Industrialization, however, had failed to create sufficient jobs for the rapidly expanding urban population. Construction and service-sector activities, especially in trade, transportation, and government, were expanded and provided more employment than industry. Nonetheless, underemployment remained prevalent throughout the economy. An outdated infrastructure was another problem seen in the Recent Economic History of Pakistan. Frequent electricity shortages, for example, hampered industrial development and production.
A big problem in the Recent Economic History of Pakistan was high budget deficit. It had adverse implications on the nation's balance of payments, inflation and exchange rates, capital formation, and financial stability. The government had privatized public-sector industrial enterprises, financial institutions, and utilities. And a structural adjustment program was designed to increase revenues, control spending, and stabilize monetary growth.
For more information about the Recent Economic History of Pakistan, visit our website, economyofpakistan.com.
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