ECO610 Midterm Questions and Answers

ECO 610

Mid-tErM PrEParatiOn

Q1. What characterized the economic conditions in Pakistan from 1947 to 1958?

A1: Newly independent nation with little industry, few services, and no manufacturing. Decade of management and planning, with attempts to keep Pakistan on its feet through economic policy and planning. State sector dominant as the private sector was underdeveloped. Mercantile class benefited from windfall gains during and after the Korean War.

Q2. What were the key features of economic development during Ayub Khan's era from 1958 to 1968?

A2: Ayub Khan's era saw high growth rates in all sectors, exceeding 20% per annum. The economy followed a capitalist model, with a significant role for the private sector. However, controversial economic policies led to income inequality, with 5 million people falling below the poverty line. The exchange rate was overvalued.

Q3. What were the major challenges during the "bad luck years" from 1971 to 1977?

A3: The "bad luck years" under Zulfiqar Ali Bhutto's era experienced illiberal economic policies, leading to a significant downward trend in growth. Challenges included deindustrialization, privatization, inflation, and the partition of East Pakistan.

Q4. What characterized Zia Ul Haq's era from 1977 to 1988?

A4: Zia Ul Haq's era was marked by a growth of state-sponsored religious traditionalism. It featured a technocracy and introduced strict Islamic law in 1978. The trend of liberalizing the economy was escalated, aided by the Soviet invasion of Afghanistan and excessive involvement of the USA. Middle Eastern aid and foreign assistance helped launch Pakistan's second economic revolution.

Q5. What were the key features of the third democratic era in Pakistan from 1988 to 1999?

A5: Democracy was restored in 1988 after General Zia-ul-Haq's death. Elected civilian governments, headed by Benazir Bhutto and Nawaz Sharif, ruled Pakistan. The era introduced a parliamentary system and two-party democracy. Under Nawaz Sharif's leadership, Pakistan became a nuclear power.

Q6. What were the major developments and challenges during Musharraf's rule from 1999 to 2007?

A6: General Pervez Musharraf took control in 1999 and witnessed overall economic growth in all sectors. However, the positive trends were not sustained for an extended period. Musharraf's economic policies led to short-term growth. Economic indicators of failure from 2000 to 2003 included high illiteracy rates, poverty, limited access to health services, safe water, sanitation, and malnourished children.

Q7. What characterized the fourth democratic era in Pakistan from 2008 to the present?

A7: Asif Ali Zardari of the Peoples Party was elected President in 2008. The era saw an increase in external debts, but economic growth declined from 7% in 2006-07 to 4% in 2009-10. Procrastination in probing corruption charges by the Prime Minister led to political challenges.

Q: What is the objective of land reforms?

A: To change the pattern of land possession and redistribute land between landless/small landowners and large landowners.

Q: What were the features of the 1959 Land Reforms in Pakistan?

A: The features included a ceiling on landholdings, permanent ownership for tenants, compensation for land resumption, and the sale of resumed land to landless tenants.

Q: When did the Green Revolution occur in Pakistan?

A: The Green Revolution occurred in the mid-1960s.

Q: What were the main components of the Green Revolution in Pakistan?

A: The main components were the introduction of high-yield variety seeds, chemical fertilizers, and pesticides to increase agricultural productivity.

Q: What were the issues associated with tube wells in the Green Revolution?

A: The issues included concentration in Punjab, ownership by large landowners, and the need for public subsidies.

Q: What is the significance of the Agriculture sector in Pakistan's economy?

A: The agriculture sector is the second largest sector of Pakistan's economy, contributing around 20% to the GDP and employing 42.3% of the labor force. It also serves as a supplier of raw materials to industries such as textiles and sugar.

Q1. What is the significance of the Green Revolution in Pakistan's agriculture sector? A1: The Green Revolution in Pakistan's agriculture sector brought about a significant increase in agricultural productivity through the introduction of high-yield varieties of seeds, chemical fertilizers, and pesticides. This resulted in economic, social, and political changes in the country.

Q2. What were the major issues that arose as a result of the Green Revolution in Pakistan? A2: The major issues that arose as a result of the Green Revolution in Pakistan were the concentration of tube wells and mechanization (tractors) in Punjab, regional and income disparities in access to resources and credit, and the limited benefits reaching small farmers and landless peasants.

Q3. What are land reforms and what were their objectives in Pakistan? A3: Land reforms refer to changes in the pattern of land ownership and distribution to address issues of land concentration. In Pakistan, land reforms were implemented to put ceilings on landholdings, redistribute land from large landowners to landless/small landowners, and regulate tenancy arrangements.

Q4. What were the key features of the 1959 Land Reforms in Pakistan? A4: The key features of the 1959 Land Reforms in Pakistan included the establishment of a ceiling on landholdings (500 acres irrigated, 1000 acres unirrigated), granting permanent ownership to occupants, compensation for resumed land, and the sale of resumed land to landless tenants.

Q5. What were the main objectives of the 1972 and 1977 Land Reforms in Pakistan? A5: The main objectives of the 1972 and 1977 Land Reforms in Pakistan were to further reduce land concentration, provide security of tenure to tenants, abolish intermediaries, and ensure equitable distribution of land resources.

Q.What was stated in the Industrial Policy of 1948?

" The most striking feature of Pakistan's present economy is the marked contrast between its vast natural resources and its extreme industrial backwardness." Q. What were the objectives of industrialization during 1947-1958?

To manufacture products from Pakistan's own raw materials and meet the domestic demand for consumer goods. Q. How did the exchange rate and trade policies affect industrialization?