PAKISTAN DIVERSE ECONOMIC CONDITIONS

Pakistan has a diverse and mixed economy that has undergone significant changes since its interdependence in 1947. In the early years of the country the economy was primarily agricultural, with crops such as cotton, wheat, and rice as the main sources of exports with a focus on textile and other light industries.

Over the years, Pakistan has faced various economic challenges, including a high population growth rate, a large trade deficit, and a reliance on foreign aid. In the 1980s, the country implemented structural adjustment programs with the international monetary fund in an effort to stabilize the economy and improve its balance of payments. These programs included measures such as devaluing the currency, reducing subsidies, and liberalizing trade.

In the 1900s and 2000s Pakistan’s economy grew at a relatively slow pace, with an average annual growth of around 4%. In recent years, however the country has made some progress in addressing its economic challenges and has achieved higher rates of economic growth. In 2020, Pakistan’s GDP (Gross Domestic Product) was estimated to be around 310 billion dollars, making it the 23rd largest economy in the world.

During the reign of Ayub Khan Pakistan achieved industrial and agricultural progress. But when Pakistan people’s party came into power, they stated that Ayub Khan was responsible as the economic woe. During Mr. Zulfikar Ali Bhutto's government the nationalization policy was adopted and major private industries like steel mills and chemical industries were nationalized. The results were negative and economic growth fell; employment rate declined because many entrepreneurs moved abroad.

When Nawaz Sharif became the prime minister of Pakistan, he implemented privatization of Pakistan’s economy and ended nationalization. The main reason was to improve growth rate and GDP (Gross Domestic Product). The vision was to promote private ownerships and free markets. But it did not achieve the required objectives.

Since independence, Pakistan's economy has remained dependent on other countries and IMF (International Monetary Funds) and the economy has remained unstable. We are in need of foreign assistance to run our economy. We have always failed to achieve economic goals. No policy has been consistent and every new government is so quick in changing the policies of the previous government. This has led to an unstable economy and the trust of foreign investors has been damaged. Current situation of Pakistan’s economy is at its worst. Dollar rate is at its high of about 230 rupees per dollar. Inflation and unemployment are the too high and there are no new opportunities. People are leaving the country and many entrepreneurs have left for abroad and industries are shutting down. Foreign reserves have fallen to 4.1 billion dollars that can not meet one month imports. Pakistan is most likely to default.

The only solution is the stable political situation. All the parties need to sit together and they need to take immediate actions to restore Pakistan's economy. They also need to agree on one thing that no new government will cancel the policies of previous government and will carry it on.