Industrial Development and Efficiency in Pakistan: A Revisionist Overview

Akbar Noman


Pakistan was widely hailed as a "model" of economic,
especially industrial, development during the 1960s-see, for example,
Papanek (1967). At the same time, the experience of Pakistan has been an
important part of the basis of the seminal critiques of
import-substituting industrialization by Little, Scitovsky and Scott
(LSS) in (1970) and by Balassa et al. (1971). Pakistan was one of each
of the sample of seven countries examined by LSS (1970) and by Balassa
et ai. (1971), respectively. Indeed, within those samples, Pakistan was
represented as an extreme case of the sins of import-substituting or
"inward-looking" industrialization. This "outlier" in the small samples,
hence bore a large part of the burden of the "proofs" of LSS (1970) and
Balassa et al. (1971) This paper first attempts an assessment of these
contrasting views pertaining to the 1950s and 1960s. There has been
considerably less research on Pakistan's industrialization since 1970.
Thus, the discussion pertaining to this period is more speculative, and
some of the propositions tend to be more in the nature of hypotheses
than results of research.

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