Report by Engineering Post
The Economic Complexity Index (ECI) ranks Pakistan as a lower -middle income country, with the economy becoming less complex over the past decade due to stagnant or declining export diversification.
Lack of structural transformation and limited growth in high-productivity sectors like electronics and machinery hinder income growth, necessitating a parsimonious industrial policy approach and strategic investments to ECI and promote export diversification.
In order to overcome the challenges, Pakistan has to focus on a parsimonious industrial policy approach along with strategic bets to increase ECI and address the bottlenecks to help short distances into related products. The low hanging fruits should be kept in the basket through diversification in the existing product lines for the domestic and international markets.
Furthermore, Innovation Development of Entrepreneurship (IDEs utilizes digital strategies to enhance startups and existing businesses, enabling them to adapt to the global demand and expand market reach.
Despite strides made by Pakistani Small and Medium Enterprises (SMEs) and startups in innovation, there was a need to improve the digital skills to fully tap into e-commerce opportunities. In order to succeed in the international markets, businesses must ensure quality standards and embrace technology, focusing on Information and Communication Technologies (ICT) adoption and innovation.
