Pakistan 's economy has shown an impressive 7% GDP growth in the year 2007. Manufacturing, the second largest sector of Pakistan 's economy in terms of output and employment, grew by 8.4% this year. Large scale manufacturing (LSM) which accounts for nearly 70% of the overall manufacturing grew by 8.8% whereas the Small Scale Manufacturing (SSM) grew by 8.1% in the year 2006-07.

Due to the increase in demand for sophisticated machinery, the government has allowed duty free import of raw material, sub components, components assemblies for manufacturers & assemblers. Total import bill of machinery stands at $2.195 billion in the current fiscal year which is 12.77% higher than that of the preceding year.

The impressive growth in the machine tools and automation sector is directly proportional to the growth of the automotive industry which has become the fastest growing industry of Pakistan and contributes $3.6 billion annually to the country's GDP.

The government aims to increase the share of engineering sector to 30% by the year 2012. Thus, Pakistan will possess a well-established base to either produce or import engineering parts and components.