Thanks nick for your input.
Pakistan's way of doing things, in almost everything is very similar to India, in almost every field.
But.. India has one competitive advantage, huge Market coupled with reversal of Brain drain from countries like USA.
Many Indians are returning from USA and applying American Business model in all the fields. The free market reforms, in the 1990s, also helped.
What Pakistan needs to do, is upgrage their traditional way doing the business. Ditch the Desi Style and adopting the regional countries style of business. And instead go to the Main Source, USA, and adopt American Business management techniques.
Hire American Graduates of MBA and other fields. Their are thousands of Pakistanis in USA in responsible fields, and if enough encouragement is given, along with establishment of Industrial Parks, proper schooling for the children of those employees, etc. then the Expats will definately be attracted to immigrate back to their own countries of origin.
Good news is that, government is already working on some industrial parks. Sundar Industrial park in Lahore is one example, another one in Gawadar being developed is also another good step.
More industrial clusters and parks need to be established, specially along the Motorway networks which are also being expanded.
Their is always some hope....
Lets pray the progress continues and our country keeps developing, despite the challenges it faces today. But again, which country is 100% challenge free. Definately not USA, neither any countries in EU, nor is China, neighter India or any country. All have their set of challenges, and Pakistan is not unique in its set of challenges. Its all part of life, and makes it more interesting. 
