Submitted to: Madam Hina Aamir Submitted by: Saima Zia Registration 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: : 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. Quaid’s death left the country deserted of a leader who could pull them back from difficulties. No industrialization. No industrialization. No employment to make the both ends meet. No employment to make the both ends meet. No proper government. No proper government.

The golden era of Pakistan

Ayub Khan’s era: : Ayub Khan Former 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 Manufacturing growth rate: 20% per annum in excess 17% growth in first half of the era. 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%. 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. 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. There was increasing disparity across classes and regions due to income inequality. The exchange rate was overvalued and it distorted local markets. 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. 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. 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 instability 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. 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. Due to loans deficits were not covered which resulted in inflation. Government imposed direct and indirect taxes which made things worse. 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 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 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. 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….