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Rebalancing Pakistan’s Growth Model from Consumption towards Productivity

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  • Chohan, Usman W.

Abstract

This paper examines the structural weaknesses of Pakistan’s consumption-led growth model and argues for a transition toward productivity-driven economic development. For decades, Pakistan’s economy has relied heavily on household consumption, imports, remittances, and debt-financed expansion, resulting in recurring balance-of-payments crises, weak industrial competitiveness, and chronic dependence on external financing. The paper analyzes the causes and limitations of this model while comparing Pakistan’s experience with the productivity-oriented development strategies of East Asian economies. It argues that sustainable growth requires higher investment, export diversification, industrial upgrading, human capital development, technological innovation, and institutional reform to create a more resilient and competitive economic structure.

Suggested Citation

  • Chohan, Usman W., 2026. "Rebalancing Pakistan’s Growth Model from Consumption towards Productivity," SocArXiv hnbfx_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:hnbfx_v1
    DOI: 10.31219/osf.io/hnbfx_v1
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