After India's independence, major focus of the government was to make India self-reliant. But in the year 1991, nation faced a huge financial crisis which was settled by introducing "Economic reforms,1991". In order to engage in trade practises with other countries, foreign exchange plays an important role. If a country depletes its foreign currency reserves, and no other country is willing to accept its currency abroad, the only option left to the country facing the crisis is to borrow from abroad. This was the situation of India in the year 1991, to which Indian government responded by changing its economic policies drastically. If we talk about China, the present day fast industrial growth in China can be traced back to the reforms introduced in 1978. China introduced reforms in phases. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. In the later phase, reforms were initiated in the industrial sector. Also, special economic zones were set up in order to attract foreign investors.

Given below are some statements. Read them carefully and choose the correct statement (s) from the given options.

Statement 1: Pakistan also follows the mixed economy model with co-existence of public and private sectors. 

Statement 2: In the 1960s, nationalisation of capital goods industries took place in Pakistan.  
 

Only Statement 1 is correct.

The correct answer is Option 1: Only Statement 1 is correct.

Statement 1: Pakistan also follows the mixed economy model with co-existence of public and private sectors. This is true.

Statement 2: In the 1960s, nationalisation of capital goods industries took place in Pakistan. This is false. In the 1970s, nationalisation of capital goods industries took place in Pakistan.