Question

Pakistan, like most countries, import considerable amount of goods and services produced in other countries. On the contrary, economic theory says, a high living standard is the result of increase in country’s production of goods and services. Can you reconcile these two facts?

Answer 1

Yes, it is true that Pakistan import from other countries.

And according to economics theory high living standard is the result of increase in country's production of goods and services is also absolutely true.

It is very easy to reconcile these two events.

As we know that Pakistan is a developing country that it is going through the phase of development,

and when country is passing through the stage of development it has two input from the other countries because its own resources are not sufficient for its development .

Infact not only the developing countries but also developed countries import from the other countries.

the main reason behind the import and export from the other nation is to take the advantages of specialisation. There are chances that an nation X is more specialised in the production of good A, and a nation Y is more specialised in the production of good B.

It doesn't matter that nation x or y is developing or developed. Both the nation will import or export from each other to enhance their productivity.