Pakistan: energy development and economic growth in the 1980s

Abstract

Abstract : For some time, economists have argued that a variety of factors can obstruct a rapid pace of economic development. Scarcities of capital, a skilled and disciplined labour force, entrepreneurial talent, foreign exchange and industrial raw materials have been mentioned, among the prominent obstacles to growth in undeveloped countries. Lack of adequate energy supply is now being added as a factor explaining the slow pace of growth in these countries. For a large number of less developed countries have to depend on imported sources of energy; the high foreign exchange bills, resulting from rapidly rising prices, are simply beyond their means. Pakistan is a good case in point. The purpose of this paper is to examine whether investment in energy and increased domestic production of energy increased the rate of economic growth in Pakistan during the 1980s.