Economic liberalisation in Pakistan

Pakistan began a period of economic liberalisation in the 1990s to promote and accelerate economic independence, development, and GDP growth.

This policy programme was first conceived in early 1980s and thoroughly studied by the ministry of finance led by finance ministers Ghulam Ishaq Khan and Mahbub-ul-Haq and was implemented first by Pakistan Muslim League and the Prime minister Nawaz Sharif, as part of the privatisation programme in 1990. The programme of economic liberalisation, as one of the counter-policy measure programme, came in a direct response to nationalization programme of Pakistan Peoples Party (PPP) in the 1970s. After the 1993 general elections, the programme was halted and reversed by Prime minister Benazir Bhutto and the Peoples Party after the Pressler amendment went into complete effect and force, that led the economic and financial crises in Pakistan. A much powerful socialist capitalism version was adopted in order to secure the revenue and financial capital of existing state-owned enterprises, with enforcement of nationalisation and privatisation at once. Second attempt was again attempted by the Pakistan Muslim League and Prime minister Nawaz Sharif after securing exclusive mandate during the 1997 general elections, however abruptly terminated the programme after weapon-test performances in Chagai weapons-testing laboratories in 1998 (See Chagai-I and Chagai-II) and the Kargil debacle in 1999.

Once again, the comprehensive and much more effective studies were conducted by then-Finance minister and Prime minister Shaukat Aziz in 2000 after assuming the charge of national economy as an aftermath of 1999 coup d'état. The fruits of liberalisation reached their peak in 2003–04 when Pakistan recorded its highest national GDP growth to 8.96%~9.9%. In 2008–10, Pakistan is ranked 47th largest in the world in nominal terms and 27th largest in the world in terms of purchasing power parity (PPP).^[1]