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Analysis of the poor country - Essay Example

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Economy of Pakistan: Challenges and Recommendations Demographics of Pakistan Pakistan is situated in South Asia sharing its border with Afghanistan to its northwest, Iran on the west, India on the east, and China in the north…
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Download file to see previous pages Pakistan does not have a well-developed industrial sector but some of the important industries are Cotton Textile, Woolen Textile, Cement, Sugar factories, Fertilizers, Leather, and paper industries (F. K. Khan). Political History of Pakistan Pakistan came into being on 14 August 1947, with two parts. West Pakistan constituted NWFP, Punjab, Baluchistan and Sindh, whereas East Pakistan constituted of East Bengal. The founder of the nation, Mohammad Ali Jinnah, was the first Governor General. Pakistan was declared as the Islamic Republic of Pakistan (official name) with the adoption of parliamentary democratic system of government in 1956 when the first constitution was promulgated. From 1956-1965, the political situation remained unstable with the country’s first Martial Law enforced in 1958. In 1965, Pakistan and India engaged in war over the Kashmir dispute for the first time (Afzal). Pakistan and India fought again in 1971, which resulted in East Pakistan declaring itself as an independent nation to be called Bangladesh. Zulfiqar Ali Bhutto formed Pakistan People’s Party and became President of Pakistan and a new Pakistan Constitution was formed in 1973. 1n 1977, Gen. Muhammad Zia-ul Haq promulgated Marshall Law and became the president and Z.A Bhutto was hanged. From 1985, when the Marshall Law was lifted to 1999 Pakistan saw two political leaders become prime ministers alternatively twice. Military Rule was one again established in 1999, and the Army General Musharraf declared himself President in 2001. In 2008, Musharraf stepped down and democracy was restored (H. Khan). Economic History of Pakistan Soon after independence Pakistan’s economy went into recession. The economy suffered in the 1950’s due to weak industrial base and lack of private organizations. By 1960’s, the economy started recovering but in 1970’s the economy fell again due to separation of East Pakistan. It took 12 years to recover from the second recession but that too was short lived. The reason behind this is the corruption and communal unrest (Jaffrelot). In 1998, economic sanctions by the West as Pakistan conducted its first nuclear test also affected the economy. During the time, when General Pervez Musharraf assumed his power he devoted his team to manage the economic crises. During this period, there was considerable progress in achieving macro-economic stability. There was a positive GDP growth rate, fiscal deficits improved, external debts, revenues, exports, and foreign exchange reserves all showed improvement. However, poverty and unemployment increased. The overall picture that emerges from a dispassionate examination of these indicators is that the country made significant economic achievements but had a disappointing record of social development (S. Khan). After 2008, Musharraf resigned a new Government led by Asif Ali Zardari was established. The GDP growth, which had been 5.0 % dropped to just 0.4 % (2008-09). By October 2008, the inflation reached the highest level of 25 percent. The oil and other commodities prices showed an unprecedented increase. In addition to this, the natural climate in 2010 and 2011 also added to the economic suffering. Extreme power shortages were causing huge losses. Even though, the growth rate of the economy was 6%, there were the worst crises in public enterprises, energy sufferings, and economic mismanagement during these years (United Nations) Current Economy Pakistan’ ...Download file to see next pagesRead More
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