Q:

What are the obstacles to economic development in Pakistan?

A:

Quick Answer

Overpopulation and political instability are two major obstacles to economic development in Pakistan. Other obstacles include corruption, market imperfection, an inappropriate social structure and the country's dual economy.

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Full Answer

Population increase can be positive to a nation's economy. It allows more human resources for the development of natural resources. However, a growing population also increases economic and social problems. These problems arise from the nation's inability to keep up with housing, education, health care and transportation for the ever-increasing mass of people.

Overpopulation reduces per-capita income by diverting resources from investment to meet the consumption needs of the population. Without means of investment, an economy cannot grow. This also creates further issues with unemployment and a decrease in national income.

For the first 50 years of Pakistan's independence, the nation suffered from religious, sectarian and ethnic unrest. During most of that time, the government was under the control of the military. These conditions led to political instability and subsequently economic instability with the misuse of resources and by dissuading foreign investment.

National and global economic experts agree that political stability is necessary to transform Pakistan's economic growth into economic development. Under a stable government, Pakistan is capable of developing economic plans that efficiently allocate resources and gain the interest of foreign investors.

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Related Questions

  • Q:

    Where is Pakistan?

    A:

    Pakistan is situated in southern Asia. Pakistan is between the countries of Afghanistan and India, also bordering Iran and China. Pakistan's southern coastline borders the Arabian Sea for about 650 total miles.

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  • Q:

    What is the major religion of Pakistan?

    A:

    The main religion of Pakistan is Islam, with around 95 percent of the population identifying as Muslim. Islam is recognised as the country's official religion by the government.

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  • Q:

    What is Pakistan's location?

    A:

    Pakistan is located in South Asia on the western side of the Indian subcontinent. Its latitude is from 24 to 37 degrees north, while its longitude is from 61 to 75 degrees east on Earth's Northern and Eastern Hemisphere.

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  • Q:

    What is the capital of Pakistan?

    A:

    The capital of Pakistan is Islamabad, as of November 2014. Islamabad has been the capital since 1966 and is in northeast Pakistan. After Pakistan became independent in 1947, Karachi was established as the country's first capital.

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