UNIDO 2020: Pakistan Industrial Output Lags Behind Peers in South Asia

[RiazHaq]

UNIDO 2020: Pakistan Industrial Output Lags Behind Peers in South Asia

Manufacturing in Pakistan lags behind Bangladesh, India and Sri Lanka in terms of manufacturing value added per capita as well as per capi...

www.southasiainvestor.com

Manufacturing in Pakistan lags behind Bangladesh, India and Sri Lanka in terms of manufacturing value added per capita as well as per capita exports of manufactured products, according to Competitive Industrial Performance Report 2020 released by United Nations Industrial Development (UNIDO).

Pakistan's Competitive Industrial Performance. Source: UNIDO

On the competitive Industrial Performance (CIP) Index, Pakistan ranks 82 among 152 countries, well behind India at 42, Bangladesh at 70 and Sri Lanka at 75. Only Maldives (144) and Nepal (135) rank lower than Pakistan.

India's Competitive Industrial Performance. Source: UNIDO

Only 1.3% of Pakistan's manufacturing is high-tech and 9% medium tech, better than Bangladesh's 0.4% high-tech and 1.5% medium tech, but considerably worse than India's 9.4% high tech and 25.4% medium tech.

Bangladesh's Competitive Industrial Performance. Source: UNIDO

Nearly 40% of India's manufacturing output is based on locally extracted natural resources like iron ore and coal, much higher than Pakistan's 9.7% and Bangladesh's 1.9%. Pakistan's per capita manufactured exports add up to only $87 per capita, well behind Bangladesh $198 and India $208. Per capita manufactured output in Pakistan is $178 versus Bangladesh's $281 and India's $299.

China's Competitive Industrial Performance. Source: UNIDO

The most successful example of a manufactured exports-driven economy in Asia is China, ranked number 2 in the world, just behind top-ranked Germany. China's per capita manufacturing value added is $2,726 and its per capita manufactured exports add up to $1,685. High-tech manufactured products account for 30.6% of Chinese manufacturing output while its resource-based manufacturing is just 9.3% of its output.

Pakistan’s overall exports have continued to lag behind those of its South Asian counterparts since the early 1990s. Bangladesh’s exports have increased by 6.2 times compared to Pakistan’s, measured in terms of exports per capita, and that of India by 6.8 times, according to Princeton's Pakistani-American economist Atif Mian.

Exports Per Capita in South Asia. Source: Dawn

Pakistan's average economic growth of 5% a year has been faster than the global average since the 1960s, it has been slower than that that of its peers in East Asia. It has essentially been constrained by Pakistan recurring balance of payment (BOP) crises as explained by Thrilwal's Law. Pakistan has been forced to seek IMF bailouts 13 times in the last 70 years to deal with its BOP crises. This has happened in spite of the fact that remittances from overseas Pakistanis have grown 24X since year 2000. The best way for Pakistan to accelerate its growth beyond 5% is to boost its exports by investing in export-oriented manufacturing industries, and by incentivizing higher savings and investments.

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UNIDO 2020: Pakistan Industrial Output Lags Behind Peers in South Asia

Manufacturing in Pakistan lags behind Bangladesh, India and Sri Lanka in terms of manufacturing value added per capita as well as per capi...

www.southasiainvestor.com

 

[CrazyZ]

PPP and PML master plan was to de-industrialize Pakistan. Pakistanis must do the opposite of what PPP and PML say in order to improve things.

 

[FuturePAF]

Re-industrializing is going to require FDI. The FDI that is most likely to stay in Pakistan and not be “re-patriated” is investment by Overseas Pakistanis. Creating the right incentives and protections for this class of investor will build confidence in other foreign investors.

 

[Paul2]

Nearly 40% of India's manufacturing output is based on locally extracted natural resources like iron ore and coal, much higher than Pakistan's 9.7% and Bangladesh's 1.9%. Pakistan's per capita manufactured exports add up to only $87 per capita, well behind Bangladesh $198 and India $208. Per capita manufactured output in Pakistan is $178 versus Bangladesh's $281 and India's $299.

I would say it's a bigger surprise that it is not that much lower. 40% less is still not that bad given India been a darling of international capital, and Japanese who looked to setup factories there for ages. It's also surprise that Bangladesh's industrial output per capita is still lower than India's

 

[Protest_again]

I would say it's a bigger surprise that it is not that much lower. 40% less is still not that bad given India been a darling of international capital, and Japanese who looked to setup factories there for ages. It's also surprise that Bangladesh's industrial output per capita is still lower than India's

Lol. What do you think Bangladesh makes more than India?

 

[Paul2]

Lol. What do you think Bangladesh makes more than India?

Given how much patronage Bangla govt gives to its industry, and foreign factories, in comparison to India, I would think they were close to overtaking. And indeed, they are. Give them a few more years, and they will overtake India on per capita industrial output.

 

[rishav]

Given how much patronage Bangla govt gives to its industry, and foreign factories, in comparison to India, I would think they were close to overtaking. And indeed, they are. Give them a few more years, and they will overtake India on per capita industrial output.

good for them and good overall as well if manufacturing comes to south asia