Since the country's independence in 1947, the economy of Pakistan has emerged as a semi-industrialized one, based heavily on textiles, agriculture, and food production, though recent years have seen a push towards technological diversification. In the Second Five-Year Plan, an allocation of Rs. The government took the initiative and established the Pakistan Industrial Development Corporation (PIDC) in 1952 to invest in industries that require heavy initial investment, have a long gestation period, and require a high degree of know-how. Comments. Two wars with India - the Second Kashmir War in 1965 and the separation of Bangladesh from Pakistan also adversely affected economic growth. Pakistan's reserves increased from US$1.2 billion in October 1999 to US$10.7 billion on 30 June 2004. This led to the widening of industrial base. There was also reduction in U.S.A aid. There were various reasons for the poor performance of the manufacturing sector. Pakistan's GDP growth has been gradually on the rise since 2012 and the country has made significant improvements in its provision of energy and security. Since emergence of the state on the political background of the world, economically, it has experienced a bumpy ride all together. There was all-round development of industries, particularly in agricultural processing, food products, and textiles. According to Multidimensional Poverty Index (2016) 39 percent population of Pakistan lives in poverty, which means that 4 out of 10 people in Pakistan live in poverty. The recurring floods, successive years of drought, and political unrest slowed the pace of development in all the sectors of the economy. Since the country's independence in 1947, the economy of Pakistan has emerged as a semi-industrialized one, based heavily on textiles, agriculture, and food production, though recent years have seen a push towards technological diversification. 185.11 crore was allocated to the growth of industrial sector. "[9] A devastating famine also broke out on the eastern coast in the early 1770s, killing 5 percent of the national population. The infrastructure for the establishment of heavy industries was also to be developed. CAUSES OF INDUSTRIAL BACKWARDNESS IN PAKISTAN The causes of industrial backwardness in Pakistan are varied and complex. During this 11-years period, 8 prime ministers came into power. However, the infrastructure they created was mainly geared towards the exploitation of local resources, and left the economy stagnant, stalled industrial development, and resulted in an agricultural output that was unable to feed a rapidly accelerating population. [1], Historically, the land forming modern-day Pakistan was home to the ancient Indus Valley Civilization from 2800 BC to 1800 BC, and evidence suggests that its inhabitants were skilled traders. Under Muhammad Zia-ul-Haq, "many of the controls on industry were liberalized or abolished, the balance of payments deficit was kept under control, and Pakistan became self-sufficient in all basic foodstuffs with the exception of edible oils. Domestic production of items such as refined sugar steel, fertilizer, cement, etc. Development Of Pakistan since 1947 to the present BACKGROUND • Creation of Pakistan in 1947 was in many ways a unique event which at the same time was bound to have many difficulties primarily due to a consistently hostile attitude adopted by Indian leadership. The growth of large scale manufacturing slowed down to an average of 4.7 percent in the first half and further to 2.5 percent in the second half of the 1990s. Not a single prime minister was strong enough to pursue the industrial policy well. The suspension of foreign aid, loss of indigenous market (East Pakistan), fall in exports, devaluation to the extent of 131 percent, nationalization of industries, labour unrest, unfavorable investment climate, floods, recession in world trade, reduction in investment incentives, etc., caused a fall in the output of large scale industries. Manufacturing growth in Pakistan during this time was 8.51 percent, far outpacing any other time in Pakistani history. [1] Balance of payments concerns have also reemerged as a result of a significant increase in imports and weak export and remittance growth. The government of Pakistan since 1947 is trying hard to develop industries and infrastructure facilities for the growth of industrial sector, yet it has not achieved success to the desired extent. [24] A lack of natural resources meant that East Pakistan was heavily dependent on imports, creating a balance of payments problem. A tremendous boost to economic activity was provided by rising worker remittances, which reached a peak of US$3 billion in 1982–83, equivalent to 10 percent of the gross national product of Pakistan. In 1700, the exchequer of the Emperor Aurangzeb reported an annual revenue of more than £100 million. "[28] As a result, Pakistan's rate of GDP growth rose to an average of 6.5 percent per annum in the 1980s. During this period, the country was newly born and politically immature. [12], During the period 1780–1860, India's status shifted from being an exporter of processed goods for which it received payment in bullion, to being an exporter of raw materials and a buyer of manufactured goods. "[1] Lower oil prices, better security, higher remittances, and consumer spending spurred growth toward a seven-year high of 4.3 percent in the fiscal year 2014-15[45] and foreign reserves increased to US$10 billion. Endeavors to raise educational standards have not been rare since the creation of Pakistan. [10], After gaining the right to collect revenue in Bengal in 1765, the East India Company largely ceased importing gold[11] and silver, which it had hitherto used to pay for goods shipped back to Britain. Currently, we are facing. There are many reasons but political crisis has always been a major one. At the time of partition in 1947, Pakistan had a negligible industrial base. At independence 85% of the population was illiterate , and the condition of women and backward areas was even worse. For the first time, most of India was unified under one ruler. Approximately 11.8 million new jobs were created during Musharraf's term from 1999 to 2008, while primary school enrollment rose and the debt-to-GDP ratio dropped from 100 to 55 percent. Increases in remittances and stable agricultural performance contribute to this outcome. Performance of industrial sector from July 1977 onward. The united government of Pakistan expanded its cultivated area and some irrigation facilities, but the rural population generally became poorer between 1947 and 1971 because improvements did not keep pace with the rural population increase. historical development of education in pakistan since 1947 ppt Home; About; Schedules; News & Events; Contact Us "[36][37][38] The Pakistan economy slowed down to around 4.09 percent, as opposed to the 8.96 to 9.0 percent rate under Musharraf and Shaukat Aziz in 2004–08, while the yearly growth rate fell from a long-term average of 5.0 percent to around 2.0 percent. See also[16]. The GDP growth rate sank to 4 percent and Pakistan faced persistent fiscal and external deficits, triggering a debt crisis. Pakistan inherited 20 percent of the subcontinent's population at the time of partition of India on August 14, 1947. In May 2014, the IMF confirmed that inflation had dropped to 13 percent in 2014 compared to 25 percent in 2008,[46] prompting Standard & Poor's and Moody's Corporation to change Pakistan's ranking to a stable outlook on their long-term ratings. I would like to thank you for such great information. The advanced countries of the world, America, Germany, Great Britain, Japan, and Russia, encouraged industrialization on large scale. [19] Mahbub ul Haq blamed the concentration of economic power to 22 families who were dominating the financial and economic life of the country by controlling 66 percent of industrial assets and 87 percent of banking. Shortly after taking office, Pakistan "embarked on a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position. However, economic growth slowed in the wake of nationalization, with growth rates falling from an average of 6.8 percent per annum in the 1960s to 4.8 percent per annum on average in the 1970s. etc., the private sector was shy in investing capital in heavy industries. "[50] In his 2016 book, The Rise and Fall of Nations, Ruchir Sharma opined that Pakistan's economy is in its 'take-off' stage and termed the future outlook for 2020 'very good,’ predicting that Pakistan would transform from a "low-income to a middle-income country during the next five years. Since 1947 till now Pakistan has done remarkable development which has positively lead it to the brighter and prosper future. Bhutto also established Port Qasim, Pakistan Steel Mills, the Heavy Mechanical Complex (HMC) and several cement factories. The improved infrastructure, combined with greater security, uniformity in measurements, and the increasing usage of coins as currency, all enhanced trade.[7]. The Development Board was established in 1984 to help with the implementation of these steps. Exports stagnated and Pakistan lost its market share in a buoyant world trade environment. The manufacturing sector could achieve a growth rate of 7.8 percent against the Plan target of 10 percent. ... rapidly increase the rate of development of east Pakistan. This article will examine the industrial performance in terms of growth/productivity over the following periods of time: 1. Steel, cement, automobiles, sugar, fertilizer, cloth and vegetable ghee, industrial chemicals, refined petroleum and a variety of other Pakistan at the time of partition in 1947, had negligible industrial base. [23], The partition of British India and the emergence of India and Pakistan in 1947 severely disrupted the country's economic system. interesting things about pakistan sir .... current statistical data use krn good work, very helpful and helped me pass in my assignment, Thnx. [24] Blame was placed by various observers, but especially by those in East Pakistan, on the West Pakistani leaders who not only dominated the government, but also most of the fledgling industries in East Pakistan.[24]. [21] A Greek firm of architects, Konstantinos Apostolos Doxiadis, designed the master plan of the city based on a grid plan which was triangular in shape with its apex towards the Margalla Hills. Average annual growth fell to 4.6% in the 1990s with significantly lower growth in the second half of that decade. [37] In its calculations, the Pakistan Institute of Development Economics pointed out that the "nation's currency in circulation as a percentage of total deposits is 31 percent, which is very high compared to India,"[39] and its tight monetary policy has been unable to tame inflation, and only slowed down economic growth because the private sector is no longer playing a key role. Economic mismanagement in general, and fiscally imprudent economic policies in particular, caused a large increase in the country's public debt and led to slower growth in the 1970s. The efficient Mughal tax administration system was left largely intact, but India fell from its top rank to become the second-largest economy in the world. In the Third Five-Year Plan, from 1965 to 1970, development expenditure amounting to Rs. Pakistan achieved independence from British colonial rule on August 14, 1947. While British colonial rule stabilized institutions and strengthened law and order to a large extent, British foreign policy stifled India's trade with the rest of the world. Ideological Hindrance for Democratic Pakistan. a) 1950s: The era of rapid industrial growth b) 1960s: The ere of industrial stabilization c) 1970s: Nationalization and its impacts d) 1980s: Russia-Afghan war and pro-industry policies of Zia ... An overview of Pakistan’s economy The industrial sector of the country contributes to 20 percent of GDP. In addition to supplying direct aid to Pakistan, the U.S. and its allies funneled about US$5–7 billion to the Afghan Mujahideen through Pakistan, further uplifting the local economy. Rana Sanaullah Noon on November 24, 2014: The people who work for their country ,They Enjoy The Best Life. It is hardly operating 12 projects and facing great financial stringency. The gross domestic product of Mughal India in 1600 was estimated at about 24.3 percent of the world economy, making it the second largest in the world.[8]. PAKISTAN ECONOMY INITIAL PHASE 1947-1958 ... (Industrial Development Bank of Pakistan). Industries such as KESC were now under complete government control. 5 of 1974, the government transferred the major projects to new Corporation. Since the division of the Subcontinent, the Government of Pakistan has been utilizing all available resources domestic as well as external for rapid development of the manufacturing sector. Pakistan's GDP growth has been gradually on the rise since 2012 and the country has made significant improvements in its provision of energy and security. There was no steel industry in Pakistan, whereas India had a sound industrial base at the time of Independence. Although the subcontinent enjoyed economic prosperity during the Mughal era, growth steadily declined during the British colonial period. Former East Pakistan was the main producer and supplier of jute. Since the division of the Subcontinent, the Government of Pakistan has been utilizing all available resources domestic as well as external for rapid development of the manufacturing sector. Kumar, Dharma and Meghnad Desai, eds. Land reforms, the consolidation of holdings, and strict measures against hoarding were combined with rural credit programs and work programs, higher procurement prices, augmented allocations for agriculture, and improved seeds as part of the green revolution. Jinnah International Airport was greatly expanded in 1994, making it a regional aviation hub. Pakistan suffered its only economic decline in GDP between 1951 and 1952. [citation needed], Yet, sound structural policies coupled with improved economic management accelerated growth between 2002 and 2007. A large number of new industries such as woolen and worsted yarn, cycle tyros and tubes, paints, varnishes, and glass were established. The Indian leaders continued to create difficulties for Pakistan in the hope that Pakistan would not survive for long. These industries included small sugar mills, cotton ginning factories, flour mills, rice husking mills, canning factories, etc. Industrial Development in Pakistan Industrial Development in Pakistan. However, it decreased to 15.6 percent of the GDP in the year 2004-05. [18], Some academics have argued that while HYV technology enabled a sharp acceleration in agricultural growth, it was accompanied by social polarization and increased interpersonal and interregional inequality. One wing of the country (East Pakistan) was forcibly separated. Tarbela Dam, the largest earth filled dam in the world, was constructed in 1968. [25] In particular, the latter war brought the economy close to recession, although economic output rebounded sharply until the nationalization of the mid-1970s. Tax concessions were also offered for investment in less-developed areas. The contribution of industrial sector was 6.9 percent of the GDP in 1950. [20], In 1959, the country began the construction of its new capital city. "[27], Bhutto introduced socialist economics policies while working to prevent any further division of the country. Poverty nearly doubled from 18 to 34 percent, causing the Human Development Index of the United Nations Development Programme to rank Pakistan in one of its lowest development categories during this time period. The British built an advanced network of railways, telegraphs, and a modern bureaucratic system that is still in place today. The history of the [[Islamic Republic of Pakistan2010}} which reached its zenith during Mughal Era.In 1947, Pakistan consisted of West Pakistan (today's Pakistan) and East Pakistan (today's Bangladesh).The President of All-India Muslim League and later the Pakistan Muslim League, the secretary general of the Muslim League, Liaquat Ali Khan became Prime Minister. Trade relations were strained until the issue was resolved in mid-1950. [3], Overall, Pakistan has maintained a fairly healthy and functional economy in the face of several wars, changing demographics, and transfers of power between civilian and military regimes, growing at an impressive rate of 6 percent per annum in the first four decades of its existence. • Pakistan hardly had any manufacturing industries in 1947. 3. A review of Pakistan's political structure and events since its 1947 independence. Zia also successfully negotiated with the United States for larger external assistance. In short, in terms of growth, exports, and productivity, the industrial performance increased during the Second Five-Year Plan period. Though, during all these years, our beloved country had faced so much ups and downs but still no one can undo it. But further acceleration requires tackling pervasive power cuts, a cumbersome business environment, and low access to finance. Major heavy mechanical, chemical, and electrical engineering industries were immediately nationalized, as were banks, insurance companies, educational institutions, and other private organizations. The Government of Pakistan, aware of the importance of industrialization for rapid growth and development, called an Industrial Conference in December, 1947. Bhutto's government also failed to meet distributional objectives. National Education Conference (1947) One of the first steps towards education development in Pakistan was the National Education Conference in 1947. The common public in British India was subject to frequent famines, had one of the world's lowest life expectancies, suffered from pervasive malnutrition, and was largely illiterate. In the last over three decades. The investment climate was gradually building up in the country. [24] Without a substantial industrialization program or adequate agrarian expansion, the economy of East Pakistan steadily declined. The first phase started soon after the PPP came into power and was motivated by distributional concerns – to bring under state control the financial and physical capital controlled by a tiny corporate elite. During the 1960s, Pakistan was seen as a model of economic development around the world, and there was much praise for its rapid progress. By June in 1971, the PIDC had completed 59 industrial units and created a base for self-sustained growth in the industrial sector. There was a shift in the establishment of consumer goods industries to heavy industries such as machine tools, petro-chemical, electrical complex, and iron/steel. Industrial Sector and Its Components. Growth of industrial sector from 1947 to 1950. Pakistan developed the first motorway in South Asia in 1997; today it has expanded to a 1,502 km long network. Importance of Industrial Sector For A Country. Its citizens practised agriculture, domesticated animals, made sharp tools and weapons from copper, bronze, and tin, and traded with other cities. NATIONAL BANK OF PAISTAN in 1949. [52][53] On 7 November 2016, Bloomberg News also claimed that "Pakistan is on the verge of an investment-led growth cycle. Pakistan has important strategic endowments and development potential. The period from 1960 to 1970 covers two Plan periods, the Second Five-Year Plan 1960-65 and the Third Five-Year Plan 1965-70. 4. They developed industry, which also brought a revolution by mechanizations in the agricultural sector. The industrial performance in terms of growth, exports, and production was disappointing from 1971 to 1977. While both the Nawaz Sharif and Benazir Bhutto governments supported economic liberalization and privatization policies, neither were able to successfully implement them. Five decades later, the manufacturing production index is 12,000 with the base of 100 in 1947. Free Essays on Industrial Development Of Pakistan Since 1947. Pakistan's economy recovered significantly during the 1980s via a policy of deregulation, as well as an increased inflow of foreign aid and remittances from expatriate workers. Large generous aid from the United States also declined after the global oil crisis in 1973, which had a further negative impact on the economy. Performance of industrial sector in 1960s. [38] Analyzing the stagflation problem, the PIDE observed that a major cause of the continuous era of stagflation in Pakistan was a lack of coordination between fiscal and monetary authorities.[38][39]. Ratan Lal Basu & Rajkumar Sen: Ancient Indian Economic Thought, Relevance for Today. Lesser. Evolution of Democracy. However, there was not a single jute factory in the former East Pakistan—cotton was produced, but the region had no big factories to process and manufacture it. 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