Pakistan’s 75-year economic journey completes with it being the 24th largest economy in the world by virtue of purchasing power parity.
According to a finance ministry report issued on Saturday, the economy’s structure has significantly changed since Pakistan’s independence in 1947, with the industrial and later services sectors dominating it.
The study provides a peek at the nation’s 75-year economic journey, highlighting the significant changes that all key economic indicators underwent over time.
Out of the 921 industrial units in undivided India, Pakistan only obtained 34 at the time of independence in 1947.
The nominal GDP increased from $3 billion in 1950 to $383 billion in 2022, with a 5.97 percent growth rate in 2022 compared to a 1.8 percent growth rate in 1950. In 1950, the per capita income was $86; by 2022, it was $1,798.
From 1950 to 2022, tax receipts increased from Rs0.31 billion to Rs6,126.1 billion, despite the fact that in 1949–50 agriculture accounted for 59.9% of the total GDP.
In the agricultural sector, wheat production increased from 3.35 million tons in 1958 to 29.4 million tons in 2022, rice production from 0.69 million tons to 9.32 million tons, maize production from 0.36 million tons to 10.64 million tons, sugarcane production from 5.53 million tons to 88.65 million tons, cotton production from 1.16 million bales to 8.33 million bales, and water availability from 63.9 million acre-feet to 131 MAF.
According to Finance Minister Miftah Ismail, the lack of resources to address local demands after independence was not a mystery because India refused to give Pakistan its fair share of its wealth shortly after it gained freedom.
He said that a nation with 30 million people in 1947 was unable to feed its people and was forced to import the majority of its food needs from overseas, adding that local agriculture output has since increased dramatically.
Miftah said that Pakistan built dams of various sizes, including Tarbela and Mangla, increasing water storage and availability from 63.9 MAF in 1965–1966 to 131 MAF in 2022. He also noted that this contributed to the achievement of sustained agricultural sector growth.
According to the federal secretary of the Finance Ministry, Hamed Yaqoob Sheikh, the 75-year history of Pakistan is a tale of economic, political, social, and regional events that have moulded the nation in which we now live.
He said, with a $383 billion GDP, Pakistan is one of the world’s top 50 economies. He also said that Pakistan created a thriving banking sector that has helped the country’s economy grow over time.