Effects Of Dictatorship in Pakistan 1 Definition:

Dictatorship is the form of government in which one person or a small group possesses absolute power without effective constitutional limitations. The term dictatorship comes from the Latin title dictator, which in the Roman Republic designated a temporary magistrate who was granted extraordinary powers in order to deal with state crises. Modern dictators, however, resemble ancient tyrants rather than ancient dictators. Modern era In popular usage in western nations, "dictatorship" is often associated with brutality and oppression. As a result, it is often also used as a term of abuse for political opponents, for example, Henry Clay's dominance in United States Congressfirst as Speaker of the House and later as a member of the Senateled to his nickname, "the Dictator.". Many dictators create a cult of personality and have come to favor increasing titles and honours for themselves. For instance, Idi Amin Dada, who had been a British army lieutenant prior to Uganda's independence from Britain in October 1962, Military dictatorship A military dictatorship is a form of government where in the political power resides with the military. It is similar but not identical to a stratocracy, a state ruled directly by the military. Like any dictatorship, a military dictatorship may be official or unofficial, and as a result may not actually qualify as stratocratic. Mixed forms also exist, where the military exerts a very strong influence without being entirely dominant. Military dictatorships can be contrasted with other forms of dictatorship. For example, in most current and historical Communist states, the center of power rests among civilian party officials, and very careful measures (such as political commissars and frequent rotations) are taken to prevent the military from exercising independent authority.

http://www.britannica.com/EBchecked/topic/162240/dictatorship ARTICLE From the

Encyclopedia Britannica

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The History of Dictatorship2

The office of dictator once had a very different meaning from how we think of it today. It was first created by the Roman Senate in 510 B.C. for emergency purposes, such as taking care of rebellions. During the time of the Republic, Rome was ruled by two consuls (two annually elected chief magistrates of the Roman republic), and the Senate decided that in some cases it was necessary to have a single person making decisions. Sometimes, one of the consuls became dictator. Dictators held authority over all other politicians, couldn't be held legally responsible for their actions and couldn't hold the office for longer than six months (although there were two exceptions to this rule). They could also change Roman law and the constitution, but they couldn't use any public money other than what the Senate gave them, and they couldn't leave Italy. Most dictators left office after they completed their tasks, even if their six months hadn't yet elapsed.
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Dictators were appointed off and on as necessary until 202 B.C. More than 100 years later, Lucius Cornelius Sulla was appointed dictator without a term limit and without the restrictions of previous dictators. He ruled for two years in the office and executed thousands of Roman citizens, many of them political opponents. Sulla also became rich by confiscating property. He was succeeded by Julius Caesar(was a Roman general and statesman. He played a critical role in the gradual transformation of the Roman Republic into the Roman Empire.), who was named dictator for life and proceeded to begin a civil war. Caesar was assassinated in 44 B.C., and the office of dictator was abolished due to its corruption4i. Modern dictators usually come to power during states of emergency, too. Many historians consider Napoleon Bonaparte (French general and emperor (1804-15))to be the first modern dictator. Napoleon was a general during the French Revolution, a period of huge social and political upheaval in the country. Beginning in 1789, France evolved from a monarchy to a republic, and then to an empire(.a major political unit having a territory of great extent or a number of territories or peoples under a single sovereign authority; especially : one having an emperor as chief of state) In the midst of executions, coups and confusion, Napoleon became a consul under a new provisional government.

http://history.howstuffworks.com/european-history/dictator1.htm How Dictators Work by Shanna Freeman

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http://www.federalism.ch/files/documents//SikandarHayat_FULL%20BOOK.pdf Decentralization Without Democracy in Pakistan

Guest-Researcher at the Institute of Federalism from June to October 2007 Sikandar Ali HAYAT
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Because he was an undefeated military commander, Napoleon enjoyed immense popularity. He created a balanced budget, reformed the government and wrote the Civil Code that still forms the basis of French civil law today. Napoleon then abolished the Senate and continued to reform the constitution. He named himself consul for life, and in 1804, crowned himself emperor. He continued his military pursuits, fighting across Europe.
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Generals in the French Army mutinied(forcible or passive resistance to lawful authority) and Napoleon was forced to abdicate the throne. After a brief return to power, he was exiled for good in 1815.So from ancient dictators to modern ones, dictators have several different commonalities.. Dictatorship in Pakistan Era of Ayub Martial Law of 1958. By implementing Martial Law in 1958,by Generals, Dreams of Muslims of subcontinent were buried under their boots, and irreparable loss to this nation occurred by those power lusty Generals, The Details of which are as follows. Loss of status of a Democratic state. Due to Implementation of Martial Law, Democratic rights of nation were lost, and Pakistan lost the status of a democratic nation, a right and status on the basis and principles of which Pakistan was created Loss of status of a Nonaligned Nation. Due to Military Generals and their lust for Military Packts, Pakistan was gone completely in USA camp, against Soviet Union, while in fact there was no conflict between Pakistan and Soviet Union, and Soviet Union was our neighboring country and was having Huge Muslims populations in its Central Asian states, it was very convenient by using these factors for developing strong and durable friendship with soviet Union, as that of China

http://history.howstuffworks.com/european-history/dictator1.htm How Dictators Work by Shanna Freeman [Type text]

we have developed. Due to wrong policies of Military Generals, Soviet Union became enemy of Pakistan, and which later on proved very fatal.

Damage to Unity of Pakistan.

As per constitution of 1956, it was decided that each Province will be represented either by Prime Minister or President of the country. But General Ayoub violated this principle and ruled the country as a dictator for about 10 years, this created sense of deprivation in East Pakistan, for which 100 % Military Generals were responsible. Advantages to India: Military Dictator Ship in Pakistan and due to loss of status of a democratic state, these things were very favorable for India for damaging the Interest of subcontinent Muslims and Pakistan, and full advantage was taken by India of the foolish acts of Pakistani Generals. For promoting Indian agenda on above mentioned points, Foolish Generals of Pakistan Army in fact helped India in its conspiracy to divide Muslims of subcontinent and to harm Pakistan as much as possible. War of 1965. Due to Military Dictator ship, India instead of giving right of self determination to People of Kashmir, selected to take the advantage of non democratic government in Pakistan, therefore tried to use military force to solve that problem for ever, although desire of Kashmiri and Pakistani nation to liberate the Kashmir was very high, but due to military dictatorship in the country it was impossible for Pakistan to gain any thing by that conflict. India was a six times larger country than Pakistan, due to being only single huge nation for Hindues,it was quite clear that its Hindu population will be highly motivated and
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By Jalal Ahmad Nov 8th, 2009 Category: Politics, Worth A Second Look

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devoted for the defense and interest of India, therefore in such situation it was completely out of question to liberate Kashmir with any military operation, therefore decision of liberation of Kashmir by war in 1965 was completely against the wisdom and knowledge of warfare, by that war Pakistan economy was seriously damaged and useless loss of army personnels and equipments was occurred . Incapability of Dictators. In 1965 war when with the sacrifices of Pakistani soldiers Indian defense line was totally broken, and Kashmir valley was laying in front of Pakistani army, Dictators again failed to show their competitiveness and confidence and instead of moving forward they stopped the army forward movement. Which resulted in the wastage of sacrifices of soldiers and Pakistani nation. Transfer of Power 1968. General Ayoub instead of handing over power to Speaker of National Assembly handed over power to another General by this he showed no respect for his oath for sacrificing his life for nation, as a compromise for his life he surrendered to other Generals.
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Era of Yahya Khan.

Dictator Yahya Khan was well known as a loose character man, his era is full of highest victimization of Pakistani nation and Army, it is sometimes thought that government of Pakistanwas handed over to this man just to penalize to Pakistani nation by Dictator Ayoub, Because it is completely unpredictable that how this man was able to become the president of an Islamic nation, this is a mystery till today. Some blunders of Yahya Khan are as follows, Constitution Assembly Elections 1970:-8

Written By M.Akram Khan. Karachi,Pakistan

http://www.pakistanlaw.net/law-articles/victimization-of-pakistan-and-pakistan-army-bydictators/
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In the presence of 1956 and 1962 constitutions and against the advice of intellectuals of the nation that it will be very difficult to develop a new constitution for the country, elections were hold by this dictator for new constitution which led the country to an unprecedented crisis. Inability to handle the crisis after elections: After elections politicians of the country failed to reach on any consensus on new constitution as forecasted already by the intellectuals, Dictator Yahya Khan instead of persuading them to reach on some type of consensus, tried to use the policy of divide and rule for the perpetuation of his own rule and for this he had to find some reasons for which he had not to wait so long. Incapability of understanding to Enemy. In 1970 elections Indian RAW was main instrument, which was mainly responsible for cultivation of hatred between West and East Pakistan, But Dictator Yahya failed to comprehend this policy of India. Indian Tactics: In the final stages of Indian policy to create disunity among Muslims, India used its agents for irritating Dictator Yahya and Government of Pakistan, so that in response to such irritation ,Dictator like Yahya will do some highly irresponsible and uncharacteristic acts such as military actions or any other sever reaction ,which will be very fruitful for Indian design. To irritate Dictator Yahya following acts were done by Indians agents in East Pakistan. All these acts were being done by Indians agents to deteriorate the situation more and more, it was the responsibility of Yahya to understand the tactics of India, as the Main representative of East Pakistan Mr. Sheikh Mujib Rehman also showed his disgust about such irritating acts. But instead of taking the help of Mr. Mujib, Dictator Yahya did the uncharacteristic act of Military Action, and by a military court Death Penalty was awarded to Mr. Mujib. Which was in fact the ultimate desire of India for creating the opportunity of century for damaging the interests of Muslims of subcontinent.

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Era of General Zia.

Disasters in the era of General Zia. Democracy Mr.Zulfiqar Ali Bhutto who was enjoying two third Majority in National Assembly and was creator of 1973 constitution was hanged under the death, just to ensure that by this Zia Dictatorship will remain without any challenge, but in violence in reaction to this act , resulted in deaths of army personnels and civilians and law and order situation was deteriorated in the province of Sindh, and to counter that situation an ethnocentric party was created by this dictator, which created so much violence in the city of Karachi, and there is still so much disharmony between different sections of society in the city of Karachi. Afghanistan: Due to dictator ship in Pakistan and Islamic revolution in Iran, Soviet Union by taking the advantage of situation invaded the Afgahnistan, from where starts the long voyage of pains and deaths which is still continue. Siachian: Siachian was lost to India, while it was the main responsibility of dictator to defend the physical boundaries of the country first, later on so many soldiers lost their life in defending this glacier which was lost in the era of Zia During Zia Dictatorship, democratic rights of citizens were violated, and severe punishments were given to people demanding restoration of constitution, and use of narcotics and Kalashnikov culture infected the society like an epidemic.
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Era of Musharaf.

http://www.scribd.com/doc/16468438/Democracy-Vs-Dictatorship-in-Pakistan

Topic: Democracy or Dictatorship Miss Asma Javed Date: 13-6-2009

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Published on May 1, 2004 by Aasim Sajjad Akhta Decolonization and us

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KARGIL WAR. Even before becoming the dictator, just for lust of his personnel fame, he was responsible for the adventure of Kargil war, which was having following draw backs. Musharaf Dictatorship. After Kargil expecting that he could be court martialled for his misdeed, Therefore by violating the best interest of the nation when enemies of Pakistan were waiting for opportunities to overthrow Taliban rule in Afghanistan, and to annihilate Kashmir libration movement and to surgically remove nuclear arms of Pakistan, by having no care of the above mentioned interests of the nation ,this dictator staged the coup against a Prime Minister who was having two third majority in the parliament, at that time only a civilian government was in best position to solve all above challenges but foolish dictators were having no care of interests of the nation. Kashmir; Due to Dictator Ship in Pakistan, liberation movement in Kashmir was seriously damaged; more dust was poured on that weakening movement by foolish suggestions of this dictator. This is the reason that even after giving so much sacrifices, still Kashmiries are waiting for freedom. Damage to Integrity of Pakistan: As the survival of any nation depends on the basic ideology of that nation, as Pakistan was created on the name of Islam and for the welfare of Muslim populations of Different areas, but this dictator was having no respect for the traditional, religious. Democratic and justice values of society, he was not in line with the mentality and thinking of the nation, nation was thinking in one direction and he was having mind of opposite direction, which caused serious damage to unity and integrity of Pakistani nation. War against Afghanistan: After 9/11 When he was waiting for help of USA for strengthening his dictatorship, he helped those enemies of Pakistan who were having desire to overthrow Islamic
http://www.newint.org/columns/essays/2004/05/01/decolonization/

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Government of Afghanistan, while in fact that was a golden opportunity for convincing to USA and world that solution to the problem of extremism in Afghanistan should be left to both governments of Afghanistan and Pakistan, and at other hand it was a convenient opportunity for creating a union between Pakistan and Afghanistan for countering terrorism for the purpose of avoiding the war in the region. but due to his dictatorship these goals were not possible, specially when India the main enemy of Muslim unity in South Asia pressurized Pakistan, by giving unnatural offer of Air bases in India to USA for aggression against Afghanistan while in fact by this offer it was not possible for USA to attack Afghanistan, by this offer, India just aim was to force Pakistan to become an ally of USA against Afghanistan, so that a hatred may be created between Pakistan and Afghanistan, This foolish General was unable to comprehend this policy of India, due to which so much civilian atrocities are going on in this region even today and this region has become the most destabilized region of the world. War against Afghanistan was opposed by civilian, military intellectuals, Corps Commanders and people of Pakistan, but dictator was having no care about that. and was interested in his personnel interest War against Afghanistan has caused a huge destruction in Afghanistan and large number of Pakistani civilians and military personnels have been killed.
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Destruction of Pakistan.

War against a neighbor Muslim country, has seriously damaged Pakistan Islamic Ideology, and it is simple that without adherence to ideology, no country in the world can survive, this is the reason that now Pakistan is facing serious problem in each and every sphere of life, Institutions of Government and Military, Parliament and Judiciary are now facing serious problems as all these pillars of state have been seriously damaged by dictatorial policies.

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http://www.tigweb.org/youth-media/panorama/article.html?ContentID=4487

Five years of the army dictatorship in Pakistan: one more black day added to the dirty rule
by Aftab Khan, Oct 19, 2004

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Damage to Army: Due to operations against its own population, Pakistan Army has lost all support of people, this is the reason that due to policies of this dictator, daily so many soldiers and Police personnels are loosing their lives, Instead of protecting and helping to each other, Army and people of Pakistan are cutting throats of each other, Due to operation in FATA, Balouchistan, and operation of Lal Mosque, serious damage to image of army has occurred. This dictator did not know that only relation and link between different areas and sections of people of Pakistan is that of Islam, All energy and motivation of Pakistani nation comes from Islam, without that even survival of Pakistan is simply impossible, but this dictator was having no care of that, This is the reason that army and security forces have lost all motivation, and anti social elements are committing freely their crimes. Damage to Judicial system: This under graduate General has caused serious damage to Judicial system of Pakistan, He was not knowing that in history when a dictator throw away any judge on street due to fair practices of justice then that Judge becomes the greatest judge of history, In Karachi on 12-05-2007,so many civilians were killed just to damage and abuse the Judicial system of Pakistan. Damage to Parliament: This dictator for the lust of power in 1999 removed a prime minister who was having Two Third majority in Parliament and a fake referendum was held to validate his dictatorship in which he showed that he was having support of 98 % of people, while in fact in history even in a single constituency of Pakistan it is simply not possible for any candidate to win so much support. He re-elected himself as a president for next five years, being a government employee wearing Military Uniform, while as per Pakistan constitution it is not allowed to compete elections being in job of Government, moreover from a parliament which already has elected him president once, and was going to complete its life just in next few months. Conclusion: From all above analysis it is clear that running of the country should be done by those who are specially trained for that purpose otherwise Military Generals, who are trained just to kill or destroy the enemy, when they come to the power they do [Type text]

the same thing with their nation and they are very fond of wars and very interested in show of power with guns, such type of people may be very dangerous for the nation, army and world at large. It is also the responsibility of Army as an institution to clarify that why so much conveniently it becomes obedient to such rogue dictators.

Impacts of Dictatorship in Pakistan

Sociologists say that political systems derive from social structures. Democracy works best in societies with atomistic families where sub-national identities between national and family levels, e.g., based on community and religion, are weak or do not affect peoples political choices, which are based on policies. The main problem under dictatorship is political conflict or even withdrawal given its centralized nature. The main danger under democracy is corruption/incompetence which reduces economic performance. The first one is a much more dangerous problem. The comparative performances of the 1990s and the 2000s (the latter operated under a more favorable external environment) show that the cost of incompetence to economic performance under democracy is less than one per cent of lower annual growth. NATIONAL SECURITY Pakistan has the world's eighth-largest armed forces, which is generally well trained and disciplined. However, budget constraints and nation-building duties have reduced Pakistan's training tempo, which if not reversed, could affect the operational readiness of the armed forces. Likewise, Pakistan has had an increasingly difficult time maintaining its aging fleet of U.S., Chinese, U.K., and French equipment. While industrial capabilities have expanded significantly, limited budget resources and sanctions have significantly constrained the government's efforts to modernize its armed forces. Until 1990, the United States provided military aid to Pakistan to modernize its conventional defensive capability. The United States allocated about 40% of its assistance package to non-reimbursable credits for military purchases, the third-largest program behind Israel and Egypt. The remainder of the aid program was devoted to economic assistance. Sanctions put in place in 1990 denied Pakistan further military assistance due to the discovery of its program to develop nuclear weapons. Sanctions were tightened following Pakistan's nuclear tests in response to India's May 1998 tests and the military coup of 1999. Pakistan has remained a non-signatory of the Nuclear non-Proliferation Treaty. The events of September 11, 2001, and Pakistan's agreement to support the United States led to a waiver of the sanctions, and military assistance resumed to provide spare parts and equipment to enhance Pakistan's capacity to police its western border with Afghanistan and address its legitimate security concerns. In 2003, President Bush

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announced that the United States would provide Pakistan with $3 billion in economic and military aid over 5 years. This assistance package commenced during FY 2005. WAR ON TERROR and Pakistans stance: After the 9/11 attacks, Pakistan joined the US-led War on Terror and helped the U.S. Military by severing ties with the Taliban and immediately deploying 72,000 troops along Pakistan's western border to capture or kill Taliban and al-Qaida militants fleeing from Afghanistan. Pakistan initially garrisoned its troops in military bases and forts in the tribal areas. After several high profile terrorist attacks inside Pakistan and assassination attempts on Pervez Musharraf that Pakistan in May 2004 decided to send in troops to the FATA region and take forceful action against al-Qaeda members in Pakistan's mountainous Waziristan area (in the Federally Administered Tribal Areas) which escalated into armed resistance by local tribesmen. Clashes erupted between the Pakistani troops and al-Qaeda and other militants joined by local rebels and pro-Taliban forces. The Pakistani actions were presented as a part of the War on Terrorism, and had connections to the war and Taliban insurgency in Afghanistan. However, the offensive was poorly coordinated and the Pakistani Army suffered heavy casualties as well public support for the attack quickly evaporated. After a 2 year conflict from 2004 till 2006, the Pakistani military negotiated a ceasefire with the Tribesmen from the region in which they pledged to hunt down al-Qaeda members, stop the Talibanization of the region and stop attacks in Afghanistan and Pakistan. However, the militants did not hold up their end of the bargain and began to regroup and rebuild their strength from the previous 2 years of conflict. The militants emboldened by their success in FATA moved into Islamabad where they sought to impose an extremist Sharia government on Pakistan. Their base of operations was the Lal Masjid in Islamabad. After a 6 month standoff fighting erupted again in July 2007 when the Pakistani Military decided to use force to end the Lal Masjid threat. Once the operation ended, the newly formed Pakistani Taliban, an umbrella group of all militants based out of FATA vowed revenge and launched a wave of attacks and suicide bombings erupted all over North-West Pakistan and major Pakistani cities throughout 2007. The militants then expanded their base of operations and moved into the neighboring Swat Valley and imposed a very harsh Sharia law on the scenic valley. The Army launched an offensive to re-take the Swat Valley in 2007 but was unable to clear it of the militants who had fled into the mountains and waited for the Army to leave to take over the valley again. The militants then launched another wave of terrorist attacks inside Pakistan.

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The Pakistani government and military tried another peace deal with the militants in Swat Valley in 2008. This was roundly criticized in the West as abdicating to the militants. Initially pledging to lay down their arms if Sharia Law was implemented, the Pakistani Taliban used Swat Valley as a springboard to launch further attacks into neighboring regions and reached to within 60 km of Islamabad. The public opinion turned decisively against the Pakistani Taliban when a video showing a flogging of a girl by the Pakistani Taliban in Swat Valley finally forced the army to launch a deceive attack against the Taliban occupying Swat Valley in April 2009. After heavy fighting the Swat Valley was largely pacified by July 2009 although there are isolated pockets of Taliban activity continues. The Pakistani Army had been massing over 30,000 troops and 500 Commandos to launch a decisive offensive against the Pakistani Taliban's sanctuaries. After a few weeks of softening up the targets with air strikes and artillery and mortar attacks, the Army moved in a three pronged attack on South Waziristan. The fighting is currently continuing. Since the conflict began, Pakistan has lost more than three times the number of its soldiers compared to the number of US troops killed in Afghanistan. However, as of 2009, the confirmed bodycount of militants killed by the Pakistan Army reached the 7,000 mark. ECONOMY With a per capita GDP of about $690 (current U.S. $), the World Bank considers Pakistan a low-income country. No more than 48.7% of adults are literate, and life expectancy is about 63 years. The population, currently about 165 million, is growing at 2.09% annually. In 2000, the government made significant macroeconomic reforms: Privatizing Pakistan's state-subsidized utilities, reforming the banking sector, instituting a world-class antimoney laundering law, cracking down on piracy of intellectual property, and moving to quickly resolving investor disputes. After September 11, 2001, and Pakistan's proclaimed commitment to fighting terror, many international sanctions, particularly those imposed by the United States, were lifted. Pakistan's economic prospects began to increase significantly due to unprecedented inflows of foreign assistance at the end of 2001. This trend is expected to continue through 2009. Foreign exchange reserves and exports grew to record levels after a sharp decline. The International Monetary Fund lauded Pakistan for its commitment in meeting lender requirements for a $1.3 billion IMF Poverty Reduction and Growth Facility loan, which it completed in 2004, forgoing the final permitted tranche. The Government of Pakistan has been successful in issuing sovereign bonds, and has issued $600 million in Islamic bonds, putting Pakistan back on the investment map. Pakistan's search for additional foreign direct investment has been hampered by concerns about the security situation, domestic and regional political uncertainties, and questions about judicial transparency.

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U.S. assistance has played a key role in moving Pakistan's economy from the brink of collapse to setting record high levels of foreign reserves and exports, dramatically lowering levels of solid debt. Also, despite the earthquake in 2005, GDP growth remained strong at 6.6% in fiscal year 2005/2006. In 2002, the United States led Paris Club efforts to reschedule Pakistan's debt on generous terms, and in April 2003 the United States reduced Pakistan's bilateral official debt by $1 billion. In 2004, approximately $500 million more in bilateral debt was granted. Consumer price inflation eased slightly to an average of 8% in 2005/2006 from 9.3% in 2004/2005. Low levels of spending in the social services and high population growth have contributed to persistent poverty and unequal income distribution. The trends of resources being devoted to socioeconomic development and infrastructure projects have been improving since 2002, although expenditures remain below global averages. Pakistan's extreme poverty and underdevelopment are key concerns, especially in rural areas. The government has reined in the fiscal mismanagement that produced massive foreign debt, and officials have committed to using international assistance--including a major part of the $3 billion five-year U.S. assistance package--to address Pakistan's long-term needs in the health and education sectors. Reform The government started pursuing market-based economic reform policies in the early 1980s. These reforms began to take hold in 1988, when the government launched an ambitious IMF-assisted structural adjustment program in response to chronic and unsustainable fiscal and external account deficits. The government began to remove barriers to foreign trade and investment, reform the financial system, ease foreign exchange controls, and privatize dozens of state-owned enterprises. Although the economy became more structurally sound, it remained vulnerable to external and internal shocks, such as in 1992-93, when devastating floods and political uncertainty combined to depress economic growth sharply. The Asian financial crisis seriously affected Pakistan's major markets for its textile exports. For example, average real GDP growth from 1992 to 1998 dipped to 4.1% annually. Economic reform also was set back by Pakistan's nuclear tests in May 1998, and the subsequent economic sanctions imposed by the G-7. International default was narrowly averted by the partial waiver of sanctions and the subsequent reinstatement of Pakistan's IMF enhanced structural adjustment facility/extended fund facility in early 1999, followed by Paris Club and London Club re-scheduling. After taking power in late 1999, President Musharraf instituted policies to stabilize Pakistan's macroeconomic situation. Pakistan continues to struggle with these reforms, having mixed success, especially in reducing its budget and current account deficits. Agriculture and Natural Resources Pakistan's principal natural resources are arable land, water, hydroelectric potential, and natural gas reserves. About 28% of Pakistan's total land area is under cultivation and is [Type text]

watered by one of the largest irrigation systems in the world. Agriculture accounts for about 21% of GDP and employs about 42% of the labor force. The most important crops are cotton, wheat, rice, sugarcane, fruits, and vegetables, which together account for more than 75% of the value of total crop output. Despite intensive farming practices, Pakistan remains a net food importer. Pakistan exports rice, fish, fruits, and vegetables and imports vegetable oil, wheat, cotton (net importer), pulses, and consumer foods. The economic importance of agriculture has declined since independence, when its share of GDP was around 53%. Following the poor harvest of 1993, the government introduced agriculture assistance policies, including increased support prices for many agricultural commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7% but declined to less than 3% in 2005. Agricultural reforms, including increased wheat and oilseed production, play a central role in the government's economic reform package. Heavy rains in 2005 provided the benefit of larger than average cotton, wheat, and rice crops, but also caused damage due to flooding and avalanches. Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some proven oil reserves, coal, and large hydropower potential. However, exploitation of energy resources has been slow due to a shortage of capital and domestic and international political constraints. For instance, domestic gas and petroleum production totals only about half the country's energy needs, and dependence on imported oil contributes to Pakistan's persistent trade deficits and shortage of foreign exchange. The government announced that privatization in the oil and gas sector is a priority. Industry Pakistan's manufacturing sector accounts for about 25% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 70% of total exports. Other major industries include food processing, beverages, construction materials, clothing, and paper products. As technology improves in the industrial sector, it continues to grow. In 2005/2006, the manufacturing sector grew by 8.6%. Despite government efforts to privatize large-scale parastatal units, the public sector continues to account for a significant proportion of industry. In the face of an increasing trade deficit, the government seeks to diversify the country's industrial base and bolster export industries. Net foreign investment in Pakistani industries is only 0.5% of GDP. Foreign Trade and Aid Weak world demand for its exports and domestic political uncertainty have contributed to Pakistan's high trade deficit. In 2004, growth rebounded to approximately 6% with substantial improvement in public and external debt indicators and remained robust with 7.8% growth in 2005. Foreign reserves are at an all-time high of $11.5 billion. Pakistan's exports, which grew by 14.4% in 2005/2006, continue to be dominated by cotton textiles and apparel, despite government diversification efforts. Major imports include petroleum [Type text]

and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products, rising to 38.8% to $25.6 billion. External imbalance has left Pakistan with a growing foreign debt burden. The fiscal imbalance is reflected in a high level of total net public debt, which reached an estimated 92.6% of GDP in 2000-01, more than half involving external liabilities, but decreased to 72.7% in 2003. The fiscal deficit widened from 5.6% of GDP in 1994-95 to 7.7% in 1997-98 before declining to 4.5% in 2006. Despite a rise in tax collection, defense and development expenditure along with transfers to the provinces all rose in the 2006 budget, widening the deficit. Support for loss-making, state-owned enterprises and a weak domestic tax base are critical elements in the recurring fiscal deficits. The Pakistan Telecommunications Company Ltd. (PTCL) represented the largest of Pakistans privatization programs for 2005. Despite its economic and political difficulties, Pakistan has taken steps to liberalize its trade and investment regimes, either unilaterally or in the context of commitments made with the World Trade Organization (WTO), IMF, and the World Bank. In 2004-2005, efforts in several crucial areas seemingly intensified, resulting in Pakistan becoming a more open and secure market for its trading partners. Pakistan has received significant loan/grant assistance from international financial institutions (e.g., the IMF, the World Bank, and the Asian Development Bank) and bilateral donors, particularly after it began using its military/financial resources in the war on terror. The United States pledged $3 billion for FY 2005 to FY 2009 in economic and military aid to Pakistan. In addition, the IMF and World Bank have pledged $1 billion in loans to Pakistan. In 2004 to 2007 alone, the World Bank has pledged over $500 million in investment projects. FOREIGN RELATIONS
After September 11, 2001, Pakistan's prominence in the international community increased significantly, as it pledged its alliance with the U.S. in the war on terror and made a commitment to eliminate terrorist camps on its territory. Historically, Pakistan has had difficult and volatile relations with India, long-standing close relations with China, extensive security and economic interests in the Persian Gulf, and wide-ranging bilateral relations with the United States and other Western countries. It expresses a strong desire for a stable Afghanistan.

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