How decisions of government in Pakistan impacted economic position of Pakistan slowly and gradually. Discuss from 1970 to 2020, government wise also citing policies, decision and there impact
The economic position of Pakistan has been shaped by a combination of government policies, global economic conditions, and other factors. Here is a general overview of how government decisions in Pakistan have impacted the country's economic position from 1970 to 2020, organized by government:
1970s: During this decade, Pakistan's economy was heavily centralized, with the government owning and controlling many key industries. The government under Zulfikar Ali Bhutto implemented policies aimed at promoting economic growth and reducing poverty, such as the nationalization of key industries, the establishment of a large public sector, and land reforms. However, these policies led to inefficiencies, and economic growth was relatively slow.
1980s: General Zia-ul-Haq's military government implemented policies aimed at reducing the role of the state in the economy, such as privatizing state-owned enterprises, and liberalizing trade and investment. However, the government also introduced policies that discouraged foreign investment, such as the "Islamization" of the economy and the introduction of regulations and taxes on foreign companies. The overall result was a mixed economy, with a slow growth and lack of foreign investment.
1990s: The government under Prime Minister Nawaz Sharif pursued policies aimed at liberalizing the economy, such as reducing import tariffs, floating the rupee, and privatizing state-owned enterprises. However, these policies were often implemented haphazardly, and the government also introduced policies that discouraged foreign investment, such as the "Pakistan Muslim League" Nawaz's policy on monopolies and cartels. As a result, economic growth was slow, and the country's balance of payments position deteriorated.
2000s: The government under President Pervez Musharraf pursued policies aimed at stabilizing the economy, such as implementing a tight monetary policy, strengthening the rupee, and implementing structural reforms. However, the overall economic growth was slow, and the government also failed to address structural issues such as energy shortages, which led to power outages, decreasing industrial productivity, and business closures.
2010s-2020s: The governments under Prime Ministers Gilani, Ashraf, Sharif, Khan pursued policies aimed at improving the economic situation, including:
- economic reforms to attract foreign investment and improve the ease of doing business,
- energy sector reforms aimed at addressing energy shortages,
- development of infrastructure and social services,
- poverty reduction, and
- promoting agricultural and industrial growth.
However, the governments have struggled to implement these policies effectively and have faced a number of challenges, including:
- chronic budget deficits,
- high inflation and unemployment,
- balance of payments crisis,
- rising public debt,
- political instability and poor governance.
Overall, government policies and decisions have had a significant impact on Pakistan's economic position over the last five decades. While some policies have led to economic growth and development, others have led to slow growth and structural issues. The country's economic position has been shaped by a complex interaction of domestic and international factors, including government policies, global economic conditions, and other factors.