ABSTRACT
At the time of independence in 1947, Pakistan was one of the poorest countries in the world with per capita income of around Rs300 or US$67 (Waterston 1963). Most Pakistanis lived at subsistence level. Agriculture was the dominating sector and was the main source of employment, income, raw materials for domestic industries and export earnings. The agricultural sector employed nearly 80 per cent of the total labour force and contributed around 60 per cent to the GDP (Waterston 1963). Pakistan depended on a limited range of agricultural export commodities, mainly jute (produced in the East) and cotton (produced in the West). The trade policy and structural reforms implemented during the six decades of the post-independence period have changed the economic structure of the country. The overall economic growth of post-independence Pakistan has not been disappointing, but it cannot match the remarkable success of some South East Asian countries. Pakistan has not been able to maintain sustainable economic growth over a long period. As reviewed in the previous chapter, political instability and changes from democratic to military regimes have also been reasons why Pakistan has not been able to maintain sustainable long-term economic growth. The purpose of this chapter is to provide an overview of the economic performance and structural changes in Pakistan during the post-independence period, within the context of the different political regimes identifi ed in the previous chapter.
