Arrange the following phases of Pakistan’s economic policy in the order in which they came:
(A) Denationalisation and encouragement of the private sector
(B) A regulated policy framework for import substitution-based industrialisation
(C) Initiation of economic reforms
(D) Nationalisation of capital goods industries
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B), (D), (A), (C)
Pakistan first protected new industries, then took key industries into state hands, then turned back towards the private sector, and finally began reforms.
(B) A regulated policy framework for import substitution-based industrialisation — This came first, in the late 1950s and 1960s: tariff protection and import controls to build industry at home.
(D) Nationalisation of capital goods industries — In the 1970s, capital goods industries were nationalised.
(A) Denationalisation and encouragement of the private sector — In the late 1970s and 1980s, the thrust moved to denationalisation and the private sector.
(C) Initiation of economic reforms — Reforms were initiated in 1988.
NCERT (2026-27): “8.2 Developmental Path—a Snapshot View … Pakistan also follows the mixed economy model with co-existence of public and private sectors. In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework (for import substitution-based industrialisation). The policy combined tariff protection for manufacturing of consumer goods together with direct import controls on competing imports. The introduction of Green Revolution led to mechanisation and increase in public investment in infrastructure in select areas, which finally led to a rise in the production of foodgrains. This changed the agrarian structure dramatically. In the 1970s, nationalisation of capital goods industries took place. Pakistan then shifted its policy orientation in the late 1970s and 1980s when the major thrust areas were denationalisation and encouragement of private sector. … In 1988, reforms were initiated in the country.” |