gone in production and produce Ds.15 crore annually. Geavy Aechanical ?omple/ at te/tile being built %ith ?hinese assistance. The plant is producing sugar* cement* road building machinery %orth over Ds. 9 crore annually. A steel mill of 1 million ton capacity near 6arachi %ith assistance of C.(.(.D. (trikes of labor also disturb the industrial production. 9abor reforms introduce to improve the %orkers.

In the start of 194#.4$ improve some implications through %hich gro%th of different product increase. Huantum inde/ of manufacturing industry %hich had decline 1 #.1 in 194!.41 to 151.1 in 19941.4# is estimated to have increased to 1 !. in 194#.4$.

Durin- 1+* 2*'

(teady gro%th in 194$.43. 'ifferent factor* like %ar %ith India and tight credit polices and East Pakistan crisis gro%th decline .12 in 1941.4#. (teady improvement or recovery in 194#.4$. &reater availability of industrial ra% material increased gro%th rate 11.12 during 194#.4$. In 194$.43 slo% do%n in gro%th rate due to slackness* difficulties in obtaining ra% material and gro%th rate is 42 projected in this year. 9arge and small manufacturing scale 152 of total &'P. Pakistan not only manufacture consumer goods its also e/port cotton cloth* carpet* sports good cement and leather.

Durin- 1+*'2*7
Aanufacturing sector slo%.do%n during 1943.45 because lo% level of investment and shortage of ra% material. Te/tile has heavy %eight age in total industrial production. 'ecline e/port of cement fulfills the need of cement in the country. Import of ra% material increased . 2 fairly satisfactory. Improvements in industries of cotton* sugar and cement in 1943.45. Also public sector investment industry is estimated at 1943.45. 'uring the period july 1943.march 1945 decline=increase over a comparable period of last year. different items

Cotton "arn and clot./ 'ecline of .1 2 in the production of yarn and #$.5 2 decline in cloth. 9ertili4er/ Increase in fertili,er production. The factories are %orking above their rated capacities to fulfill the demand of the agriculture sector. :e-etable -.ee@ The sharp increase of vegetable ghee production better utili,ation of installed capacity. Actual production is #.#4 lakh tons during 1943.45. 5u-ar/ 'ecline in 3.32 in the production of sugar in 1943.45. Ce%ent/ 1 .# 2 increase in cement because of operations plants are above rated capacity. 10

Ci-arette/ !.$ 2 decrease in the production of cigarette during the period factory in Punjab closed. 5afet" Matc.es/ Production of safety matches #! 2 increased during 1943.45. Electric fans ; M.5. $roducts/ Electric fans decline 11 2 I also decline of A.(. products . 2

Durin- 1+*72*1
Affects of international recession cause the large scale manufacturing sector estimated to have gro%th of 12 %ith 152 for the %hole sector 1943. 45 there %as also difficult %hen value added project to gro% by 1!2 in the 9(A sector recorded negative gro%th of 1.42 Inde/ of manufacturing industries %as 1#!.3 in 1943.45 and has been risen to 1#1. 2 in 1945.4 At that time overall projects had been embraced both in public and private sector that supports the manufacturing sector that is performance of the most of the industries %as satisfactory.

Durin- 1+*12**
'uring this time manufacturing sector continue to remain under pressure due to various national and international factors. E/port of cotton yarn 11 .#m in 194#.4$ decreases to 13$.4 in 1945. 4 . Jarn e/ports %as 1!5.9m )1945.4 + decreases to 14.$m in 194 .44 E/port of cotton clothes* 94.1 m 1945.4 increases to 99.#m 194 .44 but ;uantity decreases because e/ported prices of yarn had improved Production of cotton yarn and cloth decreases by 112 in 194 .44 as in 1945. 4 In 194 .44 9(I sector record negative gro%th of #2 against target of 92 In 194 .44 ((I record gro%th of $2 In 194 .44 manufacturing sector overall decline by !.12 In 1945.4 %itness the inauguration of heavy foundry and forge at Te/illa that cost about 1 m.

11

Processing capacity national refining increase from .5m tons to 1.5 m tons Project of >ertili,ers also continue to further broader the counties industrial base setting up a number of ne% fertili,ers ?ement and other plants.

Durin- 1+**2*8
All the industries %ere going good but the decline in cotton cloth industry brought do%n the overall contribution made by all the industries. Trend of Industrial (roduction (ome of the items %ere having got rise in production %hile some of them got short fall@ Cotton Te<tiles/ The decline of .52 in the production of cloth is a follo%. up in the main. Art2sil) ; &a"on clot./ In 1944.41 art.silk and Dayon cloth got 92 increase as compare to the period 194 .44 due rising domestic demand and availability of synthetic fiber. :e-etable G.ee/ In the period 1944.41 vegetable oil got rise of 15.92 over the period of 194 .44 due to high imports of edible oil and better availability of domestic cotton seed oil from large cotton crop this year. 5u-ar/ The increase of ##.9 2 in the production of sugar %as due to the better availability of sugar cane. 9ertili4ers/ >ertili,ers got a small decline of #.#2 in the production %as offset by an increase of 12 in the out of fertili,ers.

Durin- 1+*+280
The industrial recovery in initiated in 1941. 49* after virtual stagnation for three years has been further consolidated the sector recorded a gro%th rate of 9.#2 in 1944.41* 3.12 in 1941.49 and 1.1 2 in 1949.1!. The private sector lost confident in &ovt. Policies and there %as a visible decline in industrial investment.

(olic"= Institutional Measures/

12

'enationali,ation the agro based industry %as the first step took by &ovt. in 'ecember 191!. Ever since $# large industries units under 1! categories %ere take over in Public sectors.

Durin- 1+81282
Aanufacturing is second largest sector in economy and accounts for 142 of &'P. This industrial gain is due to the Present Industrial policies pursued since 1944. Principle measured and incentive provided by the &ovt. are indicated belo%@ Monetar" Incenti#es/ Aandatory target %as settled for small scale industry. In :uly 1941* the interest rate on loans for fi/ed investment in industry and agriculture %as reduced from 1#.52 to 112. 9iscal Incenti#es/ 7ith effect from (eptember 3* 1941 compensatory rebates ranged from 4.52 to 1#.52 on >.<.8 value of the e/ports of may cotton te/tile products have been allo%ed. These incentives have been subse;uently e/tended to manufacture of engineering goods. Ot.er Measures/ A sponsor can apply for import license for machinery directly to the chief controller of Imports and E/ports. 8ut normally duty is payable on the import of machinery. The -DI projects are entitled to #52 concession in normal custom duty applicable.

Durin- 1+8228
Aanufacturing sector registered a gro%th of 1.$2 during 191#.1$ as compared to last year 11.92. The gro%th performance of 92 during fifth plan reflects significant increase in the production of all major consumer items and some capital goods. Measures to Encoura-e Industr"/ 9iscal Measures/ The major additional fiscal measures to encourage private industrial investors %hich %ere announced in 1911.1# and 191#.1$@ Initial depreciation allo%ance on plant and machinery %ere raised from #5.3!2. Aonetary limit of investment rose from 35!!! to 5!!!! D(.

13

Incenti#es for O#erseas (a)istanis/ Aachinery up to D(. 15 million %as allo%ed to be imported against non.reportable investment %ithout any prior sanction from any agency. E<$ort $rocessin- >one/ To attract the foreign investors an e/port processing ,one has been set up at 6arachi over an area of 1!.93 hectares. In this ,one every kind of import takes place and e/port of goods %as freely allo%ed. Investment in ,one has been allo%ed income ta/ e/emption for a period of 5 years and capital gain on sale of assets %ill be e/empt from ta/es.

Durin- 1+8 28'

9ivestock contributed about 1.#2 to &'P from 191$.13. The production and the per capita availability have also increased. The e/ports of fisheries increased from Ds. 419.9 million to Ds. 194.1 million from 191$.13. If %e come to forestry* Pakistan had only 32 of forest area in country. The demand is high but the production is lo%. And this gap is met by help from private farm lands and imports. Aanufacturing accounts for 11.9 2 of &'P* 552 of e/ports and 13.92 of labor force. Aanufacturing gro%th fell to 4.42 during 191$.13 from 1.92 in 191#.1$* mainly due to lo%er output of cotton te/tiles* as a result of shortage of ra% cotton.

Durin- 1+8'287
In 1913. 1915 manufacturing gro%th %as about 1. 2 after a slo% do%n last fiscal year %hich %as 1.12. -evertheless the gro%th rate achieved e/ceeded the average gro%th of manufacturing in other countries. As compared to the previous year* most of the items sa% a 2increase like sugar* motor tyres and tubes* vegetable ghee etc. 8ut some items such as sea salt and beverages sa% a decline.

Durin- 1+87281
'uring 1915.1 * &'P for manufacturing output has been 19.92. during this year the manufacturing is e/pected to gro% by 1.#2 as compared to 1. 2 of previous year. The annual average gro%th rate for manufacturing sector gro%th for small scale is 9.3! and for large scale is 4.1# making a total of 1.#3 %hich is greater than previous year having 1.1!. 14

Durin- 1+8128*
The manufacturing output has gro%n by 4.32 in 191 .14 as compared to 4.12 in 1915.1 . The annual compounded gro%th rate has been reducing since 1944.14 from 1!.1 to 4.3

Durin- 1+8*288
Manufacturin-/ According to the latest 9abor >orce (urvey 1914.11 this sector absorbs 1$.32 of the total employed labor force in the country. This year 1914.11 sho% that the output has gro%n by 4. 2 .The rate of gro%th in large.scale industries during 1914.11 %as 4.32 and this gro%th based on the selected industries %hich constitute !2 of the total large industries sub.sector. (roduction trend/ 'uring the first 9 months of 1914.11 out of 15 selected industries %ith a combined %eight of 33.$2 there %as increase in production of cotton yarn up to 142 and cotton cloth production increases to 15.12. Production of sugar in this year %as #3.42 %hich means more gro%th of sugar than the recent t%o years. Production of fertili,er* cement* and paper board and jute goods decreases to .!.#2* 9.#2* !2 and .#2 these industries had lo% gro%th rate as compare to previous t%o years.

Durin- 1+8828+
Manufacturin-/ In the budget of 1911.19 large number of fiscal and monetary incentives had made available to the private sector for industriali,ation. Aanufacturing sector %as e/pected to gro% by$.!42 in this year but it had increased by $.9 2. (roduction trend/ Falue added in large scale manufacturing during this year )1911.19+ %as increase by 1.192* %hile that in small scale industries by 1.3!2. The percentage of share in &'P in this year %as 14.32. There is decrease in the production of sugar* cement* and fertili,ers and increase in soda Ash production in this year. <verall there decrease in the production of more industries in this year as compare to last t%o year.

15

Durin- 1+8+2+0
Manufacturin-/ Aanufacturing sector %as e/pected to gro% by 5.4!2 and it had increased by same percentage as e/pected. The percentage of share in &'P in this year %as 14.512. (roduction trend/ The production inde/ in this year %as 19#.1 as compare to 11$.3 last year. In this year there is dramatic increase in the production industrial products because of applying ne% policies of last year. There increase in the production of sugar* cement* and fertili,ers and decrease soda Ash* sugar and paper of all types" production in this year. of of is in

Durin- 1++02+1
Manufacturin-/ Aanufacturing sector %as e/pected to gro% by 5.4!2 and it had increased by same percentage as e/pected. The percentage of share in &'P in this year %as 14. 12. (roduction trend/ The production inde/ in this year %as #!1.# as compare to 19#.1 of last year. In this year large scale manufacturing %as estimated to increase by 3.4#2 and small scale by 1.3!2. in 199!.91 there is substantial increase in the production of billets follo%ed by cotton yarn* caustic soda* cement* pig iron and sugar. The production cotton cloth* vegetable ghee* cigarettes* fertili,ers* and paper all types declined due to various factors %hich are due to various factors.

Durin- 1++22+
Manufacturin-/ The value added in manufacturing sector as hole gre% by 5. 2 during this year. 7ithin the sector the small scale industries maintained a gro%th of 1.32 based on a conventional assumption* %hereas its share in the &'P rose from 5.12 of last year to 5.$2.

16

(roduction trend/ The production of jute goods* phosphates fertili,er* paper all types* soda ash and caustic soda declined by #.12* #2* .#2* !.32 and 1.92 in this year.

Durin- 1++ 2+'

'uring 199$.93 policies of privati,ation* deregulation and market friendly environment %ere reinforced. A ne% concept of public.private partnership %as also introduced to enable private sector to play a key role in social sector gro%th. In 199$.93 performance of manufacturing sector though short of e/pectations but sho%ed improvements over 199#.9$ Te/tile and ancillary industries affected by conse;uential increase in cotton I yarn prices. There %as &lobal shortage of cotton. Aanufacturing sector affected by inade;uate po%er supply* break do%n of fe% po%er units and protracted load.shedding as result of declining %ater levels. (till manufacturing sector sho%ed resilience and maintained gro%th trend. Lar-e scale %anufacturin-/ Te/tile industry is largest and important sub.sector of economy and the largest source of job opportunities and accounts for $#.#$2 of total industrial labor force. It suffered seriously in 199$.93 Production of yarn increased by 5.342 but production of clothes decreased by $. $2 Industry also suffered from industrial structure due to lack of efforts to diversify to other cotton segments* high interests" rate and depreciation costs. &overnment takes steps to redress the problems of cotton and ancillary industry. Polyester fiber and yarn industry* to reduce pressure on ra% cotton and availability of man.made fiber* import duty reduced from Ds1! to 4.5!=6g. :ute goods in :uly to march it %ere 45.4mt )199#.9$+ to 59.#mt )199$. 93+ %ith 2K .#1.1!mt >ertili,ers include -itrogenous and phosphates fertili,er in :uly to march #!$!.1mt and #5#.4mt )199#.9$+ as #51$.$mt and #3!.#mt )199$. 93+ %ith 2K #4.#1 and .3.95 respectively

17

Ce%ent/ In :uly to march .!.5#mt

$31mt )199#.9$+ to

$!1mt )199$.93+ %ith 2K

5u-ar/ :uly to march ##3!mt )199#.9$+ to # 19mt )199$.93+ %ith 2K 1 .91mt Fegetable and cooking oil* in :uly to march 9145#mt )199#.9$+ to 944 1mt )199$.93+ 5%all 5cale Manufacturin-/ Important segments of the economy generates employee opportunities their share in &'P is 5.512 compare %ith 1$.!2 for the large scale manufacturing during 199$.93. These are operating in all provinces of Pakistan %here various training and handicrafts units are handled. (ublic 5ector Industries/ Performance of these increases in 199$.93 because of efforts focused on to boost production and investment. Production value # ##4m )19#.9$+ to #11!#m )19$.93+ %ith 2K 4.15m Production state and cement corporation increased by #9.9$2* Pakistan steel by 14.#42* Pakistan industrial development corporation by 13.#32* state engineering corporation by 9.#52 %hile production value decline by 5.#42 and $$.4#2 of national fertili,er corporation and Pakistan automobile corporation. -et sales* aggregate net sales of all units by 314#$m )19#.9$+ to 3539!m )19$.93+ %ith 2K $4 4 (reta< (rofit=Loss/ %as #3#3m )199#.9#+ to 3113m )19$.93+ %ith 2K 9.4#m Ta<es and duties $aid/ 4433m )199#.9$+ to 11#$#m )199$.93+ %ith 2K 35.!3m

Durin- 1++72+1
Aany improvements is taking place in this duration due to the policies of privati,ation* de.regulation and liberali,ation. Aanufacturing during 1995.199 gre% 3.12. that %as previously #.92 in 1993.1995. The large scale manufacturing gre% by $.1$2 during 95.9 . That %as previously .532 during 93.95. And small manufacturing maintained the past trend %ith annual gro%th of 1.32 current years. 18

Installed capacity in major sector such as te/tile* cement and sugar also e/pended during the year. Investment in Industrial sector as a %hole gre% $4. 2 during 95.9 . And foreign investment also increased $!2 during 95.9 . 'irect investment is also increased 93.12 during 95.9 compare to the direct investment of 93.95. Production of major items increased as compare to last year and those items are cotton yarn* cigarettes* cement* soda* ash* caustic soda* motor cycle and bikes.

Durin- 1++12+*
9iberali,ation policies also continued in this duration. 9arge scale manufactures have fell short of e/pectations in term of gro%th. And then prime minister announce a package for the support of manufacturing sector. In this duration small scale manufacturing maintained its gro%th. 8ut large scale declining by 1.3$2 in value added. And over all gro%th of manufacturing sector %as 1.412 %hich %as previously 3.32. The items that have sho%ed increase in previous year such as cotton yarn* cigarettes* cement* soda* ash* caustic soda* motor cycle and bikes have sho%ed mi/ trend. 8ut there is an increase in products of steel e.g coke* pig and iron.

Durin- 1++*2+8
9iberali,ation policies also continued in this duration. 'ue to the government package the commodity producing sector demonstrated a sharp acceleration in gro%th in this duration. Aanufacturing being second largest commodity producing sector staged a recovery registering a gro%th rate of .9 2 in this duration as compare to last year. 9arge scale manufacturing sector gro% a dominant improvement %ith .192. that %as previously #.#92. Aanufacturing sector overall gro%th %as .52. And major industries like sugar* te/tile and cement also improved their installed capacity. The main items %ho are main contributor in this revival are sugar* jute goods* cigarettes* motor tires and tractors. And the item like cotton yarn* cotton cloth* paper* 9?F"( and bicycles sho%ed nominal gro%th.

19

Durin- 1++*2+8
&lobal economic recession has slo%ed do%n the gro%th of large scale manufacturing in 91.99. -evertheless it has registered a positive gro%th of #.42 during 91.99. (ome industries %hich registered a considerable gro%th like cotton* cloth* fertili,er* cigarettes* vegetable ghee* soda ash* caustic soda* paper board* cement* bicycles* refrigerator* tv sets* cars* buses and tractors. And output is also not decreased in certain industries like blended tea* jute goods* 9?F"(* papers and all types of motor cycle and steel products.

Durin- 1+++22000
In 1999.#!!!* the overall manufacturing has gro%n by 1. 2. And the performance of the 9(A %as very %eak and it sho%s a gro%th of !2. The factor %hich affects it more %as massive decline in the sugar cane production %hich leads to%ard decline in the production of sugar. And its production lo%er by #32. The gro%th rate e/cluding the sugar industry %as .32 %hich %as comparatively better performance than last year. In these period only t%o out of eleven sectors e/hibited substantial decline %hich %ere 1.>ood* 8everages and tobacco #. Automobile sector.

Durin- 2000201
In #!!!.!1 manufacturing staged an impressive recovery and it gre% 4.12 %ith comparison to last year 1.32. And it %as the best in last ten years. And 9(A gro%th %as 4.12. All sectors posted positive gro%th. This gro%th %as same as in 1994.91 but that gro%th %as only dependent upon the sugar production.

Durin- 2001202
In #!!1.!#* 9(A targeted to gro% by .52 but due to event of 9.11 it gre% only 32. This performance %as more than satisfactory because the revised target %as $.#2. The 9(A gro%th affected in (ep.-ov due to Afghan %ar but it rose again in 'ecember. <ther factors %hich affect the gro%th %ere automobile sector by setting up the shortage.

Durin- 200220
The year #!!#.!$ become the best performing year beside #!!!.!1for manufacturing sector since 1914.11. Aanufacturing gro% by 4.42 %ith the

20

contribution of 1.42 by 9(A. The gro%th surpassed the target of .52 for #!!#.!$. This all %as due to domestic demand and macro environment factors. <nly leather industry sho%ed a negative gro%th. The best industry in this period %ho sho%ed positive gro%th %ere automobile )39.1+ >ood and beverages )1.5+ te/tile and apparel )5.#+ Paper board )15.4+ and tires and tube )1 .#+.

21

(a)istan De#elo$%ent $lans

There are total 1 'evelopment plans have been presented in the history of Pakistan %hich are listed belo%@ 1. >irst >ive Jear Plan )1955. !+.An Erratic 8eginning to planned 'evelopment. #. (econd >ive Jear Plan )19 !. 5+. An E/periment In L>unctional Ine;uality" $. Third >ive year Plan )19 5.4!+. A Prisoner of E/traordinary Events 3. >ourth >ive year Plan )194!.45+. A non.starter from the beginning 5. >ifth >ive Jear Plan )1941.1$+.A Deturn of the Aedium Term Planning . (i/th >ive year Plan )191$.11+. 'evelopment of the people* 8y the people* >or the people 4. (eventh >ive Jear Plan )1911.9$+.Precursor of a long Term vision 1. Eighth >ive year Plan )199$.91+. An e/ercise in better macro.economic Aanagement. Gere %e are not discussing the %hole >ive Jears Plan"s but going to take specific and relevant part related to our topic from each >ive Jear Plan.

22

9irst 9i#e !ear (lan ?1+77210@2An Erratic ,e-innin- to $lanned De#elo$%ent.

The revised total si,e of the >irst Plan %as Ds. 1*!1! crores %ith the public sector e/penditures of Ds. 45! crores and private sector e/penditures of Ds. $$! crores. The >irst Plan %as implemented %ithin certain obvious handicaps and limitations and its release %as delayed by t%o Jears. The &-P recoded a gro%th of 1$2 instead of 152 as targeted in the Plan. Industry together %ith fuels and minerals received another $12 of the total resources %hich e/ceeds the target of #12 provided in the Plan.

5econd 9i#e !ear (lan ?1+10217@2 An E<$eri%ent In A9unctional IneBualit".

The revised total si,e of the second Plan %as fi/ed at Ds. #$!! crores in April* 19 1. As regards sector distribution* the si,e of the private sector e/penditure %as fi/ed at Ds. 1#3! crores* %hile public sector %as allocated Ds. 1! crores and the ne%ly introduced semi.public sector consisting of autonomous corporations %as allocated the remaining sum of Ds. $1! crores. The strategy paid off very %ell as the actual gro%th rate surpassed the projected gro%th rate. The &-P registered a gro%th of $!2 over the plan period compared to #32 proposed in the plan and per capita income gre% 152 instead of 1#2 projected in the plan. The large scale industrial production e/hibited nearly 1 12 increases in production compared to only !2 increase proposed in the Plan. The share of the manufacturing industry in &-P as a %hole rose from 9.$2 in 19 ! to 11.52 in 19 5.

T.ird 9i#e "ear (lan ?1+172*0@2 A (risoner of E<traordinar" E#ents.

The revised total si,e of the second Plan %as fi/ed at Ds. 5#!! crores as compared to Ds. #$!! crores in )19 !.19 5+. In this Plan there %as a great visible investment shift from consumer goods to capital goods industry. If %e talk about the achievement of this Plan* the performance in the industrial sector %as also far from satisfactory particularly in the large.scale industrial sector. The large.scale industrial sector e/hibited a gro%th rate of

23

1!2 as against 1$2 targeted in the Plan. The industrial sector as a %hole e/panded at an annual gro%th rate of 4.12 instead of 1!2 targeted in the Plan. The small.scale industry also performed %ell.

9ourt. 9i#e "ear (lan ?1+*02*7@2 A non2starter fro% t.e be-innin-.

The revised total si,e of the second Plan %as fi/ed at Ds. 45!! crores* an increase in 332 over the Third Plan si,e. The increase .52 annual gro%th rate as compared to 5.52 targeted in the Plan. The share of the industrial sector that had 1!2 gro%th rate in the last Plan %as drastically slashed from # 2 in the Third Plan to 1!.#2 in the >ourth.

9ift. 9i#e !ear (lan ?1+*828 @2A &eturn of t.e Mediu% Ter% (lannin-.
The total si,e of the Plan %as targeted at Ds. #1!!! crores out of %hich Ds. 131#! crores %ere proposed to be spent in the public sector and Ds. #!! crores %ere proposed for the private sector. -o major ne% industrial projects %as planned for the public sector ho%ever it %as emphasi,ed the completion of the under construction Pakistan steel mills and fertili,ers and cement factories. Private sector %as e/pected to pay a vital role in the development of fe% industries %hich is good for the %ell.being of the country. As a %hole* the gro%th rate projected for the industrial sector %as almost fulfilled )gro%th rate %as 9.42 as compared to 1!2 targeted in the Plan+.

5i<t. 9i#e "ear (lan ?1+8 288@2 De#elo$%ent of t.e $eo$leC ," t.e $eo$leC 9or t.e $eo$le.
The total si,e of the Plan %as fi/ed at Ds. 39*5!! crores %hich %as more than t%ice the si,e of the fifth Plan. <ut of %hich Ds. #9*5!! crores and Ds. #!*!!! crores %ere allocated to public and private sector respectively. The share of the private investment in industrial development %as to go up from 5$. 2 in 191#=1$ to 912 in 1914=11 and in total investment from $#.92 to 332 during the same period. The share of the public sector industries in public sector development program %as therefore e/pected to decline from 15. 2 to 5.12 as compared to forth Plan.

24

The industrial sector as a %hole e/hibited a gro%th rate of 4.42 per annum against the Plan targeted of 9.$2 per annum.

5e#ent. 9i#e !ear (lan ?1+882+ @2(recursor of a lonTer% #ision.

The total si,e of the Plan %as fi/ed at Ds. *!#! crores %hich %as more than fifth Plan. <ut of %hich Ds. #9#3! crores and Ds. $ *41! crores %ere allocated to public and private sector respectively. The share of industry decreased from 5.12 in the si/th Plan to #.!2 in the seventh sector Plan.

Ei-.t. 9i#e "ear (lan ?1++ 2+8@2 An e<ercise in better %acro2econo%ic Mana-e%ent
The total si,e of the Plan %as fi/ed at Ds. 14!!.5 billion. The si,e of public sector investment is estimated at Ds. 45#.1 billion %hile private e/penditure is placed at Ds. 913.3 billion. <verall &'P gro%th rate increases from 32 in 199$=93 to 42 in 1994=91. The target set for improvement of industrial sector %as to achieve 9.32

25

26

Conclusion
'uring 19 5. there is increase in the production of tea* salt* cotton cloth and yarn* board* caustic soda* cement and cycle rubber tires and tubes. The increase in the ;uantum inde/ of manufacturing industries from 1!! in 1959. ! to #!1.4 in 19 3. 5. &ro%th in 1. 9 %as 4.32 that %as previously 4.12. And in 39.5! the share go agriculture %as standing !2 %hich came do%n to 3 2 in 1. 9. 'uring 19 4. 1* substantial gains %ere also recorded by cotton yarn and cloth fertili,es and chemicals* %riting and printing paper etc. The gro%th rate of large scale industrial decline from 1$.92 in 19 9.4! to #.1 in 194!.41 and sho%ed a negative gro%th rate of 5. percent in 1941.4#.the negative gro%th in this year %as due to the %ar %ith India and separation from the 8angladesh %here e/ist the big industry of jute. Industrial sector had all along been leading sector in terms of sustain gro%th. Falue added fell by .12during 1941.4# compared to depress based of 194!.41 %hen the gro%th %as only 1.#2.(teady gro%th in 194$.43. 'ifferent factor* like %ar %ith India and tight credit polices and East Pakistan crisis gro%th decline .12 in 1941.4#. (teady improvement or recovery in 194#.4$. Aanufacturing sector slo%.do%n during 1943.45 because lo% level of investment and shortage of ra% material. Te/tile has heavy %eight in total industrial production. 1943.45 there %as also difficult %hen value added project to gro% by 1!2 in the 9(A sector recorded negative gro%th of 1.42. in 194 .44 'uring this time manufacturing sector continue to remain under pressure due to various national and international factors. In :uly 1941* the interest rate on loans for fi/ed investment in industry and agriculture %as reduced from 1#.52 to 112. In 1913. 1915 manufacturing gro%th %as about 1. 2 after a slo% do%n last fiscal year %hich %as 1.12.'uring 1915.1 * &'P for manufacturing output has been 19.92. 'uring this year the manufacturing is e/pected to gro% by 1.#2 as compared to 1. 2 of previous year. The manufacturing output has gro%n by 4.32 in 191 .14 as compared to 4.12 in 1915.1 . This year 1914.11 sho% that the output has gro%n by 4. 2 .The rate of gro%th in large.scale industries during 1914.11 %as 4.3 'uring 199$.93 policies of privati,ation* deregulation and market friendly environment %ere reinforced. A ne% concept of public.private partnership %as also introduced to enable private sector to play a key role in social sector gro%th. Aanufacturing during 1995.199 gre% 3.12. That %as 27

previously #.92 in 1993.1995. The large scale manufacturing gre% by $.1$2 during 95.9 . . In 199 .94 small scale manufacturing maintained its gro%th. 8ut large scale declining by 1.3$2 in value added. And over all gro%th of manufacturing sector %as 1.412 %hich %as previously 3.32. 9arge scale manufacturing sector gro% a dominant improvement %ith .192. That %as previously #.#92. Aanufacturing sector overall gro%th %as .52. In #!!!.!1 manufacturing staged an impressive recovery and it gre% 4.12 %ith comparison to last year 1.32. In #!!1.!#* 9(A targeted to gro% by .52 but due to event of 9.11 it gre% only 32. The year #!!#.!$ become the best performing year beside #!!!.!1for manufacturing sector since 1914.11. Aanufacturing gro% by 4.42 %ith the contribution of 1.42 by 9(A 7e can see the trend according to this la% and order situation. And %e can also observe that if there is political stability then either there is the recession but it does not effect the gro%th much. In 1999.#!!!* the overall manufacturing has gro%n by 1. 2. And the performance of the 9(A %as very %eak and it sho%s a gro%th of !2. The factor %hich affects it more %as massive decline in the sugar cane production %hich leads to%ard decline in the production of sugar.

28

&eco%%endations
As %e kno% that the government is not strong enough and does not have enough resources to boost up all the sectors of economy. That"s %hy they should go for the unbalanced gro%th %here investment is to be invested in one of the leading sector that is te/tile sector that ultimately results in improvement to the all lagging behind sectors that are agricultural sector* Industrial sectors* small and large goods manufacturing sector etc. About $! to 3! percent of the &'P ratio is to be invested in one sector %hich %ill result the country to go out from the vicious circle of poverty and e/tension in the markets %hen the economies of scale achieved rather bit by bit. That %ill result in increase in demand side* increase in production function and supply of savings. There should be proper the la% and order situation in the country for the purpose of abolishing the bribery* ?orruption* terrorism and other social and economic evils. The &ovt. should encourage the foreign investor to invest in the country and should restrict the local investor to invest only in Pakistan. &ovt. should not fully dependent on the agrarian industries. They should also encourage the other sectors in the industry like IT sector* Automobile sector and others

29

,iblio-ra$."/
Books
Dr. Aslam Muhammad. (1990),"Comparative Study of Pakistans Five Year Plan." Development planning in Pakistan. Pg(35-58) "Pakistan Development Reports. !" # !"$. P%# $ "Pakistan Development Reports. !"$# !"&. P%(&'#&"( "Pakistan Development Reports. !"&# !"'. P%(&)* '+#'&( "Pakistan Development Reports. !"'# !",. P%($"#&+( "Pakistan Development Reports. !",# !"". P%($-#&&( "Pakistan Development Reports. !""# !"-. P% ($,#&$( "Pakistan Development Reports. !"-# !"). P%($!#&-( "Pakistan Development Reports. !")# !"!. P%(&'#&,( "Pakistan Development Reports. !"!# !-+. P%($"*$-*& #&-+ "Pakistan Development Reports. !-+# !- . P%($-#& ( "Pakistan Development Reports. !- # !-$. P%($,*$"( "Pakistan Development Reports. !-$# !-&. P%(& *&$( "Pakistan Development Reports. !-&# !-'. P%( &$#&'( "Pakistan Development Reports. !-'# !-,. P%(&)#&!( "Pakistan Development Reports. !-,# !-". P%(' *'$( "Pakistan Development Reports. !-"# !--. P%(&&*&'( "Pakistan Development Reports. !--# !-). P%(&,( "Pakistan Development Reports. !-!# !)+. P%(' #',( Pakistan Development Reports. !)+# !) . P%('+#''(

30

Pakistan Development Reports. !) # !)$. P%(&-*'+( Pakistan Development Reports. !)$# !)&. P%( $,* $!( Pakistan Development Reports. !)&# !)'. P%()!#! ( Pakistan Development Reports. !)'# !),. P%( $&* $'( Pakistan Development Reports. !),# !)". P%(" ( Pakistan Development Reports. !)"# !)-. P%() ( Pakistan Development Reports. !)-# !)). P%( +!* Pakistan Development Reports. !))# !)!. P%($-#$!( Pakistan Development Reports. !!+# !! . P%(")( Pakistan Development Reports. !! # !!$. P%() #)$( Pakistan Development Reports. !!$# !!&. P%( !( Pakistan Development Reports. !!&# !!'. P%( -( Pakistan Development Reports. !!'# !!,. P%( !#$+( Pakistan Development Reports. !!,# !!". P%( !( Pakistan Development Reports. !!"# !!-. P%($-( Pakistan Development Reports. !!-# !!). P%($&( Pakistan Development Reports. !!)# !!!. P%($&( Pakistan Development Reports. !!!#$+++. P%($-#&+( Pakistan Development Reports. $+++#$++ . P%(& #&&( Pakistan Development Reports. $++ #$++$. P%($)( Pakistan Development Reports. $++$#$++&. P%($!#&+( +(

31