Despite lack of a coastline, Punjab is the most industrialized province of Pakistan; its manufacturing industries produce textiles, sports goods, machinery, electrical appliances, surgical instruments, metals, bicycles and rickshaws, floor coverings, and processed foods. In 2003, the province manufactured 90% of the paper and paper boards, 71% of the fertilizers, 65% of the sugar and 40% of the cement of Pakistan.

Despite its dry climate, extensive irrigation makes it a rich agricultural region. Its canal-irrigation system established by the British is the largest in the world. Wheat and cotton are the largest crops. Other crops include rice, sugarcane, millet, corn, oilseeds, pulses, fruits, and vegetables. Livestock and poultry production are also important.

The province is playing also a leading role in agricultural production. It contributes about 68% to annual food grain production in the country. 51 million acres (210,000 km²) is cultivated and another 9.05 million acres (36,600 km²) are lying as cultivable waste in different parts of the province.

Cotton and rice are important crops. They are the cash crops that contribute substantially to the national exchequer. Attaining self-sufficiency in agriculture has shifted the focus of the strategies towards small and medium farming, stress on barani areas, farms-to-market roads, electrification for tube-wells and control of water logging and salinity.

Punjab has also more than 48 thousand industrial units. The small and cottage industries are in abundance. There are 39,033 small and cottage industrial units. The number of textile units is 11,820. The ginning industries are 6,778. There are 6,355 units for processing of agricultural raw materials including food and feed industries.

Lahore and Gujranwala Divisions have the largest concentration of small light engineering units. The district of Sialkot excels in sports goods, surgical instruments and cutlery goods.

Punjab is also a mineral rich province with extensive mineral deposits of coal, rock salt, dolomite, gypsum, and silica-sand. The Punjab Mineral Development Corporation is running over a dozen economically viable projects.