ASSIGNMENT

BUSINESS ECONOMICS

DEPARTMENT: MANAGEMENT
SCIENCES

PROGRAM: MBA (EXECUTIVE)

SUMBITTED TO: MR.HAROON

SUBMITTED BY: Syeda Zubda Sajid

Title: History of Pakistan's Economy: A
Comprehensive Review (1947 to Present)

Abstract:

This comprehensive report provides an in-depth analysis of Pakistan's economic

history, tracing its development from the partition in 1947 to the current scenario.
Through an examination of key economic indicators, policy shifts, and major
milestones, the report aims to offer a nuanced understanding of the challenges and
triumphs that have shaped Pakistan's economic trajectory.
1. Introduction:

1.1 Background:

At the time of independence, Pakistan inherited a fragmented economy with

significant challenges. The migration of populations, division of economic assets with
India, and the need for rapid infrastructure development posed formidable obstacles to
the economic progress of the newly formed nation.

2. Early Years (1947-1959):

2.1 Initial Challenges:

The aftermath of partition brought about economic disarray, necessitating efforts to

build a stable economic foundation. Issues like mass migration, resource division, and
inadequate infrastructure were immediate concerns.

2.2 Economic Policies:

To address these challenges, the government adopted a mixed economy model,

focusing on both agriculture and industry. The First Five-Year Plan (1955-1960) was
initiated to kickstart economic development.

3. Ayub Era (1958-1969):

3.1 Economic Reforms:

President Ayub Khan implemented significant economic reforms, emphasizing

industrialization, land reforms, and infrastructure development. The Green Revolution
in agriculture marked a period of increased productivity.
3.2 Growth and Challenges:

Despite notable economic growth, regional disparities between East and West
Pakistan led to social and political tensions. Economic progress was characterized by
a growing reliance on foreign aid and an escalating external debt burden.

4. Bhutto and Nationalization (1971-1977):

4.1 Nationalization:

Prime Minister Zulfikar Ali Bhutto introduced sweeping nationalization policies,

aiming to reduce economic disparities. However, this move resulted in inefficiencies
and discouraged private investment.

4.2 1971 War and Economic Consequences:

The separation of East Pakistan in 1971 had profound economic repercussions,

affecting trade, infrastructure, and geopolitical dynamics.

5. Military Rule and Structural Adjustment (1977-1988):

5.1 Zia-ul-Haq's Economic Policies:

The military regime of General Zia-ul-Haq focused on economic liberalization and

private sector participation. Structural adjustment programs were implemented with
the support of international financial institutions.
5.2 External Debt and Economic Challenges:

During this period, Pakistan faced mounting external debt, leading to economic
instability. Seeking assistance from the International Monetary Fund (IMF) became a
recurring theme.

6. Democratic Period and Economic Reforms (1988-1999):

6.1 Benazir Bhutto and Nawaz Sharif:

Democracy returned in the late 1980s, with Benazir Bhutto and Nawaz Sharif
alternating in power. Economic reforms, including privatization efforts and attempts
to stabilize the economy, were implemented.

6.2 Nuclear Tests and Economic Sanctions:

The nuclear tests in 1998 resulted in international sanctions, impacting the economy.
The subsequent government navigated economic challenges amid global isolation.

7. 21st Century: Economic Growth and Challenges (2000-

Present):

7.1 Early 2000s:

The early 2000s witnessed economic growth, with a focus on information technology,
telecommunications, and services. Market-friendly policies and privatization
initiatives were pursued.
7.2 Economic Challenges:

Pakistan faced challenges such as energy shortages, political instability, and security
concerns. The global financial crisis in 2008 further impacted the country's economy.

7.3 China-Pakistan Economic Corridor (CPEC):

Initiated in 2013, CPEC brought significant infrastructure investments and economic

opportunities. However, concerns regarding debt sustainability and geopolitical
implications arose.

8. Recent Developments:

8.1 COVID-19 Pandemic:

The COVID-19 pandemic in 2019-2020 had severe economic repercussions, affecting

various sectors and exacerbating existing challenges.

8.2 Economic Reforms and Policy Measures:

To address the impact of the pandemic, the government implemented economic

reforms and policy measures to tackle fiscal deficits, improve tax collection, and
attract foreign investment.

9. Conclusion:

As of the present day, Pakistan's economic history reflects a complex interplay of

challenges and successes. While significant progress has been made, persistent issues
such as economic inequality, political instability, and external debt require continuous
attention. Understanding this history is vital for formulating effective policies to
address current and future economic challenges in Pakistan.