The industry is the second most important component of our economy after agriculture. The growth in the industry is the backbone of increased production from agriculture and vice versa.  This sector provides jobs to almost half of the labor force in Pakistan and contributes more than 25% to our Gross Domestic Product. Pakistan has traveled a mile in terms of industrial growth from the time of partition but we are still underdeveloped in this sector. Efforts are needed to take full advantage of the presence of the large amounts of raw materials in our country, to utilize them for our social uplift and expansion of the economy.

Heavy Industry

Problems faced by our Industry

Our vast agricultural production and presence of raw materials provide a solid basis for industrial growth but that needs proper planning and technical skills. To get maximum yield and to tap resources there must be revolutionary steps on the part of the government.  Though every industry has its own unique problems and solution yet overall our industrial sector faces the following main problems.

1. Red-Tapism

This is one of the major hurdles that industries have to face. Our bureaucratic the system is a replica of the old imperialist bureaucracy that was especially meant for British colonies but we adopted that system to a level that destroyed the whole fabric of our economy. Foreign investors when intend to invest in Pakistan have to pass through numerous bureaucratic hurdles and these investors never dare to come back to Pakistan to invest. Even worse is the case with young entrepreneurs who have do not have access to power corridors in the country and they have to cross mountains to reach their goals in the presence of such a system.

2. Tapping of Resources

Exploration of oil

This is also a major area of concern. The government needs to make sure that all the unexploited minerals be exploited to speed up the industrial growth and to start new businesses based on the newly-exploited minerals. Apart from the exploration problems, we face another problem which is the exploitation of the local people in the wake of the exploration of minerals. Investors earn huge profits through exploration projects with limited benefits to poor people. Saindak project is one example of the exploitation of poor people where most of the profit was sucked by the investors and local people were ignored.

3. Lack of Government help

Compared to other countries our government is not doing enough to help start new business ventures and industries. Our government should provide loans to young entrepreneurs to help them start their own businesses and produce jobs for others. The government should also provide land and should make the bureaucratic system simpler and manageable.

4. Tax incentives

Tax incentives are of primary importance for the establishment of new industries. The government should establish industrial estates by giving them immunity from tax and other such surcharges. This will certainly attract local and foreign investors to invest in our country. In Pakistan tax incentives policies are normally based on nepotism and vested interests.

5. Lack of material testing laboratories

In Pakistan, there is a lack of high-tech material testing laboratories. Most of the industries have to rely on foreign laboratories which results in huge expenses. Material testing should be established for testing the quality of the materials produced. This will lead to the production of high-quality material to compete in the international market. The lack of establishment of such facilities makes our industry at a disadvantage in comparison with other countries.

6. Lack of Research and Development

Lack of research is another major hurdle in our journey towards industrialization. Our industries lack financial resources through which they can pursue research and development. Even if industries make huge profits they never support research work as they want to pocket all the profit with no payback to the people. In some cases, research work is sponsored but mostly on the terms and conditions that the research work will be biased. There is also a lack of any solid policy on the part of the government and even if there are policies they are hardly implemented. The government also provides limited financial grants for research work in the country. The help of the government in this regard can be helpful for our industrial growth.

7. Lack of trained workforce

Our workforce lacks the skills necessary for the modern industry. Old methods and techniques and limited knowledge of the modern high-tech industry cannot prove suitable environment for industrial growth at the massive level.

8. Credit services

Lacks of banks that can provide loans at a low-interest rate is another major problem. Banks do provide loans but mostly to big industries. Common people are deprived of such facilities.

Steps needed to tackle these problems

The government should take some steps to help our industry to keep pace with modern and developed industries. Some of these steps are given below.

1. The government should reform the bureaucratic system and instead of involving investors in such a hefty process, the government should provide them the facility of one-window operation. The one-window operation will make it very easy for foreign investors to invest in our country.

2. The government should explore the natural resources which are in abundant quantity in our country. Services of foreign companies can be availed in this regard but the interests of the poor should not be compromised on.

3. The government should provide incentives to both local and foreign investors to encourage them to build their own industries. Industries can be allowed to operate for some time with limited or no taxes. 

4. Industrial estates should be established in underdeveloped regions of the country, by providing industries huge reliefs in terms of taxes. The establishment of industry in underdeveloped regions can carry the message of industrial development to all nooks and corners of the country.

5. The government should also establish material testing laboratories to help industries to produce quality products.

6. We should focus on research and development to compete with the developed world. Government funds, in this case, can prove to be helpful. Industries making profits should also be made bound to provide research grants to universities.

7. Monthly and annual training courses should be provided to the workforce and joint programs should be started with the Engineering universities to help freshers to enter the industry.

8. Loans at low-interest rates are also the need of the time. Small industries should be given priority as they mostly lack sufficient funds.