In this thread I am gonna give a breif history about Pakistan's economy

Most of these are from wikipedia but some are from individual organisations such as UN, WB, IMF and CIA

A retweet and like would be appreciated

Pakistan's average economic growth rate since independence has been higher than the average growth rate of the world economy during the same period. Average annual real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s.

Average annual growth fell to 4.6% in the 1990s with significantly lower growth in the second half of that decade

Economic growth during the 1950s averaged 3.1 percent per annum, and the decade was marked by both political and macroeconomic instability and a shortage of resources to meet the nation's needs.

Pakistan's economy was quickly revitalized under Ayub Khan, with economic growth averaging 5.82 percent during his eleven years in office from 27 October 1958 to 25 March 1969.

Manufacturing growth in Pakistan during this time was 8.51 percent, far outpacing any other time in Pakistani history.

Economic mismanagement in general, and fiscally imprudent economic policies in particular, caused a large increase in the country's public debt and led to slower growth in the 1970s.

Continue from part 2

Bhutto introduced socialist economics policies while working to prevent any further division of the country.

Bhutto abandoned Ayub Khan's state capitalism policies, and introduced socialist policies in a move to reduce the rich get richer and poor get poorer ratio.

Poverty and income inequality increased compared to the previous decade and the rate of inflation rose, averaging 16 percent from 1971 to 1977

Pakistan's economy recovered significantly during the 1980s via a policy of deregulation, as well as an increased inflow of foreign aid and remittances from expatriate workers.

Under Muhammad Zia-ul-Haq, "many of the controls on industry were liberalized or abolished, the balance of payments deficit was kept under control, and Pakistan became self-sufficient in all basic foodstuffs with the exception of edible oils."

As a result, Pakistan's rate of GDP growth rose to an average of 6.5 percent per annum in the 1980s.

A tremendous boost to economic activity was provided by rising worker remittances, which reached a peak of US$3 billion in 1982–83, equivalent to 10 percent of the gross national product of Pakistan.

Zia also successfully negotiated with the United States for larger external assistance. In addition to supplying direct aid to Pakistan, the U.S. and its allies funneled about US$5–7 billion to the Afghan Mujahideen through Pakistan, further uplifting the local economy.

Under Zia, economic policies became market oriented, rather than socialist.

Pakistan's economy in the 1990s suffered from poor governance and low growth as it alternated between the Pakistan Peoples Party under Benazir Bhutto and the Pakistan Muslim League (N) led by Nawaz Sharif.

The GDP growth rate sank to 4 percent and Pakistan faced persistent fiscal and external deficits, triggering a debt crisis. Exports stagnated and Pakistan lost its market share in a buoyant world trade environment.

Poverty nearly doubled from 18 to 34 percent, causing the Human Development Index of the United Nations Development Programme to rank Pakistan in one of its lowest development categories during this time period.

While both the Nawaz Sharif and Benazir Bhutto governments supported economic liberalization and privatization policies, neither were able to successfully implement them.

Both parties have argued that this was due to interruptions in the democratic process, as well as unpredictable and difficult political circumstances, such as sanctions imposed after Pakistan's nuclear tests in 1998.

Although the stock market did improve in Sharif's second term and inflation was contained at 3.5 percent, as opposed to 7 percent in 1993–96, Pakistan still experienced low development and high unemployment.

Following a military coup in October 1999, Pervez Musharraf became->

->the President of Pakistan in 2001 and worked to address the challenges of "heavy external and domestic indebtedness; high fiscal deficit and low revenue generation capacity; rising poverty and unemployment; and a weak balance of payments with stagnant exports."

At this time, the country lacked the foreign exchange reserves needed to cover its imports or service its debts, remittances and investments had decreased by millions, and Pakistan had no access to private capital markets.

Yet, sound structural policies coupled with improved economic management accelerated growth between 2002 and 2007.

Approximately 11.8 million new jobs were created during Musharraf's term from 1999 to 2008, while primary school enrollment rose and the debt-to-GDP ratio dropped from 100 percent to 55 percent.

Pakistan's reserves increased from US$1.2 billion in October 1999 to US$10.7 billion on 30 June 2004.

The rate of inflation fell, while the investment rate grew to 23 percent of GDP, and an estimated $14 billion of foreign private capital inflows financed many sectors of the economy. The exchange rate also remained fairly stable throughout this period.

All revenue collection targets were met on time and allocation for development was increased by about 40 percent.

After Musharraf's resignation in 2008 due to mounting legal and public pressures, the PPP government once again resumed control of Pakistan.

The administrations of Asif Ali Zardari and Syed Yousaf Raza Gillani oversaw a dramatic rise in violence, corruption, and unsustainable economic policies that forced Pakistan to re-enter an "era of stagflation."

The Pakistan economy slowed down to around 4.09 percent, as opposed to the 8.96 to 9.0 percent rate under Musharraf and Shaukat Aziz in 2004–08, while the yearly growth rate fell from a long-term average of 5.0 percent to around 2.0 percent.

In its calculations, the Pakistan->

->Institute of Development Economics pointed out that the "nation's currency in circulation as a percentage of total deposits is 31 percent, which is very high compared to India," and its tight monetary policy has been unable to tame inflation, and only slowed down economic->

->growth because the private sector is no longer playing a key role In 2013, Nawaz Sharif returned to inherit an economy crippled by energy shortages, hyperinflation, mild economic growth, high debt, and a large budget deficit. Shortly after taking office, Pakistan "embarked on->

->a $6.3 billion IMF Extended Fund Facility, which focused on reducing energy shortages, stabilizing public finances, increasing revenue collection, and improving its balance of payments position."Lower oil prices, better security, higher remittances, and consumer spending->

spurred growth toward a seven-year high of 4.3 percent in the fiscal year 2014-15 and foreign reserves increased to US$10 billion.

In May 2014, the IMF confirmed that inflation had dropped to 13 percent in 2014 compared to 25 percent in 2008, prompting Standard & Poor's and Moody's Corporation to change Pakistan's ranking to a stable outlook on their long-term ratings.

The IMF loan program concluded in September 2016. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth.

The Pakistani rupee has remained relatively stable against the US dollar since 2015, though it declined about 10 percent between November 2017 and March 2018.

In 2016, articles by Forbes and Reuters declared Pakistan's economy to be on track to becoming an emerging market in Asia, and affirmed that Pakistan's expanding middle class is key to the country's economic prospects.

On 7 November 2016, Bloomberg News also claimed that "Pakistan is on the verge of an investment-led growth cycle."

On 10 January 2017, The Economist forecasted Pakistan's GDP to grow at 5.3 percent in 2017, making it the fifth fastest growing economy in the world and the fastest growing in the Muslim world.

In 2018, the government faced off a looming balance of payments crisis with help from the IMF Khan's government then presided over a significant reduction in the deficit as imports fell and limited military spending in the following years.

In 2019, there were eight hundred thousand new tax filers. Exports up 12%. New circular debt down by 68%. In the same year, Prime Minister Imran Khan claimed that the year 2020 will be one of economic growth for Pakistan.

Khan’s words echoed his vows to the domestic audience, as he has promised fiscal “development” in the country within the ongoing calendar year.

In September 2019, Pakistan’s current account deficit dropped by 80 percent to a 41-month low of $259 million, with a 111.5 percent rise in foreign direct investment (FDI) and 194 percent increase in private investment.

With FDI of $1.34 billion during the first half of the current fiscal year, a 68.3 percent increase was registered in January, compared to $796.8 million of the same period of the previous fiscal year.

This month, the reserves of the State Bank of Pakistan (SBP) also hit a 21-month high at $11.586 billion.

The economic positivity was also reflected by the Karachi Stock Exchange (KSE), which registered a 16-month high this month, crossing the 42,000 point mark after a cumulative increase of 13,000 points in four months.

The World Bank has also acknowledged Pakistan as one of the top 10 “most improved” countries in the Ease of Doing Business Index.

The PTI government was much criticized for taking over nine months to go to the IMF.

Finance Ministry officials revealed at the time that the initial plan under former Finance Minister Asad Umer had been to seek aid from other countries instead of approaching the Fund, for which a Finance Bill was also passed 12 months ago.

The delay meant that by the time the government implemented an IMF instructed market-driven currency exchange rate, the Pakistani rupee had already lost over 50 percent of its value against the U.S. dollar.

However, in the six months since the IMF bailout agreement, the Pakistani rupee-U.S. dollar exchange rate has eased from around 165 to the current 155.

In 2020, Pakistans economy dropped due to the spread of COVID19, but there were some improvement

Imports of iron & steel during May 2020 declined by 19.48% from PKR 28 Billion last year to PKR 23.2 Billion.

Imports in transport equipment during May 2020 declined by 80.5% from US$ 584.8 Million last year to US$ 114 Million.

Exports of IT and IT-enabled services during the fiscal year 2020 rose by 20.7% to US$ 1.11 Billion compared to last year.

Imports of iron & steel during May 2020 declined by 19.48% from PKR 28 Billion last year to PKR 23.2 Billion.

Imports in transport equipment during May 2020 declined by 80.5% from US% 584.8 Million last year to US% 114 Million.

Exports of IT and IT-enabled services during the fiscal year 2020 rose by 20.7% to US$ 1.11 Billion compared to last year.

According to Dun & Bradstreet (D&B) Pakistan / Gallup Pakistan 54% of the respondents of a survey have either faced salary cuts or have been laid off by their employers in an attempt to reduce operational expenses.

Custom duties and other taxes have been waived on the import of the finished injectable Remdesivir used in the treatment of COVID19. The authorities have already exempted 61 medical and testing equipment used for COVID19 till 30 September 2020.

Following slow resumption of industrial and commercial activities, domestic cement consumption in June 2020 increased by 19.6% to 3.8 million tonnes from 3.2 million tonnes last year.

Similarly exports of cement increased by 124% from 0.35 million tonnes to 0.78 Million tonnes during the same period

The government announced an incentive package for housing sector under the “Naya Pakistan Housing Project” that includes a subsidy of more than PKR 30 Billion and includes proposals to banks to allocate 5% of their loan portfolio toward housing sector.

VM Interactive, a UK-based digital technology company, recently invested $250,000 in seed funding in Pakistan’s health-tech ecosystem through a locally indigenous start-up.

The State Bank of Pakistan has announced that its foreign exchange reserves have crossed the US$ 12 Billion mark following the inflow of US$ 1 Billion last week.

KSE (Karachi Stock Exchange, biggest stock exchange in Pakistan) marked the 11th straight day of gains of 2 478 points (7.4%), the longest gain streak since January 2018.

The government has signed a US$ 1.5 Billion investment agreement with China Gezhouba for the construction of the 700 MW hydroelectric project at Azad Pattan.

The International Finance Corp (IFC) has announced an investment of PKR 500 million ($ 3.2 million) for the construction of low-cost affordable housing schemes in Pakistan through the Pakistan Mortgage Refinance Co Ltd (PMRC).

However, by January 2020, the percentage had spiked to 14.6 percent, with food inflation at 19.5 percent in urban areas and 24 percent in rural areas.

In March 2020, the inflation number did fall to 10.2 percent, with food inflation at 13 percent and 15.5 percent (urban and rural, respectively), but this was largely due to the disruption and dislocation caused by the pandemic.

The fiscal deficit was still manageable at 4 percent of the GDP from July-March 2020 as compared to last year’s 5.1 percent

Pakistan is projecting positive 2.3 percent for the next fiscal year 2020-21, though international financial institutions, including the World Bank, have predicted the growth rate to remain in the negative and be somewhere near 0.2 percent of the GDP in fiscal year 2020-21.

Well thats about it I guess
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