SUBMITTED BY: - RABBIA MUNAWAR

EDITED BY: - AIMAN QASIM

A FIFTY-YEAR PRESPECTIVE ON PAKISTANS DEVELOPMENT

(Pervez Hassan, 1997) analyzes effects of macroeconomic variables on Pakistans economic growth from
1947 to 1997. Pakistan grew on average at 5 percent during 1949 to 1996, with poor growth in 70s and
comparatively better GDP growth and was reflected in 80s to 90s when compared to other countries in the
region. In 70s to 80s budget deficits increased but due to external borrowings it was controlled and
investment boosted, the later decade however gave a new dimension to agricultural growth through
technological breakthrough. Weak political institutions, external dependency for making policies and
economic mismanagement were the reasons of Pakistans slow growth. This articles draws attention on
governance issues, mistakes made by Bhutto, also gives detail of organizations, working to uplift the
individuals living standard, still hindrances are present.

From 1949 to 1996, Pakistans economy grew on average rate of 5% whereas the per capita GNP growth
rate during 1985 to 1995 was 1.2% which is lower than India, Bangladesh and Sri Lanka. Separation of East
Pakistan leads to slow growth during 1970 to 1977 whereas in 1990s inflation accelerated dependence on
external assistance increases due to fiscal deficit, results lower the domestic saving rate in Pakistan. The
population grows 30 million (1947) to 130 million (1996). In Zias era, defense expenditure increased
greatly and public sector spending exceeded defense spending. The ratio of taxes to GNP improved from
13% in 1970s to 14% in 1990s.

Late 1970s Pakistan faced budget deficit and in 1980s relied greatly on non-bank borrowing and inflation
aroused. From 1960 to 1993 manufactured exports contributed 8% per annum. Pakistan faces a weak export
structures and policy, results in missing the opportunities. Agriculture growth was poor 1.4% per annum due
to fewer inputs available like water while in fifties high rate of manufacturing growth due to government
policies ensure high profits and protection of domestic industries. In Bhuttos era Private industrial
investment increases i.e. 2.8% per annum.

In 1970s to 1980s, real wages were increased which declined poverty rate. In 1993 literacy rate was 36%
and female literacy rate was 21%. Furthermore, Pakistans employment rate from last 30 years was 2.6%
per annum. Highest growth rate in early 1980s was due to increase in investment, low initial level of
industrial development and agricultural growth through large investments and technology. Fixed investment
growth rate in 1950s was 15% and 20% per annum in 1960s. Due to technological breakthrough in
agriculture, results in varieties of wheat and rice in 1960s. 1984 to 1991 yielded high productivity of cotton.

Several factors explain why economic and social policy performance deteriorated over time, in 1988 public
spending decreased and public institutions get weakened. In Pakistan involvement of international
organization like World Bank and IMF give advices and sets up the policies for Pakistans economic
growth. In mid 1980s the economic management was Pakistans main issue. The law and order, legal
system, corruption, accountability, increased size of informal economy and adverse tax collection are major
problems, hindering the economic growth.

Article concluded fifty years history of Pakistans development and addresses major factors which slowed
the nations growth. There are major problem in policies of Pakistan and governance issues with the
political instability, lack of management, Infrastructure issues and inefficient use of resources. Bhuttos
regimes mistake i.e. nationalization of industries, financial institutions, afghan conflicts, illegal activities
and changes in political culture effects development while in Zias era growth and investment stimulated by
inflow of remittances and foreign aids. Pakistan faces highly instable political situation, fiscal deficits and
external debts. However number of NGOs and social activists provide services to uplifts poor and supply
basis facilities. International organizations Initiated structural programs but management and corruption are
the factors which slowed the development progress in Pakistan.