Low productivity levels in manufacturing coupled with low levels of trade openness and high tariffs on imported inputs have resulted in a vicious cycle involving low export growth. According to data extracted from the World Development Indicators, Pakistan performs better in agricultural productivity (value added per worker) within the South Asian region. Productivity levels in the services sector for each worker in Pakistan are lower than India but higher than Bangladesh. The lower average growth rate for GDP per capita in the previous decade exemplifies the stagnancy in productivity in Pakistan. Pakistan reported lower levels of exports and imports as a percentage of GDP, on average, relative to India and Bangladesh.

Source: The Express Tribune October 19, 2020 03:45 UTC