Key Issues in Industrial Growth in Pakistan

Abdul Razzaq Kemal

Lahore Journal of Economics, 2006, vol. 11, issue Special Edition, 49-74

Abstract: The author here looks at problems in the manufacturing sector. One macro enigma is that while growth had recently risen to 8%, investment levels as a ratio of GDP seem to have fallen. One reason for this is the re-evaluation upwards of the GDP. But the same issue emerges in manufacturing with very high growth rates coinciding with falling investment levels. The declining investment levels could be due to a number of factors including high production costs, transaction costs, policy continuity risks, skills and wages and changes in the demand structure.

Date: 2006
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