Sunday, 29 March 2015

Pak economy notes compiled from different links and notes

Q 1 ).The economic state of affairs of Pak in early ten years?
A.Pakistan after independence face many difficulties which were putting a question mark on how it was going to be run.
  * Unfair boundary distribution : A boundary commission was set up under a British Chairman, Sir Cyril Redcliff. He misused his powers and handed over Muslims majority areas like Gurdaspur, Ferozpur and Junagadh to India hence providing them a gateway to Kashmir. Quaid-e-Azam called it an unjust, incomprehensible and even perverse award.*. Division of Military and Financial AssetsIn order to embarrass Pakistan financially, India did a lot of honesty in the matters of Pakistan which were concerned with its benefits. Pakistan was promised to get Rs. 750 million but the Indian Government refused to give. Pakistan received only 200 million. Pakistan also did not receive the due share of the military assets. This dishonest attitude put Pakistan into great difficulties.Gandhi even had to do fasting till death to let nehru transfer some more of Pakistan Shares.At this, Sir Adamjee Haji Dawood Arranged for a loan on his Guarantee from Mohammad Ali Habib, the founder of Habib Bank, thereby preventing the financial collapse of Pakistan* The Massacre of Muslim Refugees in IndiaOn the birth of Pakistan, Hindus and Sikhs became more furious. In a planned move, Muslims properties were set on fire and they were compelled to leave India for Pakistan with nothing but their lives. Millions of refugees were killed before they reached Pakistan. Many migrants were looted and had to be provided boarding immediately as they reached Pakistan.The riots were started by Sikhs and Rashtriyaswan Sevak Sangh (RSS), the militant Hindu organization, and were followed by a Muslim reprisal which was also swift and brutal. There was widespread murder, rape and arson on both sides. Partition has resulted in the largest human migration in recorded history. According to Pakistani estimates, approximately, 6500000 Muslim reached Pakistan from India; 5200000 came from the east Punjab, including the princely states where was severe. 500,000 lost their lives or were abducted. From Pakistan there was an exodus of about 5,500,000 Hindus and Sikhs. According to Richard Symonds, writing, writing in 1950, the population of Pakistan increased by about 100,000 people.In the face of unspeakable atrocities, writers from all the three communities, Hindu, Muslims and Sikhs, led by Krishan Chandar, Sa’adat Hasan Manto and Rajinder Singh Bedi rose to the occasion and most impartially showed that the riots were crimes not against bullets, but these writers provided the bridge to mental reconciliation and normalcy. At first, numbers proved deceptive. Inevitably as news of atrocities spread in Karachi, there was rioting against the Hindus. On 9 January 1948, the Quaid-i-Azam warned the Muslim refugees ‘not to abuse hospitality that was been extended to them.
*5. Canal Water DisputeMost of the rivers flowing in Pakistan have their origin in India. In 1948, India stopped water supply to Pakistani canals to damage the Pakistani agriculture. Especially during the partition Pakistan was deprived of the most of the areas of the Punjab which are now in India where most of the water is flowing under the name of Indus which would helped Pakistan to remove water scarce areas in Pak. The Radcliffe Award gave India the Ferozpur Headworks that controlled the Sutlej River as well as the Madopur Headworks controlling the River Ravi. An Arbitral Tribunal was set up under Sir Patrick Spens, which recommended that the flow of water to Pakistan should not be stopped. Immediately after the Tribunal was wound up in April 1948, the Indian Government actually cut off the flow of water to Pakistan. Since this was in breach of international law which holds that an upper riparian country cannot interfere with the existing irrigation of the lower riparian country, the supply was partially restored. This long standing dispute was apparently resolved in 1960 when Nehru came to Karachi to sign an agreement with President Ayub and Eugene Black, Vice-President of the World Bank. However on 9th September, 1960 on agreement called Indus Basin Treaty was signed between the two countries.* Kashmir DisputeKashmir dispute is the most important and unsolved problem. Kashmir is the natural part of Pakistan because at the time of partition 85% of the Kashmir’s total population was Muslim. The Hindu Dogra Rule, who was secretly with the Government of India, declared Kashmir as a part of India. Then reorganization of the Pakistan Army was still underway then the Kashmir War was thrust on it. Within Kashmir, the state forces had started a massacare of Muslim in Poonch. These Muslims had relatives in the tribal areas of Pakistan who invaded Kashmir hoping to rescue their relatives. The Pakistan Army did not have the resources to halt their advance. They were unable to control the tribals even when they looted Muslim property in Rawalpindi. Secondly, had Pakistan taken action against the tribesmen, it would have popularized the demand forPakhtunistan—an independent Pathan state, a demand supported by the Congress leaders.Pakistan has continuously insisted that Kashmir must get their right of self determination but due to non-cooperation of India, Kashmir issue still remain unsolved.*Constitutional ProblemThe constituent assembly failed to frame a constitution even in eight years. Lack of a permanent constitution created chances of unscrupulous interference in democratic progress of Pakistan.*. Annexation of Princely StatesAll Indian princely states were given the right to link up with either of dominions. However, the fate of some states remained undecided. The Muslim Nawab governing Junagadh favoured in acceding to Pakistan. But Indian Government sent Army troops towards Junagadh and occupied the State by force in November, 1947.
Hyderabad Deccan was the largest and richest state ruled by Muslim leader Nizam who decided to remain independent. But pressure tactics began to the applied by Indian Government and Mountbatten. India attacked Hyderabad on 13th September 1948 and forcibly annexed this state to India.
*Economic ProblemsWhen Pakistan came into existence, it mostly consisted of economically backward and underdeveloped areas. The agricultural system was obsolete and outdated which added to the economic backwardness of the areas forming part of Pakistan. Before partition the Hindus, with the blessings of the British Government, had acquired complete monopoly in trade and commerce. The entire capital was in the hands of the Hindus. Unfortunately, the banks and other financial institutions were located in Indian territory. The major industries were also in those areas which were part of India. Besides these factors the technical experts and labourers, who operated the industries, were all Hindus because the Muslims extremely lagged behind in education and financial capabilities. The inadequate system of transportation and communication also made its adverse affect on economic development of the country. The railway system and river transportation in East Pakistan was in depleted condition. The roads were in shabby and irreparable condition. The communication and transportation system in West Pakistan, comparatively, was in better position. The power resources in the two wings were scarce and negligible which were insufficient to meet the national requirement.* Administrative ProblemsPakistan came into being under the most appalling conditions. The Government of Pakistan could not get enough time to set up workable administrative machinery because of the great difficulties created by Congress. The Indian Government adopted delaying tactics n transferring the Government servants and official record which aggravated the situation.
Therefore the immediate task before the nation was to establish a workable administrative and Government machinery to run the affairs of the newly born state. The biggest administrative problem facing Pakistan was the acute shortage of competent and experienced personnel in the Central and Provincial Governments. Furthermore, there weren’t enough chairs, tables or even stationary and paper pins for administrative purposes. However, Quaid-e-Azam paid his immediate attention towards setting up of administrative machinery and took a number of steps to overcome the administrative problems of the new state.
* Electricity ProblemDue to transfer of Muslim majority areas to India and of unfair demarcation, electricity system of West Punjab was disrupted, because all power stations were at Mundi, a predominantly Muslim majority area, gifted to Bharat but Quaid-e-Azam said
If we are to exist as a nation, we will have to face the problems with determination and forceHe chastised Muslim migrants from India on 9 January 1948 for the anti-Hindu riots in Karachi.' His 11 August 1947 speech giving equal rights to minorities was the result of years of deliberation.In the domain of foreign policy he held out friendship to all upholding the Charter of the United Nations. He believed in leaning towards the West without going out of the way to annoy the USSR. He noted later that the USSR was the only country not to congratulate Pakistan on its creation. He undertook a personal initiative with regard to Afghanistan, the only country to oppose Pakistan's membership of the UN. On 3 December 1947, the Afghan Ambassador presented his credentials to the Governor General of Pakistan as the result of negotiations conducted by the special representative, Nawab Saeedullah Khan. Jinnah also strongly supported the Palestinian cause and upheld the independence of Indonesia.Pakistan was the largest jute producer in the world, but at the time of Independence it had no jute mill. It had a large cotton crop but only fourteen cotton mills. Liaquat's boldest decision was his refusal to devalue the rupee following the British and then Indian devaluation on 15 September 1949. India refused to buy jute and other commodities at the new rate. Liaquat was demonstrating Pakistan's financial viability with a vengeance. This caused the greatest stress to the jute growers of East Bengal. Liaquat travelled to Dhaka to assure them that if the Indians did not buy jute at the new rate, the Government of Pakistan would buy the entire crop. Since Liaquat Ali Khan was a man of unassailable character, the peasants relied on him and refused to sell at the old price.*During the Ayub era agriculture share in GDP declined where as the GDP from industrialization increased.His focus on installing industries led to the class differentiation between the poor and the rich.More over the industries could only be installed by the land lords like for example cotton processing industries and equipment because they were financially capable and had the other resources such as land labor to start these industries.These landlords were not charged like getting tax which could have been used by govt to invest it in other sectors of Pakistan such as education and health etc.With industrialization jobs also began  to be created like in transport , construction , electricity and gas which also helped the growing population to be fed.During 1960 agriculture increased due to the green revolution which involved importing seeds from USA whose main aim was to grew more wheat grains on a wheat stick but this was a disaster because there was no research done in order to suit those foreign seeds to our land..With agriculture also increased technology ,water and other inputs of agriculture.Pakistan earned more foreign exchange because of Korean war.Q 2 ).  Make a comparison of economic state of Pak in comparison to early years to the day today .?
A ) .  write one paragraph about  early pak state from q1. Pak in early years suffered alot especially after partition not getting the due share of military and financial assetss from india .Even there was shortage of skilled employees because all of the high post skilled personals were either britishers or hindus . Pakistan was snatched from his body parts such as Kashmir , Gundala and Amritsar,Due to this after independence and getting control of River Indus India immediately stopped water coming to Pak .Pak after heavy protest and with the World bank officals indus water treaty was signed which again started the flow of water from India to Pak.

*During the Green revolution Pakistan was a proper agriculture based country  as its more then most of the GDP was coming from agriculture.This statement proved true as during Korean war Pakistan was exporting agriculture products to both sides and now there is hardly enough wheat to satisfy our own demands which is mainly due to increased population and also due to the fact that farmers early after harvesting the crop used to give rest to the land for the period of time But now due to increased commercialization, industrialization and increase population there was very less land available compared to the early years which resulted in people to harvest again and again without giving land rest  and secondly there are now multiple of crops which are grown which had resulted in low productivity of wheat as now sugarcane and rice is also grown .Thirdly There isn't enough land ,water and other resources to cultivate crops in excess so that we can export them such as wheat after feeding the whole nation.
*Education Sector :In early years HEC scholarships was easily available without any terms and conditions and now adays there are terms and conditions as in early years after Pak establishment students who used to get HEC scholarships after going abroad never used to come back and though it was considered good for students  because of having a bright future abroad but for Pakistan it was not good because all of the pak skilled people were leaving Pakistan .
*From being at the forefront of space exploration and development in Asia with the launch of Rehbar-I in the early 1960s, Pakistan today is far behind its neighbours including Iran, India and China.Because SPARCO  created by DR Abdus Salam is deprived of funds  and its only focus really less on communication and some military projects .Where as our neighboring country India is planning to send satellite to mars . 
*Before 9/11 attack Pakistan had  a very less terrorism rate but after that it started and increased following with suicide bombings and loss of many lives which has decreased tourism to a much smaller rate otherwise our Murree and other northern areas were compared with Switzerland as wonderful vocation stop.according to the
 National Assembly said that Pakistan has suffered a loss of almost 80 billion dollars including loss of 50,000 precious lives of civilians and law enforcement agencies during the decade long war against terrorism.
Minister of State for Parliamentary Affairs, Sheikh Aftab Ahmed said law and order situation has been improved considerably after the launch of Zarb-e-Azb operation against terrorists.Not only Pakistan internal strucutres were badly damaged  especially the bombing on Marriot in 2008 and the attack on Sirilanka cricket team which held on 3 March 2009 near Gaddafi stadium which halted the international cricket tournaments in Pakistan which used to happen.

*After creation of Bangladesh during 1970.Bangladesh population was in maximum as compared to Pak it was seen during independence  east pak summed upto 55% of population of Pak .Today Pak is the world's 6 largest country in population wise whilst Bangladesh is in the 8th number .Thanks to their programs and initiative especially in controlling birth especially promoting them to work in field  and usage of contraceptive pills have greatly halted the Bangladeshi womens because of the fact that Bangladesh had not enough resources to cater such population so they acted fast.Not like Pakistan where it was considered by the farmers as the pride of having large number of children  .Not only this birth control was related to the Islam and thus caused great resistance in controlling the birth rate of Pakistan.After 1971 govt of pak introduced many methods to reduce the birth rates which included "continuous motivation system programme " in which young urban ladies were employed to go especially rural areas to teach them about this program .Not only that govt promoted shopkeepers to put contraceptive pills and other birth controlling products at the front desk of shop but they didn't because they thought of it as a mannerless way to display it. During Zia's regime this program was halted. After continuous years struggle and approval from various Maulana's the Family planning program was heavily advertised on PTV  openly to halt the population.Not only this with the help of NGO'S this program was promoted through SABZ SITARA and others , by opening family clinic in mostly rural areas educating people how to control the population.
*Not only that pakistanis inn early years of the independence were treated with respect ,but now especially after 9/11 and discovering of Usama in Abottabad Pakistani's  who are mostly muslims are considered as hostile people , not only that pakistani's to be honest were more ethical but now after there continuous unethical activites abroad such s carrying of drugs abroad  or being involved in crimes especially in the city Bradford also known as Bradistan where people have done these type of activities. Pakistani's  are to carry polio certificates before going abroad according to International Health Regulation as due to continuous failure of eliminating of polio from Pak due to lack of arrangements , corruption and terrorism as few months back two of the polio health officers were being shot at Karachi .Not to forget that some people related this to haram material being contain in it  .Earlier there were very less polio cases due to population and also due to the fact that the other countries were also not cleaned from it.But due to increase traveling and getting settled over there abroad, these people were considered as a burden both physically and in ways of employment as they were to be provided with health and unemployment benefits etc and it was feared that it may be transferred genetically to their children.Pakistan now stands as top position for most polio cases even there are no cases of polio in nigeria.
*Pakistan Politics over the period of time from independence has not been able to deliever due to politcial failure and corruption. Only army has been the who was able to deliver the most output and development to this country  like building roads ,to rehabilitating IDP's and earthquake's affectees. Although there were some political person's who did work for the Pak. During Bhutto reign Pak started to have the strong relationships with Saudi Arabia which led to increase labor getting jobs at Saudi Arabia , due to which we are  getting alot of remmitances which has led pakistan to survive the great depression of 2006. Its just that we need leaders like MAJ and bhutto who would openly roam between public without any security or fear.
Q. ) Explain Pak geostatical position for the world  ?
A .)  * Pak due to gawadar has created quite a  situation around the world which has resulted in more terorrism and chaos in Pak.Gawadar it is no ordinary port it alone has the area of 70% sea of Pak .In gawadar the water level is high also near the land which would help land locked countries especially in asia to utilise this port for their shipping of material cheaper then any other transportation route or channel .But once it is completed there would be countries who would be at disadvantage such as  Dubai  mostly and other countries who do not want Pakistan to emerge as a developed country. So that's why there is so much insurgence in Balochistan especiallly the anti pak parties and other elements who are funded by these countries.
*There has been planning to make silk route which would link Karachi to China ,through which China if Gawadar is developed  then China would be able to access  warm waters too .This will increase foreign direct investment to Pakistan .  It is said that if that Silk route is developed within years after its completion there will be a time when Pak would be able to run with out deducting taxes from its citizen.
* Pak has long political , economic and   legal importance because Pak has witnessed the UK,USSR AND USA activities or intervention of these countries and is still surviving.Moreover Pak is sharing borders with India, Afghanistan ,Iran ,China and Tajikistan . Actually Pak is in the middle of these countries even if these countries are to carry any kind of trade they have to use Pak route to trade mostly which is the cheapest of the rest of the route.
*Not only that after that USA has admitted that without Pakistan support USA cannot win war against terrorism  without the support of Pak ,which is why Pak has lost alot in war against terrorism especially after 9/11 .Losses which is in billions for structural damage and lives which cannot be measured in monetary terms.Recently Pak had started Zarb E Azab program in 2014 ramazan where it has taken a vow to clean these terrorist from balochistan and to bring peace and prosperity in Pak.
*Not only this Pak had a contract with Iran to not to take oil from Balochistan, because if Pakistan tries to pull oil from Balochistan due to land shape downwards and iran being upwards Iran all oil will come down.
*Pak is the only Muslim nation with  nuclear capability which has created its huge importance amongst the world and all the muslim nation .Especially after the tensions with Pak India following many wars such as 1965 war etc has resulted Pak to be equip with nuclear arsenal otherwise  India would have sweeped Pakistan .
*As Karakoram highway as made trade between Pak and China easy so as the Khyber pass from Pakistan to Afghanistan has made USA accessories and war equipments to reach to Afghanistan to help America fight against terrorism.
*Pakistan has been gifted with natures rivers , glaciers and 4 season which include summer,winter,autumn and spring , which is why Pak has such great locations such as Murree, abbotabad, hunza on colder sides and on the warm sides we have quetta,hyderabad and sibbi . For normal weather we have rawalpindi/Islamabad.Pak has scennic beauty due to this which adds to tourism etc.

*more population
* Growth is used in physical terms and generally refers to increase in length or size. or is measured in quantitative sense where as development is change in function or quality.
*Tragedy of commons is when individual tries to get maximum benefit from the given source like depletion of fishes in the lakes due to heavy fishing.
*credit expansion central bank produces more money to borrow debt from the govt , so that enterpreneur can invest more .
*pak economic reforms mein bond badla , tax  , credit expansion..adalat meinn kitna time aur kitnai pasioa mein ap ka kaam hota hai.tariifs, petrol cost.regulation of quality like for exports,fiscal policies kitna tax laina hai aur kitna invest krna hai , tribal areas handling ,
how to increase illiteracy,drugs and arms deals ,
*constitution of 1973 eliminates exploitation ,promote freedom and and well being.

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