Industry

Secondary Industry

• Converts raw material taken from primary sector or other secondary products
  • To either semi-finished products
  • Or finished products
• Has a complete system
  • Input
    • Capital: money required to set the business
    • Enterprise: Decision making and risk taking to get the business done
    • Land: Location of the industry
    • Raw Material: Inputs for the industry
    • Power: Some form of energy to get the work done
    • Labor: Human efforts, mental and physical, used in production
  • Process
    • Many different processes
      • Smelting
      • Weaving
      • Dyeing
      • Tanning etc.
  • Output
    • Processed goods
      • Two types
        • Ones that are half-completed goods that can either be sold to the public or be used in another industry.
        • Ones that are sold to the public directly
    • Manufactured Products
      • Usually take the output of the processing industry and convert them to finalized products.
      • Some of these products are used by other industries
      • Others are sold to the general public
      • Some can be used by other industries of general public
    • Construction Industry
      • It is part of the secondary sector
    • Assembly Industry
      • Takes different outputs of manufacturing industry and put them together to make a complete, usable product.
      • Most inputs here are complete products themselves as well.

Different Ways to Classify Secondary Industry

• Another way to classify secondary industry is as follows.
• Small-Scale and cottage craft industry
  • Traditional industry.
  • Usually no use of modern technology
  • Usually small family businesses
  • Such as hat makers, or traditional clothe tailors
• Small and Medium Scale Factory
  • Modern technology used
  • Operates as firms and companies
• Large-scale Factory
  • Large scale operations that make mass production.
  • High output per worker
• Industry can vary hugely based on size and complexity

Factors Affecting Secondary Industry

• Raw Material
  • Can be outputs of the primary industry
  • Can be the output of the secondary industry
  • Outputs of agriculture industry
  • Sustainable primary resources
    • Water and timber
    • They can become unsustainable if they are over exploited
  • Metallic minerals
    • Read in the minerals chapter
  • Products of secondary industry
    • For example, bottle corks are made by secondary industry
    • They are further used by another secondary industry called the bottling industry
  • Industries that are highly dependent on raw material from agricultural outputs are called agro-based industries
  • Most industries in Pakistan are agro-based industries
  • In Pakistan, lack of raw material in some industries results in import of important raw materials.
• Site Requirements
  • Cost of the site
  • Is the size available
  • Is more land available for expansion
  • Is the land suitable for the type of industry
• Routes
  • Is the site close to a sea or land route?
  • Routes are important for the transport of raw material, labor and the final products.
• Access to Market
  • Distance from the market
    • A greater distance means high transportation costs, reducing margins or driving up prices
      • Reduces competitiveness
    • Cheapest transport to the market is in which form?
• Raw material availability
  • Sufficient raw material available?
  • Price of raw material?
  • Reliable supply? Would it stop?
• Labor
  • Is skilled labor available?
  • Cost of labor
  • Is the labor with the right skills available?
• Power Supply
  • Efficient, cheap and reliable power supply available?
• Industrial linkage
  • Are other industries related to the current one available?
• Capital
  • Is the money available for the development?
• Government Policies
  • Does the government provide any subsidy, tax relief or support to industry in the location.

Cotton Industry

• Largest Industry
  • Provides employment to a large part of the workforce
• Main Locations and Reasons
  • Karachi
    • Labor force available from all over the country
      • Both skilled and unskilled
    • Importer machinery is easily accessible.
    • Exports can be done directly without further costs incurred
    • Domestic market is huge.
    • Power supply is stable from nearby powerplants
    • Linked to the rest of the country for raw material and market.
  • Faisalabad
    • Close to Punjab’s cotton belt so raw material is available.
    • Labor force from nearby cities
    • Huge local market in Punjab
    • Governmental support for industry.
  • Hyderabad
    • Lower Sindh cotton rich areas are close by so raw material available.
• The main locations for cotton textile industry Karachi
  • sufficient labour from all over the country
  • imported machinery visit to access because the port is near no extra transfer charge exporting cotton
  • large domestic market
  • power supply stable from nearby power plants rest of the country so great local demand
• Second Main location is Faisalabad
  • located near to Punjab Cotton Belt so easy available of raw material
  • labour force skills and unskilled available
  • local market in Punjab is high
  • government supports industry in the area
• Hyderabad is the third location
  • area located close to the Cotton producing areas of lower Sindh
  • large local market in Sindh
  • Karachi can be used for import and export
• other cities
• government supports the development of industry
• domestic market is large

importance of Cotton Industry

• employment to a largest sector of people
• Pakistan’s large part of the exports are from cotton
• huge contribution to GDP cotton
• Textiles are high value product so they generate greater revenue than Raw cotton
• Production of Raw Cotton so farmers lives are improved
• Local demand Pakistan great
• Demand abroad for Pakistani cotton products
• Skilled and unskilled labor is employed
• Cotton product are produced in a large scales which reduce the cost per unit
  • The economies of scale

Problems with the Cotton Industry

• Shortage of raw material due to viruses
• Local production in international market faces strong competition from the Other Countries
• Modernization issues
• More capital required for import and Industry Improvement
• International sanctions due to child labor and poor working condition
• Issues of old machinery / Imported machinery extremely expensive
• Water shortage can occur which reduces the availability of raw material for industry
• Frequent power breakdown due to lack of power supply
• Road network is poor
• Government changes policy consistent support for the industry
• Political issues and terrorist issues causes for the Cotton Industry

Sugar Industry

• Sugarcane industry
  • Main output is sugarcane
  • It is located in Punjab and Sindh
  • One of the main reason that is not located in Balochistan is because there is not ample sugarcane available
• Why sugar mills are located near to sugarcane production areas?
  • Cost to transport final product with actually become very extremely
  • Heavy so much time taken to move around
  • Expensive and at the same time sugarcane starts to lose at water and its sugar content as soon as it is harvested due to the heat so it in feet has be transported over long distance is it will lose a lot of those things
  •  It could be dangerous and costly to transported along distances
• What are the by-products of sugar production?
  • So basically by product is something that is not your main aim of production
    • Baggase
      • The stock of the sugarcane after the sugar content is removed
        • fuel wood or in other ways of using us fuel
        • Can also be used in paper industry or animal feed
    • Molasses
      • Basically sugary substance that is like you can say a jelly like substance
        • Used in many other industries the chemical industry

Chemical Fertilizer Industry

• Another important industry in Pakistan is the Fertilizer industry usually chemical fertilizers became an important part of the Green Revolution
• Extremely important in the local agriculture production many raw materials are required for example sulphur phosphate
• These produced different types of rope fertilizers
• Main areas include Faisalabad and outskirts
• Nitrogenous fertilizer is most commonly used in Pakistan
• Fertilizer projects have been completed over time in Pakistan

Cement industry

• It has grown over the years it has been an important industries in Pakistan
• Raw material is available
  • Natural gas is an important input
    • It is available
• Problems for Cement Industry in Pakistan
  • Inflation
  • Lack of government support for the industry

Steel Industry

• • Pakistan secondary structure it was important because it is a one of the major industrial structures in Pakistan
  • Pakistan Steel Cooperation was established the USSR supported Pakistan in developing the industry
  • It provides raw material for many other industries
  • Heavy mechanical Complex
    • Established in Taxila in 1979 with Chinese help and also has to meet the domestic need of Pakistan
    • Karachi considered as the main location for Pakistan steel industry
      •  Flat and cheap land
      • Well used routes in the area of connect the paper to Port Qasim in Karachi
      • The Soviet Union provided capital for the project
      • Purchase iron ore manganese and cooking coal are imported from the nearby port
      • Local sources of water
        • Why lake water is used instead of using sea water
          • Sea water is not suitable for industry it can damage the machinery because of the salt content freshwater from the lake is used instead
      • Energy sources are available Karachi and Port Qasim have some of the highest electric electricity generating capacity
      • Thermal energy can be used in the nuclear power station in Karachi is also a way of supporting the industry
      • Labour is available
      • Local and the international market is easily accessible through Karachi sea port
      • The road network infrastructure is one of the best in the area
        • Metal roads are present to connected to both the raw material and the market
• What are the advantages and disadvantages of locating a steel industry in Pakistan
  •  Advantages
    • Help correct the balance of payment
  • Disadvantages
    • Material like Magnesium has to be imported
    • Technical experts are lacking in the area
    • Power supply is not that stable and it uses a lot of power

Industrial Estate

• An area reserved for industry
• It promotes entrepreneurship
• All the required facilities are provided
• Difference between Industrial Estate and Special Industrial Zone
  • Special industrial zone
    • Even if the government cannot provide the required services such as road in structure water supply then interested companies would set up the services themselves
• Government provides tax exemptions on import
• Support for an exchange help
• Tax holidays to encourage people to come to the area
• Must offer consistency and policy
• Inconsistent policies would result in people leaving the services difference between

Formal and Informal Sector

• The formal and informal sector
• Formal Sector
  • institutionally employed
  • regular working hour
  • Good standard
  • Work is usually in office setting or factories
  • Usually available for males
  • Legal and registered
  • Capital Intensive
• Informal sector
  • Self employment
  • Highly Labour Intensive
  • Uses hand tools
  • Few modern machinery
  • Irregular working hours
  • Uncertainty of wages
  • Uncertainty of good quality
  • Usually low standard goods
  • Usually Cottage craft and home industry
  • Often non registered
  • Mostly for females and children
  • Other family members
• Both the formal and formal sectors are important
  • Goods meet local demand
  • Generate opportunities
  • Informal sector can use domestic raw material for products
  • Some products are available for export
  • Informal sector is easy to set up
  • Does not require a lot of machinery
  • Growth potential in any area
  • The advantages of informal sector
    • Meets the local demand by supplying low price goods
    • Uses local raw material
    • Implement to a large number people
    • Local raw material is used
    • Industrial waste can be used to produce other goods
    • Door to door supply of everyday items from small vendors
  • Disadvantage
    • Not registested with the governments
    • Tax revenue may not be generated
    • Low sub standard goods
    • Limited capacity
    • Child labour might be used
    • Health problem due to low standard working conditions
    • No wages
    • Uncertain and unreliable employment
    • Poor working conditions

Cottage Craft Industry:

• Typically found in rural areas and produces both domestic and export items.
• Labour-intensive, providing significant employment opportunities and reducing unemployment.
• Offers work to women and helps meet local industrial goods demand.
• Reduces rural-urban migration by creating jobs in rural areas.
• Utilizes raw and waste materials from other industries, requiring less capital investment.
• Products like rugs and crafts are often made on a small scale.
• Common in various cities and rural areas, with some industries specializing (e.g., surgical instruments in Lahore, sports goods in Sialkot).
• Sialkot is renowned for producing footballs for global events, such as the FIFA World Cup.

Problems in the Cottage Industry:

• Contributes only around 5% to GDP.
• Limited profits hinder expansion and modernization.
• Economies of scale are not achieved, keeping production costs high.
• Lack of standardization can compromise product quality.
• Traditional production methods and outdated techniques are common.
• Rural areas face power shortages, making production difficult.
• Artisans often lack technical advice and rely on ancestral knowledge.
• Middlemen and wholesalers take significant cuts, reducing artisans’ earnings.

Government Support for Cottage Industries:

• Establishment of marketing facilities and technical support centers.
• Development centers provide skill training and pre-investment counseling.
• Local and foreign loans are made available for small-scale industries.

Brick Industry:

• Brick manufacturing is often done in large-scale units, though there are smaller setups as well.
• Can produce significant air pollution and toxic gases.
• Common in various cities, often located near residential areas.
• Environmental impact includes the release of harmful chemicals and land pollution.

Measures to Control Brick Industry Pollution:

• Implementation of environmental and labor laws.
• Encouragement to switch from coal to natural gas.
• Increase chimney height to disperse emissions.
• Introduce clean coal technology and drying processes to reduce toxicity.
• Promote reforestation to counter deforestation caused by industrial activities.

Industrial Pollution:

• Causes air, water, noise, and land pollution.
• Industrial waste can contaminate water bodies, affecting marine life and the food chain.
• Pollutants like lead can cause severe health issues when consumed indirectly through food.
• Mangrove areas are harmed, reducing spawning grounds for fish.
• Noise pollution from machinery can lead to health issues like hearing loss.

Solutions to Control Industrial Pollution:

• Efficient waste disposal mechanisms and pollution control machinery.
• Promotion of afforestation and sustainable waste management.
• Strict enforcement of environmental protection laws (e.g., Environmental Protection Act 1997).
• Awareness campaigns to educate the public on pollution.

Sustainable Industry Development:

• Aims to conserve non-renewable resources for future generations.
• Focuses on meeting current demand while protecting the environment.
• Encourages energy conservation and sustainable agriculture to support agro-based industries.
• Emphasizes training programs to improve skills and ensure safe working conditions.

Tourism in Pakistan:

• Pakistan has significant potential for both domestic and international tourism.
• Attractions include natural, historic, and cultural sites.
• Major tourist destinations:
  • Northern Areas: Gilgit, Skardu, Chitral, Swat Valley, and Naran-Kaghan Valley.
  • Cultural Sites: Mohenjo-Daro, Harappa, Taxila, Faisal Mosque, Lahore Fort, Badshahi Mosque.
  • Beaches: Karachi’s Clifton and Gwadar’s beaches.

Importance of Tourism:

• Generates more income than agro-based exports.
• Creates jobs and boosts local economies by increasing demand for food, hotels, and souvenirs.
• Enhances cultural linkages and interaction between locals and tourists.
• Reduces migration by encouraging development in rural tourist spots.

Challenges in Tourism:

• Economic and political instability affects the number of international tourists.
• Tourism jobs are often seasonal.
• High costs are involved in developing and maintaining tourist facilities.
• Over-reliance on tourism can make locals dependent on external income.
• Environmental degradation, deforestation, and overcrowding in popular areas.

Government Efforts in Tourism:

• Establishment of the Pakistan Tourism Development Corporation (PTDC) to promote tourism.
• Development of infrastructure like roads, electricity, and hotels.
• Focus on marketing and publicity to attract international tourists.

Types of Tourists in Pakistan:

1. Business Tourists: Delegates, officials from international organizations, and staff of multinational companies.
2. Family Visitors: Overseas Pakistanis visiting their families.
3. Leisure Tourists: Individuals visiting for recreation, often from the US, UK, and Europe.

Call Center Industry:

• A growing sector in Pakistan due to affordable labor and improved IT infrastructure.
• Call centers handle customer service, technical support, and administrative tasks for international clients.
• Potential to expand further by enhancing computer literacy and satellite communication systems.