Growth of Manufacturing Employment in Pakistan: A Comparative Analysis of Punjab and Sindh (Preliminary Results)

Provincial economic disparities in Pakistan are often discussed in political circles. Recently, these disparities have also caught the attention of economic planners. I However, very few professional studies have analysed the issue due to paucity of inter-provincial data. Moreover, the existing studies base their analysis on cross-sectional data obtained from various sources and cannot be used to analyse disparities in economic growth and its sources.2 The purpose of present paper is to provide an initial contribution to the analysis of provincial economic changes in Pakistan. Employment growths in the manufacturing sectors of Punjab and Sindh are analysed for the period 1980-87. Regional differences in employment growth are usually attributed to differences in industrial structure and also to differential impacts of regional-specific influences (infra-structure, policies, political situation, etc.) that determine competitiveness of a region. The present study analyses these two components of growth for Sindh and Punjab in order to explain differential growth in these provinces. Such an analysis is useful for provincial planning as it may help plan for a balanced growth.