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ROLE OF FOREIGN INVESTMENT IN BUILDING HEAVY INDUSTRIES IN PAKISTAN: 1985-95

 

However, the total amount disbursed to the government of Pakistan was 1257 million dollars2. In the year 1995-96 the committed grant and grant like assistance to the government jumped to 3025 million dollars3, but the total amount disbursed was 2600 million dollars4. Between these years foreign investment coupled with aid kept blowing into the Pakistani economy and made its influence felt through out the various sectors of the society.
             For example, in the year 1985-86 the total production of wheat was 139265 tons and due to the increased usage of modern agricultural techniques this production level jumped to 175706 tons in the year 1995-96: what is to be noted here is the impact that foreign assistance had on the production of only one area of the agricultural sector. Similarly, due to an increased reliance on fertilizers the production of the maize crop went up from 10097 tons in the year 1985-86 to 12848 tons in 1995-96.
             Foreign resource inflows are yet another similarity between the Zia and Ayub eras, where external resources helped fund Pakistan's development programme9. In the small and large scale manufacturing industry an upward trend was observed between 1985-95 which was not as high as the one in Ayub's time but was relatively higher compared to other eras. Despite unfavouable factors the economy has been able to generate an over all GDP growth of 5.7% during 1986-87 while 6.1% was recorded in 1995-9610. However, the rate of inflation from 5.4%11 in 1986-87 jumped to 11.612 in the year 1996-77, and the current account deficit increased from $168013 million in 1985 to $457514 million in 1995. These facts and figures amply illustrate the extent to which foreign grants helped to change the economic fortune of Pakistan and instituted a precedent of sustainable development; however, development lasted as long as the aid kept flowing in.
             Society.
             It is but natural that the economy of a country has a deep impact on its social structure.


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