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SEC's future plans.

The development of engineering goods industry is considered to be a pre-requisite for the economic growth and self-reliance of a country. The most cherished goal of rapid industrialisation and economic uplift of masses cannot be achieved without this. It is an observed fact that countries having fairly developed engineering goods industries have more developed economies. The need for the development of such industries is so vital that despite their lower profitability they receive special attention of many developing as well as developed countries.

The development of engineering goods industries is treated as infrastructure for development and growth of economy. The benefits that accrue include: creation of large-scale employment, self-reliance, economic uplift, freedom from economic exploitation, enhancement in defence capabilities, increase in export earnings etc.

At present Pakistan has developed a fairly large base of engineering industry. This important industrial segment covers about 2,000 registered units. The total fixed assets of the sector are about Rs. 100 billion and it provides employment to over 200,000 persons. It has on the one hand small-scale units employing a few people and on the other hand there are large engineering complexes, mostly in the public sector, e.g., Heavy Mechanical Complex (HMC), Karachi Shipyard and Engineering Works (KSEW), Railway Workshops, Defence Industries, Pakistan Steel etc.

Private sector contribution is also fairly significant as there are engineering units like Ittefaq, Descon, Star Mughal, Sefec, F.W. Fabrication, Alwin Industries, PEL, Siemens of Pakistan, Climax, Pakistan Cables, AEG (Pak), etc. who have the potential to produce variety of quality engineering goods. Looking back, the development of engineering industry in the early years of Pakistan was slow and unsatisfactory. Light and medium size engineering units grew in private sector mainly during Second and Third Five-year Plan periods with low technological levels.

A heavy engineering division was created in PIDC to set up and promote heavy engineering industries. State Engineering Corporation (SEC) is a Government sponsored enterprise that came into being in 1973, as one of the successors of PIDC in the engineering sector. It looks after a major and important cross-section of engineering industry in the country. The prime objective of the corporation has been to promote industrial self-reliance and build a sound technical base in the country. Its units have played and continue to play vitally important role for the industrial and economic development of the country. Almost every sector of economy is largely dependent on it.

With the setting up of engineering units like Karachi Shipyard and Engineering Works Limited (KSEW)in 1954, Pakistan Machine Tool Factory (PMTF) in 1968, Heavy Mechanical Complex (HMC)in 1971, Heavy Foundry and Forge (HFF)in 1977 and Pakistan Steel in 1984, potential was created for the manufacturing of a wide range of capital goods. The major role has been played by HMC and HFF (the latter has since been merged with HMC) through progressive acquirement of indigenous capability to design and engineer complete sugar plants, cement plants along with a host of other engineering goods, e.g., industrial boilers, cranes, pressure vessels, road building machinery, brick-making machinery and miscellaneous items for Pakistan Railways etc.

HMC made a beginning with Chinese technology with the capability of manufacturing parts for 1000-1500 tons cane crushing capacity per day (TCD) sugar plants, 600 tons per day (TPD) capacity cement plants, packaged boilers of 10 tons per hour (TPH) of steam generation capacity, static road rollers of 10 to 12 tons, electric overhead cranes of 32 tons and 75 tons, railway axles, screw couplings, truck chassis long members and steel structures etc.

HMC has since diversified its product line by, switching over to high technology energy sector which offers great potential for local manufacturing of oil and gas equipment and thermal power plants. Government is investing large amounts in this sector to meet the pressing demand for energy in the country.

HMC has recently completed a major oil/gas project by manufacturing, erecting and installing variety of oil/gas processing equipment for Dakhani oil/gas-field. This included dehydration plant, amino absorption and regenerator unit, LPG plant, crude stabilising plant, sulphur recovery plant etc. The design and engineering support was given by OGDC consultants. With the experience of Dhakni, HMC can confidently undertake similar oil and gas projects.

Heavy Engineering Industry can not function in isolation and that simultaneously support services have also to be developed. The integrated operations of this industry require skill in many areas such as design and engineering, manufacturing, procurement, subcontracting, quality assurance etc. One of the major requirements is the development of design and engineering capability by the leading engineering establishments of the country.

Another major goal of industrialisation is to strengthen the linkages of various industrial sectors within the economy. This is sought to be achieved by developing on the one hand, agro and mineral-based industries and on the other by creating domestic capacity to manufacture capital engineering goods and intermediary products required by all sectors of economy.

Unfortunately the Engineering Industries in Pakistan, despite their large potential have suffered due to unrestricted imports of plant and machinery. As a result their capacity utilisation has been poor and the real talent and potential of our engineers and technicians has not been fully exploited.

Sugar and Cement Plants

There are a number of local manufacturers, including HMC, Ittefaq, Descon, KSEW etc., who can produce sugar and cement plant machinery. In case of sugar plants about 75% machinery can be produced by a SEC Unit, Namely, HMC which made a very modest start in this area in 1973-74 with manufacture of some sugar equipment based on rather primitive technology and small module sugar plants of 1000-1500 TCD cane crushing capacity.

SEC has entered energy sector and its units are engaged in the engineering and production of equipment for power generation.

WAPDA needs transmission on towers, transformers and control panels for its grid stations. These are locally produced but they are also procured against international financing from World Bank, ADB etc. In Pakistan, there is substantial demand for locomotive engines.
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Title Annotation:State Engineering Corporation Pvt. Ltd.
Author:Akram Sheikh, M.
Publication:Economic Review
Date:Sep 1, 1993
Previous Article:Sugar industry in Pakistan.
Next Article:Industrial uplift: KSEW's contribution.

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