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

Question

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Solution

The developmental initiatives taken by Pakistan for its economic development are:

Pakistan follows the mixed economy model with co-existence of public and private sectors.
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.
Green Revolution led to mechanisation and increase in public investment in infrastructure in select areas, which finally led to a rise in the production of foodgrains.
Nationalisation of capital goods industries took place in the 1970s.
Pakistan shifted its policy orientation in the late 1970s and 1980s when the major thrust areas were denationalisation and encouragement to private sector.
During this period, Pakistan also received financial support from western nations and remittances from continuously increasing outflow of emigrants to the Middle-east that helped the country in stimulating economic growth.
All this created a conducive climate for new investments. In 1988, reforms were initiated in the country.

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