Sehrish Asghar, Rana Aqeel, Waqas Khalique, M Umer Toor, Hassan Mohi-ud-Din

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At partition economy of Pakistan was semiindustrialised one, based heavily on textiles, agriculture and food production.

Pakistan inherited little infrastructure & almost no industrial set-up.

(Source: Zaidi, S. Akbar, Issues in Pakistan Economy, 2nd ed.)

Muslim traders supported the idea of Pakistan & financed Muslim League, e.g., Memons, Khwajas, etc

[Creation of Pakistan] was like gold rush of United States [for Muslim businessmen]," G. M. Adamjee

Mass migration of Hindus and Sikhs, who controlled trade & industry, nearly paralyzed the economic & administrative machinery of Pakistan
(Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 7 & 102)

Migration: Pakistan exported expert & wealthy Hindus & Sikhs to India, and imported rural farmers & craftsmen, mostly
(Butt, M. Shoaib, & Bandar, Jayatilleke S., Trade liberalization and regional disparity in Pakistan, (2009) Taylor & Francis, p. 13)

Several entrepreneurs who came to be dubbed as 22 families in the 1970s apparently had considerable economic power at the time Pakistan was born, like, Habibs, Saigols, etc. 17 of 100 people at the top industry in 1950-60s had industries in 1947
(Source: http://richpaki.tripod.com/saga.htm)

East Pakistans economy was growing at a faster rate than the economy of West Pakistan = Exports from East Pakistan to West Pakistan faster The bulk of this trade was carried by sea, a small volume by air West Pakistans imports from East Pakistan mainly consist of betelnuts, spices, wood timber, fruits, vegetables, tea, jute manufactures, paper, paste board, matches and leather Imports into East Pakistan from West Pakistan were rice, wheat, raw cotton, oil-seeds, tobacco, machinery, cotton yarn, cotton fabrics, drugs, medicines, oils, metal manufacture
(Source: Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p297 & Economy of Pakistan (194768), Ministry of Finance)

Trade was carried through land via through Calcutta; data not available, according to Ministry of Finances report Economy of Pakistan 1947-68

Region East to West West to East Total

Trade Amount (Rs. crore) 1.98 14.03 16.01

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

Pakistan had only two ports: Karachi port had 17 berths (related to docks), 13 of which 60 years old; Chittagong, handling capacity of 0.5 million tons. Foreign trade through Calcutta unrecorded
(Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 98)

Pakistan Merchant Navy had only 4 old ships of 27,347 dead weight tonnage (weight a ship safely carries)
(Planning and development in Pakistan by M.L. Qureshi pg 77)

On independence Pakistan found her foreign trade circumscribed in two ways: 1) Bulk of trade with India. With no industries and known mineral resources coming to her share, imported many items, & exported jute & cotton to India 2) Exports: entirely comprised raw materials - jute and cotton; 75% of the total world production of jute in Pakistan at Partition

Foreign trade closely linked with India & United Kingdom: exported foodstuffs & primary commodities & imported manufactured goods
(Source: Gauhar, Altaf, Twenty Years of Pakistan 1947-1967,p. 259 & p. 262)

Percentage Distribution of Country-Wise Exports in 1948-49 Country India United Kingdom United States Belgium, France, Italy, West Germany Japan, China, Hong Kong Other countries % Share 55.8 10.9 8.9 10.4

Table on Principal Exports: 90% raw materials Commodity Raw Jute Raw Cotton Raw Wool Hides & Skins 1948 (in crore rupees) 119.25 36.47 3.09 4.85 4.24 + 19.14

3.9

Black Tea & Other exports Total

10.1

187.04

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 101

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 99

Percentage Distribution of Country-Wise Imports in 1948-49 Country India United Kingdom United States Belgium, France, Italy, West Germany Japan, China, Hong Kong Other countries % Share in Import 31.8 28.0 8.1 6.4

Table on Principal Imports Commodity Chemicals, drugs & medicines Artificial silk piece goods &yarn Cotton piece goods, twist & yarn Other imports 1948-49 (crore Rs.) 4.22 4.28 38.19 62.51 13.19 3.42 125.81

9.3

Machinery, Mineral oils, vehicles Metals & ores Total

16.4

Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 101

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

Since industry non-existent, international trade was main sector where large profits could have been made
(Zaidi, Akbar S., Issues in Pakistan Economy, (2011), OUP. p. 93)

Foreign trade in private hands. To restrict import there was license policy & exports promoted through various concessions & incentives where given.
(Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p. 267)

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 Cotton grown in West Pakistan was used in mills in Bombay and other west Indian cities. Commodities such as coal and sugar were in short supply in Pakistan--they had traditionally come from areas now part of India. Initially, both countries allowed free movement of goods, persons, and capital for one year after independence This agreement broke down. In November 1947, Pakistan levied export duties on jute; India retaliated with export duties of its own.
(Source: Ali, Chaudhri M., Emergence of Pakistan, (1973) University of Punjab, Lahore)

Migration of trade expert & wealthy Hindus & Sikhs traders almost paralyzed economy; we inherited far less traders Emergence of Pakistan in the interest of major industrialists & traders: Hindu competition out of equation Dominance of agricultural commodities in trade (and exports) International trade bridged the gap in foreign earnings created by lack of industries & Pakistan made full use of that despite underdevelopment Raw materials formed 90% of exports Imports: manufactured goods due to lack of industrial setup Many of 22 wealthiest families did exist in 1947 India to Pakistan was what Europe was to sub-continent

Bibliography
1) Zaidi, S. Akbar, Issues in Pakistan Economy, (2005) 2nd ed. 2) Butt, M. Shoaib, & Bandar, Jayatilleke S., Trade liberalization and regional disparity in Pakistan, (2009) Taylor & Francis 3) Qureshi, M. L., Planning and development in Pakistan 4) Gauhar, Altaf, Twenty Years of Pakistan 1947-1967 5) Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan 6) Ali, Chaudhri M., The Emergence of Pakistan, (1973) University of Punjab, Lahore 7) 50 years of Pakistan in Statistics1947-1997, Vol. 3 & 4, Federal bureau of statistics Government of Pakistan