Industries are the backbone of the national economy. No industrialization is possible without mechanization. Infact the two go hand in hand. In a controlled economy (communist) all the industries are owned and managed by the state. The case of free economy is different. Both the Government (public) and Private sectors operate side by side. The private sector plays very important role in promoting industrial development.
Pakistan is a new country, hardly 45 years old. At the time of partition, there were no industries worth the name. The Government had to come forward and take the initiative. The private capital was shy. No country can progress and prosper without industrial development. The Government started industrial development through Pakistan Industrial Development Corporation (PIDC). The public sector’s share was 52% and the private sector contributed 48%. Gradually the participation of the private sector increased with the passage of time.
Now-a-days most of the countries practice mixed economy. The private sector plays a dominant role in the advanced industrial countries of the world. The Govt. provides direction and controls its functioning through rules and regulations, and fiscal and monetary controls. In Pakistan most of the heavy industries are owned by the private sector. No doubt Profit is a spur to industry. The private sector in the country is greedy and tries to maximize the profit at the cast of the consumers. It is prone to various evils such as trade cycles, extreme inequality of incomes. The rich grow richer and the poor grow poorer. It has been the case with most of the underdeveloped counties including Pakistan.
The members of the private sector are profit, hungry. They aim at 200 to 300 p.c. profit, otherwise they begin grumbling about loss, They are not public-minded. Their aim is Profit first and services afterward. They want to grow rich over night. This the Saga of twenty two rich families in the country. Most of them have become multimillionaires within a short time. Many of them are monopolists and own several industries at a time. They are corrupt minded and also corrupt the Govt. officials. Tax-evasion is a usual practice with them. Thus most of them are selfish and unpatriotic. They amass wealth through unfair means.
Nationalization under the label of socialism in 1972 was a shock to the private-sector They were helpless under the Civilian Marshal law. They were deprived of fat profits. The private sector has acted little in the interest of the people and the country. Their big business estates, huge bank balances, foreign holdings and properties, common business tours and flourishing business tell the story of their uncommon success. The bankers join hands with them.
The industrial countries of the east and the west are indebted to their private sector for their sound ‘economies and prosperity. It is a research-oriented. Encouraged by their tremendous success, the Pakistan Govt. has resorted to privatization of Heavy Industries and commercial industries. It will succeed if it is done with honest and good intention.