INDUSTRIAL DEVELOPMENT IN

PAKISTAN
BY

SAQUIB H. SHIRAZI
Chief Executive Officer

Atlas Honda Limited

A Country with remarkable

resilience

Average Growth(%) 3.1

6.8
4.1
2.0

3.1

6.7

Average Growth 1951 - 2009 - 5.00%

Source: State Bank of Pakistan

6.5

4.0

5.3

6.6

5.6

5.0

4.0

5.2

5.8

Historical perspective: Industrial Sector in

Pakistan
1960 to 1970 (Decade of
development)

Improving international
Ties

Foreign
Investment

Industrialization (PSM, HMC

etc)

General
Prosperity

1970 onwards (Nationalization)

Industry
Takeover

National Corporations under

performing

Political crisis and military

takeover

Devaluation

Today

...
Goal Revival of Industry and

Corporate Sectors Leadership + Govt.

Revival of industry

STAKEHOLDERS ALIGNMENT
Huma
n
Resou
rce
Technolo
gy

FTA
Consum
er
Industrial
Developme
nt

Employme
nt

Revenu
e

Populati
on

Energ
y

Contribution of Sectors in
GDP
Major Industries in Pakistan
Others
Agriculture
Manufacturing

Services

Textile Industry
Sports Industry
Telecom Industry
Cement Industry
Surgical Industry
Sugar Industry
Defense Products Industry
Auto Industry
Financial Services Industry
Fertilizer Industry
Oil & Gas Industry
Chemical Industry

Geographic Placement of
Industry

Export Potential of Pakistan

Industry

Majority of Pakistans exports are still based around a single crop (Cotton)/
manufacturing sector (Textiles).

Pakistans exports are in 4 broad categories: 1. Cotton &

Textile, Food, Petroleum and Others.

Other Significant Contributors to

InExports
Billion
Cement

Engineering Goods

0.50
0.50
0.51

USD

0.30

Leather Manufactures

2011

2012

0.39
0.42

Chemical and Pharmaceutical Products

Surgical Goods & Medical Instr

2010

0.86

1.09

1.26

0.33
0.32
0.28

0.25

0.43
0.38

Leather Tanned

0.48
0.51
0.45

Sports Goods

0.52
0.46
0.39

Source: State Bank of Pakistan

Challenges for LSM in

Pakistan

Highly cost conscious market. Low

volumes denial of economy of scales.
National industries are being denied
access to own market.
Tax Evasion
Under invoicing
Smuggling
Weak institutions, rule of law is
lacking.

Prospects for International Joint

Ventures in Pakistan
Atlas Honda Ltd. A Test Case
AHL is the oldest joint venture of Honda Motor
Co. Ltd. Japan, anywhere in the World.
More than 50 years old.
Market Leader in Motorcycle Industry.
Pioneer in 4-stroke technology.
Major role in technology transfer (94%
indigenization).
Apart from AHL other successful joint ventures of Atlas Group include Atlas
Battery, Atlas Hi-tech and Atlas Power. While a number of technology transfer
agreements are also contributing successfully.

Industrial Growth - Way Forward

Government support through less policy
NOT MORE. Guiding principles:
LONG TERM.
CONSULTATION. Major Stakeholders
participation a must for results.
Let market forces set direction and
pace. Only other consideration;
National Priorities.
System based monitoring. Low if not
NO discretion.

Thank You