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Economic Growth of Pakistan

In: Science

Submitted By ak1991
Words 956
Pages 4
ABSTRACT
Pakistan’s growth experience over the past sixty years is both impressive and disappointing. It is impressive because rapid growth rate has resulted in a quadrupling of per capita incomes and reduction in poverty levels by one half despite fairly high population growth. Structural changes have transformed a predominantly agrarian economy to a more diversified production structure. But there is a sense of disappointment too. Social indicators are among the worst in developing countries. The economy of Pakistan is the 27th largest in the world in terms of purchasing power parity (PPP), and 44th largest in terms of nominal GDP.
1950's & 1960's * GDP of agriculture declined, of industry doubled, of construction increased, electricity / gas and that of the services sector also increased. * more jobs were provided like transport, communication, construction and services * Industrial growth was 23% per annum in the first plan period (1955-60) * 1% percent during the second plan period (1960-65) * The food grain shortage in early 1950s because of the poor performance of the agriculture sector, forced Pakistan to borrow long term credits for imports of food grain. * Agriculture sector grew from 1.0% in the first plan period to 3.7% during the period 1960-65. * The era of war 1965 was featured by marked decrease in foreign loans inflow, slow down the industrial growth, and increase in defense expenditures and re-imposition of certain controls as foreign exchange constraints. * GDP growth rate remained at 6.8%

1970's * General Zia ul-Haq became chief martial law administrator in July 1977 and president in September 1978. * country was faced with the challenges of rehabilitation of war shattered economy, high rate of inflation and stagnant agriculture and industrial sector. * Public savings were low largely because...

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