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Course Outline
Course Title: Economics of Pakistan
Class: BS (A/F), BS (Commerce)
B.Com (Annual System)
Course No: BS (A/F): ECO 201
Course No: BS (Commerce):ECO 201
B.Com (Annual System): Part II, Paper I
Course Objectives:
1. To make students understand the key sectors of economy of Pakistan and
contemporary issues in agriculture, industry and financial and social sector.
2. To make students understand current policies in trade, commerce, fiscal/monetary
policy, industry and agriculture.
3. To let the students have a comprehensive knowledge about the current statistics of
the various aspects of the economy.
Topics
(1) Fifty years of Development
 Structural change
 Five decades and five Epochs
 Laying the foundation:1947-1958
 The decade of Development:1958-1968
 The Bad Luck year:1971-1977
 The second Military Government:1977-1988
 The era of structural adjustment:1988 onwards
(2) Pakistan’s Agriculture sector
 Significance of Agriculture sector for Pakistan
 Agriculture pricing policy, Objective
 Mechanization
 Agriculture credit(formal and informal credit “ pros
and cons”)
 Agriculture taxation ( arguments in favour of and
against the taxation in agriculture sector)
 Green revolution
 Land Reforms
 Agriculture policy and perspective ( Measures taken
by the current Government, total budgetary allocation,
 Different crop situation ( current economic survey of
Pakistan)
Source
Book1, Ch.1
Section A
Book1, Ch5
Book2, Ch3
Internet Access
(Current
Economic
Survey of
Pakistan)
Section A
(3) Manufacturing sector of Pakistan
 Manufacturing sector in Zia-ul-Haq era(1977-1988)
 Manufacturing sector in Zulfiqar Ali Bhutto era(19721977)
 Nature and extent of growth
 Industrial policy
Book1, Ch7
Book,2 Ch4
Internet Access(
Current
Economic
Survey of
Pakistan)
Section A
 Public/ private sector
 Deregulation and liberalization
 Causes of high growth and the success of Zia-ul- Haq
regime
 The age of structural adjustment 1988 and onwards


Key issues in industry in Pakistan
Small scale manufacturing sector, its emergence and
growth
 Textile industry and its crisis
 Issues effecting the SSS, measures taken by the govt.
in this regard
 Performance of the Manufacturing sector in the
context of Current Economic Survey
 Policies of the Government
(4)Balance of Payment and its components
 Pakistan foreign economic relations
 Contribution of the trade in the GDP of Pakistan
Pakistan’s imports and exports in the context of current
economic survey.
(5) Money /Capital Market of Pakistan
 Instruments and Ways of Working
(6) Banking Sector of Pakistan
 The role of State Bank, functions performed
 Role of commercial banks, challenges faced, ways to
overcome
 Evaluation, nationalization and privatization of Banks

Important issues in public finance and revenue
mobilization,(federal taxes, resource mobilization at
provincial level, local govt. revenues.)
“”
Section A
“”
Section A
Book1, Ch9
Book2, Ch5
Internet Access(
Current
Economic
Survey of
Pakistan)
Book2, Ch6
Section B
Section B
Book2, Ch6
Section B
“”
Section B


Contribution of municipal govt. in the development,
potential for development by local govt. is local govt.
the answer.)
Nature of public debt and fiscal budget: a preliminary
introduction
(8) Budget
 Sector wise allocation of funds
 Comparison with that of previous budget
“”
Internet Access(
Current
Economic
Survey of
Pakistan)
Book1, Ch11
(9) Pakistan’s Fiscal Deficit
 The Fiscal Deficit,(Should the budget always be
balanced, the problems of measuring the deficit, fiscal
deficits, inter temporal equity, and distribution, macro
economic implications
 Critical concerns regarding Pakistan’s fiscal
deficit,(The IMF, World bank view of Pakistan’s fiscal
deficit, re examine the fiscal concerns.)
(10) Monetary policy, savings and inflation
 (introduction, qualitative and quantitative tools of
MP, to overcome inflationary and deflationary gaps,
Book1, Ch13
monetary policy and monetary management in
Book2, Ch14
Pakistan, Money supply and monetary expansion,
inflation and its causes, the low saving rates.)
 Tools of MP to overcome inflationary and deflationary
gap. Pakistan Current going MP statement.
(11) Fiscal Policy
 Objectives, tools to overcome inflationary,
deflationary gap.
 Government sources of Revenues and Expenditure
 Fiscal Policy of Pakistan the lags between the
Book2, Ch16
revenues and expenditure
 Public Sector Development Program
 Taxation system of Pakistan
 Deficit Financing
(12) The Social Sector, Institutions, and the
Governance
 The international comparisons
 Planning for the social sector
 The health sector,(Statistics and Issues)
 Education,( Statistics and Issues)
Book1, Ch16
“”
Section B
Section C
Section C
Section C
Section C
 Population Welfare and Family Planning,( the
evolution of the population welfare programme,
knowledge and usage, some issues.)
 Urbanization and Housing,( the extent of Urbanization,
Housing in the cities,.)
“”
Section C
Recommended Text:
1. Zaidi, S. Akbar,(1999),“Issues in Pakistan Economy”, Oxford University Press.
2. Saeed, K. Amjad,(2007)“Economy of Pakistan, Institute of Business Management,
Lahore.
3. Economics Survey of Pakistan (Latest Issues), Economic Advisor’s Wing, Ministry
of Finance, Government of Pakistan
Further Readings:
1. Meenai, Asghar, (2002), “Banking and Finance in Pakistan” Oxford University Press.
2. World Bank Reports on the suggested areas of study.
3. Quarterly and Annual Reports issued by the State Bank of Pakistan.
4. Website sources :
http://www.paksearch.com
http://www.statpak.gov.pk/depts/
http://www.sbp.org.pk
http://kse.org.pk