Give reasons for the slow growth and re-emergence of poverty in Pakistan.
The proportion of poor in Pakistan was more than 40 per cent in the 1960s, which declined to 25 per cent in the 1980s, but started rising again in recent decades, indicating the re-emergence of poverty.
One major reason for slow growth is that agricultural growth and food supply were not based on an institutionalised process of technical change but on good harvests. When there was a good harvest, the economy was in good condition; when it was not, economic indicators showed stagnation or negative trends.
Another significant factor is political instability over a long period, which has hindered consistent economic development. Scholars hold this as one of the key reasons behind the declining growth rate in Pakistan.
The reform processes introduced in Pakistan also contributed to the problem. Scholars argue that the reform process led to worsening of all economic indicators. Compared to the 1980s, the growth rate of GDP and its sectoral constituents have not yet improved.
Additionally, there is over-dependence on remittances and foreign aid along with the volatile performance of the agriculture sector, which together have caused the slowdown of Pakistan's economy.
Explanation
The textbook provides multiple reasons for Pakistan's economic challenges: (1) agricultural dependence on good harvests rather than institutionalised technical change, (2) political instability, (3) failure of reform processes to improve economic indicators, and (4) over-dependence on remittances and foreign aid. Students should present these points systematically with key terms highlighted.