Pakistan is predominantly known as an agrarian economy, backed by a huge agriculture sector which is contributing to almost half of the gross national product since independence. Around the 1940s, a new economy of Pakistan was emerging where the population was 30 million with 6 million urban populations. At that time 99.2% of agriculture output was contributing to exports. Majorly, the nation was lacking an economic structure, financial resources and industrial base to utilize natural resources like natural gas, crude oil, coal, etc in an efficient way.
During 1950, Pakistan somehow joined the group of the rapidly growing countries by transforming its traditional economy towards a phase of planning after launching a series of 5 years plan. Then a massive inflow of economic growth, political stability in the 1960s enabled Pakistan to sustain high growth rates. Pakistan achieved an agricultural growth of 5% per annum through massive investments in water resources, incentivizing farmers and advanced mechanization of production processes. The growth rate increased by 16% during 16960/61- 1964/65 because of the protection of domestic industry but the growth rate declined to 10% during 1965-1970 in the wake of India war.
After experiencing an era of the revival of economic growth due to rising industrial investment and declining poverty and unemployment rates in the 1980s, Pakistan faced problems of declining worker remittances and rising external deficits following the declining growth rates and worst inflation during 1990s. In 2001, according to debt reduction and management committee, the high public debt was the cause of declining growth rates. The subsequent years brought a slowdown and low growth and overall decline of the economy of Pakistan.
The history of Pakistan’s economy has played a key role in the current situations of the nation. To achieve development, it is necessary that the country must follow a sustainable development plan.
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