Pakistan is the 30th largest manufacturing country in the world. The manufacturing sector constitutes about 20% of the output produced in the national economy. Over the last five years, the sector has registered an average annual growth of 3.4%. It has two constituents namely the Large Scale Manufacturing (LSM) and the Small Scale Manufacturing (SME) sectors which grew by 2% and 8% respectively in FY12. Further, they are nominally valued at PKR 2.7tln (USD 28 billion) and PKR 653 billion (USD 7 billion) respectively.
- The sugar industry in Pakistan is the 2nd largest agro-based industry with 83 sugar mills all over the country and a daily crushing capacity of nearly 600,000 tons.
- Punjab houses 44 sugar mills, and contributes about 57% to sugar production in Pakistan. The total sugar produced in Punjab stood at 38 million tons in FY11.
- Whereas the sugar cane utilization rate for Pakistan stands at 81%, in Punjab it stands at 74% highlighting room for further expansion in the industry.
- The rising demand for sugar is depicted by its quantum of imports; between 2009-11 sugarim ports rose by 11times.
- The annual cement production capacity in Pakistan stands at 44 million tons. In FY12, total cement production arrived at 33 million tons, implying a capacity utilization rate of 74%.
- Pakistan exports about 9 million tons of cement mainly to Africa, Afghanistan and the Middle East. This indicates a wide room for penetration into the international market.
- Punjab’s share in total cement production stands at 40%.
- In Pakistan, growth in the cement industry is directly correlated with development expenditure incurred by the government (PSDP). A 14% in increase in PSDP by Punjab has been announced in the latest budget.
- The pharmaceutical industry is one of the most technically developed sectors in Pakistan.
- The industry comprises 400 manufacturing units of which more than 350 are local entities while over 25 units are subsidiaries of well-known international pharmaceutical companies.
- The industry boasts of USD 2 billion in revenue, registering a growth of more than 65% during the last decade.
- In FY12, pharmaceutical exports amounted to USD135 million, registering a 20%YoY increase. Over the last three years, exports by this sector have
grown by an average annual rate of 13%.
- The establishment of a WHO certified international drug testing laboratory in Lahore, can be expected to further boost exports by further standardizing the production of pharma products according to international specifications.
LIGHT ENGINEERING INDUSTRY
Surgical Instrument Industry
- The surgical instruments sector, concentrated in the city of Sialkot, exports nearly 90% of its production comprising a wide range of medical, surgical and veterinary instruments.
- Over the last four years, exports have registered a cumulative growth of 20% and stand at USD 332 million as of June, 2012.
- The industry carries immense export potential due to the ever growing demand for quality health services and procedures. This is evident in the global valuation of surgical instruments market which in 2005 exceeded USD 50 billion.
- The auto parts industry comprises at least 850 manufacturing units.
- More than 9 million vehicles were registered in 2011 alone. This highlights the vast potential of growth in the industry.
- With the relaxation in the import policy for vehicles, there is a need to cater to a wider array of cars that were previously not found on the market. During July 2011 – March, 2012, about 1.1 million cars were imported.
AUTO PARTS INDUSTRY