He therefore ordered the State Bank of Pakistan to be set up so that Pakistan could be a truly sovereign and an independent state.
Hence Pakistan started its journey as an independent and sovereign nation.
Economy.
What is economy?.
An economy is the institutional structure through which individuals in a society coordinate their wants and desires. .
Professor Lionel Robbins defines economy as the science which studies human behavior as a relationship between ends and scarce means which have alternative uses. .
Economics is the study of problems using available factors of productions as efficiently as possible to attain maximum fulfillment of societies unlimited demand for goods and services. The ultimate aim of economic endeavor is to satisfy human wants.
The study of economics is divided into two types:.
Microeconomics is concerned with efficient supply of certain products. It studies public business choices.
Macro economics is concerned with the overall efficiency of resources used in the economy, in particular the achievement of full employment of current resources and the growth of output over time.
Money means power. The strongest and the most powerful countries of the world are those that have the strongest economies. Those with the weak economies suffer at the hands of those, which are strong. .
Hence, the to make a proper economic strategy is a very important for all countries of the world.
Several factors affect an economy of a country. These factors are:.
I. Land.
II. Labor.
III. Capital.
These factors are in turn dependent on other factors; such as:.
Population - if the working population of a country, also called the labor force, is large then it will have positive effect on the economy. But if dependent population like women, children and the old is greater then this will adversely affect the economy of the country.
Foreign relations - the relations of a county with others is very important for trade.
