Pakistan's Economy: Achievements, Progress, Constraints, and Prospects

Since independence, Pakistan can look back on fifty years of steady, sometimes spectacular economic advance. Pakistans growth has been the fastest in South Asia. The gross national product has increased on average by over 5 percent a year since 1947. Pakistan started behind India at the time of independence, but its income per capita is now 75 percent higher. In spite of high population growth, per capita income has more than trebled in the past two decades. Still, despite these accomplishments there is growing dissatisfaction with the countrys economic performance. Here the main shortcomings often cited include a large budgetary and balance of payments deficits, b increasing inflationary pressures, c population explosion and rising unemployment, d physical infrastructural constraints, and e inadequate human resource development. Pakistans golden jubilee presents an opportune time to examine the countrys economic performance during the last fifty years. How far has the economy progressed and at what cost Is progress sustainable What are the main limitations associated with the countrys development model Is Pakistan on the verge of becoming an Asian Tiger Ultimately, one has to address the question posed by Mahbubul Haq Why are its people so poor when the economy has made such rapid progress Perhaps a related question is whether and to what extent democracy can be sustained in light of the massive economic and social difficulties the country currently faces.