Examination of structural change at the sectoral level, i.e. relationship between agriculture, manufacturing and services, is a familiar exercise. However, limited attention Is paid to a detailed examination of the dynamics of structural change, particularly in the manufacturing sector. Possibly, inadequate data, coupled with a limited industrial base, have not generated sufficient interest for examining the structural changes within the manufacturing sector. We have a tendency to treat the manufacturing sector either at an aggregate macro level or at a very limited level covering only a few industries. The limitations responsible for this approach are understandable and by no means overcome. However, since with time the industrial base in Pakistan has widened and the data provided by the Census of Manufacturing Industries improved, though by no means perfected, it is time for greater emphasis on studying the dynamics of the manufacturing sector to get a deeper understanding of its behaviour, trends and directions. This study is a limited effort in that direction.