Economy
Virtually all the manufacturing and other modern economic activities that existed in British India were in the area that, upon partition in 1947, went to India; the area that became Pakistan had an economy based almost entirely on agriculture. The transportation and irrigation systems serving what became Pakistan were, to a large extent, severed by partition, adding to the new country's economic problems. A largely illiterate population also presented a major obstacle to economic development.
The first in a series of five-year economic plans began in 1955. Much has been accomplished since then in improving farming and in developing manufacturing, electric power, and transportation. Nevertheless, Pakistan remains one of the poorest nations in the world. One of the chief obstacles to providing a higher living standard has been the nation's explosive population growth—about threefold since the founding of the country. Civil strife, political instability, and heavy military expenditures, mainly because of repeated conflicts with India, have also hindered economic growth.
Nationalization of most of Pakistan's major industries occurred in the early 1970's. During the early 1990's, however, the Pakistani government denationalized many of the country's industries and introduced measures that encouraged the growth of private enterprise.
engages roughly half of the working population. To a large extent, farming is made possible by irrigation systems fed by the Indus River and its tributaries. Unirrigated land capable of growing crops lies in the more humid northerly areas, mainly the Punjab. Of the total crop area, which amounts to about a fourth of all land, more than 80 per cent is irrigated.
In production, wheat is the chief crop. Rice ranks second. Chickpeas, millet, corn, sorghum, sugarcane, mustard and rape seeds (for oil), and barley are also major food crops. Cotton is the leading cash and industrial crop. In its production Pakistan ranks among the world leaders.
Farms are generally small; the vast majority consist of small parcels totaling only a few acres. Despite some reform efforts, much land is still held by absentee landlords and is worked by sharecroppers, tenants, and laborers. The use of hybrid seeds, chemical fertilizers and pesticides, and farm machinery has increased crop yields over the years.
Livestock is important for its draft power as well as for its products. Water buffalo, donkeys, camels, goats, sheep, and cattle make up most of the livestock.
The growth of Pakistan's manufacturing industries has been remarkably rapid, considering the country's limited natural resources and lack of capital and technical and managerial skills. The chief industrial centers are Karachi and the major cities of the Punjab.
The making of cotton textiles and clothing is the leading industry in Pakistan. Other agricultural processing industries include sugar refining, leather tanning, and tobacco processing.
Engineering industries, such as automobile assembly and the making of electrical machinery and appliances, machine tools, and forgings are concentrated mainly in Karachi. Pakistan also has sizable cement, fertilizer, and chemical and pharmaceutical industries. The first large steel mill was completed in the early 1980's.
Pakistan's handicraft and cottage, industries produce many of the everyday items used by Pakistanis. Rugs and carpets, embroidery goods, pottery, wooden and leather products, are leading exports.
Commercial fishing is centered in the Arabian Sea and provides significant export revenues from shrimp, sardines, sharks and other fish. .
There is little lumbering in Pakistan. The few forests that exist lie mainly in mountainous areas and have no easy access.
Pakistan's natural gas reserves are substantial, and natural gas is one of the nation's leading sources of energy. Pakistan also produces petroleum, coal, iron ore, limestone, and rock salt. Production of other minerals has been hindered by the remote locations of their deposits.
facilities are largely owned and operated by the government. Though improving, most are inadequate and poorly developed. Paved roads link the major cities and provide access to all neighboring countries, including China via Kashmir. Most of the railways serve the Punjab and the Indus Valley. Pakistan International Airlines (PIA), the nation's main airline, is an important domestic carrier and also flies international routes. Major international airports are at Karachi and Lahore. The chief seaport is at Karachi.
Pakistan's chief trading partners are the United States, Japan, Germany, Great Britain, and Saudi Arabia. In almost every year imports exceed exports.
