Introduction [SUMMARY kind of thing] [what major points to start with]

The economic history of Pakistan begins with the country's independence in 1947. The economy of Pakistan is a semi-industrialised one, based heavily on textiles, agriculture and food production. At partition Pakistan had little infrastructure & meager industry. [Source: Zaidi, S. Akbar, Issues in Pakistan Economy, 2nd ed.] [Creation of Pakistan] was like gold rush of United States," G. M. Adamjee. Dislocation of trade Due to mass emigration of Hindus and Sikhs who controlled trade & industry country & nearly paralyzed the economic & administrative machinery of Pakistan1 Migration: Pakistan exported expert & wealthy Hindus & Sikhs to India, and imported rural farmers & craftsmen2 Trading Situation [HISTORICAL SORT of] [abu + bahadur + history teacher] Paper Trade [Did it Export Paper?] Although by 1944 the subcontinent was producing approx 100,000 tons of paper by machine, the only paper being made in Pakistan area at independence was hand-made, produced in Jhelum and Sialkot3 Textile: Cement: [East Pakistan] Tobacco Mustard Seed Sugar Cane Jute Cotton Major Markets - Lahore: very important center of Hindus & Sikhs: Shah Alam & 12 gates - trade took place in surrounding areas - Karachi: - Peshawar

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 7 & 102

Butt, M. Shoaib, & Bandar, Jayatilleke S., Trade liberalization and regional disparity in Pakistan, (2009) Taylor & Francis, p. 13 3 Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p. 194

- Chiniot: Chiniot in Central Punjab became a dominant industrial force in the 1990. At the time of creation of Pakistan they were exclusively engaged, with the exception of Colony / Maula Baksh group, in trade of hides and skins. - Chittagong: Port - Faisalabad: Major firms & families: - Several entrepreneurs who came to be dubbed as 22 families in the 1970s apparently had considerable economic power at the time Pakistan was born - 17 of 100 people at the top industry Major Trader-Industrialists Inherited at Partition Businessman Adamjee Peerbhoy Haroons Ahmed Dawood Memon Saigols Khan Rahim Baksh Khan Habibs & Sons Amir Sultan Chinoy Location East Pakistan migrated to Karachi Karachi Faisalabad East Pakistan & Karachi Karachi Trade Rice & jute, Shipbuilding 2nd-hand clothing & sugar trading Textile, jute, yarn Textile Paint exporters Metal & gold business; financial services Chemicals trading Industrial Set-up Match factories, rice & jute mills Sugar Mills Textile & jute mills Textile mills Paint industry Banks, etc Pak Chemicals Ltd, 1st major chemical industry

Source: Biographical Encyclopedia of Pakistan 1970, International Publisher (Pakistan) Ltd.; & (Online) Pakistans Economic Saga & 22 Families: http://richpaki.tripod.com/saga.htm (Retrieved on 11 March, 2012) Sea Trade Pakistan had only two port, namely Karachi port, the the time of Independence. It had 17 berths (related to docks) [?], 13 of which were about 60 years old; and one port in Chittagong in East Pakistan had the handling capacity of 5 akh tons. Foregin trade through Calcutta unrecorded4 Table: Cargo handled at Karachi port (000 tonnes)5

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 98

50 years of Pakistan in Statistics 1947-1997, Vol. 3 & 4, Federal bureau of Statistics Government of Pakistan

Years 1947-48

Imports (000 tons) 2181

Exports (000 tons) 1315

Total (000 tons) 3496

Pakistan Merchant Navy Pakistan had only 4 old ships of 27,347 dead weight tonnage (weight a ship safely carries) at the time of independence, so the shipping industry was encouraged to acquire additional tonnage and coastal trade with the former East Pakistan was reserved for the national flag ships.6 Trade with Middle East, North America, Western Europe. The maintenance of an unrealistic rate of exchange for the greater part of Pakistans history since independence discouraged exports and encouraged imports resulting an imbalance between exports and imports. Imposition of administrative controls on imports in the form of import licensing. Foreign exchange was provided to the importers at official rate of exchange7. The development of shipping and ports has not been commensurate with the requirements of the country. Pakistani shipping carries only a small proportion of the foreign trade. The Karachi port has frequently become a bottleneck because of its inability to handle the import and export trade of the country due to shortage of port capacity and under-utilization of available capacity8. Per capita availability of food grains Year Domestic production in million tons 11.173 Imports million tons .041 Exports million ton .067 Available for consumption million tons 10.531 Per capita availability ounces per day 14

194748

Foreign Trade: Imports & Exports Since industry non-existent, international trade was main sector where large profits could have been made9 On independence Pakistan found her foreign trade circumscribed in two ways. (1) The bulk of this trade was dependent on a single country- India. With no industries and known mineral
6 7

Planning and development in Pakistan by M.L. Qureshi pg 77 Planning and development in Pakistan by M.L. Qureshi pg 212 8 Qureshi, M.L., Planning and development in Pakistan, p. 237 9 Zaidi, Akbar S., Issues in Pakistan Economy, (2011), OUP. p. 93

resources coming to her share, Pakistan had to continue to import most of these from that country, and in return the latter continued as the main market for this countrys raw jute and cotton. (2) Pakistans exports entirely comprised raw materials and those mainly two- jute and cotton.10 At independence, Pakistan commanded about 75% of the total world production of jute.11 Countries Pakistan Traded with - Foreign trade closely linked with India & United Kingdom: exported foodstuffs & primary commodities & imported manufactured goods - Economies of India & Pakistan were Complementary: Pak exported cotton & jute to India & imported manufactured consumer goods in return - India biggest supplier & consumer of Pakistans goods Table [convert into pie-chart] Percentage Distribution of Country-Wise Imports in 1948-4912 Country India United Kingdom United States Belgium, France, Italy, West Germany Japan, China, Hong Kong Other countries % Share in Export 55.8 10.9 8.9 10.4 3.9 10.1

IMPORTS - For manufacturing heavier & more complex kinds of equipment, Pak had to import lot things - for consumption purposes Agricultural commodities Pakistan was not self-sufficient in food, and had to import some quantities from of wheat from USA, Canada and Australia and rice from Burma and China.13 Table on Principal Imports14 Commodity Chemicals, drugs & medicines
10 11

1948-49 (crore Rs.) 4.22

Gauhar, Altaf, Twenty Years of Pakistan 1947-1967,p. 259 Gauhar, Altaf, Twenty Years of Pakistan 1947-1967, p. 262 12 Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 101 13 Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p151 14 Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 100

Artificial silk piece goods &yarn Cotton piece goods, twist & yarn Other imports Machinery, Mineral oils, vehicles Metals & ores Total Source: Economy of Pakistan, 1947-68, Ministry of Finance, Govt. of Pak. EXPORTS - mainly raw jute, raw cotton, tea, raw wool, and hides & skins = 90%15 Table: Major Exports Exports Raw Jute Raw Cotton Raw Wool Hides & Skins Black Tea & Other exports Total 1948 (in crore rupees) 119.25 36.47 3.09 4.85 4.24 + 19.14 187.04

4.28 38.19 62.51 13.19 3.42 125.81

% Share

OTHER Public-Private Partnership Foreign trade was almost entirely in private hands. To restrict import there was license policy and for promoting exports various concessions and incentives where given.16 Inter-zonal Trade Exports from East Pakistan to West Pakistan are increasing faster than trade in the reverse direction mainly because East Pakistans economy is growing at a faster rate than the economy of West Pakistan. The bulk of this trade is carried by sea, a small volume by air. West Pakistans imports from East Pakistan mainly consist of betel-nuts, spices, wood timber, fruits, vegetables, tea, jute manufactures, paper, paste board, matches and leather.
15 16

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 99 Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p. 267

Imports into East Pakistan from West Pakistan are rice, wheat, raw cotton, oil-seeds, tobacco, machinery, cotton yarn, cotton fabrics, drugs, medicines, oils, metal manufacture. - Land-borne trade through Calcutta, according to Ministry of Finances report, data not available The inter-zonal trade had a small start in 1948-49 worth only Rs. 160.1 million. Imports into west Pakistan in 1948-49 is 19.8 million rupees and imports into East Pakistan in 1948-49 is 140.3 million rupees.17 Table: Trade between East & West Pakistan18 Region East to West West to East Total Balance of Payments & Trade Year 1948 Imports 145.91 Exports 187.04 Balance (+) 41.13 Trade Amount (Rs. crore) 1.98 14.03 16.01

[Add to agriculture portion] Rice is one of Pakistan two principal export crops. Pakistan is the third largest exporter of rice in the world. The area under rice cultivation in 1995-96 was 2.16 million hectares which represents 9.52 percent of the total cropped area. Basmati rice is high export product of Pakistan and generates substantial revenues for the government through export duties. Years 1947-48 1948-49 Exports Years
17

Exports (Rs.000) 443,948 542,403

Imports (Rs.000) 318,773 1,176,755

Balance (Rs.000) 125,170 (634,352)

Total (Rs. 000)

Sea (Rs. 000)

Land (Rs. 000)

Air (Rs. 000)

Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p297 & Economy of Pakistan (1947-68), Ministry of Finance
18

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan

1947-48 1948-49 Imports

443,943 542,403

443,943 528,506

13,897

Total (Rs. 000) 1947-48 1948-49 318,773 1,176,755

Sea (Rs. 000) 318,773 1,176,755

Land -

Air -

Source: 50 years of Pakistan in Statistics 1947-1997, Vol. 3 & 4, Federal bureau of statistics Government of Pakistan CONCLUSION - Emigration of trade dominating Hindus & Sikhs almost paralyzed economy - Dominance of agriculture - Emergence of Pakistani in the interest of major industrialists & traders: Hindu competition out of equation - International trade could bridge the gap in foreign earnings created by lack of industries [Issues in Pakistans Economy] - Raw: Exports; Imports - Main items (not a single jute mill) - did 22 families dominate scene too? - almost no services sector -

Internet Sources Trade areas: http://www.paklinks.com/gs/travel-and-tourism/443717-pre-partition-pics-ofkarachi.html http://pubs.socialistreviewindex.org.uk/isj77/ashman.htm