Assignment

ARYAN IKRAM

May 19, 2025

Dr. Mohsin Qazi

1. Introduction

Since its creation in 1947, Pakistan has faced a lot of internal and external challenges. Two of the most
important parts that define the country’s growth are its foreign policy and its economy. Foreign policy
is how Pakistan deals with the rest of the world, while economic structure talks about how the
country earns money, creates jobs, and grows.

2. What is Foreign Policy (Article 40 of Constitution 1973)

Foreign policy is a country’s way of managing relationships with other countries. In Pakistan, this is
guided by Article 40 of the 1973 Constitution. According to this article, Pakistan should work to build
good relations with Muslim countries, promote peace and cooperation in Asia, Africa, and Latin
America, and support international peace and security. This shows that Pakistan wants friendly ties
with the world while protecting its own interests.

3. Importance and Objectives of Foreign Policy

Foreign policy is very important because it helps a country protect its borders, improve trade, and
create a positive image worldwide. For Pakistan, the main goals are to keep the country safe, promote
economic development, support the rights of Muslims around the world, and encourage peace,
especially in our region. A good foreign policy also brings in investment and builds strong
international friendships.

4. Divisions of Foreign Policy

Pakistan’s foreign policy is divided into several key areas, each playing an important role in how the
country interacts with the world:

 Political Relations: Managing diplomatic ties and maintaining peaceful relationships with other
countries to safeguard national interests.

 Economic Ties and Trade Agreements: Establishing trade partnerships and economic
cooperation to boost growth and development.
  Defense and Security Cooperation: Collaborating on defense matters with allies to ensure
national security and regional stability.

 Cultural Exchange and Understanding: Promoting cultural programs and exchanges to build
mutual respect and understanding between nations.

 Humanitarian Aid and Global Support: Providing and receiving aid during crises, showing
Pakistan’s commitment to international solidarity and peace.

5. Elements of Foreign Policy

There are many factors that affect foreign policy, such as:
 Pakistan’s location (next to China, India, Afghanistan, etc.)
 Islamic identity and history
 Economic needs
 Military strength
 Political leadership and stability
 Public opinion
 World events and global politics
All these things together shape how Pakistan deals with other countries.

6. Quaid-e-Azam’s Vision on Foreign Policy

Quaid-e-Azam Muhammad Ali Jinnah wanted Pakistan to be a peaceful country. He believed in

7. Foreign Relations of Pakistan: China, India, USA

 China: Pakistan and China have a strong friendship. They work together on big projects like
CPEC (China-Pakistan Economic Corridor) and have good defense and trade ties.
 India: Relations with India are difficult because of issues like Kashmir. There have been wars
and tensions, but both sides talk sometimes about improving things.
 USA: Pakistan has had ups and downs with the US. They have worked together on security and
development, but trust has been a problem, especially after 9/11.
 8. Economic Structure of Pakistan

Pakistan’s economy is a mixed economy consisting of agriculture, industry, and services sectors, each
contributing differently to the country’s GDP and employment.
 Agriculture contributes around 19% to Pakistan’s GDP and employs nearly 38% of the
workforce. It remains vital as a source of raw materials for industries and exports. Major crops
include wheat, rice, cotton, and sugarcane.
 The industrial sector accounts for about 20% of the GDP. Key industries include textiles,
cement, sugar, steel, pharmaceuticals, and food processing. The textile industry alone
contributes roughly 60% of Pakistan’s total exports and provides employment to millions.
 The services sector is the largest contributor, making up nearly 54% of the GDP. It includes
finance, telecommunications, retail, education, and health services, reflecting growing
urbanization and consumer demand.

Pakistan faces economic challenges such as a trade deficit exceeding $40 billion (as of recent years),
inflation rates fluctuating around 8-10%, and energy shortages affecting industrial productivity.
Additionally, the country’s public debt stands at over 70% of GDP, creating fiscal pressure.
Efforts to improve the economy include reforms to attract foreign investment, expand export
markets, and developing infrastructure. Enhancing productivity across all sectors and addressing
structural problems are key to achieving sustained economic growth.

9. Import, Export, and Energy Overview

Pakistan has a large and growing labour force, which is a vital asset for the country’s economy. Most
workers are employed in agriculture, followed by industry and services. However, a large part of the
labour force is informal or unskilled, which limits productivity and income levels. Women’s
participation in the workforce is low compared to men, and many workers lack access to proper
training and education. Improving vocational skills and creating better job opportunities are important
to fully utilize Pakistan’s labour potential.

10. Child Labour in Pakistan

Child labour remains a serious problem in Pakistan. Many children work in sectors like brick kilns,
agriculture, small factories, and domestic work. Poverty and lack of access to education force families
to send children to work instead of school. Despite laws against child labour, enforcement is weak,
and many children continue to face hazardous conditions. To reduce child labour, Pakistan needs
stronger laws, better social protection programs, and increased awareness about children’s rights and
education.
 11. Industrial Contribution in Pakistan’s Economy

The industrial sector is one of the key pillars of Pakistan’s economy. It includes various industries such
as textiles, cement, sugar, steel, chemicals, pharmaceuticals, and food processing. Among these, the
textile industry is the largest contributor, accounting for a significant portion of the country’s exports
and employment. Pakistan is known worldwide for its cotton and textile products, which generate
billions of dollars annually.

Industries provide jobs to millions of people, not only in manufacturing but also in related sectors like
transportation, marketing, and retail. This sector helps reduce poverty by creating employment
opportunities, especially in urban and semi-urban areas.

Besides textiles, other industries such as cement and steel support infrastructure development in
Pakistan. The pharmaceutical industry ensures the availability of medicines and health products
locally, reducing dependency on imports. The food processing sector adds value to agricultural
products, helping farmers get better prices and improving food security.

However, the industrial sector faces several challenges that limit its growth. Frequent power
shortages and load shedding disrupt production, leading to losses. Many factories use outdated
machinery that lowers efficiency and quality. There is also a lack of sufficient investment in research
and development, which is essential for innovation and competing globally.

Improving the industrial sector requires addressing these problems by upgrading infrastructure,
encouraging foreign and domestic investment, and providing training to workers. With the right
policies and support, the industrial sector can play a bigger role in boosting Pakistan’s economy and
achieving sustainable growth.

12. Energy Sector and Types of Energy

The energy sector is a critical part of Pakistan’s economy because energy powers homes, industries,
transportation, and agriculture. Pakistan’s growing population and economy have led to increasing
energy demands. However, the country faces challenges like frequent power outages and an
unreliable grid, which hinder development.
Pakistan’s energy comes from several main sources:

 Hydropower: This clean and renewable energy is generated from water sources such as dams
and rivers. Hydropower accounts for about 30% of Pakistan’s total electricity production.
Major projects like the Tarbela Dam, which is one of the largest earth-filled dams in the world,
and the Mangla Dam are key contributors. However, hydropower’s output depends on
seasonal water availability.
  Thermal Energy: This includes electricity generated by burning fossil fuels like coal, oil, and
natural gas. Thermal energy provides roughly 45% of Pakistan’s electricity. Although it is the
largest source, it is costly and contributes to air pollution. Pakistan relies heavily on imported
oil and gas, making it vulnerable to global price fluctuations.

 Nuclear Energy: Pakistan has several nuclear power plants, including the Chashma Nuclear
Power Complex, which contribute around 7% of the country’s electricity. Nuclear power offers
a reliable, low-carbon source of energy, but requires careful safety management.

 Renewable Energy: Solar, wind, and biomass are growing sources of clean energy. Pakistan has
over 300 sunny days a year, giving it vast potential for solar power, especially in regions like
Balochistan and Sindh. Wind energy is also promising, particularly in the coastal areas of Sindh.
However, currently, renewable energy only makes up about 5-6% of the total energy mix.

To meet future energy needs and reduce dependence on fossil fuels, Pakistan needs to invest more in
renewable energy projects, improve energy efficiency, and modernize its energy infrastructure.
Expanding clean energy will also help combat pollution and climate change, supporting a sustainable
future

13. Agriculture Sector of Pakistan

Agriculture is a fundamental part of Pakistan’s economy, employing nearly 38% of the labour force
and contributing around 19% to the country’s Gross Domestic Product (GDP). It is the main source of
livelihood for a large segment of the rural population.
Pakistan’s major crops include wheat, rice, cotton, sugarcane, and maize. For example, Pakistan is one
of the top rice exporters in the world and the 4th largest cotton producer globally. The country
produces over 25 million tons of wheat annually, which is a staple food for the population.

Livestock is also a key part of agriculture, contributing about 11% to the GDP. Pakistan has the 5th
largest cattle population in the world, and dairy farming is a major source of income and nutrition.
Agriculture in Pakistan depends heavily on the Indus River irrigation system, which irrigates over 16
million hectares of farmland, making it one of the largest irrigation networks in the world. However,
water scarcity and inefficient irrigation practices are growing concerns.

Despite its importance, the sector faces challenges like low mechanization (only about 18% of
farmland is mechanized), outdated farming methods, lack of access to modern technology, and
climate vulnerabilities such as droughts and floods. Improving irrigation, introducing better seeds, and
providing farmers with access to credit and education are vital for increasing productivity and
ensuring food security.
 14. Industrial Sector of Pakistan

The industrial sector is vital for Pakistan’s economic growth. It includes small and large industries such
as textiles, cement, pharmaceuticals, surgical goods, electronics, food processing, and more. Among
these, the textile industry is the most significant, making up a large part of exports and providing jobs
for millions of people.

Industries also help reduce reliance on imports by producing goods locally. However, this sector
struggles with power shortages, old equipment, lack of innovation, and low investment in research
and development. To grow stronger, Pakistan’s industrial sector needs better infrastructure, skilled
labor, business-friendly laws, and strong exports.

15. Economic Development: Objectives and Challenges

The goal of economic development is to reduce poverty, create jobs, and improve living standards.
Pakistan wants to become a developed country, but there are many challenges:
 Political issues
 Poor energy system
 Low investment
 Climate change
 High debt

We need strong leadership, good policies, and unity to face these challenges.

16. Conclusion

In conclusion, Pakistan’s future depends on effectively managing its foreign policy and economic
development. Strong international relationships and regional peace are essential for security and
attracting investment. At the same time, addressing challenges in agriculture, industry, labour, and
energy is crucial for economic growth and job creation.
With focused efforts on modernization, innovation, and policy reforms, Pakistan can overcome its
difficulties and move towards sustainable development. Good leadership and national unity will play a
vital role in this progress. Balancing foreign relations with economic strength will help Pakistan build a
prosperous and stable future.