Overview of Pakistan’s economy /
historical persecutive
Saima Ashraf
Economic Status of Pakistan from 1947-2023
1947-1950
• Minimal economic growth due to the government’s main priority
being the drafting of a constitution. Agriculture share: 53.2%,
• Political instability (3 different people as head of state).
1950-1958
Transitioning from an agrarian economy to a semi-industrial one.
Political instability (3 people serving as governor-general in 6 years)
Agricultural growth: 1.9%, Manufacturing growth: 7.7%, Economic
Growth: 3.1%
Economic Status of Pakistan from 1947-2023
1958-1969
• Enormous progress due to political stability of Ayub’s government
• The Green Revolution with growth at a rate of 5% The large-scale
manufacturing grow at a rate of 16% per year, which reduced to 10% after
the 1965 war with India. GDP growth: 6.7%
Manufacturing growth: 8.51%
1969-1977
3 different rulers and the separation of the east wing of Pakistan. This was
followed by floods, a rise in oil prices, and failures of export crops. The PPP
rule of 1971-1977 saw huge losses to the economy. Inflation 15%, deficit 8%,
nationalization policy, Agri growth: 2.7%, Manufacturing Growth: 5.5%
Economic Status of Pakistan from 1947-2023
1977-1988
Military takeover by Zia. Reversing nationalization, aid for fighting the
USSR and used the funds for development, remittances, Agricultural
growth: 5.4%
1988-1999 (PPP and the PML-N ruled the country)
Return of democracy with political instability. External deficits rose,
remittances decline, GDP growth 1.7% , Poverty rose, and foreign debt
tripled. Pakistan’s nuclear program drew further sanctions and left the
country on brink of bankruptcy, Agricultural growth: 4.4%
Economic Status of Pakistan from 1947-2023
1999-2008 (Another martial law. General Pervez Musharraf )
Musharraf and Ayub Khan are considered as the golden era for the
Pakistani Economy. Growth rates 8.6%, Debt to GDP decrease from
100% to 55%,Foreign exchange reserves increased by $9 billion, Agri
growth: 5.4% , Average GDP growth: 6.3%
2008-2013 (PPP took control in 2008)
Country once again suffered economically. Massive decline in
agricultural and overall economical growth. Economic growth slowed
down to 4.09%, and the yearly growth fell to 2%.Agricultural
growth: 2% Average growth rate: 4%
Economic Status of Pakistan from 1947-2023
2013-2018 (PML-N took charge)
The PML-N managed to fix a crippled economy by using IMF loans.
GDP growth saw an increase year-on-year and inflation dropped for
most of their rule. Macro-economic stability ensued and Moody’s
declared Pakistan’s economy stable. Average GDP growth rate: 5%
2018-2020 (PTI)
GDP growth rate fell to a historic low of 0.99% in 2019, much below
the 5.55% in 2017. government added $70 billion in loans to the already
existing debt. coronavirus pandemic, Analysts have expected low
growths in every sector
Current economic situation
• Consumer Price Index (CPI) increased to 29.4% on a year-on-year basis in June 2023 compared to 21.3% in
June 2022
• Unemployment Rate in Pakistan is expected to reach 6.80 percent by the end of 2023
• Policy Rate 23% and debt to GDP is 73.58%
