Question

Briefly and objectively compare and contrast patterns of industrial growth during 1950s, 1960s and 1970s. (There is no need of statistical tables)
b-   The period of 1960s is considered golden period of industrial growth in Pakistan. Highlight the industrial achievements during this period. What if the present government pursues the industrial policies of 1960s will or will not these help in achieving industrial growth objectives. Argue

Answer 1

a). Industrial growth in Pakistan during three decades 1950s, 60s and 70s can be summarised as follows:

• During 1950s, Pakistan focused on import substitution and closely monitored all the imports of the counrty due to which it achieved self-sufficiency in cptton textiles. It also introduced the policy of export vouchers i.e. some goods can be imported without any tax by an exporter to promote the import of industrial machinery, capital to the country. This helped to began the process of industrialisation in Pakistan. Korean War, also helped to assemble huge chunks of profit by both public and private enterprises of Pakistan which served as industrial capital in 1950s.

Therefore, during 1950s industrial growth began in Pakistan having an economic growth of 3.1%.

• During 1960s, the rate of industrial growth began at a much faster pace in Pakistan. During this period Pakistan received foreign aid from America that helped in bringing the industrial growth to frontline. Mechanization of agricultral production process began. Manufacturing industry grew at the rate of 16% during 1960-1965. Protection to domestic industry were provided from imports and subsidies for exporters. Pakistan achieved an annual growth of 6.7% during 1960-70.

This period ws the golden period of industrial growth in Pakistan.

• During 1970s, Pakistan's industrial growth lowered down beacuse of the economic disparity between West Pakistan and East Pakistan (which later became Bangladesh). Oil prices increased Pakistan's import bills, failure of crops, huge floods, incresed inflation, trade deficits , great recession put up the industrial growth on the backfront.

Therefore, during 1970s, Pakistan's industrial growth faced worst times.

b). 1960s was called as the golden period of industrial growth in Pakistan.

Major achievements duing this period were:

1. Mechanization of agricultural production process took place.

2. Manufacturing industry grew at 16% during 1960-65.

3. American flow of funds helped in beginning industrialisation.

4. Domestic industry grew due to protection from imports.

5. Exports grew due to incentive of subsidies for exporters.

Yes, the adoption of these policies will help the government of Pakistan to achieve industrial growth as were adopted in 1960s. Collection of funds from foreign countries like America could provide the foreign capital which would pave the way for industrial capital and also help in Globalisation. Import-substitution will help achieve self-sufficiency and promote foreign trade and trade surplus.