Question
Discuss the main problems of cottage or small scale industries in Pakistan?
Introduction
Everybody recognizes the importance of cottage and small scale industry in Pakistan.The measures taken so far for the expansion of small scale industry have not been successful.From the very little contribution of small scale industry towards GDP,it is evident that there are some hurdles in the way of development of these industries.
Following are the problems of small scale industries.
1.Lack of Capital
The major problem in the expansion and growth of small scale is the shortage of capital .The artisans and craftsman need working capital to purchase raw material and machinery.They also need money to meet the consumption requirements of the family.
2.High Cost
The production cost of the goods produced on small scale is comparatively high in Pakistan.They are ,therefore,not able to compute with the goods manufactured on larger scale in the open market.
3.Use of outdated machinery
Because of the use of outdated machinery,the production and quality of goods is inferior as compared to the foreign industrial products.
4.Lack of standardization
The goods produced on small scale lack standardization.The demand for sub_standard goods faces the problem of marketing both in the home and the external market.
5.Shortage of trained person
The investors of small scale industry are mostly illiterate.They remain satisfied withthe basic methods of production.The growth of small scale industry has thus been handicapped in Pakistan.
6.Lack of technology
The investors of small scale industry are mostly illiterate.They remain satisfied withthe basic methods of production.The growth of small scale industry has thus been handicapped in Pakistan.
7.Lack of marketing facilities
The goods produced by craftsman and artisans are generally sold in the local markets.They are unable to advertise their products.
8.Problem of electricity
There is a large number of villages where electricity has not been provided.In cities toothe supply of electricity is irregular.The nonavailability,inadequacy,failures and repeated variations in the electricity voltage delay the progress and growth of industry in the country.
9.Short supply of raw material
Small scale industries in Pakistan are often faced with short supply of indigenous as well as imported raw material.The day to day wide fluctuations in the market prices of the raw material upset the market of the manufactured goods.
10.Lack of technical training
The small scale industry is in the private sector.The craftsman and artisans mostly inherit the knowledge and the method of production from their elder.The provisions of technical advice,training and technical facilities in the small scale industries are insufficient.
11.Lack of storing facilities
The small scale industry in Pakistan,particularly in villages,is lacking storage facilities,which affects the production badly.
12.Lack of credit facility
The industries need credit to meet the running expenses,to provide personal and family expenses to purchase tools etc.No proper credit facility is available in the country.
Conclusion
The Govt of pakistan is very much alive to the problems faced by the cottage and small scale industries.For this purpose in all five years plans the emphasis was laid on the expansion and growth of these industries,machinery,latest methods of productions etc.
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