Submitted to:Madam Hina Aamir

Submitted by: Saima ZiaRegistration number:

BECO-sp12/021

Evaluation of Pakistan’s economy

since 1947 till today

Introduction:Pakistan’s economy has changed due to many factors which include political instability on the top.

Other countries in comparison have developed so much that now Pakistan is not even included in the competition. Pakistan is left way behind in the race that analysis of it’s economic performance may surprise many.

Pakistan covered a journey from survival to golden era, from bad luck years to military government, from political instability till today which can be explained as follows…

The survival

era

The survival era: 1947-1958:

The poor economy was striving for a better future.

•Quaid’s death left the country deserted of a leader who could pull them back from difficulties.•No industrialization.•No employment to make the both

ends meet.•No proper government.

The golden era of

Pakistan

Ayub Khan’s era: 1958-1968:

Ayub KhanFormer president of Pakistan

This era stands out because of the best performance in economic growth. Development indeed took place and growth of many sectors was huge.

Growth in Ayub Khan’s era:

•Manufacturing growth rate: 20% per annum in excess• 17% growth in first half of the era.• In the second half of the era

agricultural sector grew by 6% and industrial sector grew by 10%.

Criticism on Ayub Khan’s regime

Although there was huge development in Ayub Khan’s era but, the critics point the main points of this era which are far more important than any development. This criticism point out the main issues created later on. And the criticism were…

• Although capitalism was encouraged in Ayub Khan’s rule but , this created income inequality in many sectors.• There was increasing disparity

across classes and regions due to income inequality.• The exchange rate was

overvalued and it distorted local markets.

The bad luck years of Pakistan

Former Prime Minister of Pakistan

This era is called the bad luck era of Pakistan because in this era nationalization was considered to be the downward growth of Pakistan.

Loss of East Pakistan made a huge impact on West Pakistan’s economy. Pakistan lost its primary products for exports due to which Pakistani rupee was devalued by 120%

• Due to this devaluation, deficits were created in the budget and to compensate these deficits Pakistan asked for loans which further devalued our money.

• Land, capital and industries were lost which are the backbone of an economy.

Although Zulfiqar Ali Bhutto made mistakes due to which the economic policies were re-examined, but he also laid the foundations for future growth, from which the future generation reaped the benefit.

Zia-ul-Haq’s era

In this era, industries were grown and economy as a whole grew by the investment done in Bhutto’s era.

The martial law affected the whole

economy very badly. It inflicted deep roots in

Pakistan’s society.

Political instabilit

y in Pakistan

Benazir Bhutto and Nawaz Sharif returned to power twice. There was no remarkable economic growth in there ruling period due to short interval of time.

There were many leaders who lead Pakistan without democratic

elections which caused a political instability during 1990’s. There

were many caretakers of the government but the economic

growth remained stagnant.

During 1998 Pakistan was under the order of IMF because

it received loans from it.

• IMF implemented rules and orders which Pakistan obeyed diligently without any question which later on affected the whole economy.• Due to loans deficits were not covered

which resulted in inflation.• Government imposed direct and indirect

taxes which made things worse.

• The government spending was reduced so the economic growth and development was not initiated at all.

• The low spending by government and imposition of taxes made the poor class suffer by the effects.

• The Musharraf era made a little progress in its period.

GDP increased during Musharraf’s era but it

dropped drastically during PPP’s regime.

No new projects were initiated and development

was stopped.

Drop in GDP during PPP’s era

Now it’s a new era of

Nawaz league. We

hope to have a better

future now….

The end