Pakistan, cottage or household industries hold an important position in rural set-up. Most villages are self-sufficient in the basic necessities of life. They have their own carpenters, cobblers, potters, craftsmen and cotton weavers. Many families depend on cottage industries for income.
Cottage industries have also gained immense importance in cities and towns. There is a great demand for hand-woven [carpet]s, embroidered work, brassware, rugs and traditional bangles. These are also considered important export items and are in good demand in international markets.
Cottage and small-scale industries are labor-intensive and provide employment to 80% of the industrial labor force. This reduces the unemployment and offers opportunities for self-employment.
Traditionally, women are not encouraged to work outside their homes. Cottage or small-scale industries like carpet-weaving, candle-making and handicrafts can be established in houses and women can be gainfully employed. This increases the active labor force.
These industries also meet the local demands for industrial goods, and save foreign exchange spent in imports.
There is a demand for rugs, carpets, brassware, handicrafts and embroidered work in the International market. These goods provide 30% of the export receipts of the manufacturing sector.
When people are employed gainfully in villages, the migration of people from rural to urban areas will reduce. The acute problems of housing, sanitation, education, transport and health will be reduced in urban areas.
Many districts are under-developed. With the expansion of such industries, the regional disparity in income can be reduced.
These industries make effective use of local raw materials which also promotes primary industries like agriculture and mining.
Small-scale industry does not require much capital and high technology. I.T is suited to the traditional economic set-up.
Cottage and small-scale industries do not use much imported material or equipment.
The waste of large-scale industries, particularly the cotton, sugar and steel industries, can be used to make by-products.
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