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The document outlines the economic development of Pakistan from its independence, highlighting shifts in focus from industrial to agricultural growth, nationalization, and privatization efforts. It discusses key sectors such as mining, agriculture, and industries, emphasizing their roles in the economy, challenges faced, and the importance of modernization. Additionally, it addresses energy resources, trade dynamics, and the persistent issue of poverty, detailing causes and potential remedies.

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2 views

1

The document outlines the economic development of Pakistan from its independence, highlighting shifts in focus from industrial to agricultural growth, nationalization, and privatization efforts. It discusses key sectors such as mining, agriculture, and industries, emphasizing their roles in the economy, challenges faced, and the importance of modernization. Additionally, it addresses energy resources, trade dynamics, and the persistent issue of poverty, detailing causes and potential remedies.

Uploaded by

FZV FZV
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1.

Economic Developments in Pakistan through


Decades
After Pakistan's independence, economic development was
crucial, especially with the migration of non-Muslim traders to
India, leaving a gap in Pakistan's economic framework. The
government implemented its "First Five-Year Plan" in 1956,
emphasizing industrial growth under the Pakistan Industrial
Development Corporation (PIDC). This focus shifted from
industrial to agricultural priority in the 1960s, bringing about a
7% annual growth rate but increasing the wealth gap. In the
1970s, the government pursued equitable development by
nationalizing 32 industries; however, this led to economic
disruption and foreign debt. From the late 1970s, privatization
began, and a balanced approach was adopted between
agriculture and industry. In the early 2000s, a capitalist model
was adopted, focusing on market economics and trickle-down
growth. However, during the second decade, economic growth
was hampered by high foreign debt and poverty-alleviation
efforts like the Benazir Income Support Program.
2. Major Sectors of the Economy

Mining: Major Mineral Resources, Economic


Values, and Distribution
Pakistan has abundant mineral resources, including coal,
gypsum, rock salt, limestone, and metallic minerals such as
copper and iron. The Thar coal reserves are significant, while
salt from Khewra mine is well-known globally. Other minerals
like marble and gemstones, such as emeralds from Swat,
contribute to the economy, though mineral exploitation is
limited due to high extraction costs and lack of modern mining
technologies.

Agriculture: Role of Agriculture in Pakistan's


Economic Development
Agriculture is the backbone of Pakistan's economy, contributing
about 19% to GDP and providing 50% employment. It is also
crucial for foreign exchange through exports of cotton and rice
and is vital for feeding Pakistan’s population, as 70% depend on
it directly or indirectly.

Agricultural Potential: Problems and Measures


for Maximization of Yield
Pakistan has potential due to diverse climates and fertile land,
but underutilized arable land, insufficient water storage, soil
erosion, and illiteracy among farmers hinder progress.
Government efforts, including land reforms and subsidies, aim
to address these issues. However, modern agricultural
techniques and infrastructure improvement are essential for
maximizing crop yield.
Water Resources and Irrigation System
Pakistan's irrigation system, largely inherited from British
colonial times, is one of the world’s most extensive. The Indus
Basin Treaty of 1960 allowed Pakistan control over the Indus,
Jhelum, and Chenab rivers. Major dams, such as Tarbela and
Mangla, support this system, but silting, inefficient water
management, and limited storage capacity restrict
effectiveness.
Crops
Pakistan’s primary crops include wheat, rice, cotton, and
sugarcane. Wheat is the staple crop, while cotton supports the
textile industry. Rice, particularly basmati, is a significant export.
The country grows both kharif (summer) and rabi (winter)
crops, with production challenges arising from resource
constraints.
Livestock
Livestock is integral to the rural economy, providing meat, milk,
leather, and employment for millions. Pakistan rears cattle,
goats, sheep, and poultry, and exports leather goods. Livestock
contributes significantly to the rural economy and is essential
for exports, though it faces productivity and disease
management challenges.
Fishing
Fishing, including inland and marine, is a major sector,
especially along the Sindh and Balochistan coasts. Karachi is a
hub for sea fishing, and fish exports contribute to GDP.
However, modernization and environmental sustainability are
needed to meet growing demand and boost foreign exchange
earnings.
Modernization of Agriculture
Efforts to modernize agriculture include providing subsidies on
fertilizers, setting up advisory services, and introducing modern
techniques like mechanized farming. The government has also
promoted agricultural literacy through various media to
enhance productivity.
Problems Associated with Agriculture
Challenges in agriculture include waterlogging, salinity,
underutilized land, rural poverty, and lack of modern
techniques among farmers. Additionally, fragmented
landholdings and poor transportation infrastructure hamper
growth, requiring reforms, and investment in research and
infrastructure.
3. Industries

Role of Industries in Economic Development


Industries drive economic development by generating
employment, reducing reliance on imports, and stimulating
exports. Industrial growth is essential for balanced
development, as industries such as textiles, cement, and sugar
are major contributors to GDP.

Cottage Industry
Cottage industries like carpet weaving, embroidery, and pottery
play a vital role in rural economies by providing employment
and preserving cultural heritage. These small-scale industries
require little capital but contribute significantly to exports and
poverty alleviation.

Small-Scale Industry
Small-scale industries produce essential goods and support the
local economy, especially in rural areas. They include furniture,
cutlery, and handicrafts, and help provide a stable income base
for communities.

Large-Scale Manufacturing
Large-scale industries, including textiles, sugar, cement, and
steel, are central to Pakistan's industrial sector. These industries
are pivotal for exports, employment, and economic stability,
with recent initiatives to upgrade infrastructure and reduce
reliance on imports.
4. Energy Resources

Importance of Energy Resources


Energy is fundamental for economic activities, from industrial
operations to transportation and residential usage. It is
essential to ensure energy security to support Pakistan's
industrial and economic growth.

Electricity
Electricity generation in Pakistan relies on hydropower, thermal,
nuclear, and renewable sources. Despite efforts to increase
capacity, issues in distribution and high fuel costs lead to
frequent load-shedding, affecting both industry and daily life.

Gas
Natural gas is the primary energy source in Pakistan, powering
industries, households, and vehicles. Major gas fields include Sui
in Balochistan, though reserves are depleting, necessitating
exploration of alternative energy sources.

Petroleum
Pakistan imports the majority of its petroleum, which is a
substantial economic burden. Domestic oil fields in Potwar and
Sindh contribute, but reliance on imports remains high,
emphasizing the need for energy diversification.

Coal
Pakistan holds substantial coal reserves, notably in Thar, but its
low quality and extraction cost have limited use. Recent
developments aim to use coal for power generation to alleviate
energy shortages.

Non-Conventional Sources of Energy


Renewable energy sources like wind and solar are increasingly
explored, especially in Sindh and Balochistan. These alternatives
are vital to reduce dependency on fossil fuels and tackle
environmental challenges.
5. Imports and Exports

Factors Controlling International Trade


Geopolitical stability, currency exchange rates, and
international relations are key factors influencing Pakistan's
trade. Trade policies aim to manage imports, promote exports,
and stabilize the economy.

Major Imports and Exports


Pakistan's imports include petroleum, machinery, and edible oil,
while exports focus on textiles, rice, leather goods, and sports
equipment. Textile exports form the largest share, though a
trade deficit remains due to high import costs.

Trade Balance
Pakistan faces a trade deficit, as imports outweigh exports.
Efforts to boost exports through diversification and improved
product quality are underway to achieve a balanced trade
economy.

Ports of Pakistan
Karachi, Gwadar, and Port Qasim are Pakistan's main ports.
They facilitate trade, handle the bulk of imports and exports,
and are critical for the economy. Development at Gwadar aims
to improve regional trade routes.
6. Poverty

Poverty Profile of Pakistan


Poverty remains a challenge, with a large portion of the
population living below the poverty line. Rural poverty is more
severe due to limited access to resources and employment.

Causes, Consequences, and Remedies of Poverty


Causes of poverty include high inflation, unemployment, lack of
education, and limited industrial growth. Poverty leads to social
issues, including health problems and crime. Remedies focus on
job creation, education, social welfare programs, and
sustainable economic policies to alleviate poverty.

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