Economic Planning and Development in the Islamic Republic of Pakistan

7.1.1 Define Economy?

An economy is a system of organizations and institutions that either facilitate or play a role in the production and distribution of goods and services in a society. Economies determine how resources are utilized and distributed among members of society; they determine the value of goods or services, and they even determine what sorts of things can be traded or bartered for those services and goods.

7.1.2 Importance and Difference of GNP & GDP:

Gross National Product:

Gross National Product is the value of all goods and services produced by a country’s residents.

GNP:

Is based on the market value of goods and services.

Takes only final goods and services into consideration.

Relies on factors of production such as the country’s labour and capital.

Is measured on an annual basis.

Conclusion:

The Gross National Product (GNP) is an economic measure of the market value of all goods and services produced by a country’s residents. It is an important and widely followed statistic that indicates the strength and growth of an economy, as well as the productive use of its factors of production such as labour and capital. It can be measured using the income or expenditure approach.

7.1.3 Importance of Economic Planning:

1. To accelerate the economic development of a country.

2. To balance the forces of Market mechanism (what & how to produce).

3. To allocate resources effectively & efficiently.

4. To calculate the national income.

5. To forecast economic uncertainty and prepare to tackle it.

6. To reduce the poverty level.

7.1.4 Explain the impacts of inflation on the economy.

EFFECTS/IMPACTS OF INFLATION:

1. It is a huge problem for employees, taking fixed salaries.
2. It generates an unfair distribution of income and wealth.
3. Inflation reduces the savings of the population.
4. It is a cause of an unfavourable balance of trade and payment.
5. Inflation increases the rate of interest.
6. It creates a lot of social evils.
7. It is difficult for consumers to purchase more goods.
8. It generates very bad effects on the poor labour force.
9. Inflation reduces the living standards and purchasing power of people.
10. It is harmful to creditors.
11. Inflation reduces purchasing power.

MEASURES TO CONTROL THE INFLATION:

1. Increase in the growth rate of output
2. The government should control the supply of money through effective monetary policy.
3. Highly increasing unproductive expenditures must be control
4. The government must take a step to curb corruption.
5. Control on population is also necessary to control inflation
6. Control budget deficit.
7. Reduction in monetary expansion/liquidation.
8. An effective tax system will help control inflation
9. Improvement in the balance of payment.
10. Developments in the agricultural and industrial sectors will help to control inflation.

Conclusion:

Inflation is everywhere in an economy. Its rate is high in developing countries and low in developed countries. The effective operation of monetary and fiscal policy is essential to control inflation.

7.2.1 Define the major forms of agriculture in Pakistan (Small-scale Subsistence, Cash crop farming).

There are three types of agricultural systems: 

1) small-scale subsistence farming 2) cash crop farming 3) livestock farming.

1. Small-Scale subsistence farming: Subsistence agriculture is when a farmer lives on a small amount of land produces enough food to feed his or her household and has a small cash crop. The goal of subsistence agriculture is to produce enough food to ensure the survival of the individual family. If there is excess food produced, it is sold locally to other families or individuals.
2. Cash crop farming: It is large-scale farming for profit generation, also known as commercial farming. Cash crops are those which are produced to generate cash or money. Farmers just naturally grow crops as a livelihood and generate cash for family needs.
3. livestock farming: Livestock are domesticated animals raised in an agricultural setting to produce commodities such as meat, milk, leather, and wool.

7.2.2 Role of the Agriculture Sector in the Development of Pakistan’s Economy.

Agriculture plays a very vital role in the economy of Pakistan and its development. 48% of the labour force is engaged directly in agriculture. So, it is the main source of living or income for the major part of the economic population. About 70% of the population is related to agriculture directly or indirectly. Agriculture is the major source of food for the huge population of Pakistan. Agriculture is also the major source of provision of raw martial to the industrial sector of Pakistan. Its contribution towards GDP is about 21% which is higher than the contribution of any other sector. It is the main source of employment and food generation. It produces raw materials for industries, decreases rural poverty, increases exports, and enhances infrastructure development and forestry.

7.2.3 MAJOR PROBLEMS OF THE AGRICULTURAL SECTOR OF PAKISTAN, DISCUSS THE MAJOR PROBLEMS OF THE AGRICULTURAL SECTOR OF PAKISTAN. WHAT MEASURES DO YOU SUGGEST TO IMPROVE THIS SECTOR?

Introduction: The agricultural sector is the backbone of our economy. However, the growth of agriculture in Pakistan is facing a lot of problems. Due to various causes, per acre yield is very low in Pakistan as compared to other developed countries.

PROBLEMS OF THE AGRICULTURAL SECTOR:

Problems in the agricultural sector are categorized as below:

1. Limited Cultivable Area: The total area of Pakistan is about 79.6 million hectares, out of which only 23.7 million hectares (28%) are used for agricultural purposes. About 8 million hectares of area is idle and unutilized. There are vast sub-divisions and fragmentation of landholdings, as a result, modern technology cannot be applied in the agriculture sector.
2. Water Logging and Salinity: Waterlogging and salinity are twin problems of the agricultural sector due to salinity, deposits of salt in the land have appeared on the surface of the land and they have adversely affected the performance of the agricultural sector. Waterlogging and salinity affect about 0.10 million acres of land every year. It is not only a waste of land but also a reduction in productivity.
3. Slow Growth of Allied Products: Allied products refer to those productions, which are not agricultural but indirectly, help the farmer to improve his living standard. Pakistan is insufficient in producing fruits, milk, poultry, fisheries, livestock, and forestry. As a result, not only our food quality is poor but also industries such as furniture, textiles and dairy cannot be developed.
4. Low Per Hectare Yield: The most important problem of agriculture is its low yield per hectare for almost every major crop. 45.0% of the labour force is engaged in this sector in Pakistan while it is less than 5% in developed countries. But other countries of the world are getting higher yields per hectare due to the use of modern technology and trained labour.
5. Inadequate Infrastructure: Rural infrastructure like roads, storage facilities, transport, electricity, education, sanitation, health facilities etc. is inadequate to meet the requirements of the growth of agriculture. The total length of the farm-to-market road is not only shorter, but their condition is also poor. Many villages have no metal-led roads at all. Electricity is available to only 3/4 of rural populations.
6. Uneconomic Land Holdings: Due to the increasing population and division of land under the law of inheritance, landholdings are subdivided repeatedly. The result is that a very large number of farmers have less than 2 hectares of area. Moreover, holdings are scattered. It is difficult to use modern machinery on small pieces of land.
7. Old Methods of Production: No doubt, the mechanization of agriculture is increasing in Pakistan, but in most areas, the old implements are still being used for agricultural production. Old and orthodox techniques of production cannot increase production according to international levels.
8. Lack of Irrigation Facilities: The shortage of irrigation facilities causes a serious limitation in the expansion of crop areas in Pakistan. The lower water supplies lost from the watercourse in the fields are a serious problem for the farm sector. Actual surface water availability is 91.8 million acre-feet.
9. The problem of Land Reforms: Land reforms have been implemented against the will of the people. There is an urgent need to conduct a proper land reform to improve agricultural growth. Due to this problem, agricultural production cannot increase to the desired level.
10. Subsistence Farming: Our farmer is attached to subsistence farming; a huge portion of production is consumed at a farmer’s own house to support a large family. Hence, less portion of the production is available for market supply. It causes the low income of the farmers. Farming is not conducted at the commercial level in Pakistan.
11. Natural Calamities: Labour is in the hands of mankind, but its result is in the hands of ALLAH in the agriculture sector. So, the growth of agriculture is dominated by nature. In case there is too much rain, a reduction in productivity. There is a 20% reduction in productivity due to unnecessary rain and unfavourable climatic situations in Pakistan.
12. Joint Family System: The joint family system is also a big problem in the agricultural sector. Our farmer is poor; on the other hand, he must support his big family. It creates a deficiency in saving and investment. A huge part of the farmer’s productivity is consumed at his own house.
13. Illiteracy and Ill-health: Most of the farmers, labourers and tenants in our country are illiterate. They are untrained and inefficient in boosting agricultural productivity. On the other side, the health of our farmers is improper due to rural backwardness. The literacy rate is only 57.7 % in Pakistan. The Economic Survey of Pakistan shows that literacy remains higher in urban areas (73.2 per cent) than in rural areas (49.2 per cent).
14. Political Instability: Political instability has affected development in all economic and social sectors. Unfortunately, the political situation in Pakistan is not stable. It creates unrest among the farmers to sell the products to various industries as raw materials. On the other hand, people hesitate to invest in the agricultural sector due to political unrest.

7.2.4 MEASURES TO REMOVE THESE PROBLEMS:

The following measures are suggested to improve agriculture:

1. Supply of Agriculture Credit: Poor farmers cannot afford the expensive technology from their own resources in Pakistan. So, the supply of agriculture credit at easy terms and conditions is very necessary. An amount of Rs. 85,177 million was disbursed by commercial banks in 2009 and Rs. 49 billion was distributed by ZTBL. ZTBL issued a credit of Rs. 37.4 billion during 2010-11.
2. Water Logging and Salinity Control: Waterlogging and salinity destroy about one million acres of land every year in Punjab and Sindh. It reduces our cultivable area. For this purpose, the installation of tube wells, repair of canal banks drainage of water etc. are needed. The Ministry of Agriculture proposed to invest to convert 2,00,000 acres of irrigated land to drip and shower irrigation systems.
3. Construction of Dames: Sometimes, due to heavy unwanted rains and floods, agricultural productivity is destroyed. To tackle this problem, it is necessary to construct dames and bands on rivers.
4. Provision of HYV Seed: High-yielding variety of seeds is not available at a suitable price in Pakistan. So, farmers must depend upon the low quality of seeds which causes a 20% reduction in total production. The government should provide HYV seed at a minimum price in this case.
5. Mechanization: Farm mechanization is necessary to remove the problems in the agriculture sector. Sowing, cultivation and harvesting of crops through agricultural machines increase the product quality and quantity.
6. Agricultural Research: Agricultural research is compulsory to remove the backwardness of the agriculture sector. Major agricultural colleges and universities are only about 16 in Pakistan. The government should increase the research work in the field of agriculture.
7. Argo-based Industries: Argo-based industries like poultry, fisheries, dairy, and livestock should be established. These industries indirectly lead to the improvement of the agricultural sector.
8. Tax Concessions: Mechanization is necessary to remove the problems of the agriculture sector. The government should give tax concessions on imports of agricultural technologies to enhance the process of farm mechanization.
9. Training of Farmers: Our farmers are illiterate and ill-trained so, their efficiencies are poor. The government should start special education programs for farmers and give them training in farming.
10. Prices of Agricultural Productivities.

Sometimes, our farmers receive low prices for their crops. There is no proper effective price policy of the government. The government should set reasonable prices for agricultural production to develop the living standards of farmers.

Conclusion:

Being an agrarian country, the agricultural sector of Pakistan’s economy is still backward. The use of modern techniques, provision of credit facilities, basic infrastructure and agriculture research facilities are needed to remove all the problems in the agriculture sector.

7.2.5 Analyze the impact of farm mechanization on employment, productivity and income generation.

Farm mechanization means the use of machines and technology in the agriculture sector. The use of tractors, tube wells and plant protection measures are included in the farm mechanization. So, in farm mechanization, the use of machinery is greater as compared to labour.

POSITIVE IMPACT:

1. Increase in the Cultivable Area.
2. Irrigation Facility.
3. Transportation Facility.
4. Reduction of Cost.
5. Saving of Time.
6. Water-logging Solution.
7. Increase in Efficiency.

NEGATIVE IMPACT:

1. Increase in Unemployment
2. Costly Machinery
3. Lack of Technical Knowledge
4. Lack of Energy Resources: -
5. Lack of Capital
6. Lack of Credit Facilities

7.2.6 The Purpose of land reforms and how far they were successful.

The purpose of land reforms is the changing of laws, regulations, and customs regarding land ownership. It aims at the redis­tribution of land ownership in favour of the culti­vating class (to make them feel themselves a part of the rural life), regulation and rationalization of rent, improving the size of farms and pro­viding security of tenure to transfer in traditional agriculture and raise cultivators to new heights.

Thus, two main objectives of land reform are:

1. To change the agrarian structure in a way as not to obstruct but promote the growth of agriculture; and
2. To replace the old land system with a new one, free from the exploitative features which characterized the former.

In Pakistan, the first land reforms were made in 1951 and granted peasants very modest concessions yet these were met with strong resistance in the provinces of Punjab and Sindh by the ruling landlord elites. The second land reform in 1959 under the Marshal Law of General Ayyub Khan was implemented with relative success because the dictatorship was not that dependent on the local support of the entrenched powers of the landlords. The Land reforms of 1972 led by Zulfiqar Ali Bhutto’s People’s Party were premised on populist sentiments of reclaiming the dignity of the common man through a focus on ‘people power.

7.2.7 The Shortage of Food in Pakistan and it is the Solution:

Food is the basic requirement of human beings and without it, people are unable to survive. All over the world, the problem of food shortage is increasing day by day. Different factors are involved in food shortages. The agriculture GDP growth rate in Pakistan was only 0.93 per cent in 2016, significantly lower than the population growth rate.

According to the Pakistan Economic Survey, the GDP of Cotton is 10 per cent and of Rice is 6 per cent. One of the basic reasons for the food crises in Pakistan is soaring prices due to a gap in demand and supply of edibles. Due to water unavailability mainly our Rabi crops suffered. Different surveys reported that being an agricultural country we are facing a shortage of food. It occurs due to the following reasons: rising energy prices, an increase in the cost of production and foreign exchange holdings by major food-importing countries. The lack of modern agricultural technology also became a reason for today’s food crisis in our country.

Predictable weather also played a main role in increasing food prices. Sometimes sudden uncontrolled conditions e.g., drought, water shortage, unfavourable weather conditions, floods etc. could be a reason for a reduction in crop yield which leads to a shortage of food.

7.2.8 Its remedies:

1. A National Food Security Strategy (NFSS) should be constituted to address the issues of food insecurity in Pakistan.
2. Productivity levels should be improved through investment in research, extension, communication and irrigation infrastructure.
3. Climate change is a certain phenomenon affecting the global temperature and rainfall pattern. Sustained investments in agricultural research to develop new varieties that are better adapted to the changing climate are needed of the day.
4. The impact of increased food prices should be passed on to growers, by controlling the prices of inputs and ensuring that important inputs are available in time. • Good governance is essential to ensure that food is accessible to the people.

7.2.9 locate the major agricultural crops in different regions (wheat, rice, sugarcane, cotton) on the map.

7.3.1 locate the important industries of Pakistan. (Cement, cotton, sugar, crafts, fertilizer, iron and steel, sports goods, surgical instruments).

REFER TO PAKISTAN STUDIES BOOK FOR MAP*

7.3.2 Describe different kinds of industries in Pakistan (Cottage, small scale and large industry).

In Pakistan, cottage or household industries hold an important position in the rural setup. Most villages are self-sufficient in the necessities of life. They have their own carpenters, cobblers, potters, craftsmen and cotton weavers. Many families depend on cottage industries for income.

Cottage industries have also gained immense importance in cities and towns. There is a great demand for hand-woven carpets, embroidered work, brassware, rugs, and traditional bangles. These are also considered essential export items and are in good order in international markets.

Small-scale industry: Small-scale industries are easy to start and manage given the minimal scale of production. They are set up to cater to the basic needs of the people within their locality. An example of a small-scale industry is a laundry or small kiosk created to cater to the individual needs of the people in the area in which it is located. These businesses require little starting and operating capital. They require cheap labour that is easily found, and their target market is the host community. Such companies also realize a small annual turnover and, as a result, pay fewer taxes.

Large-scale industry: Pakistan's industrial sector accounts for about 24% of GDP. Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 66% of the merchandise exports and almost 40% of the employed labour force. Cotton and cotton-based products account for 61% of the export earnings of Pakistan. The consumption of cotton increased by 5.7% over the past five years while the economic growth rate was 7%. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion. Other major industries include cement, fertilizer, edible oil, sugar, steel, tobacco, chemicals, machinery, and food processing. The government is privatizing large-scale units and the public sector accounts for a shrinking proportion of industrial output, while growth in overall industrial output (including the private sector) has accelerated. Government policies aim to diversify the country's industrial base and bolster export industries.

(a) Differentiate between the cottage and large-scale industries.

1. Cottage industries need small capital investment, few labourers, small places to set up etc.
2. Large-scale industries need huge capital investment, hundreds of labourers, big places to set up etc.
3. Cottage industries are set up mostly in rural areas, these give small output, and most of the work is done by hand tools.
4. Large-scale industries are set up mostly in urban centres, these give huge output, and most of the work is done by automatic advanced machinery.

7.3.3 Describe the importance and contribution of small-scale and cottage industries:

1. Cottage and small-scale industries are labour-intensive and provide employment to 80% of the industrial labour. This reduces unemployment and offers opportunities for self-employment.
2. Traditionally, women are not encouraged to work outside their homes. Cottage or small-scale industries like carpet-weaving, candle-making and handicrafts can be established in houses and women can be gainfully employed. This increases the active labour force.
3. These industries also meet the local demands for industrial goods and save foreign exchange spent on imports.
4. There is a demand for rugs, carpets, brassware, handicrafts, and embroidered work in the international market. These goods provide 30% of the export receipts of the manufacturing sector.
5. When people are employed gainfully in villages, the migration of people from rural to urban areas will reduce. The acute problems of housing, sanitation, education, transport and health will be reduced in urban areas.
6. Many districts are underdeveloped. With the expansion of such industries, the regional income disparity can be reduced.
7. These industries make effective use of local raw materials which also promotes primary industries like agriculture and mining.
8. The small-scale industry does not require much capital and high technology. I.T. is suited to the traditional economic setup.
9. Cottage and small-scale industries do not use much imported material or equipment.
10. The waste of large-scale industries, particularly the cotton, sugar and steel industries, can be used to make by-products.

7.3.4 Importance of manufacturing of local primary goods (Fisheries, dry fruit, and fruit).

primary goods involve agriculture, fishing, mining, forestry etc., which are not processed but only cultivated and their importance is:

1. Fewer imports, as most of the raw material, will be available within an area.
2. More exports, if any country is rich enough to produce primary goods it can export them too. Which intern makes handsome money.
3. Less inflation (price hikes), due to the availability of primary needs such as milk, fish, fruits etc.
4. Attraction towards industries, more primary goods (as raw material) pull industries which count to the development of the overall economy of the country.
5. Job opportunities, both small-scale and large-scale industries build because of the availability of primary goods resulting in job opportunities.

For the exam, simple fish is used for making products, ranging from pharmaceutics to edible items. It implies, that more fisheries mean more work for the pharmaceutical and oil industries in a country. As a result, Ultimately, the above benefits come into action.

7.3.5 Importance of Exports in Economic Development.

• Employment. Growth in exports can create employment. For example, the growth in car exports has created many jobs in the car industry.
• Capture the International market. Local goods will be showcased in the international market and the demand for goods shall be increased.
• Economic growth. Exports are a component of aggregate demand (AD). Rising exports will help increase AD and cause higher economic growth.
• Current account deficit. The strength of exports has a large role in determining the current account deficit. This means reducing imports.

7.3.6 Contribution of Tertiary Industries to economic development in Pakistan. (Banking, Tourism, Insurance and Education)

Banking Sector: The role of banks in economic development is to remove the deficiency of capital by stimulating savings and investment. A sound banking system mobilizes the small and scattered savings of the community and makes them available for investment in productive enterprises.

In this connection, the banks perform two important functions:

1. They mobilize deposits by offering attractive rates of interest, thus converting savings, which otherwise would have remained inert, into active capital.
2. They distribute these savings through loans among enterprises that relate to economic development. In this way, they promote the development of agriculture, trade, and industry.

Insurance: There are two main channels through which the insurance sector can help the economic and social development of a country: first, by reducing uncertainty, and second, by generating long-term financial resources. Through the first channel, a well-functioning insurance sector facilitates the investment decision-making process and enables businesses to continue operating even if catastrophic events (such as earthquakes, floods, severe weather conditions, etc.) hit the economy. The latter, in turn, provides some protection to households by reducing the probability of job and income losses. A developed health insurance industry also protects households from any major financial losses resulting from idiosyncratic shocks such as fires, thefts, illness, accidents, death, etc.

The second channel, i.e., increasing supply of the long-term financial resources, plays a vital role in economic development. Funds generated by the insurance industry are mainly invested in other financial instruments; especially in government securities, stocks, corporate debt, and long-term certificates of deposits issued by other financial institutions. The insurance sector also plays a supportive role in the development of other financial institutions and markets. For example, both availability of funds and insurance facilities, allow financial intermediaries to enter new markets.

Education: Education works as a driving force in the development process of a country and brings much-needed intellectual capital and technological changes, which make the economy more competitive and innovative by developing human capital with better skills and expertise.

However, in our country, education has never been a priority. It has rather been one of the most neglected sectors, both in terms of its composition as well as resource allocation. Pakistan, like many developing countries, has yet to decide on the priority investment in education. Is education a prerequisite for all socio-economic progress or the cause of education could be served well, after developing a reasonable economic base. Economic development is considered the investment of present resources for future increased production.

7.3.7 Suggest how the tourism sector in Pakistan can be improved?

7.3.9 Define the term multinational company.

An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.

7.3.10 Assess the contribution of multinational companies:

1. Provision of significant employment and training to the labour force in the host country
2. Transfer of skills and expertise, helping to develop the quality of the host labour force.
3. MNCs add to the host country's GDP through their spending, for example with local suppliers and through capital investment.
4. Competition from MNCs acts as an incentive for domestic firms in the host country to improve their competitiveness, perhaps by raising quality and/or efficiency.
5. MNCs extend consumer and business choices in the host country.
6. Profitable MNCs are a source of significant tax revenues for the host economy (for example on profits earned as well as payroll and sales-related taxes)

7.3.12 How the economic disparity amongst regions of Pakistan can be removed?

1. Equal distribution of national resources & income.
2. Develop the infrastructure of rural areas on the same footing as urban areas.
3. Provide job opportunities and better facilities to raise the standard of living.
4. Improve education standards. (School infrastructure & teaching standard)
5. provide better health and sanitation facilities esp.: in rural areas.

7.4.1 Describe the terms ‘trade’, ‘commerce’ and ‘foreign exchange’, and their interrelationship.

The relationship between trade and commerce is the following: -

1. Transportation
2. Advertisement
3. Banking
4. Insurance

Simply trade is useless without commerce activities because trade needs a transport system the banking system, as well as trade, also needs advertisement and these all activities cannot be possible without commerce because these all activities are involved in commerce. especially when trade action is performed on a large scale.

(a) Explain the terms trade, commerce, and foreign exchange.

Trade: The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries.

Commerce: Exchange of goods or services for money or in kind, usually on a scale large enough to require transportation from place to place or across the city, state, or national boundaries.

Foreign exchange: The exchange of one currency for another or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around the clock. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX."

7.4.2 Explain the importance of trade and commerce activities for economic development.

1. Commerce tries to satisfy increasing human wants: Human wants are never-ending. They can be classified as 'Basic wants' and 'Secondary wants'. Commerce has made the distribution and movement of goods possible from one part of the world to the other. Today we can buy anything produced anywhere in the world. This has in turn enabled man to satisfy his innumerable wants and thereby promote social welfare.
2. Commerce helps to increase our standard of living: Standard of living refers to the quality of life enjoyed by the members of society. When man consumes more products his standard of living improves. To consume a variety of goods he must be able to secure them first. Commerce helps us to get what we want at the right time, right place and at the right price and thus helps in improving our standard of living.
3. Commerce links producers and consumers: Production is meant for ultimate consumption. Commerce makes it possible to link producers and consumers through retailers and wholesalers and through the aids to trade. Consumers get information about different goods through advertisements and salesmanship. The manufacturers are regularly informed about the likes and dislikes of consumers through marketing research. Thus, commerce creates contact between the centres of production and consumption and links them.
4. Commerce generates employment opportunities: The growth of commerce, industry and trade brings about the growth of agencies of the trade such as banking, transport, warehousing, advertising, etc. These agencies need people to look after their functions. An increase in production results in increasing demand, which further results in boosting employment opportunities. Thus, the development of commerce generates more and more employment opportunities for millions of people in a country.
5. Commerce increases national income and wealth: When production increases, the national income also increases. In a developed country, manufacturing industries and commerce together account for nearly 80% of total national income. It also helps to earn foreign exchange by way of exports and duties levied on imports. Thus, commerce increases the national income and wealth of a nation.

Also, Read Other Pakistan Studies Topics:

• Pakistan's Ideology and Its Historical Background
• Administrative Structure Of Pakistan
• Culture Of Pakistan
• Constitutional Development in Pakistan
• National Integration and Prosperity
• Foreign Policy of the Islamic Republic of Pakistan
• Economic Planning and Development in the Islamic Republic of Pakistan
• Boundary Commission or Radcliff Award