This document discusses Pakistan's mixed economy and experiments with different economic models over time. It began with private enterprise but saw nationalization in the 1970s, followed by an "Islamic" economy in the 1980s that banned interest and mandated religious taxes and tithes. Since the 1990s, privatization has increased. The author argues that socialism is the best system for Pakistan, providing statistics showing the negative economic impacts experienced by former Soviet states after transitioning to capitalism. Several socialist movements and parties have advocated for socialism in Pakistan over time in different forms.

1. Assignment
Submitted to: SIR SALMAN DAHRI
NAME: WAQAR MEHMOOD KALHORO
ROLL: 2K19/AA/43
Department of ANTHROPOLOGY&ARCHAEOLOGY

2. Which Economic system is good for Pakistan?
Economy
After several experiments in economic restructuring, Pakistan currently operates a mixed
economy in which state-owned enterprises account for a large portion of gross domestic product
(GDP). The country has experimented with several economic models during its existence. At
first, Pakistan’s economy was largely based on private enterprise, but significant sectors of it
were nationalized beginning in the early 1970s, including financial services, manufacturing, and
transportation. Further changes were made in the 1980s, under the military government of Zia ul-
Haq. Specifically, an “Islamic” economy was introduced, which outlawed practices forbidden by
Sharīʿah (Muslim law)—e.g., charging interest on loans (ribā )—and mandated such traditional
religious practices as the payment of zakāt (tithe) and ʿushr (land tax). Though portions of the
Islamic economy have remained in place, the state began in the 1990s to privatize—in whole or
in part—large sectors of the nationalized economy.
The economy, which was primarily agricultural at the time of independence, has become
considerably diversified. Agriculture, now no longer the largest sector, contributes roughly one-
fifth of GDP, while manufacturing provides about one-sixth. Trade and services, which
combined constitute the largest component of the economy, have grown considerably. In terms
of the structure of its economy, Pakistan resembles the middle-income countries of East and
Southeast Asia more than the poorer countries of the Indian subcontinent. Economic
performance compares favorably with that of many other developing countries; Pakistan has
maintained a sustained and fairly steady annual growth rate since independence.

3. At the same time, there has been a relentless increase in population, so, despite real growth in the
economy, output per capita has risen only slowly. This slow growth in per capita income has not
coincided with a high incidence of absolute poverty, however, which has been considerably
smaller in Pakistan than in other South Asian countries. Nonetheless, a significant proportion of
the population lives below the poverty line, and the relative prosperity of the industrialized
regions around Karachi and Lahore contrasts sharply with the poverty of the Punjab’s barani
areas, the semiarid Balochistan, Khyber Pakhtunkhwa, and the Federally Administered Tribal
Areas
This was short introduction of Pakistan Economy, but I have to answer
which economic system is best for Pakistan? So in my opinion it should
be Socialism I think socialism is best for the whole countries of the
world, with some amendments like promoting and appreciate the world
technology to make some competition in the felid of science, somehow
free trade to rise up new youngsters in the business. To talk about
socialism I must have to give some introduction about it, which I have
understand basically socialism Collective ownership and democratic

4. control of the material means of production by the workers and the
people • Socialism is a term applied to an economic system in which
property is held in common and not individually, and relationships are
governed by a political hierarchy. Common ownership doesn't mean
decisions are made collectively, however. Instead, individuals in
positions of authority make decisions in the name of the collective
group. • Socialists argue that socialism would allow for wealth to be
distributed based on how much one contributes to society, as opposed to
how much capital one holds. In social circles whenever I discuss my
opinion by socialism people are giving my example of Russia, that why
Russia shouldn’t developed as soviet union, basically they only
watching upper and irrelevant things about socialism they have to find
the graphs of soviet in socialism, here I’m sharing some statistics of
soviet, this graphs shows that how much loss Russia face through
accepting this capitalism, in 1990s when soviet become Russia as a
capitalist country, as we see the heavy fall down of GDP which recovery
in 2006 due to rise in the rates of oils,

5. This charts show that oil prices are increased in from 2006 which
is main reason behind the recovery of Russia. From 2002 the oil prices
continuously raised and Russia seal it in international markets so they
earn income from it, Let’s see what graphics would be if Russia’s so-

6. called socialism was still going on,
This graph shows that if capitalism doesn’t came Russia it developed
more than now, there is another graph about life Expectancy of Russia
how it fall with capitalism, what is the reason, reason is that as economy
falls it direct attack on the lifestyle of people the health quality become
very low,

7. Here is another statics, perhaps you think that is only Russia face all this
problems but other countries are developing NO! The same thing happen
with other countries who apart from soviet, see how these all countries
immediately get
change in their
GDP after
soviet, here we
see the Moldova
who is most
welling for get
independence
from soviet, his
economy
collapsed very
badly, there are
many countries
which are
effected my
capitalism
likewise
Armenia,
Ukraine,
Georgia, these
are all countries
whose can’t
reach archive the
level of soviet
Unions in 1997,
its mean that
these years are totally lose years, the development which take place in

8. these years is wasted and they spend there years in the healing of injury
of economy, I think you don’t be doubtful that capitalism was a biggest
disaster for soviet union,
The reason of giving the whole examples of soviet is to support my
opinion of socialism, many times in the history of Pakistan have
attempts to being socialism, sometimes Bhutto give it color of Islam, but
he failed, Islamic Socialism was the concept propounded by Mr.
Zulfiqar Ali Bhutto during the 1970-71 general election campaign. This
ideology was new to Pakistani state as the country was founded on the
concept of the Two Nation Theory. Mr. Bhutto's ideology in Pakistan
was viewed as against the basic concept of the religion (Islam) by the
Islamists parties. The Jamaat-e-Islami (JI) was the main political
opponent of his ideology. Mr. Bhutto believed that the socio-economic
condition of the country was deteriorated and this new ideology will
infuse a better life for everyone in the country. On the other hand, the
Amir (chief) of the JI, Maulana Maudoodi, believed it as an atheist
ideology and would diminish Islam from Pakistan
The influences of socialism and socialist movements in Pakistan have
taken many different forms as a counterpart to political conservatism,
from the groups like Lal Salam which is the Pakistani section of the
International Marxist Tendency, The Struggle, to the Stalinist group like
Communist Party through to the reformist electoral project enshrined in
the birth of the Pakistan People’s Party (PPP)
While capitalism has always held its sway, the prevalence of the
socialist ideology has nevertheless continued to be found in a number of
instances in Pakistan's political past and prominent personalities. Much
of the remaining socialism in Pakistan today accedes to the idea of
Islamic left (socialism and communism), where the state would be run in

9. a socialist set-up consistent with Islamic political principles, while other
proponents demand pure socialism
There are many parties in working for socialism in Pakistan, like