ECONOMIC PERFORMANCE OF PAKISTAN FROM 1947-1972
This long period of 25 years was split into two major eras of our economic history; first starting from 1947 to 1958 and second from 1959 to 1972.
First era (1947-1958)
Pakistan’s economy and society have evolved considerably since the time the country
gained independence in 1947. Primarily an agrarian and rural country at the time, a fair
amount of structural change has led to the development of large services (contributing to
50% of the GDP) and manufacturing (contributing to 25% of GDP) sectors.
At the time when Pakistan gained its independence, country was struggling to make the ends meet with no infrastructure, no ...view middle of the document...
Second era (1958 –1972)
The era (1958-1968) is most commonly known as “The Decade of Development”. Pakistan, essentially an agricultural economy, went through a turbulent decade (during the 1950s) following independence. The decade of the 1960s registered impressive growth (6.8 % annually, on average) while the economy diversified, as agriculture’s share in GDP fell from 46% to 38% while manufacturing’s share more than doubled. The state re-allocated resources from agriculture to industry, through public investment as well as creation of large rents for the manufacturing sector. Agriculture was also mechanized by state initiative ( Green Revolution).A large part of the development achieved was a product of heavy amounts of US and international aid (10% of GDP) received by Pakistan, owing to its perceived geo-strategic importance at the time.
Ayub’s growth policies have been criticized for the regional imbalances and social
dislocations they created. Uneven development between the Eastern and Western wings
of the country and prioritization of industrialization over agriculture were the main
reasons for discontent.
Ayub’s era was followed by another martial law led by Yahya Khan. He failed to make any impact of his rule in the Pakistani history and led to the fall of the East Pakistan and the emergence of Bangladesh...