ANALYSIS OF PAKISTAN

Pakistan

Historical Background:

Pakistan, officially the Islamic Republic of Pakistan, gained independence on 14 August 1947. In 1971, a civil war in East Pakistan resulted in the independence of Bangladesh. Pakistan's history has been characterized by periods of economic growth, military rule and political instability.

Geography:

Pakistan is located in South Asia and borders Central Asia and the Middle East. Its borders are with China in the North and towards the West and Northwest are Iran and Afghanistan and towards the East and South East, its borders are with India. The country has an area of 7,96,095 square kilometers. The total cultivated area is 2,21,300 square kilometers, whereas the area under forest is 42,300 square kilometers.

Population and Language:

Pakistan is the sixth most populous country in the world with 188 million people (as per 2015 estimates) with a growth rate of 2.1% per annum. One-third of the total population lives below the official poverty line. It has the second-largest Muslim population in the world after Indonesia. The national language is Urdu and English is the official language.

Economy:

• Mixed Economic System: Pakistan follows the mixed economy model with the co-existence of public and private sectors.
• Introduction of Various Policies: In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy frameworks for the growth of domestic industries. The policy combined tariff Protection for manufacturing of consumer goods, together with direct import controls on competing imports.
• Green Revolution: In the case of agriculture, the introduction of the Green Revolution and increase in public investment in infrastructure led to a rise in the production of food grains. This changed the agrarian structure dramatically.
• Importance to Role of Public Sector in the early 1970s: In the early 1970s, the nationalization of capital goods industries took place.
• Importance of Role of Private Sector in the late 1970s: In the late 1970s, there was a shift in the government policy, when it adopted the policy of denationalization. The government encouraged the private sector and also offered various incentives to them. All this created a conducive climate for new investments.
• Financial Support during the late 1970s: During this period, Pakistan also received financial support from (i) Western nations; and (ii) Remittances from emigrants to the Middle-east. This helped the country in stimulating economic growth.
• Reforms: In 1988, reforms were initiated in the country.