You're right, we don't make anything now and there's a big reason for that which you missed. Absence of capital. Without that, nothing is created in large numbers - enough for meeting our country's own needs (which will reduce import dependency) or for exports. Unless that is fixed, we can just keep on moving in circles in that debt trap towards oblivion.
Now the issue is why there's no capital investment & large scale production? Why the available capital reduced over the years? 2 major reasons: a) lack of Foreign Direct Investment (FDI) from foreign investors or large corporations globally. and b) lack of capital injection by local businessmen and investors.
FDI is one of the major reasons responsible for countries progress towards economic development. There are examples of countries which flourished by leaps and bounds due to globalization. India is one such example. Its economy was underdeveloped in 90s and its GDP per capita was even lower than Pakistan. However in 90s Narasimha Rao and Manmohan Singh opened up their economy and the advent of global firms and FDI skyrocketed the economy to where it is standing now. We are going in opposite direction however. By 90s, we had a number of foreign banks in Pakistan including Citibank, ABN AMRO, ANZ Grindlays, Emirates, Credit Suisse, Deustche Bank, HSBC, Indosuez, Credit Agricole, Bank of America etc, but one by one all of them left the country due to the direction it took towards extremism and economic/political instability. Same is the case with other MNCs operating in Pakistan including giants like ICI or Caltex. The remaining ones will also leave if nothing is done to attract FDI.
Secondly, our local investors are no longer investing their capital in setting up plants and industries. They have been provided with a much much lucrative option of real estate investment. At present the whole country, whether it's common man or the elites, the industrialist, feudal or bureaucrats, politicians, civilian or armed forces, literally everyone is investing their capital in real estate in hope of making quick returns rather than investing in manufacturing plants. Since last 2 decades, especially after 2005, all the big industrialist groups of Pakistan have been actively investing in large scale housing schemes across the country as that has given them far greater tax free returns on capital compared to 15% or 20% return generated on industry or companies on which they have to give sales and income taxes to Govt as well.
To make matter worse, all our political parties since 2009 have also given them amnesty schemes or so called 'construction packages' one after another after every 2-3 years to whiten their black money and park all their capital in real estate. The result is acute shortage of necessary goods production in the country and resultantly we have to meet everything through imports. The agricultural properties from which we used to generate valuable crops like Wheat, pulses etc have been converted into housing schemes and we are happily importing wheat, cotton, pulses, fruits and other food items. The end result is sky rocketing trade deficit as gap of our imports with exports and remittances keeps on increasing every year.
The solution is quite obvious then: Attract FDI and do all you can to make Pakistan an investment friendly country. Privatize your sick or highly inefficient state owned enterprises that are bleeding a lot of money every year. And most importantly make strategies to de-incentivize the huge investment in real estate by properly taxing the assets and profits earned from real estate (at par with 35% income taxes levied on salaried class or corporations!) so that the capital by large groups is routed back to industries that produce goods and generate employment for masses. However, all that is solely dependent on the will of the decision makers and there is huge conflict of interest of all stakeholders / decision makers to do the latter. Hence, there's little hope of these much needed reforms.