Lecture # 23 Economic problems of pakistan or factor affecting economy .pptx

it is a ppt of EEPM on economics problems or factors affecting economic growth in pakistan. It briefly defines the lack of industrial technology in pakistan.

1. Lecture #09-10 Economic problems or factors affecting economic growth Engineering Economics & project Management Kazim Raza Burdi (B.E ( IND) (M.E (IND)/ S.C.M Mehran University of Engineering & Technology [email protected] [email protected]

2. CAUSES OF INDUSTRIAL BACKWARDNESS IN PAKISTAN. improper industrial structure in our country from independence to till this year. The government of Pakistan since 1947 is trying hard to develop industries and infrastructure facilities for the growth of industrial. Instated of various industrial sector like automobile ,agriculture ,services industries only currently textile sector is working for growth . Political instability may be the cause of economic growth . Investors are not ready to invest for installations of new industries. In our country long term polices are not implemented. Japan, they started its industrialization just from toy making.

3. 1. DEFICIENCY OF CAPITAL. Sources of revenue to generate income. More capital generative industries like steel and iron, chemical, automobile . The amount of capital required per worker is quite high. I-e salaries of employee oil gas sector benefits are as compare local salaried persons to install small industrialization. The proportion of saving and investment is low in the country. The investors are not provided with the sufficient and reasonable amount of loans, banks are not providing's loans to industry. Providing loan like housing , taxi, medical loan, educations betterments

4. 1. DEFICIENCY OF CAPITAL If providing to set-up the small-scale industries are always discouraged charging the higher interest and indirect and direct taxes. the public sector, for industrial development, are decreasing day by day. i -e steel mill. The foreign private investors are hesitant in making industrial investment in the country. because of lack of infra-structure and of political and social stability. The flow of foreign aid is decreasing day by day; rather concessional loans,

5. 2. POLITICAL INSTABILITY political instability, lack of proper planning, heavy taxes etc. of manufacturing sector, agriculture sector, pharma sector. Since partition, the political system of Pakistan has remained unstable . Frequent changes in the government have been taking place until now. There were only two long period governments were run by military men , while in this age of democracy all over the world, people do not like martial law because investors remain hesitant in making investment in the industrial sector

6. 3. UNFAVOURABLE INDUSTRIAL STRUCTURE In Pakistan the protection structure favors consumer goods industries . It protects less capital goods industries.as well intensive industries . The result of this protection is that there is marginal increase in the share of intermediate and capital goods industries. When ever new governments rule, they want to install such industries that might be beneficial for their own interest and shares . i -e solar manufacturing industries.

7. 4 . ENERGY CRISIS The sources of power are limited. like hydro, thermal and atomic energy are limited in the country. There is shortage of electricity for industries. The frequent breakdown of electricity is adversely affecting the industrial production in the country. Providing the expensive electricality to consumer. To find the other various sustainable sources like i -e solar , tidel ocean ,wind energy

8. 5. LACK OF INDUSTRIAL RESEARCH Traditional production methods No industrial academia linkages.to various institutes No automatic machines are installed in industries No Lean manufacturing technique. Like Japan every small industries are used sustainable production without any waste.

9. 6. POOR QUALITY OF INDUSTRIAL LABOUR. Hygiene factors Health and safety Remuneration Employee benefits Workload Organizational culture Lack of innovation and technology

10. 7. LACK OF TECHNICAL EXPERT Unskilled persons. Or employed Another reason There is a lack the industries. A heavy amount is paid for a higher return. Skilled employees try to go where he or she will get more benefits. The import of technicians from other countries. Lack of training and development program Limited access to education. Rapid technology i -e 3d or laser technology

11. 08. LIMITED MARKET. Po or quality of product. Trading policies Distribution channels. Lack of awareness i -e advertising Low demand . Use of e-commerce is insufficient.

12. 09 CHANGES IN ANNUAL BUDGET. Decrease in the education sector. Development of the Industrial sector. Hospital sector. Research and development center. Youth development training programs i -e laptop scheme for i.t growth

13. 10. INCREASE IN TAXES. Heavy taxes are imposed on industrial production. Indirect and direct taxes. Decrease in production. Lower In demand i -e Suzuki ,Toyota cars Prices are higher

14. 11. LACK OF TRANSPORT FACILITY . Condition of the road is poor. Transporting facilities from each province is difficult The exporting system increases when mode of transportation is available Water mode Air mode Road method Railways tracking method was cheaper method of transporting method.