Discuss the main reasons responsible for the emergence of poverty in Pakistan.
Answers
Answer:
The following are the main reasons for the stow growth and re-emergence of poverty in Pakistan.
(i) Lack of Proper Planning The main cause .behind the slow economic growth in Pakistan is the lack of proper planning in the economy. Pakistan relied largely on the policy of protection by assigning central role to the Public Sector Enter prices. The operational inefficiencies of the system along with the misallocation of scarce resources resulted in slow economic growth rate arid poverty.
(ii) Traditional Agricultural Practices The agricultural practices in Pakistan were not modernised and there remained heavy dependence on rainfall and traditional methods of farming, thereby reducing agricultural productivity and output.
(iii) Slow Industrial Growth The manufacturing sector in Pakistan could not grow at a sufficient pace due to low efficiency and productivity, This can be regarded as one of the reasons for the slow economic growth.
(iv) Debt Trap There was an increasing dependence on foreign logins in Pakistan and repayment of these loans became difficult. New loans were taken to repay older ones and thus interest obligations mounted over the years.
(v) Political Instability The political instability in Pakistan fed to breakdown of law and order machinery in the country and severely impacted the country's economic resources as business could not flourish in such uncertainties.
(vi) Low Foreign Investment Pakistan failed to attract any substantial amount of foreign investment due to political instability, lack of international credibility and infrastructure bottlenecks.