This paper quantifies the trend in TFP in Pakistan over the 25 years period, 1972-73 and 1997- 98. This leads to the conclusion that a significant part of the decline in growth rate during the decade of the 90s is also due to a slowing down of the growth in TFP and not just because of a lower level of investment in the economy. The paper then attempts to answer the following questions: Is the phenomenon of stagnation in TFP observed in all sectors of the economy? What are the causative factors behind the loss of growth momentum in TFP?