The exchange rate also remained fairly stable throughout this period. Pakistan has come a long way from almost zero industrial bases in 1947 to a creditable manufacturing centre more on the strength of its huge economic potential than government policies that continue to favour the rich. The broad outline of government policy in the 1950s and early1960s involved squeezing the peasants and workers to finance industrial development.Much of the economy, and particularly industry, was eventually dominated by a small group of people, who were largely traders who migrated to Pakistan's cities, especially Karachi, at partition. 2. 1277.0 crore) was incurred for the growth of manufacturing sector. Per capita GNP growth rate from 1985 to 1995 was only 1.2 percent per annum, substantially lower than India (3.2), Bangladesh (2.1), and Sri Lanka (2.6). In the 18th century, the Mughals were replaced by the Marathas as the dominant power in much of India, while small regional kingdoms, who were mostly late Mughal tributaries such as the Nawabs in the north and the Nizams in the south, declared autonomy. THE Indus Valley civilization, the first known permanent and predominantly urban settlement that flourished between 3500 BC to 1800 BC, featured a vibrant economic system. Pakistan achieved independence from British colonial rule on August 14, 1947. Pakistan developed the first motorway in South Asia in 1997; today it has expanded to a 1,502 km long network. However, in 1974, the influence and authority of the left wing within the party significantly decreased: they had either been marginalized or purged.5 As a result, the second phase was less ideologically motivated, and was instead driven by the outcome of ad hoc responses to various situations.6 Between 1974 and 1976, the style of economic management Bhutto adopted reduced the role of the Planning Commission as well as its capacity to offer advice to political decision-makers. The manufacturing sector could achieve a growth rate of 7.8 percent against the Plan target of 10 percent. [24] Without a substantial industrialization program or adequate agrarian expansion, the economy of East Pakistan steadily declined. The decline in the growth of the manufacturing sector was due to multiple reasons like the reduced production of cotton crops, sugar shortage, steel and iron problems, and global oil prices. In contrast to the relative stagnation during the period from Independence to 1959-60 when nothing except nascent large-scale manufacturing grew faster than population, the period from 1959-60 through 1969-70 is one of quite remarkable growth of the Pakistan economy. Exports stagnated and Pakistan lost its market share in a buoyant world trade environment. The share of industrial sector to GNP went up to 11.8 percent from 1960 to 1965. 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. Major heavy mechanical, chemical, and electrical engineering industries were immediately nationalized, as were banks, insurance companies, educational institutions, and other private organizations. There were various reasons for the poor performance of the manufacturing sector. During this 11-years period, 8 prime ministers came into power. 185.11 crore was allocated to the growth of industrial sector. In the period from 1947 to 1950, the private entrepreneurs invested in high-profit industries. "[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. Ideological Hindrance for Democratic Pakistan. "[28] At this time, the country lacked the foreign exchange reserves needed to cover its imports or service its debts, remittances and investments had decreased by millions, and Pakistan had no access to private capital markets. [22] The capital was not moved directly from Karachi to Islamabad; it was first shifted temporarily to Rawalpindi in the early sixties and then to Islamabad when the essential development work was completed in 1966. Pakistan inherited 20 percent of the subcontinent's population at the time of partition of India on August 14, 1947. In 2013, Nawaz Sharif returned to inherit an economy crippled by energy shortages, hyperinflation, mild economic growth, high debt, and a large budget deficit. NATIONAL BANK OF PAISTAN in 1949. Industries such as KESC were now under complete government control. Present Growth Pakistan's Industrial Sector. 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. In the last over three decades. The infrastructure for the establishment of heavy industries was also to be developed. The country achieved self-efficiency by widening its industrial base. Pakistan Steel Mills was constructed in 1973, making it the largest industrial mega-corporation, having a production capacity of 5.0 million tonnes of steel. Manufacturing growth in Pakistan during this time was 8.51 percent, far outpacing any other time in Pakistani history. 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. "[9] A devastating famine also broke out on the eastern coast in the early 1770s, killing 5 percent of the national population. At the time of partition in 1947, Pakistan had a negligible industrial base. I would like to thank you for such great information. 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. Pakistan at the time of partition in 1947, had negligible industrial base. The private sector was encouraged to invest in large scale industries. According to Sushil Khanna,[31] professor at the Indian Institute of Mass Communication, the completion of the long gestation period of Tarbela Dam also helped unleash unprecedented agricultural growth, while fertilizer and cement investments made in the 1970s contributed to industrial growth. Statue of a bull outside Islamabad Stock Exchange, Following a military coup in October 1999, Pervez Musharraf became the President of Pakistan in 2001 and worked to address the challenges of "heavy external and domestic indebtedness; high fiscal deficit and low revenue generation capacity; rising poverty and unemployment; and a weak balance of payments with stagnant exports. 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. historical development of education in pakistan since 1947 ppt Home; About; Schedules; News & Events; Contact Us 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. 3000 km long China–Pakistan Economic Corridor construction began in 2015. Although the subcontinent enjoyed economic prosperity during the Mughal era, growth steadily declined during the British colonial period. Pakistan has now attained a fairly diversified base in manufactures ranging from essential consumer goods to chemicals, steel, heavy engineering and achene's and tool industries. In the Third Five-Year Plan, from 1965 to 1970, development expenditure amounting to Rs. The country had to fight a war with India in 1970. The West Pakistan was established in 1947. In its South Asian Growth report, the World Bank stated: "In Pakistan, gradual recovery to around 4.5 per cent growth by 2016 is aided by low inflation and fiscal consolidation. 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. Pakistan experienced remarkable development-oriented structural transition ─ GDP share of agriculture declined from 53% in 1947 to 21.2% in 2010, GDP share of industry rose from 9.6% in 1949-50 to 25.4% in 2010, and GDP share of the services rose from 37.2% in 1950 to 53.4 % in 2010.78. Pakistan rolled out 4G in 2014, aiming to capitalize on over 140 million mobile phones in the country. Comments. Lawrence B. 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. With an empire in place, trade routes became more secure, thereby reducing the risks associated with the transportation of goods. [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. • Pakistan hardly had any manufacturing industries in 1947. The rate of inflation fell, while the investment rate grew to 23 percent of GDP, and an estimated $14 billion of foreign private capital inflows financed many sectors of the economy. In the Second Five-Year Plan, an allocation of Rs. The Soviet–Afghan War significantly affected the economy of Pakistan, with approximately 1.7 million Afghani refugees moving to Pakistan. Although the stock market did improve in Sharif's second term and inflation was contained at 3.5 percent, as opposed to 7 percent in 1993–96, Pakistan still experienced low development and high unemployment.[34]. Introduction: Since the Industrial Revolution, industrialization has been regarded as essential for a country's rapid development. Although ancient India had several urban centers, much of the population resided in villages, where the economy was largely isolated and self-sustaining. [17] The Export Bonus Vouchers Scheme (1959) and tax incentives stimulated new industrial entrepreneurs and exporters. The advantages of technological change were channeled into agriculture. The creation of Pakistan was catalyst to the largest demographic movement in recorded history. Growth of industrial sector from 1947 to 1950. Under Zia, economic policies became market oriented, rather than socialist.[32]. There was also reduction in U.S.A aid. The overall manufacturing recorded growth of 9.9 percent in 2005-06 and 8.45 percent in 2006-07. [13] Starting in the 1830s, British textiles began to appear in—and soon inundate—Indian markets, with the value of textile imports growing from £5.2 million 1850 to £18.4 million in 1896.[14]. etc., the private sector was shy in investing capital in heavy industries. [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. In the last over three decades , the contribution of industrial sector to GDP is only 18.5% which by any standard is not satisfactory . [20], In 1959, the country began the construction of its new capital city. While both the Nawaz Sharif and Benazir Bhutto governments supported economic liberalization and privatization policies, neither were able to successfully implement them. Prime Minister Secretariat in the new capital city. 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. Last year Pakistan has successfully marked its 69 th year of independence and now it is in its 70 th year. 233.11 crore (against a target of Rs. "[54] On 10 January 2017, The Economist forecasted Pakistan's GDP to grow at 5.3 percent in 2017, making it the fifth fastest growing economy in the world and the fastest growing in the Muslim world. Tax collection was low, averaging less than 10 percent of GDP. "[27], Bhutto introduced socialist economics policies while working to prevent any further division of the country. Usman Khalil from Pakistan on December 28, 2014: Sir it really helped me in my university work. Since the division of the Subcontinent, the Government of Pakistan has been utilizing all available domestic and external resources for rapid development of the manufacturing sector. Spread over 1700 acres, Quaid-i-Azam University was constructed in 1967. Sixty million of the ninety-f… Monsoon floods between 1951–52 and 1952-53 created further economic problems, as did uneven development between East and West Pakistan. [26], According to Muhammad Abrar Zahoor, the nationalization of industries can be divided into two phases. Since emergence of the state on the political background of the world, economically, it has experienced a bumpy ride all together. The share of industrial sector was 18.2 percent of the GDP in 2003-04. But further acceleration requires tackling pervasive power cuts, a cumbersome business environment, and low access to finance. has helped in import substitution and has saved a substantial amount of foreign exchange. ... An overview of Pakistan’s economy The industrial sector of the country contributes to 20 percent of GDP. The countries achieved balanced growth in various sectors of the economy. The PIDC is now reduced in size and stature. Their national incomes increased. The purpose of this talk is to analyze how much has India really achieved in the last 55 years in fulfilling the aspirations on which it was founded. There was all-round development of industries, particularly in agricultural processing, food products, and textiles. 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. During the 1960s, Pakistan was seen as a model of economic development around the world, and there was much praise for its rapid progress. [47][48][49], The IMF loan program concluded in September 2016. Butt, Muhammad Shoaib and Bandara, Jayatilleke S. (2008), famine also broke out on the eastern coast, rich get richer and poor get poorer ratio, Pakistan Institute of Development Economics, Nawaz_Sharif § Third_term_as_Prime_Minister_.282013_.E2.80.93_Present.29, Learning from the Past: A Fifty-year Perspective on Pakistan’s Development, 2005-06 Economic and Social Indicators of Pakistan, "Richest families in Pakistan - The 22 Families", About the Country Studies / Area Handbooks Program: Country Studies - Federal Research Division, Library of Congress, A Critical Appraisal of the Economic Reforms under Zulfikar Ali Bhutto: An Assessment, "Related Data From the International Monetary Fund", "Economic Liberalisation and Privatization", "Sartaj defends Nawaz's economic policies", "Dar's 2013 budget speech – the highs and the very low lows", HIGHLIGHTS OF PAKISTAN ECONOMIC SURVEY 2013-14, "FY14: FDI clocks in at $1.63 billion, up 11.99%", Economic Survey 2014-15: Ishaq Dar touts economic growth amidst missed targets, "Foreign currency reserves cross $10b mark", "Outlook stable: S&P affirms Pakistan's ratings at 'B-/B, "Improving inflows: Moody's changes Pakistan's rating outlook to 'stable, "Pakistan's GDP to grow by 4.5% in current fiscal year, WB forecasts", "Pakistan's economy ready for takeoff | TNS - The News on Sunday", "Pakistan's economy is back on track, says top US magazine - The Express Tribune", "Despite rising economy, Pakistan still hampered by image problem", "China's Billions Luring Once Shy Foreign Investors to Pakistan", "Pakistan predicted to be world's fastest-growing Muslim economy in 2017 - The Express Tribune", Securities & Exchange Commission of Pakistan, Pakistan and the International Monetary Fund, https://en.wikipedia.org/w/index.php?title=Economic_history_of_Pakistan&oldid=1002472786, All Wikipedia articles written in Pakistani English, Articles with unsourced statements from September 2019, Creative Commons Attribution-ShareAlike License, This page was last edited on 24 January 2021, at 16:53. Free Essays on Industrial Development Of Pakistan Since 1947. An estimate of India's pre-colonial economy puts the annual revenue of Emperor Akbar's treasury in 1600 at £17.5 million (in contrast to the entire treasury of Great Britain two hundred years later in 1800, which totaled £16 million). The main obstacles which have slowed and retarded industrial development in Pakistan are as follows: 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 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. This also prevented agricultural land from being split and reaped a higher yield due to the benefits of scale. 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