Analysis of economic development in Pakistan has
traditionally followed a "top-down" approach. This approach—that it
is the federation as a whole rather than the federating units that matter— is
so ingrained that even after 60 years of Pakistan's existence the authorities
do not produce official statistics of provincial GDPs, investment, and savings.
The importance of examining the differential growth of provinces can hardly be
exaggerated—a main reason for the breakup of Pakistan in 1971 was the issue of
income disparity between West and East Pakistan. A dearth of existing
literature on regional issues on the one hand, coupled with stark differences
across provinces on the other, motivates this study. The development of
provinces has to be studied, and measures to accelerate the growth of lagging
regions identified. This paper has tried to provide a framework for thinking
about the development of Pakistan's provinces. More specifically the objective
of this study is to employ a ‘bottom-up’ approach to analyzing development in
Pakistan, to formulate a development strategy and to suggest sectoral and other
relevant policies for the provinces. This paper is intended to highlight some
of the main issues and to bring together some key data and discussion that
might otherwise be difficult to access.