Pakistan Industrial Development Corporation (PIDC) was originally established as a Central Corporation under the PIDC Act, 1950(XLV of 1950). Subsequently, it was bifurcated into two Provincial Corporations of the then East Pakistan & West Pakistan and WPIDC was created under the Provincial Industrial Development (West Pakistan) Ordinance, 1962. It was later on, renamed as Pakistan Industrial Development Corporation (PIDC) after the fall of East Pakistan and dissolution of Provinces.

The primary aim of establishment of PIDC was to set up industries in such fields where the private sector was shy and where large amount of capital outlay with long gestation period was required. Secondly, the object was to set up industries in such areas, which were backward with a view to creating employment opportunities and removal of regional disparities. The operational strategy was to set up projects on a continuous basis and transfer them to the private sector after successful operation, thus promoting the development of the private sector.

Aiming to ensure efficient operations and functions, PIDC as a statutory body was dissolved under PIDC (Dissolution) Ordinance, 1984 (LII of 1984) and simultaneously incorporated as a private limited company and registered under the Companies Ordinance, 1984 with effect from 1st April, 1985.