Escolar Documentos
Profissional Documentos
Cultura Documentos
1
AN OVERVIEW
Currency War with India till the early 50s but was
resolved in mid 50s and trade resumed.
Start of the Korean War which led to a boom in
local economies.
However the growth was retarded by the
assassination of Liaqat Ali Khan in 1951.
In 1953, the plan collapsed altogether due to
lack of funds.
In the end, Prime Minister Khawaja Nazimuddin
was forced to end the program.
CONTINUED
In 1955, Prime ministerMuhammad Ali Bograagain
revived the plan and published in 1956.
Agricultural development given the highest priority and
270 Million Rupees spent on both East and West Pakistan
combined.
However due to the lack of technical knowledge,
inadequate personnel and shortage of foreign exchange
funds the program collapsed.
Coupled with political tension regarding inequality among
provinces and the influx of refugees, Pakistan faced a
huge economic problem.
PERIOD II:THE GOLDEN SIXTIES (1958 TO 1969)
Ayub Khan took control of Pakistan in 1958 and
despite its poor past performance, revived the five
year plans.(with some additional help)
The second five-year plans gave highest priority to
heavy industrial development, advancement in
literature and science.
GDP growth in this decade jumped to an average
annual rate of 6 percent from 3 percent in the
1950s.
The manufacturing sector expanded by 9 percent
annually and the agricultural sector growth was 4
percent due to the green revolution.
CONTINUED
Perception of inequalities rose along with the concentration of wealth
among the 22 families.
But How?
Result: Pakistans main industries were producing negative value added
goods.
Hence, in spite of import substitution and large amounts of exports,
foreign exchange shortages persisted.
The failure of the economic elite to save out of their increased income
resulted during the 1960s in a seven-fold increase in the requirement of
foreign aid.
Debt servicing as a percentage of total foreign exchange earnings
increased from 4.2% in 1960-61 to 34.5% by 1971-72
THE END OF AYUBS REGIME
Pressler Amendment
Tax reforms
liquidity problem
Pakistan had to enter into a stand-by arrangement with the
IMF: PRGF
During the years 1999 to 2004 the economy was able to
2007
External conditions worsened the
problem
Economic Regress 2008:
Pakistan
PAKISTAN TODAY