About Pakistan

At the time of independence, Pakistan inherited only 34 industrial units out of 921 industrial units in the subcontinent. They were cotton textile, cigarettes, sugar, rice husking, cotton ginning and flour milling industries; and together they contributed only 7% of GDP and employed a little over 26,000 employees.

Pakistan Industry

Welcome to Pakistan

Today’s the economy of Pakistan is 22nd largest economy in terms of Purchasing Power Parity. Over the years Pakistan’s Industries flourished. From producing only 7% of GDP, are now contributing to 64% of GDP. Major industries include Cotton textile industry, agriculture, automotive, cement, steel, tobacco, chemicals, machinery and food processing.

Textile Industry
Textile Industry in Pakistan

Pakistan's textile and apparel manufacturing is the country's largest industry, accounting for 65% of merchandise exports and employing 45% of the labor force. Cotton and cotton-based products make up 61% of export earnings. By 2010, the spinning capacity reached 15 million spindles, and textile exports hit $15.5 billion. Pakistan, the 8th largest textile exporter in Asia, contributes 8.5% to GDP and is the 4th largest cotton producer with the 3rd largest spinning capacity in Asia. The industry includes 1,221 ginning units and 442 spinning units. In 2020, textile exports totaled $6.04 billion, a 4.88% increase from the previous year. Cotton is the main fiber, with synthetic fiber, filament yarn, art silk, wool, and jute also produced. Skill development is a focus, with institutes like TIP, PRGTII, and PIFD playing a crucial role.
Agriculture Industry
Agriculture Industry in Pakistan

Agriculture is Pakistan's largest economic sector, contributing 19.3% to GDP with a 2.67% growth rate and employing half the labor force. It is the main source of foreign exchange earnings and sustains both rural and urban populations. Planners prioritize timely, reliable crop statistics. Major crops include wheat, cotton, rice, sugarcane, and maize, while rising prices have boosted the economic importance of pulses, onions, potatoes, chilies, and tomatoes. Agriculture supplies raw materials to various industries, with Punjab being the top producer. In 2020, rice exports totaled $2.1 billion, ranking it as the second largest export industry.

Automotive Industry

The automotive industry in Pakistan, accounting for 4% of GDP, employs over 1.8 million people. With over 3,200 manufacturing plants, it produces 1.8 million motorcycles and 200,000 vehicles annually, contributing nearly US$310 million to the national exchequer. The sector, dominated by Honda, Toyota, Suzuki, and KIA, sold 206,777 units in FY 2015–16. The "Auto Policy 2016-21" has attracted interest from Renault, Nissan, Proton, Kia, SsangYong, Volkswagen, FAW, and Hyundai. MG is introducing electric vehicles, and NLC plans to manufacture Mercedes trucks locally. The industry lacks enforced automotive safety standards and model upgrade policies.

Chemical Industry

The global chemical industry converts raw materials into over 70,000 products across various sectors. Pakistan's vibrant chemical industry supports multiple industries like textiles, agriculture, and pharmaceuticals, with potential for regional and global impact.

Mining Industry

Mining is a crucial industry in Pakistan, with significant deposits of coal, copper, gold, and various precious and semi-precious minerals. The Pakistan Mineral Development Corporation and Gemstones Corporation of Pakistan oversee mining activities, with Balochistan holding the most deposits. The federal government manages oil, gas, and nuclear minerals, while provinces handle other minerals, with around 52 currently mined and processed.

Leather Industry

Pakistan is a hub for high-quality leather, with over 800 tanneries producing top-grade leather from cow, buffalo, sheep, and goat skins. The leather industry, a key economic driver, exports significant volumes and employs over 500,000 people. In 2020, leather exports grew by 5.25% compared to the previous year.

Services Industry

The services sector, accounting for over 50% of Pakistan's GDP and one-third of employment, outpaces agriculture and industry in growth. Key areas include construction, IT, engineering, banking, insurance, communication, tourism, and professional services.

Pharmaceutical Industry

The Pakistani pharmaceutical market hosts approximately 759 companies, with fewer than 30 being multinationals. The industry contributes about 1% to Pakistan's GDP annually. It fulfills over 95% of the country's domestic pharmaceutical needs. In 2020, pharmaceutical exports reached $235.75 million, according to the UN COMTRADE database. Exports saw a 23% year-on-year increase, hitting $68.1 million in the first quarter of 2020/21.