IDEAS home Printed from
MyIDEAS: Login to save this article

Is Pakistan’s Manufacturing Sector Competitive?

  • Iffat Ara

    (Social Policy and Development Center (SPDC), Karachi.)

Registered author(s):

    This paper attempts to examine the cost competitiveness of the manufacturing sector of Pakistan for the period 1972-73 to 2002-03. Given that the data on the value of cost expenditure has not been published after 1995, the paper relies on constructing a composite index of input prices and compares it with export price (taken as a proxy for output price, since the main focus here is on external competitiveness). The findings indicate that both the composite (weighted) factor input price and the non-factor input price indices have grown at a rate faster than the export price index during the sample period. Furthermore, the growth in the prices of energy, imported machinery, and wages stayed higher than that of the overall inflation. While investigating the pattern of productivity of the manufacturing sector, the paper reveals that although it increased over the sample period, its rate of growth has slowed down. And, for the most recent period, 1999- 03, productivity growth has failed even to offset the extent to which input price increases have outpaced increase in the export price. This creates the concern that if this situation goes on, over the course of time, the profits eventually will become negative and will put some producers/exporters out of business.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 43 (2004)
    Issue (Month): 4 ()
    Pages: 685-706

    in new window

    Handle: RePEc:pid:journl:v:43:y:2004:i:4:p:685-706
    Contact details of provider: Postal:
    P.O.Box 1091, Islamabad-44000

    Phone: (92)(51)9248051
    Fax: (92)(51)9248065
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Rómulo A. Chumacero & J. Rodrigo Fuentes, 2002. "On the determinants of the Chilean Economic Growth," Working Papers Central Bank of Chile 134, Central Bank of Chile.
    2. Salim Chishti & Fakhre Mahmood, 1991. "The Energy Demand in the Industrial Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(1), pages 83-88.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:43:y:2004:i:4:p:685-706. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.