Question Details

During 1980s, the growth rate in Pakistan improved on account of which of the following reasons?

Options

A

Institutionalized process of technical change

B

A good harvest

C

Sustainable export of manufactured goods

D

High amount of foreign direct investment inflow

Show Answer

Correct Answer :

Option B

A good harvest

Solution :

The correct option is A good harvest.

During the 1980s, Pakistan's economy experienced a significant improvement in its GDP growth rate. The primary catalyst for this economic expansion was the strong performance of the agricultural sector, driven by favorable weather conditions and a series of good harvests.

Agriculture has historically been the backbone of Pakistan's economy. The agricultural growth during this decade, particularly in major crops such as wheat and cotton, had a positive multiplier effect across the entire economic landscape. A bumper harvest not only increased the income of the rural population but also stimulated domestic demand for consumer goods and services.

Furthermore, agricultural abundance provided cheap raw materials to the domestic industrial sector (especially the textile industry), thereby boosting industrial production and contributing substantially to the national growth rate. This reliance on agricultural performance highlights why a good harvest was the key driver of economic improvement during this period, rather than institutionalized technical changes, sustainable manufactured exports, or high foreign direct investment inflows.

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