PIDE seminar stresses urgent industrial transformation for global competitiveness

ISLAMABAD, May 6 (APP): The Pakistan Institute of Development Economics (PIDE) on Wednesday highlighted the urgent need for industrial transformation to enhance Pakistan’s global competitiveness at a seminar titled “Industrial Competitiveness in Pakistan.”

Speaking as keynote speaker, Usman Khan, Deputy Team Lead – REMIT and Director of the Technology for People Initiative (TPI) at LUMS, said manufacturing remained central to economic growth, employment and export competitiveness despite the global shift toward services.

He said Pakistan, once ahead of countries like Vietnam, Bangladesh, India and South Korea in GDP per capita and exports, has gradually lost its edge, with the industrial sector stagnating over the decades.

He said labour has shifted directly from agriculture to low-productivity informal services instead of manufacturing –  a trend he termed “premature deindustrialization,” adversely affecting youth employment, export diversification and long-term productivity.

He stressed that modern exports were increasingly driven by capabilities and innovation, underscoring the need for human capital development and technical skills.

He emphasized that industrial policy must move beyond short-term subsidies to focus on productivity, technological upgrading, workforce training, strategic sector support and integration into global value chains.

Earlier, Dr Amjad Masood, Chief of Research and Director CEI at PIDE, said sustainable growth depends on a competitive industrial base aligned with global standards and supply chains.

The seminar concluded with an interactive discussion on industrial policy, technology adoption and pathways to a more competitive and diversified economy.