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Baseer Ahmed Sanaullah 08-0120 Aman Iqbal 08-0180 Mehmood jawaid

The Nature and Extent of Growth

Pakistan(1980-88) average GDP growth rate: 6.5% Manufacturing GDP grew at an annual average rate of 9.5% between 1977-1986 Investment in medium and large scale industry grew at an average of 18.2% per annum. Total private industrial investment expanded at 15.6% per annum

Zia regime consist of three sub-periods 1977-81: Cautious attempts at dismantling existing government policies
and restoring confidence in the private sector while simultaneously trying to gain political legitimacy.

1982-85: a more forceful drive towards islamization which followed the


regimes consolidation of power.

1985-88: the attempt to disengage the government from direct control of


the economy.

Main Concern: To restore business confidence particularly of the private sector. Early steps: the denationalization of the number of agro-based industries and small engineering units. Basic and heavy chemical and cement industries were opened up to the private sector

Highest priority was given to investment programs. Growth in large scale manufacturing was projected at the highly ambitious rate of 12% per annum a target which was surprisingly achieved.

Islamic laws were enacted and commissions formed. Economy was brought under the influence of Islamic laws and principles.

It was a ploy on the part of the military government in order to legitimize and perpetuate its hold on power.

Islamic economic system could act as substitute for specific aspects of capitalist industrial culture

Very little denationalization took place in comparison to what was anticipated. Instead private sector was given incentives such as

opening up sectors and areas previously exclusive to the public sector.

Government portrayed a very favorable incline towards the private sector and blamed Bhuttos economic policies. At the same time it retained all powerful and important financial sectors. Prove: No denationalization or privatization of banks took place when General Zia was around.

Government did not want to alienate those groups and classes which had benefitted from nationalization. This group comprised of urban lower middle class.

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