Question

Read the table given below carefully :

Annual Growth of Gross Domestic Product (%), 1980 – 2017

Country	1980 – 90	2015 – 2017
India	5.7	7.3
China	10.3	6.8
Pakistan	6.3	5.3

Elaborate the reasons behind the decline in the growth rate of Gross Domestic Product of Pakistan over the given period of time.

Hint:

Read the fall from 6.3% to 5.3%. Then give reasons: reform processes, political instability, weather-dependent agriculture, and dependence on remittances and foreign aid.

Answer 1

Step 1: Read the table:
The table gives the annual GDP growth rate of three countries in two periods.
India grew at 5.7% in 1980-90 and 7.3% in 2015-17, so it improved.
China fell from 10.3% to 6.8%. Pakistan fell from 6.3% to 5.3%.
So the growth rate of Pakistan declined by 1 percentage point over the period.

Step 2: Reform processes:
Some scholars link the fall to the reform processes that Pakistan introduced from the late 1980s.
These changes in economic policy did not produce the steady growth that was expected.
The gains of earlier years could not be sustained, so the rate slowed down.

Step 3: Prolonged political instability:
Pakistan faced long spells of political unrest and unstable governments.
Policies kept changing and investors lost confidence.
Less investment means less output, so the growth rate fell.

Step 4: Dependence of agriculture on weather:
Agricultural growth and food production stayed dependent on good weather.
There was no steady technological progress in farming.
In a bad year, output and GDP fall sharply, which pulls the average growth down.

Step 5: Dependence on remittances and foreign aid:
Pakistan relied heavily on money sent by its workers abroad and on foreign aid.
Such inflows are uncertain and do not build its own productive base.
This excessive dependence held back its economic growth.

Final Answer:
Pakistan GDP growth fell from 6.3% to 5.3% mainly because of the reform processes, prolonged political instability, weather-dependent agriculture and excessive dependence on remittances and foreign aid.