Industrial sector is backbone of any economy. This sector not only supports economic sphere by contributing in GDP but also in social sector by generation of employment opportunities for masses. Punjab is the biggest contractor towards GDP of the country. For past few decades, industrial growth is showing positive trends, despite electric load shedding and gas shortage.
Directorate of Industries Punjab has carried out a study which basically pertains to the issue of unplanned growth of industries in the residential areas which is a very serious concern in the developing countries. In our country, Lahore has maximum concentration of industries after Karachi. According to industrial inventory of Punjab 2107 industrial units are located in the residential areas of Lahore. These industries include chemicals, paints and varnishes, steel re-rolling factories which pose great threat to public safety besides, environmental hazards.
This study reveals unplanned growth, unapproved construction, liberalized industrial policy, economic backwardness, weak implementation of regulatory regime and indifferent/ collusive role of government functionaries, as the main causes of establishment and enlargement of industrial units in the residential areas.