CHAP # 09: ECONOMIC PLANNING AND DEVELOPMENT IN THE ISLAMIC REPUBLIC OF PAKISTAN

CHAP # 09

ECONOMIC PLANNING AND DEVELOPMENT IN THE ISLAMIC

REPUBLIC OF PAKISTAN

Q. Answer each question in two to four lines.

1. Give Prof. Lewis’s definition of the fiscal planning.
Ans:
Prof. Lewis Lorwin has defined fiscal planning in the following words.
“Economic planning is a scheme of an economic organization…for the purpose of utilizing all
available resources to achieve maximum satisfaction of people’s needs within a given time”.
2. What was Pakistan’s condition at the time of Partition in respect of industrial
development?
Ans:
i. Pakistan started with an extremely weak industrial base after independence.
ii. At the time of partition, there were 921 big industrial units in India, out of these only 34 came to
the share of Pakistan which was less than 4% of the total whereas 20% of the total Indian
population lived in Pakistan.
iii. Employment capacity of the industries which came to the share of Pakistan was even poorer.
iv. Indian industrial units had a total capacity of employing 11,37,150 persons daily, Pakistan’s 34
units had the capacity of employing only 26,400 persons daily i.e. only 2.32% of the total.
3. Define ‘Trade’ and ‘Commerce’.
Ans:
i. The term trade is applied to the process in which countries buy and sell goods to each other.
ii. The term is also applied to some special business like ‘cotton trade’.
iii. Commerce means buying and selling of goods and services.
4. Write a short note on E-Commerce.
Ans:
i. E-Commerce is the latest innovation in the traditional commerce techniques.
ii. E stands for Electronic. E-Commerce implies the buying and selling of goods and services
through networks i.e. internet and E-mail etc.

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 CHAP # 09: ECONOMIC PLANNING AND DEVELOPMENT IN THE ISLAMIC REPUBLIC OF PAKISTAN

iii. Internet and credit cards are the instruments through which cross-border trade and commerce has
become possible and the barriers that interposed between business transactions have been
automatically removed.
5. Define IT.
Ans: To acquire knowledge through the use of technology.
i. IT stands for Information Technology.
ii. Information Technology has given us a new vision about the future.
iii. It has equipped us with the tools we can apply for making our society literate and civilized, and
expand our frontier of knowledge.
6. Define resource. Enumerate the kinds of Resources.
Ans: Resource is defines as a “means of comfort or help, something one turns to when one is in
need or difficulty”.
Resources

Natural Resources Human Resources

Energy Minerals Land Livestock

Non Metallic Metallic

Minerals Minerals

Irrigation Forest Agricultural

Earth
land

Solar Energy Petroleum Petroleum or Electricity Coal

Natural Gas ↓
Nuclear Hydel Thermal
Electricity Electricity Electricity

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7. What is meant by HDI? What is Pakistan’s status according to HDI?

Ans:
i. HDI stands for Human Development Index.
ii. It is a comparatively new concept. The term became popular through the efforts of the United
Nations Organization.
iii. Pakistan falls on 144th position of 189 countries according to this report.
iv. This means that more than 76% countries of the world are placed in better standards of
education, health and general quality of life as compared to Pakistan.
8. What impact the policy of Nationalization had on our national economy?
Ans:
i. The policy of Nationalization caused an alarm to the investors and investment came to a
standstill.
ii. Industrial machinery was devastated, production decreased and laborers took to protests.
iii. Due to low industrial output dependency on foreign aid increased.
9. What is HRD, what is its importance?
Ans:
i. HRD stands for Human Resource Development.
ii. The objectives of increasing a prosperous society cannot be achieved unless human resources are
developed on top priority basis.
iii. Education is the paramount factor in the development of human resources.
10. Signify the importance of the conservation of resources by quoting an example of the
Prophet Muhammad PBUH.
Ans:
i. Prophet Muhammad (PBUH) once said that one should not waste water even if he is making
ablution (wuzoo) from a canal full of water.
ii. The Prophet (PBUH) actually wanted to impress upon us that the natural resources are nobody’s
personal property and nobody has a right to misuse them.
iii. The only course open for a grateful man is to take the bare minimum share for him or herself
from the dainties of Allah and leave the rest for the rest of humanity.
11. Enlist some basic facts about foreign trade structure of Pakistan.

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Ans:
i. Base of our exports is extremely narrow.
ii. Our industry is import oriented. 50% of our exports consist of industrial raw material.
iii. Population is growing fast and the number of consumers is increasing accordingly. We have
virtually turned into a consumer’s society. Consumer market is expanding but production is not
increasing at the same pace.
iv. Agricultural production is declining due to primitive agricultural practices, number of sick
industrial units is growing rapidly.
v. Foreign investment has been adversely affected due to political unrest and terrorist activities.
vi. Prices of industrial raw material, petroleum and natural gas are naturally increasing due to
devaluation and inflation. This tendency has made it difficult for our industrialists to compete
with the foreign products in the international as well as in the local market.
12. What is human development according to Human Development Report?
Ans:
i. Human Development Report for the year 2000 has defined Human Development as the process
of improving human capabilities for the purpose of enhancing the production of commodities,
most desired by the human beings.
ii. Income is certainly one of these but income is not the only thing that matters in human life.
iii. Good health, education, comfortable environment and the freedom of thought and action are the
things that matter a lot in human life.
iv. By improving public health we lay the foundations of a healthy nation for the future.
v. By educating people. We spur an action which flourishes expands and progresses with the
passage of time.
13. On which grounds HDI is measured?
Ans:
The Unites Nations Organization has been publishing HDI’s on the basis of yearly progress
made by all countries of the world on three grounds.
i. Level of health and average life expectancy.
ii. Level of literacy (quality and quantity of the level of education acquired by the people)
iii. Good standards of living (measured on the basis of annual per capita income of the people)
14. Give three reasons why planning is required for development?

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Ans:
Economic planning is essential for the development of the economy in any state.
i. National income needs to be enhanced.
ii. Standards of living need to be improved by increasing per capita income level.
iii. New job opportunities need to be created in order to meet the problem of unemployment.
iv. Disparity among different classes of the people needs to be reduced.
v. A better balance of payment needs to be acquired by improving foreign exchange earning
capacity.
vi. Investment behavior needs to be reoriented and brought in conformity with the national interests
instead of the narrow personal interests of the investors.
15. Enlist three factors which signify the importance of agriculture in our economic structure.
i. 32% of our GNP comes from agriculture sector.
ii. We fulfil our 70% to 80% foreign exchange requirements from the income generated from
agriculture sector.
iii. 39% of our total population is employed as labor force in the agriculture sector.
16. What were the causes of the failure of Third Five Year Plan?
Ans:
i. 1965 Indo-Pakistan War
ii. Suspension of American aid due to war
iii. Damages caused by drought, floods and hurricanes
17. What do you mean by Conservation of resources?
Ans:
Economical and modest use of the available resources and protecting these resources from going
waste is called conservation of resources.
Q. Fill in the blanks by putting one of the four alternatives given in the bracket against
each question.
1. How much share our country earns of her foreign exchange from agricultural exports?
a. 20-30% b. 50-60 c. 70-80 d. 40-50
2. At the time of partition, how much was Pakistan’s population of the total population of
India?
a. 50% b. 20% c. 25% d. 40%

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3. Backwardness of which sector is the paramount cause of the overall backwardness of our
economy?
a. agriculture b. health c. transport d. industry
4. During the Second Five Year Plan, at which rate the national Income increased and what
was the stipulated target?
a. 24 b. 38 c. 28 d. 48
5. When was the Indo-Pak war fought?
a. 1965 b. 1975 c. 1972 d. 1973
6. How much wheat is produced in Pakistan as compared to the United States?
a. 20 monds and 50 monds b. 25 monds and 55 monds c. 35monds and 65 monds
d. 30 monds and 60 monds
7. How much rice is produced in Pakistan as compared to the Italy?
a. 11 monds and 50 monds b. 15 monds and 25 monds c. 35monds and 60 monds
d. 20 monds and 60 monds
8. How much of the population which depends on agriculture is semi-employed.
a. 20% b. 30% c. 35% d. 40%
9. How much of our total population lives in rural areas and depends solely, on agriculture?
a. 70% b. 72% c. 75% d. 80%
10. What was the time duration of First Five Year Plan?
a. 1955-60 b. 1950-1955 c. 1952-157 d. 1951-1956
11. During the First Five Year Plan, how much national income was increased against the
target of 15%?
a. 9% b. 10% c. 11% d. 12%
12. During the First Five Year Plan, how much per capita income was recorded against the
target of 7%?
a.1.6% b. 2.6% c. 3.6% d. 0.6%
13. When was the second Five Year Plan launched?
a. August 1960 b. July 1960 c. February 1960 d. June 1960
14. During the Second Five Year Plan, how much national income was increased against the
target of 38%?
a. 20% b. 24% c. 34% d. 28%

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15. During the Second Five Year Plan, how much per capita income was recorded against the
target of 12%?
a. 9% b. 14% c. 11% d. 16%
16. Which Five Year Plan could not be carried out due to the political crisis in the country?
a. Third b. Fourth c. Fifth d. Second
17. How much targets from agriculture sector were achieved during Fifth Five Year Plan?
a.80% b. 90% c. 95% d. 85%
18. How much targets from energy sector were achieved during Fifth Five Year Plan?
a.80% b. 90% c. 95% d. 93%
19. In which decade was the industrial development a top priority?
a. 5th b. 6th c. 4th d. 7th
20. What was the time duration of 3rd five year plan?
a. 1960-65 b. 1965-70 c. 1970-75 d. 1975-80
21. What was the time duration of 4th five year plan?
a. 1960-65 b. 1965-70 c. 1970-75 d. 1975-80
22. What was the time duration of 5th five year plan?
a. 1960-65 b. 1978-83 c. 1970-75 d. 1975-80
23. What was the time duration of 6th five year plan?
a. 1960-65 b. 1978-83 c. 1983-88 d. 1975-80
24. What was the time duration of 7th five year plan?
a. 1988-93 b. 1978-83 c. 1983-88 d. 1975-80
25. What was the time duration of 8th five year plan?
a. 1988-93 b. 1978-83 c. 1983-88 d. 1993-98
26. How many industrial units were given to Pakistan out of 921 at the time of partition?
a. 250 b. 144 c. 84 d. 34