ABSTRACT
Pakistan was one of the top 10 economic performers among the world’s developing countries during the first 40 years of its existence. These 40 years were tumultuous in the history of the nation but its record of achievements was impressive: starting with a very weak economic base at the time of independence in 1947, followed by nation building, and continuing political instability in the aftermath of the death of its founder, Muhammad Ali Jinnah. It successfully absorbed and rehabilitated eight million refugees, or one-fourth of the total population, fought a war with a much larger and powerful neighbour, India, in 1965, and went through a painful and traumatic dismemberment of the country in 1971. The emergence of a populist political regime that indulged in the massive nationalization of private assets in the 1970s accompanied by an external shock of major oil price increases delivered a big blow to business confidence and brought about a dislocation of the economy. Close involvement with the United States in the Afghan war to oust the Soviet Union in the 1980s and the associated fallout, namely the spread of sectarian violence, drugs and armed conflict, shook the social fabric of the country. Despite these many challenges, internal and external, the country was able to achieve average annual growth of 6 per cent during the first 40 years of its existence. Pakistan was ahead of India and Bangladesh in all economic and social indicators.
