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Pakistan’s economic debate often centres on what the government should do to stimulate growth — tax incentives, subsidies, tariff walls, special packages. Yet the more important question is rarely asked: which sectors should Pakistan prioritise if the goals are jobs, poverty reduction, foreign exchange earnings and reduced dependence on imported essentials?
The answer matters because public resources are limited. Every rupee of subsidised credit, every tax concession, every kilometre of infrastructure, and every hour of policymaker attention allocated to one sector is unavailable to another. Economic strategy is therefore as much about choosing what not to support as it is about identifying what deserves encouragement.
For decades, Pakistan has devoted considerable policy attention to sectors that have struggled to become internationally competitive despite prolonged protection. Many remain dependent on imported inputs and technology, and on tariff barriers. They create some employment, but often at a high economic cost and to the detriment of customers. The future does not lie in trying to produce everything. It lies in focusing on sectors where Pakistan possesses — or can realistically develop — a comparative advantage.
