Firms, Entrepreneurship & Microfinance

Developing an Optimal Industrial Strategy in the Context of the China Pakistan Economic Corridor (CPEC)

Project members:
Azam Chaudhry, Lahore School of Economicsand
Theresa Chaudhry, Lahore School of Economics

Theresa Chaudhry and Azam Chaudhry (Lahore School) are developing the elements of an optimal industrial strategy for Pakistan. With industrial growth and exports stagnating in Pakistan, there is an urgent need to develop a coordinated industrial strategy. The researchers are working with Lahore School researchers and policy makers to develop an industrial strategy which has the following elements: (i) deciding on which sectors (and subsectors) to invest resources into, (ii) deciding the optimal location for planned industrial zones and special economic zones, (iii) determining the optimal location of industries in the context of CPEC, (iv) developing a coordinated trade strategy that helps promote higher value added exports and (v) determining the financing needs of the SMEs which make up most of the industrial clusters in Pakistan.