Abstract
Input–Output analysis was used to measure the net import substitution in the food and fibre and manufacturing sectors of Pakistan's economy. The imports were split into competitive and complementary imports to measure the net import substitution rather than the conventional import substitution. The study has revealed that the food and fibre and manufacturing sectors of Pakistan have positively contributed directly and indirectly to foreign exchange savings worth US$979 million per annum on average as a result of import substitution of both competitive and complementary imports.