We can examine the industrial performance in terms of growth under the following different periods :Performance of Industrial Sector From 1947 to 1950 :-
At the time of independence Pakistan got only 34 industries out of 921, industrial units in the subcontinent. It shows that we had no sound industrial base at the time of independence. There was no heavy industry like steel in Pakistan. The government of Pakistan realized the importance of industries for rapid growth and development.
The government called the industrial conference in 1947 for the development of industrial sector. The industrial conference recommended the establishment of those industries which can use domestic raw material like jute. cotton and skins. The private sector was also encouraged to set up the industries. Keeping in view the recommendations a development board was established in 1984 to develop the industrial sector. An industrial finance corporation and an industrial investment and credit corporation was set up in 1948. The contribution of industrial sector was 6.9% to GDP in 1950.
In 19523 the government of Pakistan established the Pakistan Industrial Development Corporation (PIDC). The PIDC invested in various industries like jute mills shipyards and Sui Gas Karachi Pipeline. For the growth of industrial sector in the first five year plan ( 1955-60 ) 185.11 crore was allocated. A large number of industries like woolen, paint and Glass were set up. The export duties were reduced. Export Bonus Scheme was also introduced in 1958 to increase the exports manufactured goods. In 1959-60 the share of industrial sector rose upto 11.9% in the GNP.
Growth of Industrial Sector From 1960 to 1970 :-
This period covers the 2nd and 3rd five year plans. The country achieved the self sufficiency in consumer goods in 2nd five year plan. Heavy industrial units like iron, steel, machine tools were also set up. The share of industrial sector to gross GNP rose up to 12% from 1960 to 1965. During the 3rd five year plan ( 1965-70 ) a partial success was achieved. There was a fall in the U.S.A aid. The war with India in 1965, floods and political unrest reduced the rate of industrial growth. Only 7.8% rate of growth was achieved against the target of 18% manufacturing sector.
Performance of Industrial Sector During 1970-77 :-
The performance of industrial sector was disappointing during this period. It has the following reasons :
1. War with India (1971).
2. Separation of East Pakistan.
3. Suspension of Foreign aid.
4. Loss of East Pakistan market.
5. Devaluation of currency (131%).
6.Nationalization of Industries.
7. Strikes in factories.
8. Floods.
9. Reduction in investment.
All these factors affected the growth of industrial sector very badly and annual growth rate reduced to 2.8%.
Growth of Industrial Sector During 1977 to 2000 :-
A number of measures were taken by Mr. Ziaul-Huq Government to encourage the industrial sector. Tax holiday scheme was introduced in the under developed areas. Denationalization policy was adopted by the government to encourage the private industrial sector. A liberal policy was adopted to attract the foreign investor. In the 7th five year plan ( 1989-1993 ) all the country was declared tax free zone for the new industries for four years. For the backward areas there was eight years tax holiday for new industries. There was no need of government sanction up-to seventy crore Rs. investment. The government had also decided to allow the establishment of private banks. The government has also changes the income tax system to promote the industrial sector.
The present government has also encouraged the private sector to developed the industrial sector. On 19th March, 1989 the government allowed the establishment of private investment companies to increase the growth of industrial sector. The present government has also announced that there will be no nationalization of industries. The government of Pakistan has also decided to increase the infrastructure facilities to the industrial sector. The investment climate is gradually building up in the country.
The present government has also decided to sell the shares of public industries in the hand of private sector. Now privatization policy has been adopted to revive the private sector.
The performance of the industrial sector is not satisfactory in the previous years. Various incentives are given from time to time but out put is not up to expectation. Performance of large scale is particularly very poor. Political rivalries in the industry have reduced the production. Heavy duties, survey, sales tax, political unrest, and disturbance in Karachi have negative impact on industrial sector. In the year 1997-98 the manufacture sector has grown 7.9% while in 1998-99, 4.7% during 1999-2000 it was 1.6%.
No comments:
Post a Comment