Economic development 1

Economic Development Planning Through Decades

Initial Economic Strategy

• First Five-Year Plan (1956): Launched post-partition focusing on development strategies.

• Industrial Emphasis (1951): Shift towards industrial development initiated with establishment of Pakistan Industrial Development Corporation (PIDC) in 1952.

  • Major industries: Cement, fertilizer, paper, sugar, textiles, ship breaking.

  • Objective: Economic growth and industrialization; however, resulted in increased inequality and neglect of agriculture.

Changes in Strategy post-1960

• Economic Planning Revamp (post-1960): Agriculture given equal priority to industrial growth.

  • Foreign Aid: Significant foreign investments and loans seen as essential for growth.

  • Though 7% growth was achieved, issues persisted:

    • Growing wealth gap.

    • Industry primarily producing consumer goods.

    • Increased dependence on imports for raw materials.

    • East Pakistan felt deprived due to lack of economic share.

Nationalization and Its Impact (1970s)

• Nationalization Policy (1970s): Shift marked by nationalization of 32 major industries aiming for equitable growth.

  • Consequences:

    • Destruction of smaller industries.

    • Decline in production and increased foreign loan dependency.

    • Poverty escalated as the labor sector suffered.

• Privatization Initiatives: Initiated to rebalance industry growth and agriculture, introducing human resource development as essential for economic improvement.

Economic Policies of the 21st Century

• Capitalistic Norms (2000-2008): Policies emphasizing macroeconomic stability disregarded direct poverty alleviation.

  • Belief in trickle-down economics failed as growth rate declined.

• Government Initiatives:

  • Pakistan Peoples' Party addressed poverty through programs like Benazir Income Support.

  • Nawaz Sharif continued welfare programs stabilizing GDP growth to 5.53% by 2018.

  • Imran Khan's government launched programs for inflation relief and support to the poor.

Mineral Resources

Importance of Minerals for Industry

• Raw Materials:

  • Key minerals include coal, mineral oil, and gas used in various industries.

  • Classification of minerals:

    • Metallic Minerals: Used for manufacturing and industrial applications (e.g., iron, manganese).

    • Non-Metallic Minerals: Essential for diverse applications, coal considered a traditional energy source.

• Mining Regions:

  • Major coal mining sites include Sindh, Punjab, and Balochistan with significant reserves in Thar and Salt Range.

  • Mining often hampered by economic factors like extraction costs.

Identified Mineral Resources

• Coal: Historic significance, primarily used in energy generation.

  • Reserves concentrated in Sindh and Punjab, notably in Thar and Salt Range.

• Rock Salt: Majorly found in Khewra, essential for various chemical processes and preservation.

• Industrial Clay and Other Minerals:

  • Includes gypsum, limestone, marble, and gemstones.

  • Pakistan ranks fifth globally in emerald production with significant mining sites in KPK.

Agriculture and Economic Reliance

Agricultural Significance in Economy

• Contribution to GDP: Agriculture accounts for approximately 19% of GDP and employs nearly 50% of the labor force.

• Challenges Faced:

  • Low agricultural productivity compared to developed nations.

  • Major issues include:

    • Waterlogging and Salinity: Degradation of soil fertility due to rising underground water levels.

    • Underutilization of Cultivable Land: Only 25% of cultivable land actively farmed despite vast potential.

Agricultural Potentials

• Diverse Climate and Cultivability: Possibility of growing various crops due to climatic diversity and varied landforms.

• Labor Force Dynamics: A large uneducated agricultural labor force limits productivity due to reliance on outdated farming techniques.

Strategies for Improvement

• Government Agricultural Reforms: Policies aimed at tenant rights and equitable land distribution initiated across several decades.

  • Regulations established to limit land holdings and promote agricultural efficiency.

• Promotion of Agricultural Literacy and Subsidies: Initiatives to educate farmers through media and provide financial support.

• Infrastructure Development: Significant investments in farm-to-market roads and irrigation facilities.

Specific Crop Information

• Major Crops: Include rice, cotton, tobacco, sugarcane, maize (Khareef) and wheat, barley, pulses, oilseeds (Rabi).

• Economic Impact of Crops:

  • Rice and cotton serve as vital exports; however, their production has faced challenges due to climate change and declining land quality.

  • Strategy to develop better seed varieties and advanced farming techniques to enhance yields.