Economic Problems
EVER since its birth almost 60 days ago, Pakistans economy has been on a roller-coaster. It does well when extraneous capital flows become available to the country. This happened in the first vii years of President Ayub Khans tenure when the States poured in economic and military assistance into the country. The consequence was a pick up in developing with the rate of add in GDP improving to more than 6.5 per cent a year.
In the first post-independence decade, the GDP had increased by plainly 2.7 per cent a year. The American flow of money was in return for Pakistans participation in the defence pacts sponsored by the US to contain the spread of communism to Asia. Americas help stopped after Pakistan went to war with India. It resumed again just at a much reduced level.
In the 1970s, Pakistan apart(p) itself from the West first by initiating military action against the secessionist forces in East Pakistan and then by opting for an independent foreign policy. chthonic Prime Minister Zulfikar Ali Bhutto, Pakistan built strong relations with China, a country that was out of favour with the United States.
Accordingly, Bhuttos Pakistan was not a favoured destination for foreign assistance.
His socialist policies which led to the communization of large scale industries and commercial banks were not popular with such development institutions as the World Bank and Asian organic evolution Bank. They also reduced the amount of assistance provided to the country. There were separate reasons for the economys poor performance during the Bhutto period, but regress in foreign flows played an important role. The rate of growth in GDP declined to only 3.9 per cent in 1971-77.
Pakistan did not immediately return to favour following the demise of Bhuttos regime. That happened in 1980 following the invasion of Afghanistan by the Soviet Union. one time Pakistan signed on as a very alive(p) partner in the American effort to force Moscow...If you essential to get a full essay, order it on our website: Orderessay
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