Pakistan’s growth strategy for the economy, as outlined in the 2011 framework for economic growth, calls for reinvigorating the industrial sector and increasing exports. The industrial structure of the country has not experienced any significant changes in the past thirty years. Inadequate industrial environmental performance is an important contributor to the weak export performance of Pakistan’s industrial sectors. The relationship between Pakistan’s goals for industrial expansion and export growth and the environmental performance of Pakistani firms is the central theme of this report, which is framed as follows: Pakistan’s industry is outdated and risks losing markets at a time when it may have the opportunity to occupy the space being left by manufacturing giants like China. This report is organized as follows: chapter two sets the stage for the remaining chapters by discussing the relationships between industrial development and environmental degradation in Pakistan. Chapter three summarizes empirically established linkages between environmental performance and export competitiveness, and 14,001 by firms surveyed as part of this Non-Lending Technical Assistance (NLTA). Chapter four analyzes the institutional, regulatory, and firm-level impediments to improved environmental performance, including barriers to cleaner production. Chapter five evaluates the effectiveness of current Cleaner Production (CP) initiatives carried out by Pakistan’s cleaner production centers, and Chapter six recommends potential interventions that could be undertaken by the Government of Pakistan to maintain and enhance the competiveness of Pakistan’s firms by improving their environmental performance.