1.

Give reasons for the slow growth and re-emergence of poverty in Pakistan?

Answer»

Reasons for the slow growth and re-emergence of poverty in Pakistan:

1. Political instability:

Scholars are of opinion that one of the reasons of slow growth and re-emergence of poverty in Pakistan is political instability, there is more expenditure in maintaining’law and order.

2. Dependence on foreign loan: 

There is growing dependence or foreign loan. It faces much difficulty in the repayment of loan and interest thereon.

3. Fall in foreign exchange earnings:

In Pakistan, most foreign exchange earnings came from remittances from Pakistani workers in the middle East and the exports of highly volatile agricultural products. Now there was fall in foreign exchange remittances.

4. Agricultural growth based on good harvest: 

In Pakistan agricultural growth and food – supply situation were based on good harvest. They were not based on an institutional process of technical change. So when there was a good harvest, the economy was in good condition, but when it was not in good condition, the economic indicators showed stagnation or negative trends.

5. Too many expenses on defence:

In order to alleviate poverty, more Public expenditure should be incurred for the development of a country. But Pakistan spends a huge amount on defence.



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