MAIN INDUSTRIES

OF PAKISTAN
Pakistan's industrial sector accounts for about 24% of
GDP.The main industries of are as under:

Cotton textile production

Cement
Agriculture
Manufacturing
Technology

Cotton Textile
Production
Cotton Worlds one of the most dominant agricultural crop is a
blooming business. Countries like USA, India & Pakistan being the
major cotton growers dominate the overall cotton market across the
world.
Pakistan is the fourth largest cotton producer in the world. Because of
its plentiful, indigenous cotton supply, the textile industry is central to
the Pakistani economy and is both a source of employment and a
source of exports. Pakistan's industrialization began in the 1950s with
the textile industry at its center. Cotton is known as the silver fibre of
Pakistan. In Pakistan, cotton crop is cultivated in the southern Punjab
and Sindh. Punjab and Sindh are the major cotton growing provinces.

Price developments
Differences in cotton prices may be attributable to a number of
factors. Cotton prices vary, in particular, depending on the variety
grown and the quality of the harvested cotton. For examples, ad hoc
quotations are set for long-staple Egyptian cotton.
In addition, cotton-pricing mechanisms are affected by government
support programmes, especially in the United States. Subsidization
regimes in several producing countries have added to the relative
fragmentation of price formation for cotton.
Cotton Price in Pakistan

Cotton Price in Pakistan (2013-14 & 2010-16)

Month 2013-14 2015 - 16 % age Change

Jul 6,522 3,470 87.95
August 6,556 3,446 90.25
Sep 6,796 3,464 96.19
Oct 7,521 3,597 109.09
Nov 8,776 3,974 120.84
Dec 9,117 4,364 108.91
Jan 10,019 4,605 117.57
 Feb 11,577 4,935 134.59
Mar 12,412 5,540 124.04
Apr 11,550 5,930 94.77
May 8,635 5,554 31.75
June 8,544 5,419 33.10
Average 9,002 5,692 91.86
Unit: Rs Per Maund

Most of the Textile Industry is established in Punjab. 10% of United

States imports regarding clothing and other form of textiles is covered
by Pakistan. Textile exports in 1999 were $5.2 billion and rose to
become $10.5 billion by 2007. Textile exports managed to increase at
a very decent growth of 16% in 2006. In the period July 2007 June
2008, textile exports were US$10.62 billion. Textile exports share in
total export of Pakistan has declined from 67% in 1997 to 55% in
2008, as exports of other textile sectors grew.The major reason of
decline of textile export of Pakistan is the Govt. unhealthy policies.
Sui Northern Gas Pipelines Ltd. (SNGPL) notified the textile mills
to reduce the supply of gas for five months. Monthly loss the textile
industry because of interruptions in gas supply could reach about U.S.
$ 1 billion, or 4 $ 5 billion for the fiscal year ending June 20 next
year.The expression "industrial undertaking" has been used in many a
provision in the Income-tax Act, e.g., section 10(15)(iv )(f) and
section 80-I. There has been some controversy as regards the true
import of the expression "industrial undertaking" for the purpose of
section 10(15) ( iv)(f) of the Income-tax Act relating to exemption
from income-tax in respect of interest on certain foreign borrowings.
Keeping in view the legislative intent, an Explanation has been
inserted at the end of section 10(15) ( iv) of the Income-tax Act to
define the term "industrial undertaking" for the purpose of this
provision. An industrial undertaking will mean an undertaking
engaged in the business of:

manufacture or processing of goods, or

generation or distribution of electricity, or any other form of

power, or

mining, or

construction of ships, or

operation of ships or aircraft

CEMENT INDUSTRY:
In 1947, Pakistan had inherited four cement plants with
a total capacity of 0.5 million tons. Some expansion
took place in 195666 but could not keep pace with the
economic development and the country had to resort to
imports of cement in 197677 and continued to do so
till 199495. The cement sector consisting of 27 plants
is contributing above Rs 30 billion to the national
exchequer in the form of taxes. However, by 2013,
Pakistan's cement is fast-growing mainly because of
demand from Afghanistanand countries boosting real
estate sector, In 2013 Pakistan exported 7,708,557
metric tons of cement.] Pakistan has installed capacity
of 44,768,250 metric tons of cement and 42,636,428
metric tons of clinker. In the 20122013 cement
industry in Pakistan became the most profitable sector
of economy.

Agriculture
The most important crops are wheat, sugarcane, cotton, and rice,
which together account for more than 75% of the value of total crop
output. Pakistan's largest food crop is wheat. In 2005, Pakistan
produced 21,591,400 metric tons of wheat, more than all of Africa
(20,304,585 metric tons) and nearly as much as all of South America
(24,557,784 metric tons)The country is expected to harvest 47 to 64
million tons of wheat in 2015. Pakistan has also cut the use of
dangerous pesticides dramatically.

Pakistan is a net food exporter, except in occasional years when its

harvest is adversely affected by droughts. Pakistan exports rice,
cotton, fish, fruits (especially Oranges and Mangoes), and vegetables
and imports vegetable oil, wheat, pulses and consumer foods. The
country is Asia's largest camel market, second-largest apricot and
ghee market and third-largest cotton, onion and milk market. The
economic importance of agriculture has declined since independence,
when its share of GDP was around 53%. Following the poor harvest
of 1993, the government introduced agriculture assistance policies,
including increased support prices for many agricultural commodities
and expanded availability of agricultural credit. From 1993 to 1997,
real growth in the agricultural sector averaged 5.7% but has since
declined to about 4%. Agricultural reforms, including increased wheat
and oilseed production, play a central role in the government's
economic reform package.

Majority of the population, directly or indirectly, dependent on this

sector. It contributes about 24 percent of Gross Domestic Product

(GDP) and accounts for half of employed labor force and is the largest
source of foreign exchange earnings.[68]

Value [1000
Commodity
USD]
Wheat 674424
Cotton lint 359341
Flour of Wheat 352014
Tangerines,
120893
mandarins, clem.
Potatoes 102185
Cattle meat 71729
Maize 70028
Cotton Waste 65707
Dates 64081
Vegetables fresh nes 53136

Pakistan's principal natural resources are arable land and water. About
25% of Pakistan's total land area is under cultivation and is watered
by one of the largest irrigation systems in the world. Pakistan irrigates
three times more acres than Russia. Pakistan agriculture also benefits
from year round warmth. Agriculture accounts for about 23% of GDP
and employs about 44% of the labour force

Manufacturing
In FY 2002-03, real growth in manufacturing was 7.7%. In the
twelve months ending 30 June 2004, large-scale manufacturing
grew by more than 18% compared to the previous twelve-month
period. The textile and garment industry's share in the economy
along with its contribution to exports, employment, foreign-
exchange earnings, investment and value added make it Pakistan's
single largest manufacturing sector. The industry comprises 453
textile mills: 50 integrated units; and 403 spinning units, with 9.33
million spindles and 148,000 rotors, The capacity utilization was
83% for spindles and 47% for rotors during 2003.

It provisionally valued large-scale manufacturing at

Rs.981,518 million in 2005 thus registering over
138% growth since 2000 [11] while small-scale
manufacturing was valued at Rs.356,835 million in
2005 thus registering over 80% growth since 2000.

Mining and quarrying

The country has immense reserves of various minerals and natural
resources. Important minerals found in Pakistan are gypsum
limestone, chromites, iron ore, rock salt, silver, gold, precious stones,
gems, marble, copper, coal, graphite, sulphur, fire clay, silica. The salt
range in Punjab Province has the largest deposit of pure salt found
anywhere in the world. Balochistan province is a mineral-rich area
having substantial mineral, oil and gas reserves which have not been
exploited to their full capacity or fully explored, recent government
policies have begun to develop this region of the country and to tap
into the immense resources found there. The province has significant
quantities of copper, chromite and iron, and pockets of antimony and
zinc in the south and gold in the far west. Natural gas was discovered
near Sui in 1952, and the province has been gradually developing its
oil and gas projects over the past fifty years

Khyber Pakhtunkhwa Province accounts for at least 78% of the

marble production in Pakistan. Pakistan is home to some of the most
finest and purest grades of marble, granite and slate found in the
world. Much of the grades A Marble that is exported out of European
countries like Italy actually have their origins in Pakistan which
previously lacked fine polishing and processing machinery. The
Government has taken steps to invest in this crucial sector with the
recent establishment of a Marble City within Balochistan.

Technology
Pakistan has huge potential for the technology industry, which
includes software development and electronics manufacturing.
Pakistan Aeronautical Complex recently started manufacturing of
Tablet PCs, Ebook readers and notebooks in collaboration with
INNAVTEK of China. Software development also has a huge
potential, which is being utilized as a result of numerous projects
initiated by the Government of Pakistan.
Fuel extraction industry
Pakistan's first oil field was discovered in the late 1952 in Balochistan
near a giant gas field at suo Sui in Balochistan. The Toot oilfield was
discovered in the early 1960s Islamabad in the Punjab. Production has
steadily increased since then.

Pakistan's first gas field was the giant gas field at Sui in Balochistan
which was discovered in the late 1952Pakistan is also a major
producer of Bituminous coal, Sub-bituminous coal and Lignite. Coal
mining started in the British colonial era and has continued to be used
by Pakistani industries after independence in 1947

AUTHOR:ZUBAIR RASHID
KHAN
REG#113-MPA
BUISNESS ECONOMICS