The correct option is 2 and 3 only.
Explanation
Like many developing nations in the post-independence era, Pakistan adopted a mixed economy model. This involved the co-existence of public and private sectors, where the state utilized a regulated policy framework to direct economic development, particularly through Import Substitution Industrialization (ISI) and agricultural modernization.
Statement-wise Analysis:
- Statement 1 is Incorrect. Pakistan did not follow a policy of strict non-interference (laissez-faire) in the industrial sector. Instead, the government introduced a regulated policy framework in the late 1950s and 1960s. While the private sector was encouraged, the state maintained significant control and regulatory oversight over industrial development.
- Statement 2 is Correct. As part of its Import Substitution Industrialization strategy, the policy framework combined tariff protection for the manufacturing of consumer goods with direct import controls on competing foreign imports. This was intended to shield domestic industries from international competition and encourage local manufacturing.
- Statement 3 is Correct. The introduction of the Green Revolution in the 1960s led to the mechanization of agriculture and a significant increase in food production. To support this transformation, there was a substantial increase in public investment in infrastructure, particularly in irrigation networks and transportation, to facilitate the agricultural sector.
Key Takeaway:
In the late 1950s and 1960s, Pakistan utilized a regulated mixed-economy framework characterized by import substitution (tariffs and controls) for industry and increased public infrastructure spending to support the Green Revolution in agriculture.