Poor performance in manufacturing in Pakistan is due to technological obsolescence, low level of technological capabilities and poor technology climate. Development of such capabilities will not occur if left to market forces alone and will only be possible through the formulation and implementation of an up-gradation strategy based on strategic framework. This research, therefore establishes the need for such a strategy based on framework for up-gradation of industrial technology in Pakistan. Such strategy also stresses the need for Pakistan’s economy to also include within it important structural changes which other developing countries and newly industrialized countries have already embraced. In this regard the research highlights the need for Pakistan’s industrial sector to focus more on Medium, High Tech and R&D based manufactures. This research has also identified the targeted sectors using porter’s diamond analysis tool. The targeted sectors include; Low Technology (Ceramics), medium Technology Engineering (Automobile) and high Technology (Electronics) industries. Identification and critical analysis of various technological capabilities and supportive technology climate based on the targeted sectors, universities and R & D institutions in Pakistan has been carried out. Strategic framework based on three perspectives, each with three elements, representing technological capabilities and supportive technology climate has been established in this research. The framework includes; Indigenous Technology Development Perspective Elements 1: General technology status / competence level capability of targeted sector/industry. Element 2: Linkage (Collaboration) Capability among the various technology using, creating Sand governing institutions. Element 3: Research/Innovative Capability (Technology creating capability) such as universities and R&D Institutions. Import of Foreign Technology Perspective Element 4: Technology Acquisition Capability xivElement 5: Technology Assimilations Capability Element 6: Technology Improvement Capability Supportive Technology Climate Perspective Element 7: Supportive Organizational Environment Element 8: Supportive Management Style Element 9: Supportive Government Role. Further research explores the need for Pakistan to develop all such capabilities. Empirical evidence on general technological status/ competence level, research/innovative capability, linkages capability and similarly on acquisition, assimilation and improvement capabilities indicators substantiated the claim that Pakistan has not yet developed these advance capabilities. In order to facilitate the capabilities building process, it is imperative for Pakistan to have in place an intelligent strategic framework followed by supportive technology institutional framework based on the strategy formulated in this research. The need for a supportive (fostering) technology climate to act as an enabling environment for the entire exercise in this research is also stressed. Whereas the empirical evidence indicates that the organizational environment in industries, universities and R&D institutions is highly individualistic, less ethical, hostile and run on corrupt practices. Similarly the management style is highly centralized, unparticipative, personalized and does not govern on established procedures. The evidence further explore that the government role is extremely unsupportive, dictatorial, obstructionist and does not play guiding and leading role for intelligent policy formulation and implementation. Based on the need establishment and strategic framework, recommendations and strategic directions for up-gradation of all capabilities along with supportive technology climate identified in the framework have been made in this research. Moreover, some macro-political, economic and cultural factors with special reference to developing countries and it implication for Pakistan has also been identified and deliberated, which influence this entire technology up-gradation exercise. The benefit of the up-gradation strategy based on strategic framework are established through a case study of an existing automotive vendor industry in Lahore, Pakistan, anticipating focused and sustained approach compared to string of random and undirected intervention for technology up-gradation in the past.