COTTAGE INDUSTRIES IN PAKISTAN

RIDA KHURSHID MASS COMM B.S

COTTAGE INDUSTRIES IN PAKISTAN OVER VIEW

In Pakistan cottage or household industries hold an important position in rural set-up. Most villages are self-sufficient in the basic necessities of life. They have their own carpenters, blacksmiths, potters, craftsmen and cotton weavers. Many families depend on cottage industries for income. Cottage industries have also gained importance in cities and towns. There is great demand for hand-woven carpets, embroidered work, brassware, rugs and traditional bangles. There are meagre resources to develop large-scale industries. However, a program for developing and promoting small-scale industries both in rural and urban areas is more feasible.

Cottage industries are labor intensive and provide employment to 80% of the industrial labor force . reduces the unemployment and offers opportunities for selfemployment. This increases the active labor force. These industries also meet the local demands for industrial goods, and save foreign exchange.

These goods provide 30% of the export receipts of the manufacturing sector. The acute problems of housing, sanitation, education, transport and health will be reduced in urban areas

These industries make effective use of local raw materials which also promotes primary industries like agriculture and mining.Small-scale industry does not require much capital and high technology . I.T is suited to the traditional economic set-up.Cottage and small-scale industries do not use much imported material or equipment.

ABOUT COTTAGE INDUSTRIES

Even in those cases where the superiority of largescale industry in operating at low costs due to the internal and external economies is generally rcognized in other countries, we cannot take it for granted in this country where, to refer again to the statement of Pakistan Government industrial policy technical and technological institutions, research and analytical laboratories and credit and service agencies, which one normally associates with an advanced country have yet to be organized, . The employment of people is not only a problem of relative cheapness of labour as compared to capital, but it is in itself an end directed towards the elimination of want and hunger, besides giving the people a sense of being useful for the society .

We have laboured on this point so much only to bring home the importance of argument that in countries with very large populations to sustain, the employment consideration may prevent the adoption of large scale industries so far as it is at the cost of cottage industries. It was once estimated that even in the undivided India which was relatively industrialized on a large scale, industries provided employment to only 9% of the total population.

TYPES OF COTTAG INDUSTRIES IN PAKISTAN There is a web of cottage and books industries. In almost every village, there are a number of such industries depending upon the size of the village and the demand for the products. Carpets. Textiles. Embroidery. Jewelry. Ceramics. Cutlery. Woodwork. Sports Goods. Surgical Instruments.

PROBLEMS OF COTTAGE INDUSTRIES Economies of scale are not available so production cost is higher. Goods produced in small-scale industries cannot compete in open market if the same goods are manufactured on a large scale. There is a lack of standardization and quality control. In some cases they do not meet the standards of foreign markets. Production methods and machinery are outdated because the investors in small-scale industry are illiterate and poor. who takes most of the profits, exploits the owners of the small-scale industry.

Political unrest strikes and terrorism have critically affected the economy of pakistan.Frequent changing of the government has adversely maligend the policies of the cottage industry sector. According to the World Trade Review pakistan has failed to take necessary steps needed to meet post multi fiber agreement challenges for its cottage industry owing to lack of political will by the successive government.

LACK OF COTTAGE INDUESTRIES IN PAKISTAN Pakistan's manufacturing sector accounts for about 25% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 51.4% of total exports. Manufacturing sector growth has slowed in the last 2 years due to energy shortages and capacity constraints. the sector is forecast to grow 5.5% for FY 2010. Despite government efforts to privatize large-scale piratical units, the public sector continues to account for a significant proportion of industry. The government seeks to diversify the country's industrial base and bolster export industries. Net foreign investment in Pakistani industries is only 0.5% of GDP. Pakistan's search for additional foreign direct investment has been hampered by concerns about the security situation, domestic and regional political uncertainties, and questions about judicial transparency.

Pakistans trade deficit decreased to $10.92 billion as a result of a decline in imports and a slight increase in exports. Major imports. The ongoing energy crisis and security concerns, together with a decline in global demand, have hampered Pakistans textilereliant export base. Pakistan's exports continue to be dominated by cotton textiles and apparel, despite government diversification efforts. After September 11, 2001, Pakistan's prominence in the international community increased significantly, as it pledged its alliance with the U.S. in counterterrorism efforts and made a commitment to eliminate terrorist camps on its territory. In this country is not that of unemployment but of underemployment. The human problem of employment is not only quantitative but also qualitative

SOLUTION The establishment of large scale and cottage industries to provide alternative employment and thus to reduce the pressure on land. The provision of suitable subsidiary occupation to the cultivator. This can be done by encouraging him to take up and develop certain occupation allied with and depending upon agriculture in order to supplement his earnings and thus reduce his poverty.

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