Over the last 10 to 15 years, Pakistan has taken concerted efforts to liberalize its international trade. Net exports have been the key driving force behind restoration of growth, but increased consumption and investment have also played a part. Total exports responded favorably to liberalization, rising from US$6.7 billion in 1992 to US$9.1 billion in 2002. Manufacturing makes up 16 percent of Pakistan’s GDP, while its exports rose from US$3.6 billion in 1992 to US$5.3 billion by 2002 (World Bank, 2006). Real GDP growth rose from four percent in 1990 to 6.1 percent in 2003 (Lorie and Iqbal, 2005). Following three years of steady decline during 1998 to 2000, the period 2001 to 2005 witnessed significant economic growth.