Question

Discuss small scale industry in Pakistan . and its growth rate from independence till today

Answer 1

                        Cottage and small scale industries have an important position in the economy of Pakistan as most of the villages in Pakistan are self-sufficient in nature and it is those industries that contribute to the self sufficient nature of the nation. Carpentry, pottery, cotton weaving etc are the major small scale industries of the villages in Pakistan. There is a great demand for hand-woven carpets, embroidered work, rugs and traditional bangles in the nation. These contributes to the important export items of Pakistan and has a great demand in the international market. Since the resources of Pakistan are also limited so as to encourage large-scale industries, the position of such small-scale industries are important in this regard so as to sustain the domestic economy of Pakistan and also boost the international trade for the nation. It is a labour-intensive industry and contributes to more than 80% of the workforce of the nation. The local demands are almost met by the sector and it also contributes to more than 30% of the export revenue of the manufacturing sector.

                        The capital intensivity is very low for the sector and it results in the lower pricing of the goods manufactured in Pakistan. This makes the products cheaper and the presence of great workmanship also makes the products much attractive in the international market. The export of sports goods have increased from almost $130 million in the 1990’s to more than $500 million by today. Post independence, there was a surge in the large scale industrial sector as its contribution to the GDP raised from less than 3% to more than 15 % in thirty years. The small scale industries were not much relevant in the initial stages post-independence. But, as time progressed, the villages became self-sufficient due to the growth of the domestic economy and the contributions made by the local working class to the same. During 1949-50, the contribution of industry to the GDP was only 8% with the large scale industry contributing nearly 3% and the small scale industry contributing nearly 5% of which the major contributors were the cotton ginning, rice husking and the wheat milling.

                        The private investments slowly began to rise with time and it made sure that the cheap labour were utilised to an advantage and caused a rise in the small-scale industrial sector in the nation. The KP region has contributed well to the industrial expansion of Pakistan over the years. The share of small-scale manufacturing sector increased from 3.6% to 5% during the period from 1959-60 to 1985-86. It’s share in the total manufacturing increased from 23% to 28% from 1972-73 to 1985-86. Thus, during the course of time, it can be seen that the share of small-scale industries have increased on a considerable scale thus contributing to the economic growth of the nation.