Policy Brief 15/03/2024
Productivity is fundamental to a nation’s economic development. The United Nations
Conference on Trade and Development (UNCTAD) has developed the Productive Capacities
Index (PCI) covering 192 countries, which serves as a blueprint for stimulating economic
growth by identifying and addressing areas of improvement. This analysis emphasizes the
imperative of incorporating key indicators and metrics for a more exhaustive evaluation of
productive capacities. The exclusion of essential factors may lead to a reduction in the
precision of the PCI. Specifically, Pakistan’s placement at 156th in the index could see a
significant adjustment with the inclusion of the proposed indicators, thereby providing a more
accurate representation of its economic capabilities. The core argument of this paper is that
an integrated and comprehensive method of assessing productive capacities is crucial for
enhancing the accuracy and utility of the index, thereby enabling more targeted and effective
economic policies and interventions.
Conference on Trade and Development (UNCTAD) has developed the Productive Capacities
Index (PCI) covering 192 countries, which serves as a blueprint for stimulating economic
growth by identifying and addressing areas of improvement. This analysis emphasizes the
imperative of incorporating key indicators and metrics for a more exhaustive evaluation of
productive capacities. The exclusion of essential factors may lead to a reduction in the
precision of the PCI. Specifically, Pakistan’s placement at 156th in the index could see a
significant adjustment with the inclusion of the proposed indicators, thereby providing a more
accurate representation of its economic capabilities. The core argument of this paper is that
an integrated and comprehensive method of assessing productive capacities is crucial for
enhancing the accuracy and utility of the index, thereby enabling more targeted and effective
economic policies and interventions.
