ASSIGNMENT NO.

3 POST

PARTITION

NAME: JANAT EJAZ CHALLENGES

REG NO:039 IN PAKISTAN

SUBJECT:PAKISTAN STUDIES

PRESENTED TO:MAAM UZMA YASMEEN

Statement: Economic Crisis in Pakitan

Pakistan got independence from the British in1947. When the British India was
partitioned, we were to set up a anew state of Eight Million within the period of
two months. We had no capital no flag. Our administrative machinery had to be
built up from scratch. We had no Military equipment, We had no industry no
engineers and no tracers. But under the inspiring leadership of our great Quid e
Azam we established a country

Economic Problems
Division of financial Assets
Constitutional Problem
Canal Water Dispute
Division of Military Assets

Poor Economic Condition:

. A trend-setter in Asia up to the sixties, economic management in Pakistan
has steadily deteriorated to the point where the economy has, for the past few
decades, lurched from one financial crisis to the next. At the heart of the problem
has been the poor management of public finances and deep seated unresolved
structural issue in the economy that bad management and poor governance has
exacerbated. The consequence of this secular decline in economic governance are
plain to see: microeconomic instability, high inflation, poor public service,
criminal neglect of the social sectors, widespread corruption, crippling power
outages, growing unemployment, deepening poverty and a deteriorating dept.
profile. Pakistan has experienced many crisis at its birth. Each one of then has been
a caricature of the previous one with an economic boom, typically fuelled by
official aid inflows, followed by bust which ends in severe balance of payments
crisis. (pp. 169 ‘An Economic Crisis State)

Context taken: PAKISTAN BEYOND THE ‘CRISIS STATE’ By Maleeha Lodhi

 In the early years, the economic scene was marked by relative
stability, strong growth and low inflation. In Ayub Khan’s era, Pakistan
was considered to be a ’model of development’ and aid effectiveness.
Ayub Khan was deeply interested in economic development. He placed
Planning Commission under the President’s Secretariat and himself
became the Chairman. The Planning Commission was staffed by some
of Pakistan’s best and bright economic minds. It was ably supported by a
number of fine economist from the former East Pakistan who worked in
the Pakistan Institute of Development Econi9mics, as well as economist
and policy analysts from the Harvard Advisory group.Ayub Khan
listened to their advice and often deferred to their judgment over the
views of the mighty ICP/CSP. (pp.170 ‘Economic Crisis State)

He was the third President of Pakistan (1969-19710). Yahya Khan and

his Military Advisers proved no more capable of overcoming the
nation’s problems than their predecessors.Yahya took over without
much economic dislocation. There were a few tough words about
concentration of wealth but the government did not do much except set
up a toothless Monopoly Control Authority with an ostensible mandate
to look at and punish anti-competitive behavior. (pp.172)

Zulfikar Ali Butto served as the 4th President of Pakistan from 1971 to
1973 and as a Prime Minister from 1973 to 1977.Bhutto had little
patience with economic matters. The economic effects of the break-up of
Pakistan were profound. It caused vast disruptions to the financial and

Context taken: PAKISTAN BEYOND THE ‘CRISIS STATE’ By Maleeha Lodhi

corporate sectors that had operated on the basis of single country. His
governance faced the challenge of the first oil price shock and turned to
the IMF for the short-term financing but no reforms were implemented.
Yet the economy was kept afloat, thanks to Bhutto’s diplomatic success
in securing financing from friendly Islamic countries.
(pp.173)

6th President of Pakistan. His economic policies were otherwise

unremarkable and devoid of any bold initiatives. The economy was kept
on stable path due to the ultra-conservative approach of the imitable
Glulam Ishaq Khan, the country’s financial kingpin. (pp.174)

He is widely regarded as bringing about an economic revolution in

Pakistan with his far reaching economic reforms. His ‘no question-
asked’ foreign currency deposits (FCD) were a heaven for tax evaders
and under-filers.

Figure 1

Context taken: PAKISTAN BEYOND THE ‘CRISIS STATE’ By Maleeha Lodhi

 Economic development is a broader concept than economic growth.
Development reflects social and economic progress and requires
economic growth. Growth is a vital and necessary condition for
development. The most well-known and frequently trickled metric to
achieve economic growth is Gross domestic product
(GDP).Development of new goods and servic4s also create economic
growth.

Context taken: PAKISTAN BEYOND THE ‘CRISIS STATE’ By Maleeha Lodhi

Context taken: PAKISTAN BEYOND THE ‘CRISIS STATE’ By Maleeha Lodhi