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The Constraints to Industry in Punjab, Pakistan

  • Syed Turab Hussain

    ()

    (Assistant Professor, School of Humanities and Social Sciences, Lahore University of Management Sciences, Lahore, Pakistan.)

  • Usman Khan

    ()

    (Development Policy Research Center, Lahore University of Management Sciences, Pakistan.)

  • Kashif Zaheer Malik

    ()

    (Development Policy Research Center, Lahore University of Management Sciences, Pakistan.)

  • Adeel Faheem

    ()

    (Development Policy Research Center, Lahore University of Management Sciences, Pakistan.)

This paper identifies the main impediments to investment and industrial productivity in Punjab, which have led to a decline in growth. This is done by analyzing the impediments and constraints to productivity and investment using the World Bank’s 2007 Investment Climate Assessment (ICA) data at the level of Punjab’s seven main industrial zones. This is followed by an analysis of a pilot survey of 100 firms conducted in the Lahore district. Almost 71 percent of the firms surveyed declared electricity to be the most important constraint and macroeconomic stability was ranked as the second-most important constraint. An inadequate workforce, access to raw materials, and corruption were ranked third, fourth, and fifth, respectively.

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Article provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.

Volume (Year): 17 (2012)
Issue (Month): Special Edition (September)
Pages: 135-189

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Handle: RePEc:lje:journl:v:17:y:2012:i:sp:p:135-189
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