A Measure of Economic Growth in East and in West Pakistan

It is sometimes said that “national planning will simply have no meaning if it completely ignores the economic disparities between the two wings and fails to evolve a sensible pattern of regional planning”2. The lack of much essential data on a regional basis, however, renders any precise estimate of the relative growth rates almost impossible. Data either are not available or are inadequate on such important variables as production, income, consumption and trade, so that even a correct evaluation of past development efforts is not possible. The implications of such a situation for future planning are not difficult to understand. In this article an attempt is made to estimate the absorption of specified commodities in East and West Pakistan separately3. This will indicate the pattern of consumption and also give a rough idea about the growth rate of the two wings. With this purpose in view, quantity indices of absorption are prepared for each wing separately, taking data on availability of goods and prices from the Institute’s monograph on Inflation. The quantity indi¬ces, however, are not of course strictly comparable with national income estimates because of the difference in coverage of the two series. National income data include government, services, trade, etc., while the quantity indices cover only specified goods available for each region.