THE REVIVAL OF SICK INDUSTRIAL UNITS IN PAKISTAN (A CASE STUDY OF GADOON AMAZAI INDUSTRIAL ESTATE N-W.F.P) (1988-2000)
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Date
2004
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Department of Economics, University of Peshawar. Khyber Pakhtunkhwa, Pakistan
Abstract
Industrialization plays a vital role in economic development of a country. But unfortunately from the last few years this sector is facing quite a lot of problems in the country. The number ofsick industrial units is increasing. At present in Pakistan the numberof sick industrial units has gone over 4,000 units. The average growth rate of large scale manufacturing which was 8.2 during 1980, reduced to 1.6 in 1999-2000. The increasing incidence of industrial sickness is certainly a matter of deep concern not only for the industrialists, shareholders and creditors but also for the society at large. Gadoon Amazai industrial estate (GAIE) in NWFP is also seriously affected by
this industrial sickness.
This industrial estate was established in 1986 by governmentofPakistan to stop poppy cultivation to provide job opportunities to the affected people, to gencrate income for the country to earn foreign exchange and to bring this backward area at par with other developed areas of the country. GAIE with subsequent policies, after enjoying an unprecedented boom among industries for about two years, discovered itself in hot waters. Industrialists started leaving the industrial estate and billions of investments were wasted. People lost jobs, government revenues and industrialists “will” to do business. The purpose of the study was to carry out a comparative economic analysis of the situation before the establishment of GAIE and after its establishment. The specific objectives ofstudy were:
To evaluate the role of industrial establishment in Gadoon Amazai area in promoting the socio-economic conditions, to analyse industrial policy of the government of Pakistan regarding Gadoon Amazai Industrial Estate, To identify the causes of sickness of the industrial units in Gadoon Amazai Industria! Estate, to asses the impact ofsick units on the inhabitants ofthe area, to suggest measures for formulating policy for the probable revival of sick industries in Gadoon Amazai, to identify main causes of sickness and to make suggestions for probable revival of these sick units. Two questionnaires were constructed, one addressed to the house hold sector and the other to industrialists. The questionnaires were filled in with the help of face-to-face interviews. The questionnaires addressed to the household sector collected data on house structure, facilities within the house and the socio-economic conditions of the people of the area. All types of facilities were compared before and after the establishment of GAIE. The data collected from the industrialists regarding the reasons of sickness and suggestions for the revival of industries were studied. Findings of the study were summarized andit was concluded that the establishment of GAIE had improved the socio economic conditions of the people of the area and the main reasons of sickness were withdrawn of the incentives. Other reasons were: distance from sea port, dependence on some of imported raw material and machinery, non availability of workshops orno facility ofrepair for damaged machinery, non availability of skill labour, poor infra structure, non availability of natural gas, high electricity charges etc. the sample industrialists recommended certain suggestions for the revivaloftheir sick units, among which the most important was continuation of incentives other recommendations were; provision of training facilities,
workshopfacilities, improvement ofinfra structure, provisions of gas facilities and establishment of consultancy offices at GAIE to solve the problems of the industrialists. As Gadoon Amazai industrial estate had improved the socio
economic conditions of the people of the area, the recommendations for probable revival ofsick industrial units must be honoured.
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Citation
Kousar, R. (2005). The Revival of Sick Industrial Units in Pakistan: A Case Study of Gadoon Amazai Industrial Estate NWFP.(1988-2000) (Doctoral dissertation, PhD thesis, University of Peshawar, Peshawar).