A Note on Competitiveness and Structural Transformation in Pakistan

Publication | December 2007

This paper documents the level of industrialization of Pakistan vis-a-vis other Asian countries and discusses analytical tools that should help policy makers devise a coherent industrialization plan.

This paper examines Pakistan's economic prospects by analyzing the degree of structural transformation during the last 3 decades and by comparing it with that of other countries in Asia. This way, it intends to contribute to the literature on Pakistan's growth.

The discussion is important in order to raise awareness among policy makers so that sound policies for economic transformation are implemented. Pakistan's degree of structural transformation has been lower and slower than that of other countries in Asia. Accelerating the rate of structural transformation should be a key objective of Pakistan's policy makers. Sector specific reforms that foster competition should be viewed from the point of view of transforming the economy. This requires a dose of good policy, as the market alone cannot accomplish this.

The paper argues that a well-developed plan in the form of industrial policy, understood as strategic collaboration between public and private sectors, is an important tool.


  • Abstract
  • Introduction
  • Structural Transformation in Pakistan
  • Exports and Structural TransformationThe Product Space: On Monkeys and Forests
  • Industrial Policy as a Central Part of Pakistan's Development Strategy
  • Conclusions
  • Selected References

Additional Details

  • Economics
  • Pakistan
  • 1655-5252 (Print)


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