Industrial sector in Pakistan

Industry of Pakistan

Pakistan ranks forty-first in the world and fifty-fifth worldwide in factory output.

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%. All Pakistan Textile Mills Association (APTMA) predicts that by 2010 the spinning capacity is expected to increase to 15 million spindles and textile exports hit 15.5$ billion. Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.

The government is privatizing large-scale parastatal units, and the public sector accounts for a shrinking proportion of industrial output, while growth in overall industrial output (including the private sector) has accelerated. Government policies aim to diversify the country's industrial base and bolster export industries.

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.

Pakistan has ten fertilizer plants, six state-owned and four private, with a total annual production capacity of 4.65 million tons. Production in 2000/01 was 3.66 million tons, up 10.5% from 1999/00. There are 21 cement plants, four state-owned and 17 private, with an annual production capacity of 19.2 million tons. Production in 1999/00 was 9.9 million tons, up 4% from 1999/98. Pakistan's chemical industry produces a number of basic chemicals used in its other industries, including soda ash, caustic soda and sulfuric acid. Industrial output from other major industries also includes refined sugar, vegetable ghee, urea, rubber tubes, electric motors, electrical consumer products (light bulbs, air conditioners, fans refrigerators, freezers, TV sets, radios, and sewing machines), and pharmaceuticals