Pakistan's industrial sector accounts for about 64% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 65% of the merchandise exports and almost 40% of the employed labour force. Cotton and cotton-based products account for 61% of export earnings of Pakistan. The consumption of cotton increased by 5.7% over the past five years while the economic growth rate was 7%. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion. Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery and food processing.
The government is privatizing large-scale parastatal units, and the public sector accounts for a shrinking proportion of industrial output, while growth in overall industrial output (including the private sector) has accelerated. Government policies aim to diversify the country's industrial base and bolster export industries.
he automotive industry in Pakistan is the one of the fastest-growing industries of the country, accounting for 4% of Pakistan's GDP and employing a workforce of over 1.8 million people. Currently,[when?] there are 3,200 automotive manufacturing plants in the country, with an investment of ?92 billion (US$570 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly ?50 billion (US$310 million). The sector, as a whole, provides employment to 3.5 million people and plays a pivotal role in promoting the growth of the vendor industry. Pakistan's auto market is considered[by whom? among the smallest, but fastest-growing in Asia. Over 180,000 cars were sold in the fiscal year 2014–15, rising to 206,777 units fiscal year 2015–16. At present, the auto market is dominated by Honda, Toyota and Suzuki. However, on 19 March 2016, Pakistan passed the "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 Memorandum of Understanding (MoU) with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor to bring electric vehicles in Pakistan. NLC signed an agreement with Mercedes Benz for the manufacturing of Mercedes Actros trucks in Pakistan. Pakistan has not enforced any automotive safety standards or model upgrade policies. A few old models of vehicles including the Bolan and Ravi continue to be sold by Suzuki.
The textile industry is the largest manufacturing industry in Pakistan. Pakistan is the 8th largest exporter of textile commodities in Asia. Textile sector contributes 8.5% to the GDP of Pakistan. In addition, the sector employs about 45% of the total labor force in the country (and 38% of the manufacturing workers). Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India and contributes 5% to the global spinning capacity. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile.
The pharmaceutical industry in Pakistan has grown during the past recent decades. At the time of the independence of Pakistan in 1947, there were few production units in the country. Currently Pakistan has more than 800 large volume pharmaceutical formulation units, including those operated by 25 multinationals present in the country. Almost all the raw materials used in making of medicine are sourced from abroad. About 50 percent of them are imported from India.
The Pakistan Pharmaceutical Industry meets around 90% of the country's demand of finished dosage forms and 4% of Active ingredients. Specialized finished dosage forms such as soft gelatin capsules, parenteral fat emulsions and Metered-dose inhalers continue to be imported. There are only a few bulk drug Active ingredient producers and Pakistan mainly depends on imports of bulk drugs for its formulation needs resulting in frequent drug shortages. Political disturbances and allegations of under-invoicing add to the uncertainty of imports and clashes with the customs and tax authorities are common.
The National pharma industry has shown growth over the years, particularly over the last decade. The industry is trying to upgrade itself and today the majority industry is following local Good Manufacturing Practices (GMP) laws, with a few in accordance with international guidance. Currently the industry has the capacity to manufacture a variety of traditional products ranging from simple pills to capsules, ointments and syrups.
Pakistan already has a significant market for hybrid vehicles with Honda's Vezel, Toyota's Prius and Aqua, and other models seen on the roads. The Automotive Development Policy (2016–2021) and the launch of China-Pakistan Economic Corridor (CPEC) are encouraging foreign investments for the new automobile brands to enter Pakistani market, while the leading manufacturers in the automobile industry in Pakistan are interested in introducing EV models with a wide range of prices which target consumers of diverse income groups. Several members of the international automobile industry including South Korea, China, and Japan also believe that Pakistan has a high potential market for EV technology, and local businesses are collaborating with them to bring EVs in Pakistan.
According to the United States Energy Information Administration (EIA), Pakistan may have over 9 billion barrels (1.4×109 cubic metres) of petroleum oil and 105 trillion cubic feet (3.0 trillion cubic metres) in natural gas (including shale gas) reserves.
As per BP' Statistical Review of World Energy 2016, at the end of 2015 Pakistan had the following proved reserves of fuels: 0.5 Trillion cu m of natural gas and 2.07 Billion tons of coal (sub-bituminous and lignite).
Pakistan's first gas field was found in the late 1952 in Balochistan near a giant Sui gas field. The Toot oil field was not discovered until the early 1960s in the Punjab. The Most Rich resource in Khaur Company (Attock). It covers 122.67 square kilometres (47.36 sq mi). Pakistan Petroleum and Pakistan Oilfields explored and began drilling these field with Soviet help in 1961 and activity began in Toot during 1964.