Question

State and discuss any two reasons for slow economic growth in Pakistan.

Hint:

Both India and Pakistan began with similar goals but diverged in performance due to differences in institutional stability, policy implementation, and investment in human capital.

Answer 1

Pakistan’s economic growth has faced several setbacks over the decades due to structural and institutional weaknesses. Two significant reasons for this slow economic growth are:
Political Instability and Military Influence: Pakistan has faced frequent political upheavals, military rule, and weak democratic institutions. This instability led to inconsistent policies, poor governance, and lack of long-term planning, which adversely affected economic progress.
Over-dependence on Remittances and Aid: Pakistan has heavily relied on foreign aid and remittances from abroad, instead of building a robust industrial and agricultural base. This dependence has led to a consumption-driven economy rather than investment in productive sectors, resulting in slower and unsustainable growth.
These factors combined with poor infrastructure, low literacy levels, and inadequate investment in human capital have further constrained Pakistan’s economic development.