Lets start from the scratch, when Pakistan came into existence in 1947, its population was 30 million which increases at a rapid pace and goes up to 130 million in 1996. The main driving force of the country's economy is the agriculture and industry but Pakistan is the agricultural country and it lack industries. Before Pakistan came into existence, subcontinent owns 921 industrial units but the area assign to Pakistan only had 34 units.
In 1950s Pakistan economic growth was 3.1?% as their were several disputes with India like water dispute which adversely affect our economy.
1958 - 1969
Pakistan's economy revitalized as this was the era of General Ayub Khan, he hire the best economist of the country to run our economic system. In his tenure of 11 years 27 October 1958 to 25 march 1969, Pakistan established various projects like
Automobile Industry;
Cement Industry;
Several Dams( Mangla and Tarbela).
Pakistan also sign Indus water treaty in 1960.
He also made reforms in agriculture sector and Pakistan's economic growth averaging 5.82% during his period.
1971-1977
The Kashmir war in 1965 with and separation of east Pakistan from west Pakistan in 1971 put devastating affect on our economy and in 1971 Zulifiqar Ali Bhutto (founder of Pakistan peoples party) becomes president of Pakistan and he holds the office as a prime minister from 14 August 1973 to 5 July 1977. He was more concern with distribution of wealth, he oppose the concept of Privatization and nationalize the Pakistan Civil Engineering, Mechanical Engineering and Electrical Engineering industries. Though, various Projects were constructed in his tenure like
Port Qasim;
Pakistan Steel mill;
Heavy mechanical complex;
various cement factories.
but the concept of nationalization cause our economic growth to fall to 4.8% per annum in his tenure.
1977-1988
When Zia ul Haq came to power current deficit kept under control as too much US aid has been given to Pakistan. In addition to given to Pakistan, US and its allies give $5-7 billion to Afghan Mujahideen to Pakistan and Pakistan economic growth increases to 6.5%.
1990-1999
This was the era of bad governance, corruption and mismanagement as two big parties was playing musical chair( taking turns alternatively). In this period Pakistan's economic growth falls to 4% and poverty rises from 18% to 34%.
1999-2008
When Musharaf came into power in October 1999, Pakistan was in current account deficit as its foreign reserves has very less reserves to pay for imports, but America enters in civil war in Afghanistan and Pakistan is a front line state and it was a route for NATO supplies which leads to too much American aid and Pakistan's economic growth increases to averaging 7% per annum.
11 million jobs were created in this period and poverty decreases from 34% to 18% , Pakistan reserves increases from US $1.2billion to $10 billion and exchange rate remains fairly stable.
$1 = Rs 62.56
2008-2013
After Musharaf resign in 2008 under political pressure, Pakistan peoples party came in the power through election process and Asif Ali Zardari became president and this was the era of corruption, bad governance, terrorism, Energy crisis, increase in foreign dept , this leads to decrease in economic growth from 7% to 4% and then to 2%.
2013-2018
Muslim league Nawaz inherit the government with high inflation rate , Energy crisis, low foreign reserves and current account deficit which leads to immediately borrowing of $6.3 billion loan from IMF to run the country and they had constructed various projects which leads to rise in economic growth to averaging 4.5%.
In 2018, PTI won the elections , due to their bad policies and lack of development projects, economic growth reduces to 3%.
,
In 1950s Pakistan economic growth was 3.1?% as their were several disputes with India like water dispute which adversely affect our economy.
1958 - 1969
Pakistan's economy revitalized as this was the era of General Ayub Khan, he hire the best economist of the country to run our economic system. In his tenure of 11 years 27 October 1958 to 25 march 1969, Pakistan established various projects like
Automobile Industry;
Cement Industry;
Several Dams( Mangla and Tarbela).
Pakistan also sign Indus water treaty in 1960.
He also made reforms in agriculture sector and Pakistan's economic growth averaging 5.82% during his period.
1971-1977
The Kashmir war in 1965 with and separation of east Pakistan from west Pakistan in 1971 put devastating affect on our economy and in 1971 Zulifiqar Ali Bhutto (founder of Pakistan peoples party) becomes president of Pakistan and he holds the office as a prime minister from 14 August 1973 to 5 July 1977. He was more concern with distribution of wealth, he oppose the concept of Privatization and nationalize the Pakistan Civil Engineering, Mechanical Engineering and Electrical Engineering industries. Though, various Projects were constructed in his tenure like
Port Qasim;
Pakistan Steel mill;
Heavy mechanical complex;
various cement factories.
but the concept of nationalization cause our economic growth to fall to 4.8% per annum in his tenure.
1977-1988
When Zia ul Haq came to power current deficit kept under control as too much US aid has been given to Pakistan. In addition to given to Pakistan, US and its allies give $5-7 billion to Afghan Mujahideen to Pakistan and Pakistan economic growth increases to 6.5%.
1990-1999
This was the era of bad governance, corruption and mismanagement as two big parties was playing musical chair( taking turns alternatively). In this period Pakistan's economic growth falls to 4% and poverty rises from 18% to 34%.
1999-2008
When Musharaf came into power in October 1999, Pakistan was in current account deficit as its foreign reserves has very less reserves to pay for imports, but America enters in civil war in Afghanistan and Pakistan is a front line state and it was a route for NATO supplies which leads to too much American aid and Pakistan's economic growth increases to averaging 7% per annum.
11 million jobs were created in this period and poverty decreases from 34% to 18% , Pakistan reserves increases from US $1.2billion to $10 billion and exchange rate remains fairly stable.
$1 = Rs 62.56
2008-2013
After Musharaf resign in 2008 under political pressure, Pakistan peoples party came in the power through election process and Asif Ali Zardari became president and this was the era of corruption, bad governance, terrorism, Energy crisis, increase in foreign dept , this leads to decrease in economic growth from 7% to 4% and then to 2%.
2013-2018
Muslim league Nawaz inherit the government with high inflation rate , Energy crisis, low foreign reserves and current account deficit which leads to immediately borrowing of $6.3 billion loan from IMF to run the country and they had constructed various projects which leads to rise in economic growth to averaging 4.5%.
In 2018, PTI won the elections , due to their bad policies and lack of development projects, economic growth reduces to 3%.
,
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