Industrial Growth and Export Expansion: The Case of West Pakistan

Abstract

Large scale manufacturing has been the fastest growing sector in the economic development of Pakistan during the last two decades. Starting from almost a scratch, this sector has been able to show spectacular performance in terms of rate of growth. The overall annual growth rate in West Pakistan during 1960-68 was 11.4%, well in excess of the target rate of 7.0% laid in the Second and Third Five Year Plans. The share of manufacturing in the Gross Provincial Product (GPP) of West Pakistan rose from 12.3% in 1960 to 16% in 1968. Not only has the share of this sector risen in the GPP but major structural transformations have also taken place within the sector. Consumer goods industries which contributed about 76% of the total output in 1954 are no-longer as important and accounted for only 57 % of the total output in 1968. The distribution of the fixed assets has also moved in the same direction as output during this period.