Economic Advisory Group for a reset of Industrial Development Strategy
In its third meeting, the Economic Advisory Group has outlined its vision for Pakistan’s industrial development breaking away from the mould of old industrial policy set in 1960s.
The members of the Group highlighted that the old industrial policy was defined on the basis of selection of winners and losers by the government which led to industrial protection, continuation of infant industry, and misallocation of credit. Despite various instruments of support provided, including subsidies and financing facilities, Pakistan could not move up the ladder of value addition in the manufacturing. Today the industrialization further suffers from anomalies in tax and tariff policies which have led to an anti-industry and anti-export bias.