First Five Decades

• Pakistan was a middle-class predominantly agricultural

country when it gained independence in 1947.
• Pakistan’s average economic growth rate in the first five
decades (1947-1997) has been higher than the growth rate of
the world economy during the same period
• Average annual real GDP growth rates were 6.8% in the
1960s, 4.8% in the 1970s, 6.5% in the 1980s.
• Average annual growth fell to 4.6% in the 1990s with
significantly lower growth in the second half of the decade.
 1950s and 1960s
• Economic Growth during the 1950s averaged 3.1% per annum,
and the decade was marked by both Political and Macroeconomic
instability and a shortage of resources to meet the nation’s needs.
• Pakistan’s economy quickly revitalized under Ayub Khan, with
economic growth averaging 5.82% during his tenure (1958-1969).
• Manufacturing growth rate was 8.51%, far outpacing any other
time in Pakistani history, as Pakistan established its first
automobile and cement industries.
• The government also built several dams and focused on
agricultural sector by starting Green Revolution.
• During Ayub Khan’s tenure, Islamabad was made the Capital of
Pakistan in 1967.
1950s and 1960s
 1970s and 1980s

• During 1970s, Major Industries were immediately Nationalized.

Pakistan Steel Mills and Port Qasim were set up during Bhutto’s
Regime.
• Economic growth fell 6.8% in 1960s to 4.8% in 1970s, Poverty and
Income Inequality increased and Inflation rate rose, averaging
16% from 1971-1977.
• Agricultural and Industrial Growth rose to an average 6.5%.
• Zia’s economic policies became market oriented rather than
socialist.
• There was Command Economy.
 1990s and 2000s (Till 2017)
•Pakistan’s economy suffered poor governance and growth rates in 1990s, as
GDP growth rate sank to 4% and Pakistan faced persistent fiscal and external
deficits, triggering a debt crisis.
•Reserves increased from $1.2 Billion in 1999 to $10.7 Billion in 2004 and the
Investment Rate grew to 23% of GDP. There were Capital Inflows of $14
Billion.
•In 2008, Asif Ali Zardari took control. Pakistan faced Stagflation because of
unsuitable economic policies and the economy slowed down to around
4.09%.
•In 2013, Nawaz Sharif again took control. Privatization and Liberalization
took place.
•Pakistan faced energy shortages, hyperinflation, mild economic growth, high
debt and a large budget deficit.