question_answer 6)

Describe the path of developmental initiatives taken by Pakistan for its economic development.

Answer:

The following points describe the path of developmental initiatives taken by Pakistan for its economic development (i) Pakistan follows the mixed, economy model with co-existence of public and private sectors (ii) In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework (for import substitution industrialisation). The policy combined tariff protection for manufacturing of consumer goods together with direct import controls on competing imports. (iii) Green revolution led to a rise in the production of food grain as a result of mechanisation and increase in public investment infrastructure. (iv) Nationalisation of capital goods industries took place in the 1970s. (v) In the late 1970s and 1980s, Pakistan shifted its policy orientation towards denationalization and encouragement to private sector. (vi) During 1980s, Pakistan also received financial support from Western nations and remittances from continuously increasing outflow of emigrants to the Middle-East which helped the country in stimulating economic growth. (vii) Then, government offered incentives to the private, sector for providing a conducive climate for new investments. (viii) In 1988, reforms were initiated in the country.