Economic
play a very vital and important role in any country development, international
relations and its own people health & wealth. This world after becoming
global village, no country stays alone or survive without international
relations, these relations depends upon country economy and its economic
conditions and parameters. All the sector of life effect the country economic
conditions weather it is agriculture, population, tourism, sports, weather,
political conditions or its geographical position.
Pakistan
due to its geographical position, population strength and economic conditions
always plays a vital role in international relations and get influenced by the
changes take place in the world. Since independence of Pakistan our economy
faces complex situations sometime it’s hard and sometimes it’s booming, it was
due to our policy shifting or unstable political conditions with relation to
international politics.
Pakistan
economic history is very attention-grabbing; there was only two year in our
history when our exports were grater then our imports (trade balance was in our
favour). Up to 1954 our balance of payment was in favour of Pakistan but after
that political uncertainties and uncertain economic policies disturb
everything. Our exports based heavily on textiles, agriculture and food
production, and our imports based on Fuel & Energy, Machinery, Equipments,
and Arms & Ammonisation.
Pakistan's
average economic growth rate since independence has been higher than the
average growth rate of the world economy during the same period. Average annual
real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in
the 1980s. Average annual growth fell to 4.6% in the 1990s with significantly
lower growth in the second half of that decade.
During
the 1960s, Pakistan was seen as a model of economic development around the
world, and there was much praise for its economic progression. The capital
Karachi was seen as an economic role model around the world, and there was much
praise for the way its economy was progressing. Many countries sought to
emulate Pakistan's economic planning strategy and one of them, South Korea,
copied the city's second "Five-Year Plan"; the World Financial Centre
in Seoul is modelled after Karachi.
Two
wars with India - the Kashmir War in 1965 and the Bangladesh Liberation War in
1971 - adversely affected economic growth. In particular, the latter war
brought the economy close to recession, although economic output rebounded sharply
until the nationalisations of the mid-1970s but as the result of
nationalisation Pakistan economy suffer very badly and most of the profitable
and growing organizations turn into Burdon on economy which stop the growth and
then turn our economy in debit. In the ends of the 1980s via a policy of
deregulation economy again start recovering, as well as an increased inflow of
foreign aid and remittances from expatriate workers. Economic mismanagement in
general, fiscally imprudent economic policies in particular and political
uncertainty caused a large increase in the country's public debt and led to
slower growth from the 1990s.
After
1990s main cause of our economic destabilization were increase in import of
luxury items, none sporting of local industry, inappropriate bank policies for
consumer loans (Credit cards, car financing), Govt. policy toward Industrial
Banks and most important Energy crises (last two govt. Not even start a single
project of electricity production).
Supporting
economy with unrealistic means and manipulating facts and figures never creates
any good or long-lasting impact on general public economic conditions always
result in big downfall and recession.
