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 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%. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion.[2] 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.

Technology

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

Pakistan has huge potential for the technology industry, which includes software development and electronics manufacturing. Pakistan Aeronautical Complex recently started the 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.

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.

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