It has to be remembered that despite being endowed with vast natural resources, there is little similarity between the political power setup of India - the largest democracy of the world which is wedded to a secular and deeply liberal Constitution for more than half a century, and the militarist political power structure of Pakistan or the command economy of China that has only recently started moving towards a democratic system and more liberal economic restructuring respectively. However, India, Pakistan and China have many similarities in their developmental strategies? All the three nations have started towards their developmental path at the same time. While India and Pakistan became independent nations in 1947, People’s Republic of China was established in 1949.

All three countries had started planning their development strategies in similar ways. While India announced its first Five Year Plan for 1951–56, Pakistan announced its first five year plan, now called the Medium Term Development Plan, in 1956. China announced its First Five Year Plan in 1953. India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development. Till the 1980s, all the three countries had similar growth rates and per capita incomes.

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

Statement 1: In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework (for import substitution-based industrialisation).   

Statement 2: Pakistan shifted its policy orientation in the late 1980s and 1990s when the major thrust areas were denationalisation and encouragement of private sector.    

Only Statement 1 is correct.

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

Statement 1: In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework (for import substitution-based industrialisation). This is correct.

Statement 2: Pakistan shifted its policy orientation in the late 1980s and 1990s when the major thrust areas were denationalisation and encouragement of private sector. This is false. Pakistan shifted its policy orientation in the late 1970s and 1980s when the major thrust areas were denationalisation and encouragement of private sector.

"While looking at various economic policies that Pakistan adopted, we can notice many similarities with India. 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."