Editing Economy of Pakistan (section)

=== Inception ===
In the late 1940s, upon its establishment, Pakistan had an agrarian-based economy. Agriculture constituted 53% of the country's GDP in 1947 and slightly increased to 53.2% in 1949–50. With a population of approximately 30 million, including around 6 million residing in urban areas, about 65% of the labor force was engaged in agriculture. The agricultural sector played a crucial role, contributing to 99.2% of exports and making up nearly 90% of foreign exchange earnings.

Despite possessing significant land and mineral resources in both [[East Pakistan|East]] and [[West Pakistan]], including natural gas, crude oil, coal, limestone, and marble, Pakistan faced numerous challenges. In 1950, its [[per capita income]] was around $360 (in 1985 international dollars), and the literacy rate was only 10%. The nation encountered a lack of economic infrastructure, financial resources, and an industrial foundation, particularly with poverty rates ranging from 55% to 60% in the West Pakistan region.

Due to limited capital in the small private sector, the government opted to focus on the public sector to foster economic and industrial development. In the fiscal year 1949–50, Pakistan recorded a national savings rate of 2%, a foreign savings rate of 2%, and an investment rate of 4%. Manufacturing contributed 7.8% to the GDP, while services, trade, and other sectors accounted for a significant 39%, reflecting a policy centered around [[Import substitution industrialization|import-substituting industrialization]]. The trade balance of payments indicated a deficit of 66 million rupees (Rs) during the period spanning 1949/50 to 1950/51.<ref name=":12">{{Cite journal |last1=Anjum |first1=Muhammad Iqbal |last2=Michael Sgro |first2=Pasquale |date=26 June 2017 |title=A brief history of Pakistan's economic development |url=http://www.paecon.net/PAEReview/issue80/AnjumSgro80.pdf |journal=Real-World Economics Review |issue=80 |pages=171–178}}</ref>