Nationalization of Industries in Pakistan and Its Impact on the Automobile Industry

Topics: Automobile, Suzuki, Motorcycle Pages: 3 (676 words) Published: October 8, 2013
Nationalization of Industries in Pakistan and impact on Automobile Industry: Following the progressive manufacturing period, nationalization of industries under Economic Reforms order had a profound impact on automobile industry in Pakistan. In early 1972 under Martial Law Regulation, the Government took over the control of 32 industrial units, including eight automobile plants, under the officially appointed Board of Industrial Management with the Minister for Production as its Chairman. Out of the units taken over by the Government were included iron and steel, heavy engineering, heavy chemicals, assembly and manufacturers of motor vehicles. NATIONALIZED UNITS

ASSEMBLER RENAMED ASSEMBLER RENAMED
Wazir Ali Engg. Sind Engg. Hyesons Mack Trucks
Ali Autos Awami Autos Rana Tractors Millat Tractors
Haroon Ind/Karachi Auto Republic Motors Jaffer Trailer Devp
Ghandhara National Motors Ghandhara National Motors
Kandawala Ind. Naya Daur Ali Autos Awami Autos

Initially, the management of these industries was taken over by the government, but in August 1973, the President promulgated the Economic Reforms (Amendment) Ordinance after which the Federal Government acquired majority ownership of shares of these industrial units. After nationalization, these units were renamed (see table 2), their functions were redefined and Pakistan Automobile Corporation (PACO) was created in 1973 as a holding corporation under the administrative control of the Federal Ministry of Production.

FORMATION OF PACO

In order to manage the automobile units and to advise the Government (in developing policy guidelines for growth and development of auto industry), Pakistan Automobile Corporation (PACO) was formed in 1973 under the administrative control of the Federal Ministry of Production. It was a major public industrial conglomerate of 15 companies including four joint ventures. For the first time in Pakistan emphasis was given to develop the nationalized units under took...
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