Industry in Karachi

Last updated October 06, 2023

Industry in Karachi are the various industries that are located in Karachi, Pakistan. The commerce and industry in Karachi represents major economic activities in Pakistan. Pakistan ranks 40 among the countries of the world in nominal GDP, and number 55 in the world in factory output. Pakistan's industrial sector accounts for about 24% of GDP.

Industry is the production of goods or services within an economy.^[1] Manufacturing industry became a key sector of production and labor in European and North American countries during the Industrial Revolution, upsetting previous mercantile and feudal economies. This occurred through many successive rapid advances in technology, such as the production of steel and coal.

There are many cottage industries in the city as well. Karachi is also known as software outsourcing hub of Pakistan. It has a rapidly flourishing 'Free Zone' with an annual growth rate of nearly 6.5 percent. An expo center has also been set up in Karachi, which hosts many regional and international exhibitions including the IDEAS Defence Exhibition. Dozens of new manufacturing units are also being built near the Pakistan Steel Mill. Farm businesses line the Super Highway route. The Sindh Industrial Trading Estate (SITE) in Manghopir is the biggest industrial area of Pakistan. Other industrial zones are located in Landhi, Korangi, Federal B Area, North Karachi and Port Qasim.

Karachi is also home of major automobile manufacturing companies. Toyota is in the process of increasing production capacity to over 120,000 units per annum. Suzuki Motor Company is also located in Karachi. The manufacturing plant located in Bin Qasim has a production capacity of 150,000 vehicles per year. Among others, Millat Tractors, Daihatsu, Hinopak Buses and Trucks manufacturing plants are also located in Karachi.

Shipyard

Karachi Shipyard and Engineering Works Limited is the oldest Heavy Engineering Works of Pakistan which is catering for its Ship Building, Ship Repairing, Submarine/Warship Construction and Heavy/General Engineering requirements. KSEW was established in early 1950s as a project of PIDC. It was incorporated as a public limited company in 1957. The shipyard spread over an area of 29 hectares (71 acres). KSEW has a large Ship Building Hall, three Ship Building Berths, two Dry Docks, three Foundries (Iron, Steel & Non-Ferrous), Fabrication Shops, one machine shop and other supporting facilities like Carpentry, Pipe Fitting and Light Steel Fabrication Shop. KSEW is working as an autonomous commercial organization under the Ministry of Defense, Government of Pakistan.

Steel Mills

Pakistan Steel Mills is the current largest industrial corporation undertaking having a production capacity of 1.1—5.0 million tonnes^[2] of steel and iron foundries. Built with the contributions of the Soviet Union in the 1970s, it is the largest industrial mega corporation complex,^[3] vastly expanded in an enormous dimensions construction inputs, involving the use of 1.29Mn cubic meters of concrete; 5.70Mn cubic meters of earth work; and contains ~330,000 tonnes of heavy machinery, steel structures and electrical equipment.

Tuwairqi Steel Mills Limited is a vertically integrated multinational Steel mill in Karachi. An environmentally friendly and established by a private sector, the steel mill is co-financed by the Al-Tuwairqi Holdings (Saudi Arabia), POSCO (South Korea) and Arif Habib Steel Mill (Pakistan), and currently aiming to compete against the Pakistan Steel Mills (PSM) at the Karachi Stock Exchange (KSE) indexes. The steel mills is well expanded over an area of 220 acres (0.89 km²) at Bin Qasim, Karachi and employs the world's most advanced DRI (Direct Reduction of Iron) technology of the MIDREX process owned by Kobe Steel of Japan.

Automotive

The major world automakers have set up assembly plants in Karachi with joint ventures with local companies these include Toyota, Honda, Suzuki and Nissan Motors. While Pak Suzuki success in Pakistan owes to lack of options among the buyers however Pak Suzuki is a major assembler in Pakistan providing jobs and also exporting vehicles to various countries. Pak Suzuki Motors is a Pakistani subsidiary of Japanese automaker Suzuki has assembly plant in Karachi.^[4] It is the Pakistani assembler and distributor of cars manufactured by Suzuki and its subsidiaries and foreign divisions.^[5] Currently Pak Suzuki is the largest car assembler in Pakistan.

Industrial Parks

Bin Qasim Industrial Zone
Federal B Industrial Area
Karachi Export Processing Zone
Korangi Creek Industrial Park
Korangi Industrial Area
North Karachi Industrial Area
Pakistan Textile City
S.I.T.E Industrial Area
West Wharf Industrial Area

Related Research Articles

Sindh Industrial Trading Estate (SITE) is located in Karachi, Sindh, Pakistan. Designated as an Industrial Area in 1963, S.I.T.E is the oldest and the largest designated Industrial Area of Pakistan, encompassing 9700 acres (19 km²) of land. It contains approximately 2,400 factories.

Korangi is one of the neighbourhoods of Korangi District, Landhi Town in Karachi, Sindh, Pakistan. Korangi District has three administrative towns.

Karachi is the financial and industrial capital of Pakistan. As of 2019, Karachi has an estimated GDP (PPP) of $164 billion. The city accounts about half of the total collections of the Federal Board of Revenue, out of which, approximately half are customs duty and sales tax on imports. Karachi produces about 30 percent of value added in large-scale manufacturing, 25% of the GDP, the World Bank identified Karachi as the most business-friendly city in Pakistan. In 2010, research by the global human resources company Mercer found Karachi to be the most inexpensive city in the world.

Landhi is a residential neighbourhood and an industrial municipality in the eastern part of Karachi, Pakistan. It is bordered by the Faisal Cantonment and Shah Faisal Colony to the north across the Malir River, Bin Qasim Port to the south and east, and Korangi to the west.

The Port Muhammad Bin Qasim, or Qasim Port Authority, also known as Port Qasim, is a deep-water seaport in Karachi, Sindh, Pakistan, on the coastline of the Arabian Sea under the administrative control of the Secretary to the Government of Pakistan for Maritime Affairs. It is Pakistan's second busiest port, handling about 35% of the nation's cargo. Port Qasim and Karachi Port, the busiest port of country, together handle more than 90% of all external trade of Pakistan.

The Pakistan Steel Mills Corporation, colloquially referred to as Pak Steels, is a Pakistan State-owned company that produced long-rolled steel and heavy metal products in the country.

Bin Qasim Town is an administrative subdivision or Town of Karachi, Pakistan lying on the eastern part of the city, north of Port Qasim.

Nexus Automotive (Pvt) Ltd was an importer and assembler of General Motors products in Pakistan. The company was founded by M.A. Razaq, an expatriate Pakistani who retired as Corporate Vice President of General Motors Corporation, 1999. Balubaid Establishment of Saudi Arabia, a diversified group involved in automotive, real estate, and other industrial businesses, was an investor in the assembly business of Nexus Automotive. The company was privately owned, with ownership distributed between Pakistani and Saudi families. Nexus used the idle capacity at the Ghandhara Nissan Limited plant at Port Qasim to assemble vehicles, under a contract assembly agreement.

Ghandhara Automobiles Limited Formerly, is a Pakistani automobile manufacturer based in Karachi, Pakistan established in 1981. Ghandhara Automobiles is the authorized assembler and manufacturer of Chery, Dongfeng, JAC and Renault Trucks vehicles in Pakistan.

<span class="mw-page-title-main">Toyota Indus</span> Pakistan Automobile Manufacturer

Indus Motor Company Limited, operating as Toyota Indus, is a Pakistani automobile manufacturer which is a subsidiary of Japanese multinational automaker Toyota Motor Corporation. It is based in Karachi, Pakistan.

Pak Suzuki Motor Company Limited (PSMCL) is a Pakistani automobile company which is a subsidiary of Japanese automaker Suzuki.

The automotive industry in Pakistan is one of the smallest but fastest-growing industries in the country, growing by 171% between 2014 and 2018. It accounts for 3% of Pakistan's GDP and employed a workforce of over 3.5 million people as of 2018. Pakistan is the 35th largest producer of automobiles. Its contribution to the national exchequer is nearly Rs. 50-billion. Pakistan's auto market is among the smallest but fastest growing in Asia. 269,792 cars were sold in 2018, but this number declined to 186,716 in 2019 due to austerity measures. In the 1990s and early 2000s, Pakistan had many Japanese cars. With the launch of the first Auto Policy in 2005, Pakistan launched its first indigenous car, Adam Revo. However, after the 2008 elections, the dollar started depreciating, and due to bad governance, many automakers began to halt production, with some exiting Pakistan. Currently, the auto market is dominated by Honda, Toyota, and Suzuki. However, on 19 March 2016, Pakistan passed a second "Auto Policy 2016-21," which offers tax incentives to new automakers to establish manufacturing plants in the country. In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW, and Hyundai have expressed interest in entering the Pakistani market. MG JW Automobile Pakistan has signed a memorandum of understanding (MoU) with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, to bring electric vehicles to Pakistan. NLC signed an agreement with Mercedes Benz to manufacture Mercedes Actros trucks in Pakistan. Pakistan has not enforced any automotive safety standards or model upgrade policies. A few older vehicle models, including the Bolan and Ravi, continue to be sold by Suzuki. On 8 July 2021, Jolta Electric launched the production of electric motorcycles.

The Tuwairqi Steel Mills Limited (TSML), is a vertically integrated multinational Steel mill, based in Karachi, Sindh, Pakistan.

The automotive industry in Bangladesh is the third largest in South Asia.

North Karachi Industrial Area is located in Karachi, Sindh, Pakistan. NKATI stands for North Karachi Association of Trade and Industry which is a registered Trade Body representing more than 2000 commercial, industrial and service units located in North Karachi Industrial Area (NKIA).

The Bin Qasim Industrial Zone is one of the largest industrial areas in Karachi, Sindh, Pakistan. It consists of more than 25,000 acres of land in the Port Qasim town area. Contained within this zone are many industrial units, ranging from medium to large in employment volume. Currently, there are 180 Large and Medium Size units operating in the area.

Pakistan Textile City is located in Karachi, Sindh, Pakistan. Pakistan Textile City is an industrial zone dedicated to the textile processing and related industry. Established in 2009, with a total area of 1250 acres, the estate is located in the Eastern Industrial Zone of Port Qasim Karachi, 6 km from the National Highway.

Islamabad has many environmental issues, severely affecting its biophysical environment as well as human health. The industrialization as well as lax environmental oversight have contributed to the problems. The various forms of pollution have increased as Karachi which has caused widespread environmental and health problems. Air pollution, lack of proper waste management infrastructure and degradation of water bodies are the major environmental issues in Karachi.

The industrial parks in Karachi have been built in Karachi, Sindh, Pakistan. The industrial parks manufacture consumer and industrial goods, creating jobs for the local population.

Loads Limited is a Pakistani auto-parts maker based in Karachi, Pakistan. It is part of Ali Group of Companies.

References

↑ Industry
↑ "Pakistan Steel Mills". Archived from the original on 2013-09-27. Retrieved 2014-10-22.
↑ Khan, A.A. "Pakistan Steel" (pdf). Pakistan Stee Mills. Pakistan Stee Mill Directorate for Public Relations and Human Resources. Retrieved 4 June 2012.
↑ "Pak Suzuki Motors corporate web site". Pak Suzuki Motor Corporation. Retrieved 30 December 2012.
↑ Mazur, Eligiusz, ed. (2006). World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. p. 214. ISSN 1734-2945.

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[1] Industry

[2] "Pakistan Steel Mills". Archived from the original on 2013-09-27. Retrieved 2014-10-22.

[3] Khan, A.A. "Pakistan Steel" (pdf). Pakistan Stee Mills. Pakistan Stee Mill Directorate for Public Relations and Human Resources. Retrieved 4 June 2012.

[4] "Pak Suzuki Motors corporate web site". Pak Suzuki Motor Corporation. Retrieved 30 December 2012.

[WOC-5] Mazur, Eligiusz, ed. (2006). World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. p. 214. ISSN 1734-2945.

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