The purpose of the Annual General Meeting of the Pakistan Society of Development Economists (PSDE) is to provide a forum where leading professional economists and policy-makers can exchange ideas on the vital economic problems facing Pakistan. With the passage of time, the philosophy behind the process of development has undergone a profound change. There is now, as never before, an increasing awareness of the complexities involved in the development process which has engendered both pessimism and a greater sense of realism. In Pakistan's development experience, a number of problems typically confronting developing countries in their progress towards a self-reliant economy have been tackled. These problems are complex and multidimensional in nature. High rates of population growth, an uneven distribution of income, low literacy rates, poor health facilities, relatively low saving rates, large internal and external deficits, and inadequate physical infrastructure in energy generation and communication facilities threaten to nulify the modest economic gains made here as in many other developing countries. Despite these problems, the development process in Pakistan has progressed reasonably well though not without encountering great difficulties.