ABSTRACT
Between 1960 and 1969, Pakistan’s economy grew rapidly and experienced considerable structural change. The ensuing two-year period was characterized by political disturbances which adversely affected the growth process. At the time of its independence in 1947, Pakistan was predominantly an agricultural economy with a very small industrial base. Agriculture contributed over 60 percent of gross national product, while the share of manufacturing was only 6 percent. The growth of the period 1960 to 1971 was accompanied by substantial changes in the composition of gross domestic product. The high rates of industrial expansion almost doubled the share of manufacturing in gross domestic output to 11 percent. The increased skewedness of Pakistan’s development towards industrial production and exports had regional dimensions. The national process of growth and structural change heightened income inequalities between East and West Pakistan and resulted in a worsening of the income distribution within each region.
