Critical Review of Cottage and Small Scale Industries in Pakistan

Naushad Khan


Cottage and small scale industries has great scope in Pakistan. It generates employments for the nation and improve the balance of trade of the country. When Pakistan came into being the situation was a little bad while slowly gradually it developed. The present study was carried out in May 2018 and the major objective was to critically review the cottage and small scale industries in Pakistan. Total 15 articles were downloaded from the net and 20 times were read each article and some data were recorded from the field visits and analyzed the situation. The critical review analyzed that Pakistan in industrialization in the beginning was weak while slowly gradually developed and established different Corporation for the uplifting of Cottage and Small Scale industries in the country.  Among these Pakistan Small Industries Corporation, Punjab Small Industries Corporation, Sind Small Industries Corporation were developed in the start. The Small Industries Development Board NWFP and the Directorate of Small Industries were also established in 1948. These corporations have worked day and night for the enhancement of Cottage and Small Scale industries in different province of the country. Now a day Punjab particular Sialkot city is popular for making of sports goods similarly Swat is famous for different embroidery goods while for marble industry KP is very famous etc. The majority area of the KP is agriculture while the farmers work 180 hours in the season but the remaining days face unemployment and earn nothing, however if they start agro-based industries business at their home such as squash, marmalate, poultry farming, and livestock etc, then they will earn more than before and their unemployment problems will be solved while income will be improved. Subsequently cottage and small scale industries facing problems, in the country, such as High tax, High input Cost, Fund non-availability from the bank, un-peaceful environment, terrorism, bad transportation, non-availability of raw material, loadsheding, international demand of the products and lack of skilled labors problems were observed in the literature. The government tries best to solve these problems while still failed in its solution. So many programs were launched for its development while still not achieved the targeted objectives. The main reason is that the government paid due attention to large scale industries and they set the industries in urban area while bring raw material from the rural sectors. These program effects fell on the city while rural communities were ignored from the benefits. Majority people from rural area migrate to city for the purpose of jobs. Similarly population pressure increases day by day on city which make great problem for the urban dwellers in the long run. On the basis of problems the study recommend that free tax system should be imposed for cottage and small scale industrialization in the country; Subsidized and support price should be arranged for input and output products in the country; On easy term loan should be provided to industrial owner by bank on free interest; Peace protection should be provided in the industrial zone by government; Overcome on the terrorism is required and transportation facility should be provided to industrial owner by government in the industrial zone ; Raw material should be provided to industrial owner at low cost and loadsheding problem should be solved and provide electricity at low cost to industrial owner in the study area; International quota should be multiplied by government for the small scale industrial products and skilled labors should be facilitated to industrial owner in the study area and large number industries should be established in rural area to stop migration to city and provide employment to rural dwellers at their door step to make him prosperous and healthy.

Keywords: Critical Review, Cottage and Small Scale Industries, Past Literature , Pakistan

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