Major issue in Pakistan economy

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Economy

• The large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated

• All activities related to production, consumption,and trade goods and services in an area

Types of Economy

• Market based: allows goods to flow through in market. This type has a tendency to naturally balance itself as price of one sector for an industry rise due to demand

Command based: political agent, which controls the price and distribution of goods

Assessing Pakistan's development

• How to evaluate the performance for almost more than six decades ?

• How we can claim that Pakistan today is far better than it was in 1947 ?

• What should be criteria of a country to evaluate it's growth ?

• Look at its history and than evaluate ?

Structural changes

• Pakistan in 1947 and now in 21st century

• Pakistan after 1971

• Changes in Pakistan's key economic structure

Five Decades

• Pakistan's economy in five decades

Laying the foundation (1947-58)

• In 1947 , Pakistan was agrarian, undeveloped newly independent country with little industry, few services and no infrastructure

• Main concern was one of survival, where adverse international condition and domestic situation.

• Million of refugees

• The bureaucracy tried to keep Pakistan on its feet

• The primary task was to build an economy

• Private sector had no capital to lead an industrial revolution

The Decade of Development (1958-68)

• If we examine Pakistan's economy growth, 1960's stands out as the Decade with best performance

• The rate of growth in 60's and 80's seems to be close in most of the categories

• Significant leaps were made in industrial and agricultural production

• In large scale manufacturing 20% growth rate was seen

• Critics point out agriculture sector in central Punjab and industry in Karachi

• Social sectors were neglected

• There was no increase in real wages and social equity was of little concern

• Private sector was strengthened and controlled bureaucratically

The bad luck years (1971-88)

• Nationalization was major cause for downward

• The devaluation of Pakistani rupees by 120% in 1972

• However Bhutto's policies laid the foundation for future growth and benefitted the economy

The Second Military Govt. (1977-88)

• Civil-military bureaucracy played important role

• High industrial growth came in by Bhutto's policies under public sector investments

• The Soviet invasion and Pakistan role for USA also helped to grow economy

The era of structural adjustments (1988-onwards)

• After the death of General Zia, democratic Govt. Came in power

• Policies of Benazir Bhutto and Sharif's Govt.

• In 1999, General Musharraf came in power and process of liberalization, openness, privatization and market friendliness

• World after September 11

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2 years ago

Welcome dear , I hope that your journey which is begining today go smooth

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Thank you so much

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