Economic history / First five decades

First five decades

This is a chart of trend of gross domestic product of Pakistan at market prices estimated by the International Monetary Fund with figures in millions of Pakistani Rupees. See also

Year	Gross Domestic Product	US Dollar Exchange	Inflation Index (2000=100)
1960	100	4.76 Pakistani Rupees
1980	283,460	9.90 Pakistani Rupees	21
1985	569,114	16.28 Pakistani Rupees	30
1990	1,029,093	21.41 Pakistani Rupees	41
1995	2,268,461	30.62 Pakistani Rupees	68
2000	3,826,111	51.64 Pakistani Rupees	100
2005	6,581,103	60.40 Pakistani Rupees	126

Pakistan was a very poor and predominantly agricultural country when it gained independence in 1947. Pakistan's average economic growth rate since independence has been higher than the average growth rate of the world economy during the period. Average annual real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average annual growth fell to 4.6% in the 1990s with significantly lower growth in the second half of that decade.

Industrial-sector growth, including manufacturing, was also above average. In the late 1960s Pakistan was seen as a model of economic development around the world, and there was much praise for its economic progression. Later, economic mismanagement in general, and fiscally imprudent economic policies in particular, caused a large increase in the country's public debt and led to slower growth in the 1990s. Two wars with India in 1965 and 1971 adversely affected economic growth. In particular, the latter war brought the economy close to recession, although economic rebounded sharply until the nationalizations of the mid-1970s.