| OCR Text |
Show 257 Their recommendations tion of regarding a solution involve maximizing produc exports and import substitutes, reducing production costs, increasing dependence local materials and equipment, on developing adapting techntques which are appropriate to Pakistan's The crisis was not averted the Panel of Economists but exchange resources u.s, and other aid don o rs economy that maintains an lines not reflective of its true foreign exchange resource endowment, enough to get foreign exchange at the official would v-.rarrant and will sea ret ties An would rrant. l.. over- grows along Those fortunate rate will it to use intensive than true scarcities capt tal rely more an on imported raw materials than This is what true happened in Pakistan. industrialist, whose proposal for a new plant was accepted, only allowed access was not his plant (at to the foreign exchange necessary to build the official rate with low tariffs levied on the capital imported) he also was gi ven an "enti tlement" to import the goods he raw foreign , va.Iued currency and thus undervalues more in expansion of foreign assistance by the Industrial development in establish industries circumstances.18 by following the recommendations of by a significant increase due to the or materials he required to operate the plant, In some cases an a relatively low industrlalistp producing a good for Hhich there was his imported scarcity premiwn, found it more profitable to sell materials someone in license (illegally to be sure) to or even his a more ahead and use highly profitable industry than to go import the materials himself. Of course, black market activities are system. raw the development of these expected to accompany most any so-called control |
