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A Note on the Degree of Dependence on Foreign Assistance

In: Growth and Inequality in Pakistan

Author

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  • Keith Griffin
  • Azizur Rahman Khan

Abstract

An analysis of Pakistan’s growth would be incomplete without some discussion of the role of foreign capital. Pakistan has been the recipient of a large amount of foreign assistance and it has often been asserted that this was the most significant cause of the rapid growth achieved during the last decade. Professor Mason, for example, claims that the increased inflow of foreign aid per capita from Rs. 10·8 in 1960/1 to Rs. 25·8 in 1964/5 is responsible for much of Pakistan’s success in the 1960s.1 Indeed, the flow of foreign aid has been large by most standards and has increased over time. While capital inflow was 31 per cent of domestic investment in 1959/60, the proportion rose to the level indicated by the following figures in more recent years:2 Year Foreign Assistance (Rs. million) Domestic Investment (Rs. million) Foreign Assistance (as % of investment) 1964/5 3,163 8,066 39 1965/6 2,778 7,078 39 1966/7 3,242 8,517 38 1967/8 3,491 9,935 35 1964/5–67/8 12,674 33,596 38

Suggested Citation

  • Keith Griffin & Azizur Rahman Khan, 1972. "A Note on the Degree of Dependence on Foreign Assistance," Palgrave Macmillan Books, in: Keith Griffin & Azizur Rahman Khan (ed.), Growth and Inequality in Pakistan, chapter 7, pages 188-195, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-01275-6_8
    DOI: 10.1007/978-1-349-01275-6_8
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