PIDC Strategic Mgt
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Transcript of PIDC Strategic Mgt
PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION
(PIDC)
Presented by M.RIZWAN ALI HASHMI
PIDC MISSION
• To developed the industries that vacancies opportunities
INDUSTRIALIZATIONIndustrialization refers to process of manufacturing consumer goods and capital goods to create social overhead capital in order to provide goods and services to individual and businesses
HISTORY OF PIDC
• It was established in 1950 under the act of federal legislative.
• PIDC board work for planning, promoting, organizing, and implementing programs for
• Establishment of industries• development of mines and • Development of any material that
government may specify
PIDC
When Pakistan came into being, industries
remained neglected by private sector due to:• Lack of expertise• Experience• Capital & Technical know how
In such a desperate situation PIDC (Pakistan Industrial Development) made a breakthrough
PIDC
• The corporation started functioning from 1952
Main function of the corporation: To establish preferably those industries in
which private sector did not show interest
Or In such industries which were of vital
importance from security and economic point of view
PIDC
• Originally made responsible to promote 15 specified industries.
They included Jute, paper board and newsprint, Heavy
engineering included iron and steel, Ship building, heavy chemicals, Fertilizers, sugar, cement, Textile, chemicals, pharmaceutical, natural gas, Petro chemicals, coal & peat, and Exploitation of marine fisheries
PIDC
• It was bifurcated into two Provincial Corporations of the then East Pakistan & West Pakistan and WPIDC was created under the Provincial Industrial Development (West Pakistan) Ordinance, 1962. It was later on, renamed as Pakistan Industrial Development Corporation (PIDC) after the fall of East Pakistan and dissolution of Provinces..
Public Vs Private sectorPublic Sector Private Sector
Organizations owned and operated by government
Organizations owned and operated by private owners
The beneficiary is general public The beneficiary is consuming public who uses good and services
It is not profit-driven It is profit oriented
No competition is involved between organizations
Competition is involved for profit
Policy decisions are bound by the law
It is managed under the rules of shareholders
Examples : KESC, PIA, Pakistan Railways
Examples : Retail stores
Government Policies
Main features of government’s helpful
policies are: Tax concessions Protection to industries Required infrastructure facilities were full
provided for the growth and expansion of industries
Introduction of export bonus scheme Commercial banks and insurance companies,
established in private sector
The Private Sector in Pakistan
• The private industrial sector in Pakistan was progressed through the efforts of (PIDC).
• It set up industries in the field like fertilizer, cement, chemicals, sugar and textiles.
• After laying a firm industrial base, PIDC makes disinvestment in some of the projects and transferred them to the private sector.
The Golden years 1947-1967
• The Government set up 10 industrial estates and provided infrastructure facilities .
• The State Provided technical training.
• Heavy Mechanical Complex at Taxilla and Machine Tool Factory at Landhi were established in the machinery sector.
The Fall of Private Sector
• Nationalization of industries in 1972 was the biggest cause of the fall of private industrial sector in Pakistan.
• The total investment in private sector dropped from Rs.1358 million in 1970-1971 to Rs.650 million during 1976-1977
• The devaluation of currency to the extent of 131% raised the cost of machinery which resulted in rapid cost inflation.
The Public Sector in Pakistan
• The public sector of Pakistan has its roots from 1972 when private industrial units were nationalized.
• To eliminate the concentration of wealth in few hands, raising the volume of production, increasing employment were the core reasons of nationalization.
Privatization of Public Enterprises
Privatization: Privatization Is a process by which the Government of a country transfers the state owned enterprises to the private sector.
Downsizing in various Public Sector in Organization
• Decreasing the number of existing employees or reducing the size of staff employed in an organization and still maintaining and promoting the efficiency of the enterprises.
Reasons for Downsizing• Downturn in business• Improved technology• Reduced funding• Overstaff
The Ascendency of Public Sector 1972-1977
• The share of public industrial sector increased from 7% in 1972 to 71% in 1977.
• During the period of 1973-1974, petroleum and shipping companies and private sector banks were nationalized.
• In 1972, 32 basic industries and 3 life insurance companies were transferred to public sector.
Post Ascendency Period• General Zia-Ul-Haq came in to power in
1977 and immediately took measures to promote Private Sector in Pakistan.
• Most of the industrial units were denationalized and brought back to their respective owners.
• The private sector was further encouraged by the introduction of fiscal incentives in 1982-1983 such as tax holidays and rebates in custom duty.
• The sixth Five Year Plan (1983-1988) specifically adopted privatization as a central theme.
Thank You!.