ABSTRACT
This chapter provides a brief overview of the development of the Pakistani economy by looking at state policies adopted in five years — 1949, 1958, 1972, 1977, and 1992 — that were critical for the economic development of the country. It presents an assessment of the economic situation in 1992 and identifies several areas of economic policy-making that invite the government’s immediate attention. The chapter offers an analysis of the situation faced by the government of Prime Minister Nawaz Sharif and suggests why some of the polity initiatives taken by it may pay rich economic dividends. Global economic and political uncertainties are the reason why 1992 could be a make-or-break year for the Pakistani economy. Pakistan’s economy in 1992 has reached the point at which it could begin to make the transition to the middle-income state. There are a number of reasons why the administration of Nawaz Sharif could turn 1992 into a historic year for the Pakistani economy.
