Common terms

Geography of Pakistan · Industrial development. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.

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The idea

Industry starts with a raw material, something taken from nature and not yet changed, such as limestone, raw cotton or crude oil. It may be refined (made pure), processed (changed into a more usable form) or manufactured (made into a new product). Each stage makes it worth more: this is value added.

Work is grouped into three sectors. Primary industry takes raw materials from the land or sea. Secondary industry processes or manufactures them. Tertiary industry provides services.

Industry is also grouped by size: cottage, small-scale and large-scale. All of it depends on infrastructure, the basic networks of roads, railways, power, water and telecommunications.

Rules to remember

Common mistake

Size and sector are separate questions. A cottage industry that makes goods, such as embroidery at home, is still secondary industry, not primary.

Worked example

A tannery buys hides for Rs 2 million and sells the leather for Rs 3.2 million. A factory buys that leather and sells jackets for Rs 7 million. Which stage adds more value?

  1. Tanning: 3.2 − 2 = Rs 1.2 million added.
  2. Jacket making: 7 − 3.2 = Rs 3.8 million added.
  3. Check: 1.2 + 3.8 = 5, which equals 7 − 2, the total value added to the hides.

Answer: Making jackets adds more (Rs 3.8 million against Rs 1.2 million), so exporting finished goods earns more than exporting leather.

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