Understanding Economy


Important social and cultural obstacles in the way of Pakistan’s economic development are as follows.

1. Illiteracy:

According to Economic Survey of Pakistan 2008-09, the literacy rate remains 56% Due to higher illiteracy rate people can not utilities the productive resources and do not understand the importance of economic development and do not understand modern techniques of production, therefore, our agricultural, industrial, minerals sectors are underdeveloped.

2. Lack of Effective Population:

Economic development depends on share of effective population. In Pakistan population growth rate is high but there are 51% women in total population and out of 5 my 2% are taking part in economic activity while 49% are only confined to four walls of the house. The rate of effective population is 32.8% while it should be more than 50%.

3. Lack of Determination:

The society is divided into two classes one is rich and the other is poor. Rich classes have little concern for economic development and on the other side, the efficiency of the poor class is low enough that they cannot utilize national resources properly. There is a shortage of determination among the people.

4. Population Pressure:

Pakistan became the 6th populous country of the world with a total population of 167 million on 1″ July 2009 as against 160 million last year and population growth rate is 1.7%, this a burden on productive resources. The increase in national income disappears due to the higher growth rate.

5. Customs and Traditions:

Because of illiteracy, the people are busy with frivolous customs and traditions. People are spending money on marriages, births, deaths and birthdays, etc. In the Rural sector, most of the villagers are involved in litigation, therefore, they waste a lot of money which reduces saving capital.

6. Unfavorable Environment:

The environmental conditions in Pakistan are not favorable. The majority of the people are not provided with residential accommodation. Due to the low levels of income labor cannot maintain the equitable standard of living which decreases the efficiency of the labor and, therefore, production level remains low.

7. Joint Family and Caste Systems:

Joint family and caste systems are also obstacles to economic development. Few members or family heads are working while other members are dependent and remain idle. They are proud of caste and color. The caste system has shut down the development process. Especially people belonging to superior caste (as they think) do not work but only pass time in leisure. Thus the family system and caste system are obstacles in the way of economic development.

8. Religion:

The religion of Islam is moderate but people in Pakistan believe in spiritualism. They are customary and traditional. They face and accept each difficulty as the will of God. They do not work hard but only depend on fortune. They are lazy while taking part in the production process.

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