Industrial Potential in Pakistan

Industrial Potential in Pakistan 2019-20
Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and apparel
manufacturing are Pakistan's largest industries, accounting for about 66% of the merchandise
exports and almost 40% of the employed labor force. Cotton and cotton-based products account for
61% of export earnings of Pakistan. The consumption of cotton increased by 5.7% over the past
five years while the economic growth rate was 7%. Other major industries include cement,
fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.
1. 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. Major reserves of copper and
gold in Balochistan's Reko Diq area have been discovered in early 2006. The Reko Diq mining area
has proven estimated reserves of 2 billion tons of copper and 20 million ounces of gold. According
to the current market price, the value of the deposits has been estimated at about $65 billion, which
would generate thousands of jobs.
The discovery has ranked Rekodiq among the world's top seven copper reserves. The
Rekodiq project is estimated to produce 200,000 tons of copper and 400,000 ounces of gold per
year, at an estimated value of $1.25 billion at current market prices. The copper and gold are
currently traded at about $5,000 per ton and $600 per ounce respectively in the international market.
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. The Federal Bureau of Statistics provisionally
valued this sector at Rs.211,851 million in 2005 thus registering over 99% growth since 2000.
2. Fuel extraction industry
Main article: Fuel extraction in Pakistan
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 1952. Pakistan 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. Pakistan produced about 45 tonnes of Uranium in 2006.
3. 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.
The Federal Bureau of Statistics provisionally valued large-scale manufacturing at Rs.981,518
million in 2005 thus registering over 138% growth since 2000 while small-scale manufacturing was
valued at Rs.356,835 million in 2005 thus registering over 80% growth since 2000.
4. Automotive Industry
Pakistan’s automotive industry is the one of the fastest growing industries of the country,
accounting for 4% of Pakistan's GDP and employing a workforce of over 1,800,000 people.
Currently there are 3200 automotive manufacturing plants in the country, with an investment of
₨92 billion (US$870 million) producing 1.8 million motorcycles and 200,000 vehicles annually.
Its contribution to the national exchequer is nearly ₨50 billion (US$470 million). The sector, as a
whole, provides employment to 3.5 million people and plays a pivotal role in promoting the growth
of the vendor industry. Pakistan’s auto market is considered among the smallest, but fastest growing
in South Asia. Over 180,000 cars were sold in the fiscal year 2014-15, rising to 206,777 units fiscal
year 2015-16.
5. 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.
6. Construction
After the devastating 2005 Kashmir earthquake Pakistan has instituted stricter building codes. The
cost of construction in Pakistan will increase 30 to 50% due to implementation of a new building
code which requires strengthening of structures to withstand earthquake of 8 to 8.5 magnitude. The
demand for cement has increased due to reconstruction after the earthquake. The price of cement
has increased by 50% and Pakistan government banned export of cement to lower the prices and the
reconstruction costs.
Dubai Ports World, announced on June 1, 2006 that it will spend $10 billion to develop transport
infrastructure and real estate in Pakistan. Dubai Ports World is also discussing the possibility of the
company taking over operational management of Gwadar port in Balochistan.
Emaar Properties, announced on May 31, 2006 three real estate developments in the cities of
Islamabad and Karachi in Pakistan. The projects, with a total investment of $2.4 billion, will
include a series of master planned communities that will set new benchmarks in commercial,
residential and retail property within Pakistan.
In addition the conglomerate signed an unprecedented $43 billion deal to develop two island resorts
- Bundal Island and Buddo Island - over the next decade.
The Federal Bureau of Statistics provisionally valued this sector at Rs.178,819 million in 2005 thus
registering over 88% growth since 2000.
7. Electricity, gas and water supply

Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some proven
oil reserves, coal (Pakistan has the largest coal reserves in the world), and a large hydropower
potential. However, the exploitation of energy resources has been slow due to a shortage of capital
and domestic political constraints. Domestic petroleum production totals only about half the
country's oil needs, and the need to import oil has contributed to Pakistan's trade deficits and past
shortages of foreign exchange.
The current government has announced that privatization in the oil and gas sector is a priority, as is
the substitution of indigenous gas for imported oil, especially in the production of power. Pakistan
is a world leader in the use of compressed natural gas (CNG) for personal automobiles.
The short-term national energy demand has expanded significantly since 2001 due to massive rise
in sales of durable goods like refrigerators, washing machines, split air conditioners, et al.. In 2004,
Access Group International announced plans to invest $1 billion over the next 5 years in solar cell
manufacture and wind farms. MOUs have been signed with Alternate Energy Development Board.
In early 2005, the government approved a 25-year Energy Security Plan to boost electric capacity
eightfold. The Canadian conglomerate Cathy Oil and Gas signed a memorandum of understanding
in late 2006 to invest $5 billion in oil and gas exploration, development, production and
commercialisation in Pakistan. The World Bank estimates that it takes about 32 days only to get an
electrical connection in Pakistan. The Federal Bureau of Statistics provisionally valued this sector at
Rs.215,662 million in 2005 thus registering over 62% growth since 2000.

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Industrial Potential in Pakistan 2019-20

1. Mining and quarrying

7. Electricity, gas and water supply

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