| OCR Text |
Show 252 That it in fact grew much faster than would be expeced basis of the breakup of the customs union alone can be on the partly explained by two ];articular policy directions that the Government of Pakistan pursued. The first, and one recall that was we the terms of trade against agriculture, after so partition when most of the significant in turning the failure to devalue was Sterling bloc, including India, did (partly because it was assumed that the export and import demands costly). second, which were inelastic and to do so as a result of the zapid drop in exports as the Korean War stockpiling would be by the western nations ceased, quantitative restrictions to maintain equality between foreign These exchange recei pts and expenditures. came rely on a system of the decision to was overvalued rupee and made domestic The poll ci as resulted in an production of goods fornerly investments in imported very profitable nth the resulting large facilities for their production. The growth in 4 the manufacturing sector percentage terms, though because the base little impact on overall economic for the 1950s seemed to be was growth.5 was was so truly spectacutaz- in small it had very What the basic that the country should produce any- thing it reasonably can, particularly those things materials like and that once held out the st1tegy which use the raw jute and cotton which are available within the country, production had begun no imports should be allowed, hope that at in order to introduce The overvalued an some future element of They point imports "might be allowed 6 competition." restriction exchange rate and the quantitative system l.raS not a significant factor in determining, in the 19505, |
