Contrary to neoclassical political economic assumptions, this paper argues that the processes of post-colonial development are embedded within conflict across class lines, and that the state has a central role in mediating these conflicts. In other terms, post-colonial capitalist development immanently produces winners and losers in a society. The Marxian-institutional framework is employed to capture the interplay of class forces and institutions in mediating development outcomes. In addition to formal institutions, this paper also acknowledges the centrality of informal institutions in mutually determining development outcomes in post-colonial societies. For an empirical case study, this paper looks at the historical evolution of Pakistan’s economy since its inception in 1947. The post-colonial development in Pakistan is divided into five distinct regimes of growth and distribution. This paper delineates the modalities of interplay between social classes and institutions in mediating processes of post-colonial development in Pakistan.