Although Pakistan has huge material resources, a young, bright and lively population and has been included within the "next eleven" economies in the world regarding its potential, its industry is in a pitiful state, since its creation. The so-called industrial growth of the sixties and seventies was of basic and simple industry, without laying the basis for heavy industry. Growth rate of industry fell from 8.2% in 1980's to 4.8 % for the 1990's and in the latter half of 1990's the growth was only 3.2%. In 1996/7 the growth for industrial sector was minus 0.1%, and was 1.5% in 1999/2000. Private investment fell from 10% to 8% during the 1990's, though foreign ownership of industry has surged, as reflected in the Foreign Direct Investment (FDI) figures. Gross fixed capital formation in private sector in the large scale manufacturing sector fell continuously over the 1990s, by as much as 60%. And successive rulers facilitated foreign companies in establishing industry, such as extraction plants, refineries and power generation and taking their huge profits abroad, whilst obstructing local private companies through requirements such as obtaining 22 NOCs (No Objection Certificates) to install even a medium size industry. In addition, tariff rates have fallen drastically from a maximum of 225% in 1986 to less than 20% making it easier for Western companies to flood our markets. So, it is not surprising today that thousands of industrial units have been declared sick and overall local industrial production is at an all-time low, with foreign multinational companies strengthening their hold on our economy.



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بسم الله الرحمن الرحيم
Question:
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Abdul-Kareem
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The Muslim world today languishes in economic decline. Whilst the
economies of the West are stable, prosperous and able to provide for
the basic needs of the majority o...