B.

COM PART – II ECONOMICS OF PAKISTAN NOTES

COMPILED BY : SIR GHALIB HUSSAIN
E.MAIL : ghalib_shaikh10@yahoo.com

ECONOMIC DEVELOPMENT
Q : Suggest the measures to resolve these obstacles.
OR Remedial measures for the economic development.

1. Expanding the Tax Base 

For expanding the resource base, it is necessary that the coverage of indirect taxes be
reduced. In designing the tax reforms, care has to be taken to minimize burden on the
common man. The share of direct taxes has also to be increased.
2. Tax on agriculture income 
The government can raise more revenue by brining the agriculturists income in the tax
net on proper footings.
3. Self Reliance 
Pakistan is knee deep in foreign debt. If we are really desirous of increasing the rate of
economic development, we shall have to lessen our dependence on foreign assistance.
4. Export Led Growth 
The production of value added goods on large scale, having comparative advantage in
production will greatly solve the problem of limited size of the domestic market.
5. Industrialization  
Another approach to development planning within the framework of mixed economy
is to give priority to the establishment of those industries which meet the basic needs of the
various sectors of the economy.
6. Development of Agricultural Sector 
Expanded credit facilities, provision of fertilizer, pesticides and improved seeds are
the right steps in improving agricultural production which contributes 20.9% of GDP and
accounts for 46% of foreign exchange earnings in Pakistan.
7. Improvement of the Infrastructure
A great deal of improvement in the means of transport, power, roads, banking,
education, etc. has to be made for economic development.
8. Stable Fiscal and Monetary Policies 
In order to accelerate the rate of economic development, there should not be frequent
changes after a few months in the import and export policies, revision of taxes etc.
9. Promoting Technology
For economic take off, it is very essential that we take effective steps in promoting
science and technology. The technological development will help in keeping our products and
exports competitive in the world market.
10. Administrative Reforms 
The professionally qualified personnel should be inducted and assigned specific
targets to be achieved in the allocated sectors. There should be reduction in the administrative
expenditure also.
11. Development of Physical and Human Capital 
Development of physical infrastructure, roads, railways etc. and increased investment
on education, health and nutrition etc. can play a dominant role in increasing economic
development in the country.