How and how far foreign aid has affected Pakistan's industrial
performance is the fundamental question of this study. It examines the
history of aid flows to Pakistan; their interaction with economic growth
and planning in the country; the role of foreign aid in the balance of
payments and external indebtedness; and the reciprocal links between aid
on the one hand and income, employment, investment and the structure of
Pakistani industry on the other. The assistance programmes of selected
donor countries and institutions are emphasized, with a view to
explaining the aid-giving process and tracing its effects on various
segments of Pakistan's industrial activity. The authors conclude that
the flows of aid have been particularly significant during the second
five-year plan. They also reach conclusions about the impact of the
flows on Pakistan and the implications of this experience for aid
policies in general.