Obstacles To Economic Development In Pakistan

Obstacles to Economic Development in Pakistan

Anything that makes slow the process of economic development is called obstacles to its functioning. The various obstacles to the Economic development 0″ Pakistan may be categorized as economic, social, cultural, administrative and political. Economic Obstacles

Inadequacy of natural resources

Natural resources are comprised of geographical configuration, soil, climate water resources, minerals etc. No country in the world is self-sufficient in this respect but fair degree of resources is needed for economic growth. In this respect, the position of Pakistan is not so discouraging but the overa’. position of Pakistan ..in this respect is not so rich. There are problems of salinity, water logging,

There is a severe lack of sophisticated and automatic machinery in small and large scale industries. The output is not up to the mark quantitatively as we as qualitatively. We cannot export our products to earn foreign exchange On the other hand; we import many products and lose our foreign exchange Due to backwardness in technology only raw material is exported.

Inadequate financial resources and capital formation

Lack of physical capital in the sense of buildings, machinery and tools, raw materials and other intermediate goods is a serious obstacle to the economic development of Pakistan. They are produced by investment resulting from savings. But our saving ration is very low and not enough for capital formation.

Unfavourable economic institutions

The functioning of banks, insurance companies and stock exchanges is not up to the mark. They cannot provide money on better interest rates which is necessary for capital formation. Primitive techniques are used in industrial and agricultural small scale production. The law of inheritance divides the land into uneconomic units which are not suitable for farming with modern

The democratic regimes in Pakistan cannot be called democratic in its true sense and as a result political and economic institutions were not established properly. Administrative machinery is inefficient because appointments are made on political basis, not on merit basis, the administrative personnel is dishonest and corrupt and there is no system of checks and balances in Pakistan. The political leadership is self-centered and .the masses are politically immature. Politicians deceive the masses through catchy slogans and the masses cost their votes on the basis of baradari, region, gender, and vested interests and not on the basis of competency and capabilities of