The correct option is 1 and 2 only.
Explanation
Pakistan's economic development strategy has historically oscillated between state-led growth and private sector promotion. These shifts significantly impacted the ownership structure of industrial assets during the 1970s and 1980s.
Statement-wise Analysis:
- Statement 1 is Correct: In the early 1970s, Pakistan's industrial policy shifted drastically towards the nationalization of capital goods industries. This era marked a move towards a socialist economy where the state took control of major industrial units to regulate the economy.
- Statement 2 is Correct: In the late 1970s and 1980s, there was a reversal in policy orientation. The government shifted towards denationalization, aiming to reduce the state's burden and encourage private enterprise to take a leading role in industrial development.
- Statement 3 is Incorrect: During the denationalization phase in the late 1970s and 1980s, the government actively encouraged the private sector. It did not stop offering incentives; rather, it provided financial support and various incentives to stimulate private investment and industrial growth.
Key Takeaway: Pakistan's industrial trajectory is marked by a major nationalization drive in the 1970s, followed by a distinct shift to denationalization and private sector incentivization in the late 1970s and 1980s.