Pakistan it has experienced a bumpy ride

  Pakistan
got its independence from the British occupation on 14th
August 1947. Since emergence of the state on the political
background of the world, economically, it has experienced a bumpy ride all
together. Pakistani economy grew at a fairly impressive rate of 6 percent
per year through the first four decades of the nation’s
existence. A feat achieved by a very few nations. In spite of rapid population growth during this period, per capita incomes doubled,
inflation remained low and poverty declined from
46% down to 18% by late 1980s. This healthy economic performance was maintained
through several wars and successive civilian and military governments in 1950s, 60s,
70s and 80s until the decade of 1990s, now appropriately remembered as the lost decade.

 Various
East Asian countries that were behind Pakistan in the 1960s have surged far
ahead in most economic and social indicators. Pakistan has thus been
unable to realize its potential. South Korea is a prime

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example of this case. In 1960’s both counties
were almost at the same economic stage but owing to the inability to implement the economic plans
appropriately, the gap between the two states widened with the passage of
time in South Korea’s favor.

 

Despite
sharing a common historical, cultural and social milieu, Pakistan and India
have pursued different paths since independence in 1947.
Both countries have done reasonably well in improving their economies and reducing absolute poverty
levels. India has, however, emerged as a stable and vibrant democracy
while Pakistan has spent half of its post-independence years under military dictatorships.

  Pakistan’s
economic and political history can be divided into six distinct
periods:

 

Period I: The Flat Fifties,

1947 to 1958:

 

  At the time of partition, the physical
separation between eastern and western Pakistan, with Indian territory in
between, put Pakistan at a serious disadvantage. This era marked the government
of Liaquat Ali Khan and initiation of First Fiver Yearly Plan. The plan
was based on the theory of Cost of Production value, and also covered the areas
of economic system. State Bank of Pakistan was established to kick start
the economic engine of the nation and major economic infrastructural
expansions took place in the process. Currency war between Pakistan and India
was also a highlight of this era which started with the refusal of
exchange in PKR by Indian authorities in 1949. In the mid 1950, these
relations were restored and trade resumed between the two nations. This era
also marked the start of the Korean War which led to economic bloom
of the local economy but the growth was reduced by the assassination of
Liaqat Ali Khan in October 1951.In 1953 the plan collapsed due to need of
funds. Also the shortage of consumer goods like food, clothes, medicines
and sharp fall in production due the monsoon floods of 1951-52 and 1952-53 were
the reasons to slow down the progress of the nation. Thus, in the end, Prime Minister Khawaja Nazimuddin
was forced to end the program after sending his request to provide
economic assistance from the United States and other friendly countries. In
1955, Prime minister Muhammad Ali Bogra again revived the plan and published in
1956. The program was again launched with priority on agricultural
development, and focused on rapidly increasing the developmental effort in
East-Pakistan and in the less-developed areas of West Pakistan. Prime minister
Huseyn Suhrawardy of Awami League gave much priority to food development, agriculture
and social development in both states. The concept of Collective farming
was introduced by Suhrawardy as part of his agricultural policies
and around 27 M rupees were spent in order to improve the agriculture
of the country.

 

However, this plan was not
implemented because of its enormous size that lacked the physical and
personnel assistance. The shortage of technical knowledge also devastated