Economic Development at a Glance
According to Graham Bannock, "Economic development pertains to the ability of an economy to generate higher levels of national income persistently."
The Government of Pakistan established the Planning and Development Board in 1952 to accelerate the pace of economic development and remove the obstacles. In 1953, Planning Commission was established.
Economic Development in Pakistan through Decades
The economic growth that has taken place since the inception of Pakistan can be divided into the following decades:
First Decade: From establishment of Pakistan to 1958
Since its establishment, Pakistan faced many issues like refugee resettlement, administrative, demarcation, Kashmir issue, annexation of states, assets distribution, river water issue, distribution of military assets and other economic issues etc.
Until June 1953, most of the development work was carried out under a six- year plan, known as the Colombo Plan. Under this plan, special attention was given to the construction of infrastructure in the country so that conditions can be made suitable and favorable for the establishment of industries. A series of five- year plans were launched from 1955, so that the country's economy could be put on the path of development.
In 1955, the first five- year plan was released, the size of which was 10.8 billion rupees. The main goals of this project are as under:
- Increasing industrial and food production.
- To increase national and per capita income.
- To provide employment.
- Repair of old roads and construction of new roads as well as augmentation of railway facilities.
- To increase health and education facilities.
- Provision of irrigation facilities to millions of acres of cultivable land etc.
Gross Domestic Product (GDP) is the sum of goods and services (at market prices) produced in an economy during a specific period, usually a year.
Second Decade: From 1958 to 1968
The second five year plan was launched in 1960 to accelerate economic growth. Its period was from 1960 to 1965. This project is considered successful in the economic development of Pakistan. Most of the objectives of the project were achieved. The industrial sector flourished in this decade. Special attention was also paid to agricultural development, which included import of high quality seeds, pesticides, use of modern agricultural machinery and increasing irrigation resources through installation of tube wells. In the same decade, the famous "Indus Water Treaty" between Pakistan and India was signed in 1960, which temporarily improved the water situation, but in the days to come, there were major negative effects on Pakistani agriculture. During this period many development projects were started, including Mangla and Tarbela dams. These government measures provided employment to thousands of people and improved their economic condition.