industrial policy, its spatial aspects and cluster development in ...

The collapse of Pakistan’s growth in 2008, after the high growth in the period 2002-
2007, is a testament to the fact that without addressing the structural weaknesses of the
economy, GDP growth cannot be sustained on the back of capital inflows and
consumption spending alone. With the exception of 2003-04 the declining
manufacturing production and exports during the period of rapid growth was indicative
of the balance of payments crisis that Pakistan faced in 2008. In 2008-09, output in the
manufacturing sector shrank by 3.3% in face of both the increasingly binding energy
constraint and internal security issues [Asian Development Bank (2010)]. The
performance of the three key sectors over the last ten years and over longer periods is
depicted in Figure 2-4 and 2-5 below.
Figure 2‐4: Sectoral growth rates in Pakistan, 2001–09 (percent)
Source: Government of Pakistan (2009a)
Figure 2‐5: Annualized Growth Rates of Key Sectors in Pakistan for 10 Year Periods, 1970‐2009 (percent)
‐
9
8
7
6
5
4
3
2
1
1970s 1980s 1990s 2000‐09
Total Agriculture Industry Services
Source: Government of Pakistan (2009a) and Bureau of Statistics data on GDP
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