Pakistan Studies

Presentation
PAKISTAN ECONOMIC
PROBLEMS
BY: RESHIEL FAZAL and ANEEZA
INAYAT

TABLE OF CONTENTS
Review of Initial problems
Economical Problems
Economically backward areas
Geographical location
Trade and industries
Calcutta
Transportation and communication
Steps taken to solve the problems
Economic development
Industrial development
Agricultural development

REVIEW OF INITIAL
PROBLEMS

The British and Hindus, at last had to surrender

before the exemplary struggle of Muslims.

. The Hindus and Congress, however, did not accept
the partition and emergence of Pakistan from the
core of their heart.
Created problems for newly-born state of Pakistan..
Indian leaders had accepted the partition in the
hope of undoing it soon.
The QUAID-E-AZAM declared Pakistan had come to
exist forever and it will by the grace of God exist
forever.
Due to these conspiracies and mischieves, by the
congress leaders, Pakistan had to face great
difficulties .

ECONOMICAL
PROBLEMS

 Hindus and congress adopted every possible

means to strangle Pakistan economy.

In order to destroy Pakistan's economic
condition, India denied Pakistan's equitable
share in the financial and military assets
False propaganda was made about Pakistan's
viability in economic sector in order to create
doubts among the people about Pakistan's
unstable economic condition.

Economically backward
areas

 The Newly Born Pakistan mostly consisted of

those areas which were economically backward

and under developed .
These were mostly producer of raw material
which could not be utilized locally because
related processing industries were located
elsewhere
The British government had not paid any
attention towards the economic uplift of these
areas
The agriculture system was obsolete and
outdated which added to the economic
backwardness of the areas of Pakistan

Geographical Location

The geographical location of Pakistan to

created economic problems for Pakistan

Pakistan was divided into two parts each

located one thousand miles away from each

other with India's territory lying between
them
The two wings of country had no geographical

links between them

Trade and Industries

 Before partition the Hindus acquired

complete monopoly in trade and commerce

The banks and financial institutions were
established in those areas which were located
in Indian territory
The major industries were also located in the
areas which are now part of India
The technical experts and laborers who
operated the Industries were all Hindus
because the Muslims extremely lagged behind
in education and financial capabilities

Calcutta

 Pakistan suffered heavily because of Calcutta

being awarded to India by Radcliffe

All major jute factories were located in
Calcutta which was produced and cultivated in
East Pakistan
The only Seaport of East Pakistan Chittagong
was not capable of handling export of the jute
to the other countries as yet
Pakistan therefore had no alternative then to
export her jute to Calcutta or sell it to India at
low price offered by her

Transportation and
Communication

 The inadequate system of transportation and

communication also made its adverse effect on

economic development of the country
The Railway system and River Transportation in
East Pakistan was in depleted condition
The roads were in shabby and irreparable
condition
The Communication and Transportation system in
West Pakistan comparatively was in a better
condition
The power resources in the two wings were scarce
and negligible which were insufficient to meet the
National requirement

STEPS TAKEN TO
SOLVE THE PROBLEMS

Inspite of the adverse economic position, the

Government of Pakistan took up the task of

economic development with determination.
The Quaid-i-Azam immediately set himself to
the stupendous task of re-building the
economic system of the new country
He, therefore, ordered that a State Bank of
Pakistan be set up immediately and entrusted
the job of setting up of the bank to Mr. Zahid
Husain.
The state bank of Pakistan was established on
1st july 1948 with a capital of three crores of
rupees.

Economic
development

Development Board was set up in 1948 which

was to do planning for industrial development.

It was an advisory body which was to do planning
for industrial development
It was an advisory body which gave expert advice
to the Government on Economic Development
the government of India delayed the division of
financial assets of Pakistan
The Quaid-e-Azam immediately asked for
setting up of Pakistan Fund
A large number of rich traders and people
generously donated to this fund which enabled
the Government to overcome its economic
problems to a great extent.

Industrial
development


In

1948 a concrete policy was devised for the

industrial development of the country with an
emphasis on the use of raw material available in
the country

The electrical , telephone , and wireless

equipment industries were nationalized

Service conditions and wages schedule for the

labourers were drafted.

The planning and control of the industry dealing

in iron, steel, heavy machinery, cement, mineral
oil, sugars and tobacco were taken over.

Concession in taxes and lenient policy in credits

were announced

Agricultural
development

Agriculture development is the backbone of

Pakistan's economy
Eighty percent of Pakistan's is dependent for their
livelihood on the agricultural sector.
The agricultural sector provides raw material to a
number of industries.
The agricultural system, therefore , had to be
developed on stable footings
Lenient Credit Policy was announced
Effective steps were taken to control the menace of
water logging and salinity
Agriculture Corporation was set up with an
objective of taking appropriate steps for the
agriculture development.

The Government of pakistan gave its

first budget in 1948-49
It was a balanced budget which

confirmed Pakistan's stable economic

conditions