Economics Of Pakistan notes /What can be the role of Govt to promote industrial development in Pakistan?
Question
What can be the role of Govt to promote industrial development in Pakistan?
The following steps have been taken by the Govt of Pakistan to develop industries in Pakistan
1. Pakistan industrial development corporation
PIDC was established in 1952.The basic object of the Corporation was to complete those projects with the help of government where either private enterpreneur was not increased due to low rate of profit or heavy amount of investment.
2. Industrial Development Of Pakistan
Industrial Finance Corporation was established in 1949 to provide financial assistance to industrial sector.In 1961,it was merged with IDBP.The bank provide credit facility in home and foreign currencies.
4.Establishment Of Industrial Estates
Industrial estates in have been established in different parts of the country by Govt of Pakistan for industrial development.Many of these problems are solved through these estates.
5.Scientific and Industrial Research
The research and training centers were established at Karachi,Lahore and Peshawar to solve the industrial problems.These countries also responsible for scientific industrial research.Pakistan industrail technical assistance council (PITAC) was established for this prupose.
6.Protection Policy
The Government of Pakistan has adopted policy of protection to save the newly born industries from foreign competition and for this purpose a tariff board has been established which imposes tariffs on some of imports to protect various industries.
7.Reduction in Interest rates
The Govt in federal budgets has reduced the interest rates in all the saving schemes.The bank rates on short,medium and long term loans have also have been brought down to help the industries to expand the production .
8.Encouragement of Private Enterprises
There are credit facilities and easy terms for private investment.Technical and some other facilities are also provided.
9.Establishment of Investment Promotion Bureau
Investment promotion Bureau was established to encourage foreign investment in 1959.
10.Sales of Public Industries Shares
The government of Pakistan has decided to sell shares of public sector industries to increase finance and investment.
11.Export Processing Zones
Export processing zones was established in 1980.It has set up to Karachi Export Processing zone and Lahore Export Processing zone.
12.Provincial Small Scale Industries
Punjab,Sindh,N.W.F.P and Baluchistan small scale industries (ssi) have been set up to provide technical assistance to small scale industries sector.
13.Use of Black Money
The Govt of Pakistan issued bonds to collect black money.This collected amount of money was used for the productive purposes.
14.Export Finance Scheme
The scope of export finance has been expanded by reducing the interest rate of the country.
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