Industry of Pakistan

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Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 65% of the merchandise exports and almost 40% of the employed labour force.[1] 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%. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion.[citation needed] 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.

Mining and quarrying[edit]

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 one of the largest deposit of pure salt founded 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.[2]

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.[3] 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.[1]69

The Federal Bureau of Statistics provisionally valued this sector at Rs.211,851 million in 2005 thus registering over 99% growth since 2000.[4]

Fuel extraction industry[edit]

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.[5]

Pakistan's first gas field was the giant gas field at Sui in Balochistan which was discovered in the late 1952. [6] 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.[7][8]

Pakistan produced about 45 tonnes of Uranium in 2006.[9]


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.[1]

The Federal Bureau of Statistics provisionally valued large-scale manufacturing at Rs.981,518 million in 2005 thus registering over 138% growth since 2000 [10] while small-scale manufacturing was valued at Rs.356,835 million in 2005 thus registering over 80% growth since 2000.

Automotive Industry[edit]

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.[11] Currently there are 3200 automotive manufacturing plants in the country, with an investment of 92 billion (US$650 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly 50 billion (US$350 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.


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.


Modern high-rises under construction at Clifton Beach, Karachi, Pakistan. Clifton area is fast becoming residential and commercial hub of Karachi.

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.[12] Dubai Ports World is also discussing the possibility of the company taking over operational management of Gwadar port in Balochistan.[13]

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.[14]

In addition the conglomerate signed an unprecedented $43 billion deal to develop two island resorts - Bundal Island and Buddo Island - over the next decade.[15]

The Federal Bureau of Statistics provisionally valued this sector at Rs.178,819 million in 2005 thus registering over 88% growth since 2000.[4]

Electricity, gas and water supply[edit]

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[16]), 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..[17] 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.[18] In early 2005, the government approved a 25-year Energy Security Plan to boost electric capacity eightfold.[19]

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.[20]

The World Bank estimates that it takes about 32 days only to get an electrical connection in Pakistan.[1]

The Federal Bureau of Statistics provisionally valued this sector at Rs.215,662 million in 2005 thus registering over 62% growth since 2000.[10]

See also[edit]


  1. ^ a b c d
  2. ^ "Himala South Asian, Pakistan Edition".
  3. ^
  4. ^ a b
  5. ^ "Canadian Firm to Develop Pakistan Oilfield - PakPositive".
  6. ^
  7. ^ "USTDA Grant To Support Integrated Coal Mining, Power Generation Project In Pakistan - U.S. Embassy Islamabad Pakistan". 2 November 2007.
  8. ^ "Page not found - Pakistan & Gulf Economist". Pakistan & Gulf Economist.
  9. ^ "World Uranium Mining 2016 - World Nuclear Association".
  10. ^ a b "Wayback Machine" (PDF). 19 June 2007.
  11. ^ "Automotive Industry's Contribution to Pakistan [Infographic]".
  12. ^ "Dubai World to set up projects worth USD10 billion across sectors in Pakistan - Dubai World".
  13. ^ "Daily Times". Daily Times.
  14. ^ "Emaar Technologies".
  15. ^ "Pakistan agrees $43bn development". 28 September 2006 – via
  16. ^ Coal, Granite, China Clay and other Resources of Thar, Geological Survey of Pakistan, URL accessed on April 2, 2006
  17. ^
  18. ^
  19. ^
  20. ^ "Canadian firm to invest $5bn in oil and gas exploration". 26 September 2006.