ABSTRACT
In the 1960s, the opposition to President Ayub Khan's regime in Pakistan intensified. The ensuing political chaos brought to the surface new forces that were to take Pakistan through a major structural change in the early 1970s. Nationalization of a number of economic enterprises in the sectors of industry, finance, trade, and communication was one important manifestation of the structural change in what was left of Pakistan. Economic development has also resulted in the movement of labor from agriculture into nonagricultural pursuits and from the countryside to towns and cities. In the area of export diversification, Pakistan has not done as well: Agriculture still accounts for 30 percent of its total exports. But this seeming lack of progress is in part the consequence of the country's economic endowment. One way of identifying the reasons for this divergence between the structure of the economy and the income that it produces is to analyze Pakistan's rather turbulent economic history.
