The manufacturing sector is of great importance for the economic development of every country. In Pakistan the contribution to GDP of the manufacturing sector over the past three decades has not grown measurably. A vibrant manufacturing sector entails a move from static to high productivity activities, and will contribute towards GDP growth as well as generating employment. This paper reviews the performance of Pakistan’s manufacturing sector and highlights its importance in economic development of the country and analyses the reasons behind the sectors apparent lack of competitiveness. It also discusses the standing of the Pakistani manufacturing sector and its capability of producing high-tech products and its share in the global export. Data provided by GEM Pakistan has been analyzed, that leads to suggest optimizing the Pakistani manufacturing sectors approach.