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| EconomyOfPakistan » Economy » History » Factors affecting the economy |
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Factors affecting the economy in the early years |
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Pakistan had an important parallel economic sector in the early years. This sector included a thriving black market, a large illicit drug industry, and illegal payments to politicians and government officials to ensure state contracts. Corruption rose in the 1980s, partly as a result of the massive infusion of United States aid, some of which went to the Pakistani government to pay the cost of supporting refugees fleeing after the 1979 Soviet invasion. These were some of the Factors affecting the economy in the early years of Pakistan.
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Lack of policy-making,relying on foreign assistance,unequal distribution of wealth and embracing failed foreign economic policies are the major Factors affecting the economy in the early years of Pakistan. No effort ha been made towards planning and policy-making to set priorities on scientific lines keeping in view the county’s requirements. During first 15 years, there was practically no long-term planning. The whole business was conducted based on annual plans and budgets. The leading factor considered necessary for development has been foreign aid. Consequently, the country was burdened with foreign debt.
The major correlates of poverty includes real per capita GNP, real wages in manufacturing, per capita availability of food grains, remittances and subsidies. The growing level of per capita income, real wages, agricultural productivity and the flow of remittances have been the most important Factors affecting the economy in the early years of Pakistan. There was increase in income inequality, resulting in an increase in poverty, and remittances, which have shown a consistent downward trend in recent years.
For more information about the Factors affecting the economy in the early years, log onto our website, economyofpakistan.com.
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