Engineering emerges as key driver of Punjab’s growth

Islamabad: Punjab’s manufacturing sector has changed markedly over the past five decades, with industrial activity shifting away from older labour-intensive segments towards more mechanised, engineering-led and electrical production, according to a Gallup Pakistan analysis based on long-term industrial data.

The analysis, supported by industry charts and attributed to the Bureau of Statistics and the Planning and Development Board, Punjab, covers the period from 1971-72 to 2020-21. It shows that while several traditional industries either slowed or declined, sectors linked to mechanisation, electrification, infrastructure and technology posted sustained expansion and altered the province’s industrial structure.

Punjab’s textile sector remained one of the province’s largest industries during the period under review and recorded a major increase in scale. Cotton yarn output rose from 150,705 tonnes in 1971-72 to 976,627 tonnes in 2020-21. The number of textile units increased from 43 to 299, while employment went up from 861 workers to 1,519 workers.

At the same time, the analysis noted uneven performance within textiles. It said some segments, including jute and woollen manufacturing, stayed comparatively small and showed weaker momentum. This suggested that although textiles continued to dominate manufacturing activity, their growth had become less dynamic than that of newer engineering and electrical industries.

Mechanisation and electrical growth

The tractor industry was presented as a reflection of agricultural mechanisation and industrial modernisation in Punjab. Tractor production climbed from 18,714 units in 1984-85 to 55,387 units in 2007-08, before falling to 23,653 units in 2020-21. The analysis described this as strong earlier growth driven by farm mechanisation, followed by a later contraction linked to changing market and economic conditions.

Despite the decline in recent years, the tractor sector was described as an important marker of Punjab’s move towards mechanised manufacturing and capital-intensive production.

Electrical manufacturing showed the most consistent long-term growth in the province’s industrial sector. Electric fan production increased from 174 thousand units in 1971-72 to 2,499 thousand units in 2020-21, while the number of units rose from 39 to 126. Electric motor production increased from 13,325 units to 30,054 units, and transformer output rose from 3,884 units to 28,781 units.

According to the analysis, this steady expansion reflected increasing electrification, infrastructure development, urbanisation and stronger consumer demand for electrical goods. In contrast, diesel engine production declined from 3,383 units to 1,644 units, accompanied by a sharp drop in employment.

Traditional sectors show mixed trends

The bicycle industry recorded a prolonged decline over the period. Production fell from 127,678 units in 1971-72 to 79,310 units in 2020-21. Employment dropped from 2,490 workers to 686 workers, while the number of units decreased from four to three. The analysis linked this contraction to changing transport preferences and greater reliance on motorised vehicles.

Leather tanning and footwear showed growth, but with volatility. Production of upper leather increased from 3,558 to 7,956 thousand square metres, while employment rose from 1,576 to 2,467 workers. Footwear production moved up from 24,444 to 25,658 thousand pairs, and employment increased from 6,127 to 10,158 workers. The analysis said output in these sectors fluctuated because of sensitivity to export demand, raw material supply and broader market conditions.

Overall, the findings pointed to a manufacturing economy in Punjab that is becoming more diversified, more technology-oriented and more complex, while remaining anchored by textiles even as engineering and electrical industries gain greater importance.