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Old Saturday, March 23, 2013
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Default How can we convert labour intensive ind. into capital intensive?

How can Pakistan's industries be converted from labour intensive to capital intensive?
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Old Saturday, March 23, 2013
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Quote:
Originally Posted by freestyler View Post
How can Pakistan's industries be converted from labour intensive to capital intensive?
Capital intensive is a business which requires heavy capital investment including high depreciation costs, having so many barriers in entrance and large amount of fixed assets on company's balance sheet.
In capital intensive, the industry requires higher amount to buy heavy cost machinery for the good production instead of labor.
As far as Labor intensive is concerned it the industry which requires large amount of labor for good production.
In Pakistan, labor is common in industries. Not the single industry run without the labor, all are labor intensive.
For example: Potato chips industries or soft drink industries in many countries other than Pakistan are using the high tech machinery from the production till the finished good(packaging). But, in Pakistan, same work has been done through labor. off course, Pakistani businessmen can buy the advanced machinery for the goods production but poverty rate and unemployment has increased the labor at cheapest rate, most important contribution in Pakistan is Child-Labor.
When there is a need, there would be demand.
In Pakistan, labor is never going to be reduced, but off course will increase.So, why the industrialists go for the high cost machines?

If Pakistan can implement the Capital intensive then Railway and airlines will surely be back in good action again.
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