Problems of the industrial sector in Pakistan

Problems of the industrial sector of the economy produce finished products that can be reused. Construction and Manufacturing Industry the industrial sector is also called the secondary sector. Examples of the industrial sector are the manufacturing industry and construction.

Problems of industrial sector

The industry is the second most important component of our economy after agriculture. Development in the industry is the backbone of increasing agriculture and vice versa. This sector employs about half of the labor force in Pakistan and contributes more than 25% to our GDP.

Pakistan has come a long way in terms of industrial development since partition but we are still lagging behind in this area. Efforts are needed to take full advantage of the huge supply of raw materials in our country, to use them for our social development and expansion of the economy.

Important issues of the industrial sector in Pakistan

Our extensive agricultural production and availability of raw materials provide a solid foundation for industrial development, but it requires proper planning and technical expertise. There must be revolutionary measures by the government to maximize production and use resources.

Although each industry has its own unique problems and solutions, our industrial sector as a whole faces the following major challenges.

  • Red tape
  • Tapping resources
  • Lack of government support.
  • Tax benefits
  • Lack of material testing laboratories
  • Lack of research and development.
  • Lack of trained manpower
  • Credit services

So let’s start to learn it in detail…

Red tape foreign investorsRed tape Problems of industrial sector

This is a major problem in the industrial sector. Our bureaucratic system is a copy of the old imperialist bureaucracy that was specifically for the British colonies but we adopted this system at a level that destroyed the very fabric of our economy.

When foreign investors intend to invest in Pakistan, they have to go through many bureaucratic hurdles and these investors never dare to come to Pakistan for investment. Even worse is the situation of young entrepreneurs who do not have access to power corridors in the country and have to cross mountains to reach their goals in the presence of such a system.

Tapping resources accelerate industrial

Oil exploration

Tapping resources Problems of industrial sectorThis is also a major area of ​​concern. The government needs to ensure that all unused minerals are exploited to accelerate industrial growth and start new businesses based on newly exploited minerals. In addition to exploration problems, we have another problem that is the exploitation of local people in the context of mineral exploration.

Investors make huge profits for poor people through research projects with limited benefits. The Sendak project is an example of exploitation of the poor where most of the profits were stolen by the investors and the locals were ignored.

Lack of government support.


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 start their own businesses and create jobs for others. The government should also provide land and make the bureaucratic system easier and more manageable.

Tax benefits. new industries


Tax incentives are fundamental to the establishment of new industries. The government should establish industrial estates by exempting them from taxes and other such surcharges. It will definitely attract local and foreign investors to invest in our country.

Tax incentive policies in Pakistan are generally based on nepotism and self-interest.

Lack of material testing laboratories.

material testing Problems of industrial sector

Pakistan lacks high-tech material testing laboratories. Most industries have to rely on foreign laboratories, resulting in huge costs. Material testing should be established to test the quality of the manufactured material.

This will lead to the production of high-quality materials to compete in the international market. The lack of such facilities puts our industry at a disadvantage compared to other countries.

Lack of research and development.

Lack of research Problems of industrial sector

Lack of research is another major obstacle in our journey towards industrialization. Our industries lack the financial resources to conduct research and development. Even if the industries make huge profits, they never support research because they want people to get all the profits without any compensation.

In some cases, the 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 concrete policy from the government and even if there are policies, they are difficult to implement. The government also provides limited funding for research work in the country.

Government support in this regard can be helpful for our industrial development.

Lack of trained manpower

manpower Problems of industrial sector

Our workforce lacks the skills necessary for modern industry. Limited knowledge of old methods and techniques and modern high-tech industry cannot prove to be the right environment for large-scale industrial development.

Credit services large industries

Credit services Problems of industrial sector

The lack of banks that can provide loans at low interest rates is another major problem. Banks lend but mostly to large industries. Ordinary people are deprived of such facilities.

Steps are needed to address these issues.

Steps are needed Problems of industrial sector

The government should take some steps to help keep our industry in tune with modern and advanced industries. Here are some of them:

  1. The government should reform the bureaucratic system and instead of involving investors in such a heavy process, the government should provide them with one window operation. One window operation will make it much easier for foreign investors to invest in our country.
  2. The government should find the natural resources that are abundant in our country. The services of foreign companies can be sought in this regard but the interests of the poor should not be compromised.
  3. The government should encourage local and foreign investors to build their own industries. Industries may be allowed to operate for a limited period of time with or without taxes.
  4. Industrial properties should be set up in the backward areas of the country. Large relief in terms of taxes should be provided to the industries. Establishing industry in backward areas can spread the message of industrial development to all parts and corners of the country.
  5. The government should also set up material testing laboratory work to help industries develop quality products.
  6. We must focus on research and development to compete with the developed world. Government funds can be helpful in this regard. Profitable industries should also be required to provide research grants to universities.
  7. Provide monthly and annual training courses to the workforce and start joint programs with engineering universities to help those entering the industry.
  8. Low-interest rate loans also need time. Small scale industries should be given priority as most of them lack funds.

Conclusion Problems of the industrial sector

Problems of the industrial sector are of great importance for the economic development of the country. It is historical fact that countries with a strong industrial sector have shown more economic growth and development industrial sector have shown improvement in national income and promoted living standard of the population.

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