Pakistans Economy

Abstract

Looking for a new way to expand your investment portfolio? Maybe you want to look outside of the U.S. to diversify your portfolio. If you are, then Pakistan just might be the right country for you, as we learn about the country’s history and look at several economic measuring sticks that span over the course of ten years to see how well their economic activity is. Not only will we take a broad approach to Pakistan’s economy, but we will also dig deeper into their country’s resources to uncover what their main imports and exports are while also discussing some of the major industries that are working within the country’s borders. We will also take a look inside the country’s demography and spot out any noticeable trends that will make the decision process on whether or not to invest here. A brief analysis of some of the political risk assessments will also be provided. By the end, you will hopefully have enough information in front of you to make an informed decision on whether or not you should invest in Pakistan.

History

What we now consider to be Pakistan used to be part of the Indus Valley civilization back in prehistoric times. It was once controlled by the Aryans, Persians, Greeks, Arabs, Turks, and other cultures for thousands of years after being invaded by each of them. By the time year 711 came by, Islam was pronounced to be the nation’s principal religion. In 1526, “the land became part of the Mogul Empire which ruled most of the Indian subcontinent from the 16th to the mid-18th century.”(Infoplease, 2015). Around 1857, while the British became the most dominant power in the region, the Hindus were holding onto “most of the economic, social, and political advantages…”(Infoplease, 2015). This lead to the Muslim community to grow unhappy with the fact that they weren’t being recognized so they decided to form the nationalist Muslim League. After the League was formed in 1906 by Mohammed Ali Jinnah, they gave support to Britain in the second world war while Hindu national leaders refused. For offering their support, the Jinnah expected Britain to help support them in their journey to seek the right to become their own government, autonomy.

The support from Britain was well received by the League and this lead to the formation of Pakistan as a separate dominion within the Commonwealth in August 1947 with Jinnah becoming the governor-general. As Pakistan came into it’s own, India felt their dream of being a unified subcontinent slowly fade away. Pakistan's first form of government was a republic on March 23, 1956 and their first president was Major General Iskander Mirza. During his reign, Pakistan’s military power reigned for two decades, but tension between East and West Pakistan was steadily growing. These two sides only shared a few cultural and social traditions in their religion so it was easy for