Pakistan Economy

1. Pakistan Economy
Performance of Pakistan Economy in
different Decades

2. Laying foundations (1947-58)
• Newly independent nation, with little industry, few services and no manufacture.
• Decade of management and planning
• economic policy and planning witnessed the attempts of a bureaucracy to keep
Pakistan on its feet
• State sector as the private sector was still in embryo
• Windfall gain made by the mercantile class during and after the Korean War (1952).
• Provision of necessities to newly migrated people from Indian side was big issue
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Challenges

3. The Decade of Development:
1958-1968
• The 1960s stands out as the decade with best performance, it was Ayub Khan’s era
• Growth rates in 1960s were very high in all sectors (Agriculture, GDP,
Manufacturing, Commodity producing sector, service sector). Growth in excess of
20% per annum
• Capitalist economy , and private sector play significant role.
• Controversial decade for the type of economic policy pursued
• Income inequality 5 million people fell below the poverty line.
• Exchange rate was overvalued
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Pakistan Economy

4. Economic growth in Ayub Khan Era
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Pakistan Economy

5. The bad luck years: 1971-77:
It was the era of Zulfiqar Ali Bhutto
Economic policy were more illiberal , it was the major cause for a huge downward
trend in growth
Deindustrialization
Privatization
Inflation
Partition of EAST PAKISTAN
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Pakistan Economy

6. The Second Military
Government: 1977-88
Zia Ul Haq’s era, is often regarded as a period of great purge and growth of
state-sponsored religious traditionalism
General Zia-ul-Haq's long eleven-year-rule era features the country's
first Technocracy (experts in technology) and had no politicians from any
parties in his government.
He then introduced strict Islamic law in 1978
Trend of liberalize the economy was escalated consciously in the Zia’s period,
the Soviet invasion of Afghan and the excessive involvement in PAK’S by the
USA, that increase growth
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Pakistan Economy

7. The Second Military
Government: 1977-88
Zia Ul Haq’s era, is often regarded as a period of great purge and growth of
state-sponsored religious traditionalism
General Zia-ul-Haq's long eleven-year-rule era features the country's
first Technocracy (experts in technology) and had no politicians from any
parties in his government.
He then introduced strict Islamic law in 1978
Trend of liberalize the economy was escalated consciously in the Zia’s period,
the Soviet invasion of Afghan and the excessive involvement in PAK’S by the
USA, that increase growth
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Pakistan Economy

8. The Second Military
Government
Middle East and aid from abroad helped launch PAK’S
second economic revolution( 1st was Green revolution)
General Zia’s martial rule inflicted deep-rooted damage
of Pakistani society
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Pakistan Economy

9. The Era of Structural
Adjustment
The period of Return of the Democracy
Particular Economic program and process
Pakistan under IMF and World Bank
Washington Consensus was dominating
Liberalization, privatization, Stabilization, Structural Adjustment
Only Followed Diktat by two agencies
Even we do not bothered to appoint Finance Minister during 1990s
Lowering of Fiscal Deficit was the main target. Bring it to 4%.
High Taxation and decrease in expenditures
Additional Taxation of Rs. 140 mBillion
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Pakistan Economy

10. The Era of Structural
Adjustment
Those who were already paying were forced to pay more taxes
No Expansion of Tax Net.
Result of these policies is serious economic crisis in the economy during whole
1990s
High Inflation rate: many reasons, Taxation, Free fall of Pakistan Rupee etc
Deindustrialization of Economy. Most of the things which were previously
produced locally were imported now.
Liberalization, openness to competition without protecting local industry.
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Pakistan Economy

11. The Era of Structural
Adjustment
These structural Adjustment Programs seriously affected the people especially
poor and salaried individuals, purchasing power reduced, Unemployment
increased.
The dramatic increase in the number of poor people , cut down of public
expenditures all created series of serious problems.
Studies conducted by IMF and World Bank showed that these programmes
damaged the economies and people more than they are supposed to benefit
them and Pakistan was no more exception to that.
No Pakistan's elected government has the courage to stand up against these
Powerful Washington agencies.
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Pakistan Economy

12. Third Democratic Era
(1988–1999)
Democracy returned again in 1988 after the general
elections which were held after the death of General Zia-
ul-Haq
Peoples Party back into the power politics. This period,
lasting until 1999
Introduced the parliamentary system and two-party
democracy
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Pakistan Economy

13. Third Democratic Era
(1988–1999
Pakistan was ruled by elected civilian governments, alternately headed by
Benazir Bhutto and Nawaz Sharif.
“Today, we have settled a score and have carried out six successful nuclear tests"
(Prime minister Nawaz Sharif announcing the tests on May 30, 1998)
Under Nawaz Sharif's leadership, Pakistan became the seventh nuclear power
country, the first country in the Muslim world, as well as a declared nuclear-
weapon state.
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Pakistan Economy

14. Third Military Era (1999–2007)
12 October, 1999 General Pervez Musharraf took control of
the country and impose Martial law
The Musharraf’s rule prove to be a growing period of
economy , where every sector of economy was growing
Musharraf economic policies keep the economy to grow
for a short time period
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15. Economic Indicator Of
Failure: 2000-2003
Illiterate adults 57%
Illiterate female adults 72%
Population below poverty line 34%
Without access of health services 45%
Without access of safe water 12%
Without access to sanitation 39%
Malnourished children 38%
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Pakistan Economy

16. Fourth Democratic Era
(2008–present)
In 2008 parliamentary elections, Asif Ali Zardari of the Peoples Party was elected
President of Pakistan.
After the elections, the Peoples Party - with its Yousaf Raza Gillani as the Prime
minister
Pakistan's external debts are $ 56 Billion as of June, 2010
It was $ 38.86 Billion at end-March, 2007
Economic growth was 7% in 2006-07 and it is 4% in 2009-10
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Pakistan Economy

17. Fourth Democratic Era
(2008–present)
Following endless procrastination of Syed Yousaf Raza Gillani in probing
corruption charges as ordered by the judiciary.
Raja Pervaiz Ashraf of People's Party took oath as the 17th Prime Minister of
Pakistan on 22 June 2012
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Pakistan Economy

18. Summary Of Growth In Different
Ruler Era’s
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Pakistan Economy