In Pakistan, the reform process led to worsening of all economic indicators. The growth rate of GDP met with a drastic decline at 3.6 percent in the last decade from 6.3 percent in 1980-90. The proportion of the poor in 1960s was more than 40 percent which declined to 25 percent in 1980s but has re-emerged since then. The reasons for the slow growth and re-emergence of poverty in Pakistan's economy are:

1. Agricultural growth and availability of food is dependent on good harvest, subject to good climatic conditions, and not technological progress.
2. Weak world demand for its exports has contributed to Pakistan's high trade deficit. External imbalance has left Pakistan with a growing foreign debt burden which it is finding difficult to pay.