Abstract
Along with productivity growth, job creation has always remained a central focus of economic policies the world over. In this regard, industrialization has emerged as a major policy to create employment opportunities and manufacturing sector, as an employer, has earned a greater attention, the world over. Continuous creation of jobs becomes even more crucial for developing countries wherein the population growth continues to add to the army of unemployed and economic recoveries are more often jobless. We argue that manufacturing sector in Pakistan has the potential to serve as the key driver of growth and employment generation. And that these gains are contingent on restoring the external competitiveness of overall tradable sector of the country.
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- 1.
There are four fundamental concept of Kaldor analysis of development including (1) increasing return in manufacturing sector, (2) effective demand-constrained growth, (3) agriculture–industry relationship; and (4) internal–external market relations.
- 2.
Brazil, China, Indonesia, Japan, the Republic of Korea, Malaysia, Singapore, Taiwan, China and Thailand.
- 3.
Textile, Food, Beverages and Tobacco, Coke and Petroleum Products, Pharmaceuticals, Chemicals, Automobiles, Iron and Steel Products, Fertilizers, Electronics, Leather Products, Paper and Board, Engineering Products, Rubber Products, Non-Metallic Mineral Products and Wood Products.
- 4.
Ending on June 30 2017.
- 5.
It is the latest manufacturing census available.
- 6.
Pakistan exports no more competitive.
- 7.
Cotton, Rice and Leather counted to almost 72% to total exports of country in first 9 months of 2016–17 showing a poor diversification (Pakistan Economic Survey 2016–17). Similar holds true poor diversification in terms of destinations of exports, wherein 60% of Pakistan’s total exports are destined to OECD countries region having sluggish growth shrinking its capacity to import.
- 8.
ibid.
- 9.
Refer to Javed and Vaqar (2016).
- 10.
Electricity and RLNG is, respectively, available at Rs. 11/kwh and Rs. 1000 MMBTU for the industry in Pakistan as compared to Rs. 7/kwh and Rs. 400 MMBTU in regional country of Bangladesh.
- 11.
Refer to Exchange Rate and External Competitiveness: A Case of Pakistan for details. https://sdpi.org/publications/files/ExchangeRateandExternalCompetitiveness.pdf.
- 12.
According to the most recent figures available, Pakistan has lost 10% percentage point to 18.5% of the market share of Chinese yarn in January 2016 as compared with the data from January 2015.
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Javed, S.A., Suleri, A.Q. (2019). Manufacturing Sector and Job Creation in Pakistan. In: Chaturvedi, S., Saha, S. (eds) Manufacturing and Jobs in South Asia. South Asia Economic and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-10-8381-5_6
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