The Army and Democracy in Pakistan: An Evaluation of Economic & Social Performance
European Journal of Social Sciences ISSN: 1450-2267, Vol. 25, 2, 252-286, 2011
35 Pages Posted: 2 Jan 2016
Date Written: October 27, 2011
According to the Pakistan Economic Survey 2004-05, the outgoing fiscal year has been an eventful year. Pakistan’s economy gathered greater momentum during fiscal year FY05 as Pakistan’s real GDP grew by 8.4% against 6.4% in FY04. At face value practically all major macroeconomic indicators exhibited improvement compared to previous years. Even per capita income, which was stagnant for decades, crossed the $700 mark. The sharp pick up in growth was mainly supported by an exceptional performance in large-scale manufacturing, impressive recovery in agriculture, and strong growth in services sector. Large Scale Manufacturing grew by 15.4 percent against the target 12.2 percent. Agriculture posted a growth of 7.5% against the target of 4.0 %. The services sector registered an equally strong growth of 7.9%. Although Pakistan's economic performance improved further in FY05 as illustrated by the major macroeconomic indicators, shortages of essential food items, high oil prices, and inflation increased sharply. The fiscal deficit also increased, and the current account of the balance of payments turned into deficit after three years of surplus. The trade deficit exceeded US $ 6 billion, which is highest in decades. The present government has made strong claims that the economy has stabilized and is poised for higher growth using key macroeconomic indicators as their basis for projection. This paper analyzes the government assertions by comparing the group means of the indicators in two different times.
Keywords: Army & Democracy, Economic Performance, Social Performance
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