Abstract
The automotive industry is considered to hold the key to successful development agendas as it has been responsible for rapid transformation of economies. Considering the state of the industrial sector that Pakistan inherited at the time of independence, the automotive industry has grown by leaps and bounds in more than half a century. However technological prowess and competitiveness has eluded the industry for the most part. The burning question for development planners in Pakistan is to determine the state of the industry, and to identify where success has been achieved and what bottlenecks still exist. This paper aims to address these issues by examining the development of technological capabilities and competitiveness of domestic component manufacturers based on an extensive industry level survey conducted by JICA. We conclude that industry performance is plagued with low levels of productivity and quality. These bottlenecks will need to be addressed to allow the industry to achieve its full potential and drive development of the domestic economy.
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