Trade industry of pakistan at partition 1947
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Trade industry of pakistan at partition 1947

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What trade industry Pakistan inherited at the time of its partition from United India in 1947? Trade industry = non-manufacturing units which traded manufactured goods or services. Services were ...

What trade industry Pakistan inherited at the time of its partition from United India in 1947? Trade industry = non-manufacturing units which traded manufactured goods or services. Services were really non-existant at that time.

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  • Source: Interviews with older people. Crossed checked with online information.
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Trade industry of pakistan at partition 1947 Trade industry of pakistan at partition 1947 Presentation Transcript

  • Sehrish Asghar, Rana Aqeel, Waqas Khalique, M Umer Toor, Hassan Mohi-ud-Din
  • Contact For more information, feedback and comments please contact us at: i.umer.toor@gmail.com
  •  At partition economy of Pakistan was semi- industrialised one, based heavily on textiles, agriculture and food production. Pakistan inherited little infrastructure & almost no industrial set-up. (Source: Zaidi, S. Akbar, Issues in Pakistan Economy, 2nd ed.) Muslim traders supported the idea of Pakistan & financed Muslim League, e.g., Memons, Khwajas, etc “[Creation of Pakistan] was like gold rush of United States [for Muslim businessmen]," G. M. Adamjee
  •  Mass migration of Hindus and Sikhs, who controlled trade & industry, “nearly paralyzed the economic & administrative machinery of Pakistan” (Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 7 & 102) Migration: Pakistan “exported” expert & wealthy Hindus & Sikhs to India, and “imported” rural farmers & craftsmen, mostly (Butt, M. Shoaib, & Bandar, Jayatilleke S., Trade liberalization and regional disparity in Pakistan, (2009) Taylor & Francis, p. 13)
  •  Several entrepreneurs who came to be dubbed as 22 families in the 1970s apparently had considerable economic power at the time Pakistan was born, like, Habibs, Saigols, etc. 17 of 100 people at the top industry in 1950-60s had industries in 1947 (Source: http://richpaki.tripod.com/saga.htm)
  •  East Pakistan’s economy was growing at a faster rate than the economy of West Pakistan = Exports from East Pakistan to West Pakistan faster The bulk of this trade was carried by sea, a small volume by air West Pakistan’s imports from East Pakistan mainly consist of betel- nuts, spices, wood timber, fruits, vegetables, tea, jute manufactures, paper, paste board, matches and leather Imports into East Pakistan from West Pakistan were rice, wheat, raw cotton, oil-seeds, tobacco, machinery, cotton yarn, cotton fabrics, drugs, medicines, oils, metal manufacture (Source: Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p297 & Economy of Pakistan (1947-68), Ministry of Finance) Trade was carried through land via through Calcutta; data not available, according to Ministry of Finance’s report Economy of Pakistan 1947-68
  • Region Trade Amount (Rs. crore) East to West 1.98 West to East 14.03 Total 16.01Source: Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government ofPakistan
  •  Pakistan had only two ports: Karachi port had 17 berths (related to docks), 13 of which 60 years old; Chittagong, handling capacity of 0.5 million tons. Foreign trade through Calcutta unrecorded (Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 98) Pakistan Merchant Navy had only 4 old ships of 27,347 “dead weight” tonnage (weight a ship safely carries) (Planning and development in Pakistan by M.L. Qureshi pg 77)
  •  On independence Pakistan found her foreign trade circumscribed in two ways:1) Bulk of trade with India. With no industries and known mineral resources coming to her share, imported many items, & exported jute & cotton to India2) Exports: entirely comprised raw materials - jute and cotton; 75% of the total world production of jute in Pakistan at Partition Foreign trade closely linked with India & United Kingdom: exported foodstuffs & primary commodities & imported manufactured goods (Source: Gauhar, Altaf, Twenty Years of Pakistan 1947-1967,p. 259 & p. 262)
  • “Percentage Distribution of Country-Wise Table on Principal Exports: 90% raw materials Exports in 1948-49” Commodity 1948 (in crore Country % Share rupees) Raw Jute 119.25India 55.8United Kingdom 10.9 Raw Cotton 36.47United States 8.9 Raw Wool 3.09Belgium, France, 10.4Italy, West Hides & Skins 4.85Germany Black Tea & Other 4.24 + 19.14Japan, China, Hong 3.9 exportsKong Total 187.04Other countries 10.1 Economy of Pakistan 1947-68, (1968). Ministry ofEconomy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan, p. 99Finance, Government of Pakistan, p. 101
  • “Percentage Distribution of Country-Wise Table on Principal Imports Imports in 1948-49” Commodity 1948-49 (crore Country % Share in Import Rs.) Chemicals, drugs & 4.22India 31.8 medicinesUnited Kingdom 28.0 Artificial silk piece 4.28 goods &yarnUnited States 8.1 Cotton piece goods, 38.19Belgium, France, 6.4 twist & yarnItaly, West Other imports 62.51Germany Machinery, Mineral 13.19Japan, China, Hong 9.3 oils, vehiclesKong Metals & ores 3.42Other countries 16.4 Total 125.81Economy of Pakistan 1947-68, (1968). Ministry of Economy of Pakistan 1947-68, (1968). Ministry ofFinance, Government of Pakistan, p. 101 Finance, Government of Pakistan, p. 100
  •  Since industry non-existent, international trade was main sector where large profits could have been made (Zaidi, Akbar S., Issues in Pakistan Economy, (2011), OUP. p. 93) Foreign trade in private hands. To restrict import there was license policy & exports promoted through various concessions & incentives where given. (Twenty Years of Pakistan 1947-1967 by Altaf Gauhar p. 267)
  •  Economies of India & Pakistan were Complementary: Pak exported cotton & jute to India & imported manufactured consumer goods in return India biggest supplier & consumer of Pakistan’s goods Cotton grown in West Pakistan was used in mills in Bombay and other west Indian cities. Commodities such as coal and sugar were in short supply in Pakistan--they had traditionally come from areas now part of India. Initially, both countries allowed free movement of goods, persons, and capital for one year after independence This agreement broke down. In November 1947, Pakistan levied export duties on jute; India retaliated with export duties of its own. (Source: Ali, Chaudhri M., Emergence of Pakistan, (1973) University of Punjab, Lahore)
  •  Migration of trade expert & wealthy Hindus & Sikhs traders almost paralyzed economy; we inherited far less traders Emergence of Pakistan in the interest of major industrialists & traders: Hindu competition out of equation Dominance of agricultural commodities in trade (and exports) International trade bridged the gap in foreign earnings created by lack of industries & Pakistan made full use of that despite underdevelopment Raw materials formed 90% of exports Imports: manufactured goods due to lack of industrial setup Many of 22 wealthiest families did exist in 1947 India to Pakistan was what Europe was to sub-continent
  • Bibliography1) Zaidi, S. Akbar, Issues in Pakistan Economy, (2005) 2nd ed. 2) Butt, M. Shoaib, & Bandar, Jayatilleke S., Trade liberalization and regional disparity in Pakistan, (2009) Taylor & Francis3) Qureshi, M. L., Planning and development in Pakistan4) Gauhar, Altaf, Twenty Years of Pakistan 1947-19675) Economy of Pakistan 1947-68, (1968). Ministry of Finance, Government of Pakistan6) Ali, Chaudhri M., The Emergence of Pakistan, (1973) University of Punjab, Lahore7) 50 years of Pakistan in Statistics1947-1997, Vol. 3 & 4, Federal bureau of statistics Government of Pakistan