Background

Ministry of Industries (MOI) was established in early 1950s to act as a policy formulating agency and a focal point for promotion and expansion of industrial sector of the country. It was also entrusted to supervise the activities of Pakistan Industrial Development Corporation (PIDC) which had the charter to invest in the sectors where the private investor was shy to invest. After nationalization in 1972, MOI limited its activities to policy formulation and controlling the affairs of three Corporations and eleven institutions performing the regulatory, Research & Development and Training tasks.

The concept of Public Sector emerged under Economic Reform Order (ERO) of January 1972, when major nationalization of industrial sector took place. Accordingly, the Government set up a new ministry namely Ministry of Production to supervise the affairs of newly nationalized Public Industrial Sector. After creation of Ministry of Production, PIDC was transferred to Ministry of Production. PIDC was restructured into eleven Holding Corporations containing 55 industrial units.

Board of Industrial Management (BIM) was also established to supervise the operational affairs of Holding Corporations and their subsidiary units. Another major re-organization took place when BIM was dissolved in 1978 and eleven Holding Corporations were reduced to eight. Experts Advisory Cell (EAC) was created in place of BIM to assist Ministry of Production in monitoring and evaluating the performance of Public Sector Industrial units under Ministry of Production.

Before initiation of privatization programme of the government, the then Ministry of Industries was controlling 25 Ghee units and 15 Roti units, whereas Ministry of Production was supervising the affairs of 76 Public Industrial units under 8 holding corporations. After privatization, the number of units with Ministry of Industries and Ministry of Production now stand at1 and18 respectively.

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