Economic development of Pakistan

Item Type text; Thesis-Reproduction (electronic)

Authors Mohammad, Niaz, 1914-

Publisher The University of Arizona.

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Link to Item http://hdl.handle.net/10150/319128 ECONOMIC DEVELOPMENT OF PAKISTAN

by Niaz Mohammad

A Thesis submitted to the faculty of the

Department of Economics in partial fulfillment of the requirements for the degree of MASTER OF ARTS

in the Graduate College, University of Arizona

1951

Approved:

222661

£ ~ 9 ^ * 9 /

/ tt>3

TABLE OF CONTENTS

Chapter Page PREFACE ...... viii

Is PAKISTAN ON THE G L O B E ...... I Historical - Retrospective ...... 2 Muslims in India ...... 2 H i n d u i s m ...... 3 Hindu-Mus 11m R e l a t i o n s ...... 3 The British Conquest (1707-1947) .... 4 The Muslim Renaissance...... 6 The Indian National Congress and the All India Muslim League ...... 7 The Constitutional Reforms ...... 7 Muslim Reaction: Demand for Pakistan . . 8 The Second World W a r ...... 10 The Postwar Situation ...... 12 The Birth of Pakistan ...... 14 Economic Dislocation and Consequences . . 15 Other Developments...... 17 II. PHYSIOGRAPHIC FACTORS AND NATURAL RESOURCES 18

Physiographic Influences ...... 18 Geographic Divisions of Pakistan . . . 18 Climate and R a i n f a l l ...... 22 Area and Population...... 22 Natural Resources ...... 25 Livestock ...... 25 Fisheries...... 27 F o r e s t r y ...... 28 III. AGRICULTURE...... 31 Life in V i l l a g e s ...... 31 Land Utilization ...... 33 Ir r i g a t i o n...... 35 Crop Production...... 38 Food C r o p s ...... 38 Non-food C r o p s ...... • • • 41

1 1 S J 2 £6/ XTo B E T O O P m f . P& M S =; O.O, 0 o. o O O o O c O , 44 Types of Schemes s Historidal Background , Distribution of Schemes3 .Dhit=wis@ and .

- '■ : Smblect^wise o' p 1 o » o . o .o » , 4 9 .•Agriemltural Development : o 0 0 6 o « « < 5 2

. , Irrigation. Projects o . ’0 » 1 1 < 5 3

V 'Summary' and Guaulatlire; Bffeet of Sehemes 5 3

Relation of State.to Industry 0 « . 0 » < 5 5 ... •Assistance'to. Industry o »> <> <, = o < 56 ■ 5 B , • Foreign Capital -0 = » o = * 0 * * * » < . '- Industries Subject to' Oentral Planning 1 1

To INDUSTRY M B HEETlHG 0 o 0 » o 0 "o' « « o < 6 4

large-scale Industries ■, 0 ■ c - «■■ < 6 4 0} LI iy ^ o o ' o o o o o o o o o < 66 (: Cotton Textile Industry o » < o o 6f . Woollen Textiles 1 l a » « , o o 68 - . Sugar .and Alcohol Industries o o 68 Cement o © *.o o © o. o■o © < o o 69 Heavy, Ghemicais o- ©, ©, ■ ©•; ©. ©: , 6 9 Sulphuric Acid -o ' © © © © © . 6 9 Caustic Soda - © © © © © © ■© < ?0 Soda Ash ; ©. ©. .. © ■ © © © © © _ © < • o o o o Tanning Industry ,. © © © © ©, © © © o o 7 1 - :Development of ,Cther- Industries © 7 2 :

Cottage’Industries © © © © © ©.© © 7 2 Problems of the Cottage Industry, 7 3 .isfeasures. Adopted' by thf Central ■

' CdYernaent '-.' © © ©. © © © © © © < 7 4

Cottage Industries in Pakistan © 7 5 Power Resources : ' © © ■ © .© © © ©• © © 7 7 'Mineral. Resources © © ©' © . © ©" © . © < • VOal ’ © o © © © © © o © © © © o c

Or 1 ' ,© © © © © ' © © © © © ; © o © © c 7 9

Chrosil ue © © © © © © © © © © © < 7 9 80 Silica:Sand 8 1 Sulphur - © .© 8 1 'Gypsum © ©, 8 2 Limestone ©. 8 2 Salt © © © 8 3 OMptei> . . y., - ' ■ . . , ^ '^age. Tlo M B O R M D EMPLCBiEHT 0 » o. ^ . o » o c o •’ 84

Reatures of PaMata.$i',s Economy 84

o ,; o o o o o o . d o o do o o o O O, 84

G o o o 6 o - o. o. o o o o Q o o 85

o o o o o o o ,0 0 . 8 7

_ 'oodoo oo 9: o , . V o : 8 9 Honrs: ofEmployment ». 0 . « '» 0 > > ■ 9 1 Indnatrial.Employment Stan#Ing,'Order 9 2 . Industrial Relations o o o 9 2 , L a M r $s Welfare 0 o o' o o 9 3 Organizat ions of Capital arid Larior : 9 4

Q O O O 6 Q ° .O ° O O 0 O O O 9 4 o b o o o o o o o • o o o o 0 0 O 9 4

labor Laws o. o O 0 9 5 0 6 o 0 9 6 ' Payment Of Wages Act ? 1936 * * „ < 9 6

Industrial .Disputes Legislation< 9 7

Trade Haiori Act 0 ~ 1926 6 0 t o o = : < 9 7 Workmen*s Gompens&tion Acts 1923 { 9 8 ■The Maternity■ Benef it Act i 0' „ ' 0 '« o o 9 8 The Employers^■Liability Act, 1938 o O 9 8

■TOo TRANSPORT AE) COIMOHICATIOHS o o o o o o o o o 9 9

Railimy Transport - 0 = » 0 « 0 O 0 1 0 0 '

Worn-out Condition of Stock' 0 / 0 1 0 2

0 0 1 0 3 ■. Improvement in Train Services o o 1 0 3

-:Movement of Goods 0, „ = o 0 o 1 0 4

Roads 1 o o oo.o o o ’ o o o b o 0 0 1 0 4

Ports O' o O b 0 o 'O' o o ' O 0 0 o O 0 1 0 7 Chittagong Port 0 = » O O 1 0 8 Water Transport 0 A c o 0 0 0. o o o 1 1 0

0 o. 1 1 1

o o 1 1 2

' : Postal: .Services ■ = 6 O 1 1 3

' Teleoommunleation 0 p 1 1 3

¥ 1 1 2 Q o r n m m f -MB bahktig 0 o 1 1 5

o o • 1 1 5

Sepurity Printing Press t o , „ „ < O G 1 1 8

Currency Policy' , », » '« 0 «. .» « Q 0 1 2 0 Pakistan5s Decision not to Devalue 0 d 1 2 0 Foreign lAchange Regulations . 0 0, < o o 1 2 1 Banking o o ©. o o o p. p © © o o © © c o o 1 2 2 . The Money Imrket A © •».. « © © o' © < o o 1 2 2 . The Central Bank © .© © © © © © © :< o o 1 2 3 Expansion In Banking System © © © < 0 0 1 2 4 : , , A-"..--;/'.: IV " ' : : ■ ■ TXIIo (g ont0) Xadustrial Finance Corporation 0 0 ■ 125 ..Refugee Rehabilitation Finane© ; " Corporation o » »' » * * * » 0 0 0 b 0 .126 :national.Bank of Rakistan 0 > : 0 0 d 0 0 126 . Cooperative Banks. .0 '» o'-o * » * 0 126 IHTERMTIOHAL TRiJDE 0 '» = o l ,, , : » 0 0 128 Fscporte p;.0 0 0 0 0 0 0 0 0 0 0 © 0 128 in te 0 0. © 0 0 © © 0, p o p 0. 0 0 , c 0 128 Cotton 0 0 0 0 0. 0 0 o p 0 0 © 0 0 ■ O 129 Wool 0 0 0.0 0 0. © o. ■ 0 0 '0 ■ 0 © 0 0 0 ,0 13© , i ea p p © ■ 0 0 0 0 -p 0. 10 p 0 0 © 0 0 O 0 130 Sides and Skins 0 o p' 0 :0 o '0 © 0 0 0 ‘ 0 131 Xmd s 0 0 o '. 0 0 0 ,0 q © 0 0 0 0 0 0 o'- 6 132 Direction of Sea-Borne Trades April ls .:19#^mreh 31, 1950 = = 0 © © 0 0 0 133 W BL1C l-lMCl ' o . © © o '© © © 'p ' p p • © 0 0 0 0 137 ''Fnblie "Debt ©■ © © © © „ © ©, © © 0 0 0 0 139

•BIBlIOCRiRHf , 0 :© o'. © © o ''©:' ©, © © p 0 0 0 d ■142

ARBBHDIX- © o p © , © ' © 0 0 © © 0 0 0 ©' 0 0 b 0 146 LIST GF TiiBLES

Wnmbez" \ ' Page lo LlilSTOCE POPULATIOH 0 o . o D 0 c 0 0 . . c 25 IIo' GLASSIFICATION OF FOREST AREAS 0 „ 0. 0 0 0 29

111= GMSSIFIGATIOS OF M S S = V = = = = = , . 34 ITo PRINCIPAL CROPS OF PAZISTAE = 0 = 0 = 0 0 = 39 ?o UNIT-WISE ESTIMATED GOST OF DEVELOPMENT SCHE1SS APPROVED BY DF7FL0PMENT BOARD DP TO 2«28®1950 00 00000 o 00 o 000 50 VI= SDBIB0T-WIS1 ESTIMATED COST OF DEVELOPMENT s o m m s APPROVED . B? DEVELOPMENT BOARD OP TO. 2“28“1950 , 0 0 ' o o o o- . o o 00 o o 0 0 51 VII o INDOBTRIAL LABOR = = '. * o 4 * » = 0' 0 = = = 86 VIII o WAGE RATES IN CERTAIN ETOSTRIES = = » , „ 0 90 ■ XXc ' CLASSIFICATION OF RAILWAY ffllFAGS = = = = = 101

' Z= ROAD HLEAGE BI PAKISTAN = = = = 0 o c = = = 106 XI o NDIiBIR OF MOTOR VEHICLES ON ROADS = = = = = 10?

: XIlo : IMPORTS AND EXPORTS AT TBS'KARACHI POET = > 108 XIII=■ ■ PAKISTAN NOTES ======■= = = = = .= = » , 119 XIVo . DISTRIBUTION OF OFFIGIS OF SCHEDULED BANKS = .125 ., XVo VALUE OF SEA-BORNE EXPORTS TO PRIlMGlPAL COUNTRIES o o o o o 0000 0 0 o ,0 0 o o 132 XVIo VALUE OF SEA-BORNE IMPORTS OF FOREIGN MERCHANDISE = o = =0 = = = » ======134 XVII = VALUE OF SEA-BORNE IMPORTS FROM PRINCIPAL COUNTRIES = = = = =.= 0=0 c = = = = = o 135

: ■ ■ V. • '■ .. . : vl ■ - , ■ ' • V ; .■ ■■■■■ ■ DIRECTION. OF SEA-BORNE TRADE . AND . PERCENTAGE SHARE OF VARIOUS COIB1TRIES c . „ . . 0 ERIHCipAI, HEADS OF REVENUE AND EXPENDITHR1 ‘

Pakistan - on tRe Globe 0 o » '» « 0 .»■ o » E E W A C l

;g i b . As ia the ;S© ©end: World Wii1 has heen the©sergeae® ,0^ Imdia and . • laMstaB^fzda a: d©P0Ment eolonial posit ion into full self-' rule o $h© © M British 'wlndiati dh Augmst l^^ 1947 was partitioBed. and eaeh part granted dominion status in the British- Gommomwealth. of Nations a Thus ended tlie' epoeh of • British domination in. the- land whieh M d had the unflatter­ ing distinetiori of being the world’s greatest.;eblMial.pos- sessiond. y ■ ■. :V ■ ’ • ' - - ' The irreoonoiliahility of. the Indie and ls.la.aie peoples more than any other_cause led to the partition of the old

.India.in 1 9 4 7 and the creation of the new nation% Pakistan0 An attempt has been made in the pages that follow to intro- duee Pakistan for better ahd thorough understanding0 ■ , . I am Tory, grateful, to the emhass^ of'■ Pakistanj Washing* ■ tong BoGe s whieh supplied.me all the relevant and useful ma­ terial cm, thesubjeeto ’ . - ' , PqGo' :of economioss' who has directed me .in my thesisg made im® ' . proyements in my’dfaft.jj and given valuable suggest ions«, 1 am very much impressed i$y:his tre&sur® of -knowledge 'whieh ' he has■about Pakistan„.the keen Interest which he has,taken ,ia me .aad, s . in a M p e 0; 1 am f dr^ traate te have Mis as :sv teaehea and guiite to whom 1‘ ©we , bq laaeho . Mis guidanee 1 would have been ndwhsreo

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'*r*r£s iNSlftN nr. F A aj CHAPTER I

" : PAKISTAN m T M : ai«OBl

Th# of Pakistaa oame imt'o exi@t®a@e o b the globe oa. AMgmst 15s - 1947 wbea,:ti3.e ■ powei1 of the Bfltleh e m m n t .in ..Iad,ia was transferred, to : the two Dominion#*: Pakistan and-Im&lag:im their'res^eetiv® areas» Pakistan t M s has emerged from eolonialism to self-government follow* ing "World, War XX o With a population of. over 75 million^' Pakistan is the fifth largest state of the world0 Its area embraees more than 350 s 000. s Q.n.ar©' mil®.s = . . Iteat baekgrowd o f , history and, culture 9 p h i l o s o p h y ' religion.and soeial relationship has prepared,th@'people of ; Pakistan, to t a M their, plane among free nations? What forees this

Xn this

■ gins ;and;: fmlf iilfflent. of the 'demahd for Pakist^mo' fiisti

fhe f izstpolitioal: eoaneotion @f'Mnsllms with India

ihe - i^ah eonquest of Sind by Mohammd Bin Qasim in 7 1 2 A,oSq and its annexation by the SalipMaM ©f BaBaseus0 widen imtroduetion of Islam into India9 howetenj, was to

oome: not fgom the West 0 hut from the HorthQ . Between , 9 9 5 ahd. vl025-the Sultan Mahmud of Gaznl in M ’ghanistaa; int© Indian terfitony^. 'lire, fnfkish on g. at Delhi .^rom 1192 t% »1^26o -..It that, the pnei l : . ' ' hap© 0 ■Thus the Muslims heearn© an important part of: the population of Indiag and their, distinet eulture was established side by side with, that of Hindus 0

Muslims in *

Before the ©feat ion of Pakistan in August-, British India had a ap= . ?e ivius The main aentals of - IS lam an® that, there - > tMt. Eohammad. is: the last of i and that %uaram is. the revealed word of C as its own dafinits, eode of ethiosg jimispruds

lo Hiehard i 15 The Baking of Pakistan CBondon: r and laher„ i p O 200 Hiadmisffisystem; ©asfe organisation. . soeial its Is a aswhieh houseibold.or 'goddess god has m -its<,■© of. soml Traasmigratioa rigid rhles of divine:origino :: divine:origino of rhles rigid Is hased on the"beings"belief on par-=into human that born hased Is are vli.ed' into ‘ 411 gmhoastes.oof array endless an by governed is whole-life their and.that eastes tieular belong to;-the belong fourth"

tnto idim Tems Important'of most The featare ofHinduism0 tenet © i s K>M s a rented free Their religion and soeial soeial and religion Their ■ the. SndraS g: eervile'the olasses o. laeh' fees faiths other tten Hind Hind tten other mi faiths fees considered sm are 8 as indicated above,- indicated 8 as -of deitiesi deitiesi -the -of Eashiitfyas8; rualirigthe /or martial ©hr main eastes are eastes ©hrmain apart 0 The r: The apart 0 easteg im am im ss ia ef equality "the vgriemltmf and.1sts 4 2 oS o s; :.Brahmins» the . who priestss Bndras Bndras ftecse system caste the of s being so sbeing p Muslims as m.m.o © © ifdeities

It ab« It '©Tea in. sneh .minsr masters as dress 9 manners of liTiag;,,,, eatlsig (Mmslias raise eat tie and eat beef % whereas Sindm's worship ©attle) o The language and literature are differento Dm© f© these "differeaeess, the relations of hofh..:the nations haTe not "b©enB as a,aBtter of/faetj, e©r» dialo' The bases of th® two eiTilizations=^one Mmslim and d®meeratl@g, the 'other Hindm and oast© riddem^^wer® so differ^ :;©at ; that ■ they ■ seemed dostined to f low like two parallel bmt • sepsraf©

The ■Brit ish first oame to as traderss the Company, being foimde I in 1599 Ac-Do It obtained from th© Mmslim ighml I^iperors t© establish at Tar; ports0 "After the death, of

; of. " ' ■ 'of 'deeay eontrol at th© teal i ’.Th©' death:- of Amramgs#! was followed' by the - lisiat©gration of th© Z#ghml: Impir©0 , The saek ' sf ; Delhi by Persian vihraders In ;1739 and the in« '' ireasing strtngth of 'British? Prenoh; and Brnteh -the" ©aperor little pealo ; There were indeed smbstantlal Mmslim sue® " eessor states0 In the somtha the H i mm in Hy= derabada Balder All and his son Tfppo© in Mysoreo In the northp the Sawah of. Bengal eon trolled most

British last India disposed of.its Imropeaa'rivals9 it . Musi 1m and; Hindu states 0 The defeatedr'Vy. Olive in 179:7o B : 'IMea Muslims W y e the Tillers of India they had filled the great Mj©fity of the higher posts ih the arssjy the ad=> MnistfEtioh aaLd the learned professionss htit the East Xa&ia, G.omphny left ao stdme- m t W B © d a ©f ■edsrs© with the aid' of HiaSmsa hot ©hly ia erhshihg the'spirit- M t in'destroyihg. the te i- j exist enee of the proud Hu slim eofiimrjiityc Htislims were shmt ©at of the arsy and there was bo place for them in the government ©ffieeso In short a ©very honorable walk of 'life was olosed to the Muslims aad misery was brought to thomsands of families o: fh© Muslims of India having lost their empire resented the intrmsion of British* and this resentment led to a g@a=> era! war.against the British;in'1S57 a deseribed by British 6.

• % # Remalsg&m'G®

‘lias©f ar ■ as .the Muslims were - eomQ®raa&p the tieht p though appareatlj defeatM'by fore® of/arms a still itself ia reseatmeat against u ©liuuatioBo It was -at 1 this e^itieal, pafiod that some Muslim loaders- josde ,a , d©ter» : miiied- effort, to pull the ludiah Emslims. out of the .morass of sullen .iaaetifity into whioh they had falleho ' They urged upon them th# neoessity'of taking to modern edueaf1ob3 ©f - eatohing Up with' the timess and of adopting new wafs. for fighting the. new meaaee o Bat ,a defeated people takes- long to rise from its stupors,' and it was. riot until after the tarn of the eenturr that the Muslims awoke to the necessity of Western edmoatioa and: modernising their outlooko’ Meanwhile they had fallen about 56 years behind the 'Hindus■who■ ■ had taken to English education' earlier and - in greater numberss with the'result that public servieess com= mere#i the -professions3 politiesfl and in fact all walks.of ■ life were' dominated. by Hindus 0 . But the Muslims were awak@n=> ing and claiming an increasing share in the Ilf Hational Ogags,ess$, establislied im 1S85s was a?allylBg, nationalist opittioB and the. demand g©feraE0Bt o y-'Sdiaa,: &£ the Muslims within the that the Anglo-Saxon typ© ©i democrat!# goTesnaent was mot ■ suited to; ©omdit ions im; iMiai.', It was ;,alse f.elt that the

of the./yiexfs and ihteyests -ofthe tma j or 11y of the popu» the Muslims formed a separate

Muslim league g. , increasingly important part im the f ut w e of responsible for - Insofar as theuslims eoaeernedj it the Indian Hational, Congress s, but. it was/also interested in safeguarding the rights of Muslims

the p Indian .Rational the All, India ,for freedom^ froii time / ti im th® Constitution so that have a ■ sha.r© ' in the' government of the it is aot lereiQ, :B@0®ssary t© g@> la - Befogs® o The : BeaiiaeS'■ that' wh e a w w reforms were givea t# the • ooald Bot ,;taJfea a&watage of those ref ©rss 0 Sla-oe

of 1935s a mew Indian ConstifBtloag de=

meatIon -It - 3 loS.< of the fros the ©oatrol o f goverameat for the proiriaees . to: eertaia

mt (1937) la s e t w eat ■of 11 pro* BroviaesSa; Ualted. Brofimees. Srisea9:aad the Worth Broafier- the ' Hiada.tfranaie 9 in the legitimate .rights9 satterso There w©r© Masiims Strs their entire the'. Soagress and it S: Biadm followers .©haileaged ■seif^iatei

m m lM l

ship, of the. All reorganisedo. Baeed with the 9.

created by the e Muslims were aew . eat: ©f' the All. iM i a u s l m

the .

i Re

SoJfesliagy 3:S he® g tesI©' priUv* ®-8 gtioms w i t s ,-are Se«

iieeegsarsr.g that the areas in xthieli the Musiias as. &%- . StatesM ih whieh the;; . ' Bh&ll b# ^ J- l@a of a of that: as a pi differ eat from $ 8. and that Pakistan. save- their. ng them their owa aa^ tional tat# from the threat/ of aa ; all=oht merger or extimetioh Wier ,© majority Hiadu rale 0 It a larger - state•to a Ip. a smaller y eoald . liv,@, ani. da . to, their It pendei in 1

10 ; $akl.stamg B o O o S 8". .“Wyp s 10

enable' the : Nielias to re-establish, an .undifided a the Hindus would their eoonomie held over parts of the monopolized the 'Hindus . of raw materials0 Muslim w@r# ex­

in prepartitioned India was in all ids© which- were pro would put an end to -this ^ own .industries „ and thus guarantee a more • ' Muslims could not barter awa^1-their r©ligion$, culture and ways of life to which they had a proud attachment. for benefits g poiitiea.1 or, eoon©sl©g that there len in -an undivided - India 0 InPakistan alone ©ould they llv# up, to the ideals ofIslam and retain and and,: pride which Is their

Second

thus .found. the two great. Indian more, deeply divided than ©ver <, The Congress itself a noaeommunal organization (thougl striving to aehieve India’s freedom through ©f -the tiowtry. anS: riaietiled tiieVMeao Th„e . Muslim league fS'aakiy ■p2?©tessed it’s eeiitomaM’sJa.;"SUia. sought smpport as1 a proteetor of nearly 100 aillioa liiSiaa MusiimSo ■ v ■; la;, la-rehg’' 1$423 at & very dazk; period of the -whs’s, Minister 'Wiastoa-;Ghus‘©hill',s. ©©aliti©a g©ferip.@:at sent Sir

of atieh fSii:-",.Its main, purpose was. to -■.gain ■ and the league 'With the existing g ferring to Indians on a Ae save that of the eoamand of iaili= and btf hasiaing leslniom status with . sion from the British as the immediate British progra»o In the

1: at - in the provisions whereby ’ dissatisf ied eould stay out of -the proposed union of-fheir own on a Somihion status hasiso ' ’ : - ' ; ' 1 ' ; . ' ’ ■ v Negotiations. hroke down heoaus®: Gongress eoBdemnecl the ;0fi#r too great Indulgence towia,r& the Pakistan Ifleag • while the Muslim league condemned it for precisely the eon* trary teas on <, ' The pdlitleal struggle in India was mow a , ■ lites- ibi-■ ease' to, as estg :polltieal Is 3 sas ' The esllse popuiatioa was , These : w©se s tiow** As ia^ieated in pa^eSg the Isdlaii ®atioSal eosgress j,: sepre- ' the fiiaduSp ■wastea. the; powes Of the British GotessEttest. is Tad la he, .tsaasf ess ed to It om, the. hasis of: th© whole ef Tsdia heing on© poiltioal imit«, The All .India, •Mmellfi'Teague ? ©a, the other haad g repine seating- the entire ISssliffl pcspmlatioS of Tndiag: desasded, the . partition ©f the t ..' oousts^r, into' Tndia. and. fhAietast , Thms Hindus .and. Miasliss9 -- .thehtwo iaa:|©s gsotaps 'inhahittag India s were stsonglf op» posed to eaeh ethes In the political ideologies and ohjee= • - O o M m a l tension was on the inereas©, and these was : mirestip.; ^Thene wefe' eommmal slots on an geale - and thonsamds :'of people' wene- killed, while thousands more were: Ssites omt of thelf homes» ; ',. .The. British Gwwnmest in A6., offesed'a solmtloaH .- to 'the political pfohlem in. what is hnown -as the Cabinet , Kisslomi'# -llano This aimed -at dividing India . into -three gfodps8, so that the Ifesllm.majority areas oould be grouped separately fy-om-the r est, of Indiao These .was to. be: a ; oommon oenter in ehayge of. Def©ms e 0: lore ign Affairs, and Com» mumioatlons o - Helther CohgreSs nor the Muslim. Teague felt it wise, to- refrain- from ultimate, aooeptaaoe of the- plan» but ,' 13

Mtli - parbles - were engaged In a dispute as to .far ions peiBts' of Interpretationo, lord Wavellg the; then Viceroy of Indias Shoeeeded iB Indtie-iBg Hehfy. and Jinnah to fly to London for ■ eonfereaees;©n the olarif ieation of the Gahiaet .Sission6s

;;$h©; British aovermmemt SM the meantime deeMed (?eten»

aryg' 1947) ^ neplao® lord Wave 1 1 with the first Earl ', Mowthatten of Burmag and to annmmoe. that Britain,, would withdraw from India hy.lnn@3'1948 in any ®ventg transferring power preferably to.on© government hut not hesitating to transfer; it t© more than one government if such action proved' tmavoMa'bleI ■ Os- Imie %'9' 1947 came the annomieeraent

of the plan for the. parf ition of Ind. 1 a into two Independent : Dominions 9 Indla and Falcistan.o The Indian princely states Were no longer'.Mder; British snseraintya would be left free toVaoeede .t©'either Poslnion as they . ehoseo Both the Con- ,.gress: .Md- th© Muslia.'league a.e©epted: the piano : ih'lndiam Indep@Menee .Aet; was passed through the British. Parliament and on the; appointed day9 August 15V 19473 the British Indian Empire ©eased to be o' Despite the eontinued .membership of both: eountrles in the Commonwealth . of Nations, all Indians hailed the end of the era of British rule1 which had''begun: some t w o 'eenfuri.es beforeo , ; The creation of the. new state of Pakistan, symboliaes^ the hopes and aspirations;of the 75 million of its inhabit fants who 1 after two centuries of enslavement 6 have, at last m##m the dawn of libertyo'. It'has ensured for them and for. 14

aa4 t© l i w lg' So way .or

of saf3?s&: fej ■ otat« ;®sss aigmtioB. of people < it''Is, estimated million.: Mssliats were and to al= rsaohed 3&Klmta,R ,ln a destltnt# ag everything in in#is’that they eohld o - % @ State- of Pakistan oa the

them is Sakisfazi c hmpre$@d ssing the Of •»«'*-« between the eon»

> o. &t th sd ( the. at le 'fal® of the essed all literal in his State aceedei. to the the.wishes of/ majority of.the ‘ Sabse= the Indian

a. large 15 a people°s government i m m m as the A^ad Kashair G-ofe^Bmeiat, This dispmta, was E‘©fa2?$,e<| to the UzilteS latlons ,, and it 'is gratifyiag to note that as a- result of the efforts of the United Sat ions OemissSoBg a temporaW fifties has been eon= eladedo fhe hall though is still rolliag with the latiohSi, s M mo fihal settlemeht has yet he©a fea@h©do ifhe: syapatMes of the people of Pakistan are aaturally

of the laa,o»- stfaiho ^ood was iasuf-: o©nsum©2? goods were in t supplys industrial seeded, replaoeisent9 amd sop© with the iso - Due to heavy. of war ' asd negl© et of repa Irs overhaul= Production- of for the duetion of goods to seat the needs of ?aee and the r©tuire= sents of the imdustry thus

of . the per of people im the eeonomy engaging the attentioB of the government, is of ' such enormous mag- mitnds were suecession and more or the attention of the fhe iooaomie' ^i.esf:ioas thus\ did mot, reeeiw the

W to theito Shortage of sortsof goods heoame the order of the dayQ The ter®' " miaatton of the war difi. aot ,@sS the sufferings of the people, Smoh. was the position of undifided India before.'par-fition0 ■ fhere was a ohaagS' for the wcwse in Pakistan after E,eseSehte

M gn ? t of

some t ise t o he : ftie hamks.in the ire faffed ■ lay iaoB^Suslias 0

“ their persoahel res ed la the ©losing dofih. of. a aumher S of others o The 1m ■and trade

to normal0 3,?.

.3. stastes, almost-' from nothing, on th#,, 1 5 th; of ■; Amgtist <, 3,947 = ,. Ifost of the; gofera^ s e a t . feoon#,® w n e deatnot'eS in the eonnso of transit from India to 'Pakistan^ \, Very; little1- material was available in the. way- of: statioaefyn' offi#e' eQitipment and furniture0 ': ..Some of the essential government personnel were*detained in- . India os: aoaonnf - of the distufbanees 9 but were. later re^ - ' 1 patriaf e& to -Bahistan under .most, and: residential aoeosmodafions'at were; inadefmate» ■ All these faefbrr in the eeonoaie sphereq iasurmount able 9 however j, .hay© been oyefepmeg and-the Gem= tral and Brdvineial (Ibvernments have'bees able to fuhetion and taekle: the Innumerable problems which eonfronf eel ^fhema e r o m x i

m e r o s m t i z r a l h e s o u r c e s

©f . the "phf’sisBt sutlSas ■ amd ^esewhes of the cg-imtS'S' w & e f dMerfatidlio OiirilSKatite has heea SeflBed as the ps?eeess. of @oa%m#gihg s a t w % W t ih the psoesss: mtma©- has teaeted tuite as smsh ©m stea As ass pa Batm^e0 Sh^sleal eBflBOSo aemt t# a ' lay^e where aiaa shall' life; what

BaeeieS, t© Ba&£st.aa» .Bakiet&a lies between tb# ©f 61° and 75d B» and

m st and- northwest9 and the Indian province of East Ema^ab 'great Indian Desert in the lastc To the north lies the state of dammm and Eashmir; to the sonth and souths west, the Arabian. Seao . ' .

I- Of. S’akis/taiij' is rseparated from Western Pakistan siles ©f Indian f errltor j0 It is She hillj regions of lalpaigtiri 9 8 .and parts of Assam^ in the sonth hj the Bay'of Bengali in the west"by the Indian provinces of West Bengal Bihari and in the east by the. provinceo Its

point to the sea coast in the semthp Western Pakistan covers a distance of nearly BOO miles3 whereas its western tip -at Eilia'Eobat is separated from the; Indian border of about 700 mileso Th# entire area t o the north and west ©f the land is eojered b y great ranges -of the Hindu Kush and the Smlaiman Mountains., rising : in places . to a -height of l^9000-;feeto The- salt" sang© and the arid.plateaus of that range lie slightly toward the east of these mountain systems o To the south and1southwest of this region stretches a vast plain right to the Arabian 20

flv@ of aa& af% ©s?:; l#mg: ©owse;s' asii, the pialaso slop© of' the low gountz^y is to : the south and.: southwest g and, this deteraities the eounse of the fiwrs'o With the passage of time 9 eath stream has out for.itself a wide m l i e y which lies well below the level of

these .fiTre; ri w r s a the longest ’is the'Indus. At , ghtf stream when it emerges from the hills8 it flows al­ most due south past Attoehg the oil district of Western / ,, s where it enters a deep gorge-. It flows on through hS eaters the proTiaoe of: Slad where the,hags

fhe other four f ifere shleh; heln to make West, one of \ the fiehest "wheat had ©otton-ga?owing areas in Asia are the Ihelum9 Chenahj, Bairl9' and Sutlej 0 They #Xso rise in the Simaiayas and i,, after' tfawrsing.. the j

stern' scape s . from the; snow-oofered peaks of- the upper to. the grey9 somber desert of Sind. la the Horth West Fron­ tier Province where' the land on an- average .lies- more than h 3 000. feet ahote- sea' .;let@l 9^the ■ seenery is ragged 0 At : plaoes:there ane; vi.fii. ©xpanse® of.'green. la the- Balt: .Range, of the Punjah- the landsoape takes on a ■ gentler tone; the slopes are often - eowred with green box and. Btrb: ^1® la the

; ' 1% Balmehistaa ■ the ®tit:3,:o©k' aes@MbleS thatV:©! v the Iranian Plateam- aad, though sometim.es oppress ire in the . : afYerit|" -of Its lines 9 the landsoap® is not without. a eer~ ’ tain rugged oharmo Barren i, siaahwut. moimtmins^ rent j'hy huge ehasms and gorges^ .alternate with arid deserts and stony 'plainso. - fhe solors vary frhto.a waetonot hriek-yeli©wg orange». and^sometimes even sise where the land >s ,©f all kinds and fruits are' elear streams are hordered - hy rows oi willow • a ' ' ^he sea eoast ■is .arid and devoid: of Mt. there is a good harhor:at Karachi and sai . heaehes-o ; Chittagong' is the major port in East Pakistano; , Bast Pakistan is a vast. allWial plain with■ hardly a hill:©r syen a- rook visihle for miles» Only on the souths eastern f rentiet a smooessiOE. of low mountain ranges covers the .eastern part of the Chittagong division 0 The most ont« of the pfWrisoe is . its network of rivers9 with, their trihdtaries o jh an admirable and cheap means poft;' they' contain. an ; inexhaustihle sspj

>Sit over the sm?fao@ , of the lando is 'in - th© sstitli abomiil 1# big 9 ’ w3.M hog 3 and. other ami®

Ciimte. and The.rainfall is ©anty and \

64 :lfiehas' :a. in Kg ,20 S' inahas'1m eratwe of the i is extremes varying "between a; 120° sWoier -and a', ia winter : night: stan has a 3* o ^ o 9 a .dry' seas©n ■ rains0•, The rain® varies from about 75 inches in to 160 inches in *1k,s- temperature from between 45° in winter to

■ • ; A of ’i a warm season long enough to grow and a I season to make men wors and lay t

extremes e have remarkably 'and vigoromi and great reserve o f : energy and stamina(

..The total area, ©f Pakistan is 364.s3lS s^rar# milesp 23

. West Pakistan has an area of 310,298" scjuare miles whereas : . .. v. . ■ , . . - V. / - ' : . . 1 East Pakistan has an area. of 33 ,920 square miles <, The total area. is/distrihhted'as: f o.lloirs? ; ' - : :

: .: BastPakistan ■ 5 3 s920 square miles 6 2 , 000' Baluchistan / 54,466 Sind - ■ y:- ' - ft „ . f 4 8 9140: North West Frontier - Province 14»260 Baluchistan states 79,500 Bhawalpur state ' - ; 17,500 North West Frontier \ Prbvince' states ' 2 5 9000 Khairpur state . • : / 6,000 Junagadh state - 3*438 Total ■ 364P218 square miles ,

: Pakistanis population^ according to the 1951 censusa is 75$ 687s000<> . These figures,, howeverg are based on a pre= - .■■■ - ■ ; t- ;;':t, ' , ' 2 ■■■-. . • . ■ ilminary eount and are .subjeet to re.Vlsionq . \ The t otal male' population of the .country:'is 40 a0905000 and . the 'f emale. population" 3 S s 5973.000 6 The pereentage; of literatepersons is 13 = 2 " the total" ’ number of literates is 9 g978a000o .

. "lo' Basie Facts about Pakistan (Karaehir Government of Pakistan^ 193WT^pT%r^ y v , 20 Pakistan Affairs' (Washington, BfiOo t Embassy of Pakistan j'T^pril T 3% 195lT9 pf .ISo , \ , :: % " ' is 8?9 persons per mile. W i l e in West 1 istam it is 113'.persdns per square mile, The far, am the strength of the. t> mini and. is to the world, „ sstsim P&M tan.; are working and ** is their ly higho They of the to the army of: imfiitided India s and. hare mark. in the- various battlefields of the;worldc They .make elleat artisans and Graftamen besides being good agr istSe, The people, of Eastern Pakistan, are 25

Idvegtoek.plays aa important role ia the agriemltwal

l i w s t o e k is pzaetieally the only source of power.available f % the var iotas ieultwal operations c Besides 9 it is the milk products„ meat g hides and skinsg wool; and so forth<, The livestock popmlatien of is;'given in th©;.following tahl@ 0

lliESTOCE B

Horses and ponies 0*6

GameIs Go4 6 A 27„3 L#ol

is the sdwe© ©f power and the female Namely the ©ow and ■ ■

. lo Thi p 0 238o sore lap@rb@jrb 6 ■ : Xt is adre easily ma.aaged t M n the huf «= falo and is a more efficient maehin® for the eonversion of fodder,.is.ta power0 , Besides9 it. ©an h e :used all the year roimd. whereas, a hnffalo cannot he tasel ia. . hot - weather 0 .fhe:reverse is trhe of the female'popiaXatloao' ,fhe milk '.yield of -the sh© haffalh.. is zmaeh'-.greater' tSsh that of the eoWj, . and it/ia^a sore efficient, mehine than .the . cow for . 'the' ©ohversion of fodder into silko' - . : : . ' ■ ■ ' .fhe total 'bovine population .of■ Pakistan.:is irery large» but its quality leares mneh to he desiredc fhis is a great drain om her fodder resources $, for there is not much dif= ferenes in the consumption of. fodder by the cattle. whatWer jl : 90. a redaction, im in the finality of its ' bovine pophlat ion would Kge of'Pakistano' Efforts:are . the q.ual,ity of animals through better breedings, feeding and management ^ and .more efficient, con­ trol of diseaseI I- iTest Fron=

are:kept for of ‘ s' skin6 and meat« . Some breeds are good and are as - the poor man’s eoWo; r of horses 9 ponies9 mules9 and eaffietls,, is a

t fhe ■ governments of East Bengal, and Bind are great ■imp.orfanee. to the development of their fisheries- ©a- sei.eatifie lihes-j, and both have we 11= ©f Fisheries o A master fisherman from the Baited has’been /engaged to :give demonstrations on modern methods of'fishlago ; : -i :\.r : ^ : v; „ ;. .,A scheme for the construction'of a new fish harbor .at Karaehi has been ‘approved in principle as a first step .Mas b©@Sae a ,iaesBe6 of / She iMe^aelfi© ,$'i!sla.= e^ieM ^Qtmeil of the Food and AgrlomlMtare Organization of tMe- United •■■'Nations iaais ■ of tMe. fndo^Faeifie region Os a

. for t l J; the eltilaSsv more a m to increase the pteoipit at ion floods J Mendef -tMO'' flow'-of in

rot D u m a nig t. ' smeM '■ as via© 9. "facing -t last -Bsagal ,3 oO , : 29oS 10o.0

. BfTpm ,|Bisio I ■ : ;v ; - : e.a ' ' 3q1 'J k k

vBagterii ■ Falcietas 3 = 3 3 3 o9 9 of

3?o2 3*2 So 7 hok- 30*1 \ 2,3 , 34a8 3,2 ;4o.S 0o4.

Westera Pakistna.: v ■ 3 o k 1X5o4 : 2,9

; flie aost: striking f eature ©f ■ the aldfe f igwes is th© , extremeXy small-, area mater forests | it is less thaa 5 per ©eat of the. total area," Ivea this Is.■-wr j weteaXy dls» triMtetq It is 9,? per Oeat of 'the. totaX area ia last era 30

;; t>f its total area as ‘by the size of its population whose . . aeeds have to be ©atere'd. to0 West Puajab with a population of about 20 millions xhas a:forest aaea.of lo2 million aeres0 The position o t Sind aad Hoz^th West Frontier Pgoviaoe is slightly better ih this .r'espeet.o The population of Siad la about-one^fom^th . ' that of West Punjab^ but the■forest area of the province . ' is more/ than half that of West Punjab 0 SimilarIjj, the ./populatioB of ;Horth tfest-Irohtier Provinee is less thah ■/.v ioseWaii^th that bf West Pumlab but; its. forest area is oae». , iithird that -c^: Wstypmjabo:. : • Insaffiuieaey of forests is provlmg very harmful to ' ;' 'agricultureo MoB»avaiiabilit^ ,of, firewood leaves no option . for the';'emitivator but ' to burn eew dumgg which is muoh more valuable as a manure-than'as a fuelo • ; : .' In most of the advanced eountries the forest area is maintained at about 25 per eent of the total area o'- This is oonsidered neeessary to meet the requirements in respeet to forest pr©dues0 Approximately the same percentage of forest area should be necessary for Pakistan,, parti-oularly after a deoade or S0 3 by whieh time she must have achieved some, measure of eeonomi© development 0 The government of, Pakis= .tan/ is paying attention to the forest research, and increase’ - ing the area uadef forestso 0E&PT1R III

.aa agi1! o uitwal o©im"bi»y0 :$5 p # o^ :tke. ^ogmlat&orn, os. ag^io^ltw® • .for ■ theis' liyelihooS 0:. .Bef ot© © ©asides1 tog the agrietiltural it would be of some interest to imt o the' village/life whefe /this. @5 per oent of fh®

liTOo ... ; : ' '' . eosforts of the average peasant6© home in West an© dictated hy his limited means» Built ■of mud with a flat roof'and shona.of emhelishments and detonation j, his home is cooler' in summer and warmer in win- than' a , house W i l t of cement v hrick s or stone» ' The is limited0 cheap and simple8 comprising a i S) i n ,,very rare- esses, a f ew

. In the Month West frontier Brovinee the ordinary peasant, lives in a single room about 25 W 12 foet» built of the material most easily availablej rough stone with mud is used with coarse slat© for the roofo Every has its guest house maintained by the headman . or 32

m@ed, as • sit. and ohat;, enij = ■ .' In tli© villages of S&st Pakistan eaeli liouse stsjids an its. Bateli of homestead land whieh is planted .with fruit and. ; pala trees g affording proteetion' from the heat of the 'aim* The sites.are lahoriously raised by filling them with eartho The honsesar© efeeted on smd plinths„ Milt around with wooden or' ’bamboo posts ..and interlaced walls with the atfaohed: roofs' resting on a M m ^ bo© fraiaewofkd: .The "entire- homestead is. of ten' ©tioirbled by . a.fenoing dr by , imd'lgendus hedgest ■■ ■ v - . , . The: .mjority of the, people-hlta:;in. yillagehe - The- vil«-,. lages are intereonneoted with one another and their,re­ spective market towns by means of railwaysa' roads9 and ; trailSo The nsual mod® of travel and haulage im the vil<= lag.es is: by means of .the- bullock, ©art.- and. pack mules andp : In the ease of Sast-' Bengal where waterways are plentiful,by

en.100 and 2,000 in the ©enter- of the fe in the ge- is - thoroughly simp Most of the 10@al are settled, by the ;village' assembly: of: eldersa Government in .eases of breach of .peace or . for revenue settlement or has a primary school9 a.post offic#, a station, and ' Smaller villages, are together£ ' fife aa?@ jointly ■ prdfi

,of the Inhabitants of are engaged in or ©thez1. allied < Stteh as livestock

3 ISkOo

shold village: also has own ©obbl®y9

.j&grienltmral, praetiees in the last are generally ©Id-?' istan is-;n©>xe@ptl©no Agrieultnral plesents9 ■ whieh have Been a © ' Improvement,from .the time of their invention thonsands / ©f ■ years :;ag© 9 aye generally made ;smithfs,Land the village' carpenter,s , power is smpplied by -bmllocks;'the crops are sown and harvested entirely by' hands and the grain is thireshed by cattle0 . These : practices are" dictated by the economic limitations of the cultivator and the'absence of in the.' '

: ■ in an as land forms; the # and S5 per ceni of the an ®xamlna= tion of the ? in is will give an 34

'SSe® of;'tii'e of .'tii® e©iait$y a M the - s©op® for future:. elassifloatioa ■ ©: '' areas. 1% different £a th©^ following table* •

' TABLE 111 ' CLASSIFICATION OF LMB'1 (In million a ores) ■■:.

,;CW ® Hot;'' area Total state Forest’ mtiea

3 o © ■ 5.o? 3o© 2c 1 5 * 7 2 9 o B : $sX Oo? Gc lo? J o l 3 o Z 6 Z W

,lo2 : :6o# 1 0 o 5 2o: 16*6 37*2

0 o 4 Z o % 269 o »6 ;; .2*1 r 8*7 . ®w?- m m ,3o,2, 5&2 5 . 6 3 0 o l Vo M l :'4o5. ?Bt .'FaMi ,9 S(

Total: ,5o5 2 3 * 6 10oS. 4 3 o 7 113*4

^Sxelndes BalmoMstan aM, states other tham Bt whieh f Igures were not awilahie 0

. ' v i *: ' % ... .■■ ...... ia ; She a M 06 o " p 0 6?o .'Statistics'from British In dust r I© s Fa ir < 35

As: will ■: b © . sd ezi from the tables the area ? forests : ls.: veyy small o Is met avail;

for .Gmltlvatlozi is e©ssia.erable aeres),

•la BIslI o; G^lt«rable waste land other ,than fallow Is also smb$taatlal0 It is the largest is the' West (1© o 5 hdllioa a or es). followed,, by Sind (5.02 millioa. • ahd very small la Basterh Paklstai, (30? .laillioa. aeres j o: 'However 9: ahy adbstantial part of this' area eazmot trader ■eultlvatlon without further 'Irrigation fa=

/'It if realised, that WesterB is the most intensively Irrigated area, ia the Itliin' the last. 70 yearsg. deserts; have heen turned into 5 great traots ./of f ert lie. land ■ of/cultivators where formerly only sees of flood wateh'/ have been cheeked

into. Q h B . n m l B to for tills«

north West/ Wontior1''Hrovinoey ',and Blad/ar®-1 / ’tala areas; regarding rainfall»• which varies : fr.om; year’to; yearo /One;.year in five may be expected ;tg.$e: : a/dry .year* and one,: in. t ©n a ' year .of severe drought0 . In any base* .it Is, necessary to get water for the- dry pefiod of - each year6 ■: tely :'thdse • wh©: can' ttsualiga the • effeet. of..a- ' Sroiaght<==th©' desolation of/ th© fiald * the; people worn-and > ‘ thia.;, th© eat tie dylng==eaa realize the difference la pass= lag to aa irrigated .area where the crops are green aad

istera ^akiataals'irrigation system is made possihl® ■ by the rifers Sntlei;, Bayig Chenah9 and Jh©lum x@Meh rise in the Hamalayas and flow southwrdg q.uartering the great West Bnajab plain matil/they join the mighty Indus in its 2g00Q^mlle jotarney: to the .s.©a0 yA network of eanals has . .made West Pmmjab a' very fertile land« As a resmlt of this , network of •irrigaties> many parts of the Bunjab are doable cropped* The most,important.of:these canals are the Upper Jhelma ©anala the • Lower Ihelnm. canal 9 the Upper Chenah canal a the lower Chenah ©anal a and parts of the Upper Bari ' tioab ©anal and the Lower Bari Doab canal* Sind' with its poor rainfall is■©r@n more dependent on irrigation than the Punjab0 The Sukktir Barrage9 or the Lloyd Barrage as it is also lmown8 completed in 1932s is '■one of the largest works for irrigation 0 It M s helped to •bring 6 9U0090OO abres under cultiratioiio This great bar= rage consists of 66 spansa eaeh 60 feet wide9 the opening being regulated by steel gates each weighing 50 tons* The barrage is about a. mile long* The total length of channels and wafer, ©ourses eonneeted with it is 369000 'miles* . Seyeaty per cent of the ©rop area of the West Punjab and 77 per cent of the erop area of Sind are irrigated in ©ontrast. t©: only S per cent of the ©rep area of Bast arm Eastern Pakistan vrhere. raiitf all. is plentiful 0 This is why the ifsigated area thez1© is rather , samllo There is still immense sodpe for the extension of the eanal system^ and various projeets are in hand to irrigate . more land 6 . The lower Sind Barrages to he completed in X953s*5k-$ is expected to. irrigate ahout two million acres s . and the 'Thai project in the West Punjab9 ' .03®’?000..■acre's0 ' The Hiahwali and Rasul hydr©»eleitri© tnbewell projects are expected to bring under irrigation 14.03000 and 750a000 acres s respectively& . In addition there is "the larsak hydr©»eleetric project in the Worth West.Promtler Province which, is ex- peeted to, iaake- that provinee. self-sufficient in food, Several, other minor irrigation projects in Baluchistan9 East Bengalp and Bhawalpur,are also in hand. With the exe­ cution of projected.Irrigation schemes in the West Punjab and the completion voi the lower Sind Barrage j, : it is expected .that agricultural proluetion in- this region will increase ■V . V : a ; : : ■ . . ; ^ by' about ;10:. per :eeht:;.qf ;th© norzialf: ' .■ .: ' • v , ■ A new- era "has also, begin Am regard.' to tmb@wells0 In certain ways; well Irrigation Is more satisfactory as the ■

lo Richard Symonds g Making of Pakistan Faher & Eaher a 1949)2 P» 107 a ~ a Zo The Second Year .t The Government of .mier, being dlffieoit’to obtaina i s 1used with ©are; ©anal water is often used too lairlshly ana causes water logging0 govermme&t Is, now Introducing small water pumps In cer­ tain areas of Punjab0 .. . :

■ glee: ,and wbaat aye the main food erops of Pakistan. • ■ and about tbTeB”f if tbs 'of the total oultlirated; area is . 'under tbese erops 0 ■■/./Siea: Is ehiefly .grown , in last ' Pakistan ■ and ..is : staple bodof tbe ■ people: of.■ tbat; regiouo .: On \/ the :other :hand9 wheat is ..largely grown in West, Pakistan and. forms the staple feed ef.these.parts„ lute and cotton are., the: main :ea@h:\ er©ps9. and are mainly grown in East-and West Pakistang respectivelyThey occupy about 9 per sent of .the total;©ultivated areao ; Pakistan produces about 75 per ©ant of:the total production of jute in the world0 Coffon - is mostly' of long staple- Varieties ands like jute9 is main­ ly exported' to other comtriesi Both these commodities are remarkable for their superior quality.o \ The area and yield of principal crops of Pakistan are given in Tabl® 170 - ' food Crops: Food erops play a very important role in the'; eednomy. of. Pakistano They account for about 85 per e©nf of the total area under principal crops <, Food meces- slties of;all kinds are abundant enough to support her . ■with a little surplus to export0 HeSheds of ' TABLE IT 1 FBIBTOIPAE CROPS 01

19UB

1,036: 7,625:::-': A:/ 21,545 : 8,429

3,26$ ; 10,824 3,091 ■ 3.9$/., : ;: 177

; .,:$93': /; , 2,919 :x 800 a9072 2»299 2 9#^';::i 92ar 1 ; l 94i4 ,/ a#; 26$: 1.09J .96$/ 412

St^ai1. eaa®’: / : . 681 823 : , 714 1/019

/ 1 3 4 :/. , / / 611 179 ®iS@aamM: - • ■ ' 198" '35 " 177 / 29 Tea / - .• 73 ; ■ 15

M ® s e e 4 ; ;/■ . :74. :^A : 13/ 74 12

'aeSes

** 2$ t o m : : - 1 ■ "y ." - v : V \ ■: Bl'eeo^^Biee Is the pt-iaeipal food crop of Pakistaaj, and its production is concentrated in Eastern Pakistan .'' when© it is the staple food of the people 0 That area is mot self^siiffioient in rice, 'and the deficit is met h j Western Pakistan^ ' ■ The production of rice in .Western Pakistan is eompara^ tl’fely very much smaller than,5 in Eastern Pakistan* yet it has a surplus 0 This is so beeause wheat is the staple food.; of the people of this area 9 which is available in abundance - so that a substantial part of the production of rice is not eons:u®.ed locallyo, : / ■ ' Wheat o »=lheat is the most:important food crop next to , rices ' Of the total area under food crops9 about on@-fotirfh ■ is under wheato -.The production of wheat Is concentrated in . Western Pakistan where it is the staple food of the The product ion .is more than sufficient for local ' a©ntss faad 'surplus is available for export = -' , .West ©ra;: Pakistano :istaB ::p 2?o

i; :h©ti.»foed e:3?op.s: a M grewh f oy,. til1 use. of the etiitlyatof s ant as faetor determining the . r ia: his hand o' The area tinder these ezops . is •‘rery :s. s,, being only 9 perf ©ent of the ' areao te and cotton, are the, m i s cask

Jhteo ^ftite- Is the most Important non-food crop of .lastern Pakistan and is the goldea fibre of the countrjo The entire'economy of Eastern Pakistan is dependent on this cropo' At present it oommands excellent price, and the prosperity of . that . part; depend®'on: this ofop.o - . - Pakistan and India together hold a yirt.ual monopoly of the . jtite. prodtiction' of the world0 ' Pakistan' produces about ' 75’:' per ,.cent.,.of'1 the' totEl::':p2?odnctions:: ■ fnts grown -in Pakis» ,

, -'in the ;cotihtrles of. its origin9 very little is ran, ahont this valtiahl© fibre» This'is perhaps due to the fact that' it s', commercial history goes back little more than a ceaturyj also perhaps heeanse its products are largely utilifarimi,, although'extremely important to

,lmte is extf acted fr om plant s of the genus dor chorus, The plant is an annual, Rowing in a single stem without branches or twigs tantil it reaches maturity» It -Consists W a woody stiek surroraded. "by a host layer in whieh the ■fltee ls';d©T©l05ed|, It grows to an average height of eight to tern. feeia 'Aa, average erop produces about- l 930G pounds of:/ fibre.' per here 0': After out ting g- the plants are : tied in: bmdles -and left for about three or four days .to . allow, th©...

leaves to drop o f f o The bundles are then submerged in water for about 10=20 daySo This proeessi called retting9 results in the fermentation of the soft pith of the plant9 which dissolves and leaves the ■.fibre which eau' then b@: easily separated from the stieko The. fibre is then washed8 driedg and:-made into,bundles-ready f or sal®» . , .. . . \ ■ The employment of jute fabrics as sacking or packing L'was a ■ landmark in the history of the fibre . and an eoramereial importance 0 Miring jut© yarn., with eo'fton and wool led to the mnufactur© of curtains 9 uphoisterya earpets8. and dress'mterlalSo - While Pakistan has. a virtual:;monopoly of jute produe= tlon3 India:/, has almost all the jut© mills«, Pakistan there

for©' must export < a l l y her jute- in raw f orm0 Facilities for the. easy- and speedy movement, of jut ©are not .yet available. ''hilimited ■: Quantity.. Is exported - -. ,her';port of Ghltta^ohg g, but the bulk of th©-: exports pass through daloutta in the Dominion of foreign destinations<> is. th© principal cash erop of Western -Pakistan^ The annual production is about one and a half

million, bales of 400 pound3 ea©h0 About two=tbirds of the • cotton produoed is of Mgii grade, long staple American ■varietiesti There are very few eotton test 11® mills la Pakistano1 Arrangements: for the ginning and pressing of ootton into bale8 $, however 9 are adequate 0 So most of the , eotton has to'be exportedQ' : The eotton grown in Pakistan may be classified into . two broad groupsg.. ^Desi451 findigenous) 9: and the Amerlean . varietieso The:American varieties occupy the bulk of.the \ cottdn area'' of Pski it@n andv hate;; found favor with lestv / Fakistan::farmefs :ott:'i:Ccount:■ of their better .yields per acre . and ..higher; prises b:;; Due :to 1 theirsuperior .spinning qmli? . ; ties, and longer staple, lengths;# these varieties are greatly' t in the/textile industries of the world■for;manm= cloth of finer bounts., " . Gther Son=-food Crops 0 "“These are oilseeds and tea» 1 More oll« seeds are produced' lh Western than in Eastern Pakistano The latterg however 3 produces the greater part of tobacco and the entire quantity of tea0 Pakistan’s best tea eus® tomer is the United Kingdom0 To encourage the' consumption of Pakistan teas and' improve their quality9 the government has formed a Pakistan Tea Boards Research is vital.for this. indmstryp and the Board is responsible for supervising the resedrcho The production of tobacco is'negligible and of: inferior .qualityo: It is produced for local e© s h a m s e rr

IWELOPWT PLMS

; traditionally known to the West, ss a land of primitive people, having little .jtoowleige beyoaA the woolen ■ ploMgh and .-thejPelaian wheely'Pakistan today;;is forging ahead0 fhe. • - ' governseht. is i>f;the^firs 'heliefIthat 'no: ©onntry in the ' Bedern world aan progress and take;its rightfml place in the comity of nations unless and until it has a' developed indastry and a balanced economy0 Moreover3 the impression ; in government ©iroles prevails that it is not only wasteful9 , hmt' it; takes too long to allow thO,.: industrial' potentialities of a country to he developed in a haphazard manner by pri­ vate enterprise 0 She government must take an important part in planning8 encouraging g and developing industry apd ; in helping "those who are desirous of taking an aetiv@ share in the development of their oouhtrya' V . • • The government of Pakistan therefore deelded that a high place must he assigned to sehemes of nation-building significances and1 in order that .such schemes may he properly coordinated, and their priorities may be assessed in the light of national importances, it set up a Develop­ ment Board whose functions arei 45

To ©oordinate deirelopaent plans g central and p2?o= vlmalalg so that, the available resonre.es. are pat to 'he best possible use0 bo To m k e reeommendations regarding priorities among

To prepare memoranda on matters of general polioi . affeeting development as a whole or any special aspeet of it* .■. To aet as a clearing hornse Of ideas and information, relating to. development^ and to bring to the notie© of the Ministries ideas or sehemes whleh say aid

; ©o T© k©ep ..a watoh; on the progress of development sshemes in order i© remove bottleheeka and diffi­ culties in- the. imy of uniform progress in ail se©= ' torSg and to sake periodieal reports ©m the„prog­ ress of development sehemes to the Cabineto1 Board: is composed. of high officials' of; <; and- in' order that industrialists, bankers^ ' .Msiness: m@n9 merehants 9- and other interests may also be : ■ assoeiated with the government in an advisory capacity in the important task of planning and development9 the govern­ ment also set up a Planning Advisory Board consisting of officials and non^offioialSo The functions of this Plan­ ning Advisory Board ©re as follows? ; So" T© advise the government generally on matters re= Xating t@ planning and development0 bo T© review the progress-made in implementing the

lo .Pakistan Development Sohomes (Karaohis Government of Pakisfaa, i m ) T ¥ ^ T ^ ' ©p T& edmeate the 1 • p u tilio1 ' b r e g a r d to the'neeessiSy for ''' variotis development aebemes twdertakem la order to ■ v, get th e ir eathusiastie;:,eooperatIon 01 .

■ Types of Scheme sg Hi siorleal Baekgrouad

Shortly;Before the end of World War II the late gov- ; ernment of ladia9 realizing that It would soon he faoed with the problem of finding employment for‘a large ammher of dis» hharged' off leers and ; aeldiers i.. and also foreseeing that it irohM have .at fts. disposal' fairly large, aeommmlated re- ' ' 9 set mp • a Department of Planning; and, . fhe! primary oh jeef- of 'pfeparing sohemes'Of e©eld he :pmt into: operation- soon; after: the tormina^ :; f ion'of'waro; - This Department 9 -on the one hand^'set up a ■ mBher ‘ Of panels with' a view to surveying the re%mlrements of the ©©entry for various industrial products 9 the exist” . ing produet ion 8. ^ and the potentialities for expansion? ands oh the other hand 9 if asked the:provineial governments to prepare, sehemes of development which could he undertaken, with the help of either loans or outright grants from the oentral government; to the provincial governments;., , • ' In response to this invitation£>•1 the provincial govern.” meats'of undivided India prepared a. large number of sehemes for' development a The panels set up by the late government of India:also submitted .their; reports in regard t© targets ©f i.eirelopffisat of industr-ies over a fairly wide field0 How= O'rerg before act ion eould be taken on any substantial seal© on the reeoaMaendatioas of tbe'se panels or progress oould .be ' mad# in■starting the;profinolal sehemes».partition of the

.- The' DWelopmeat Board set up by the government of Pak= ;; istana; i& of' the deWlopaeht .schemes whieh-. had b$#h prepared In the past by the.proyineesg appreciated > that'^ far; as' they r'elated to' the vterrl» ' " /;'tories./whi©h>now hoastittste.Pakistan9 f eg,air@dieohsiderabie . modif ioat ion la view, of the f aot that ; the two important . proyinoes;’. of Pakistans ^ .aamelys Pmn|ab and Bengali had also : been.' part itioned 8 and also in view of : the changed eir©uia» stances; whieh detimnded that greater emphasis should be laid . upon certain © gsential and product ire. schemes such' as the, development qf■ ©leetriti- power and port facilities that mer^ ited immediate afteationy ' : Accordinglyg the Development Board asked, the proving - . clal governments and the central Ministries to re=e3mmine ,, the old schemes and to prepare new. schemes which should re» ilate primarily to the following subjects: bf hydro»el@efridity and other forms Of

bo Maintenance and 'expansion , of , communications % in-

Co Bxploitation of mineral wealth0 ■ : ' ;e0 ^staMishaeat of basie and iadmsSs-ieSo' ' fo' Training of: teehn5.oal personnel required, for indus-^ : ;, . trial de-felopaeBtb - ' .. : . ; go Prevention of disease and laprovememt of health* h 0. Largersoale teTelopttent ©f fis&eries: and-' the fish ' 1 \ 'e: ; 'U; ; I;. ' .U ; .!■ lh. r @sp©nse; tor this inrltaf ion 3 1 the BetelopsMf Board received a large miffifber of schemes and if has considered - 202 soheaes suMitfed hy the provlaeial governments and by the Elnlstries of the central government; so far it has ap= ■■i , • 2 ■ 1 ’ - . ■' - proved 105^ sehemeso . The estimated -©osf of the plans which have been approved hy the.development board spread over a period of five years wodld :am©nnt to- ls120' million rupees

' :(|132';iaiilion }.

dag these' selaeifies 9 sad the are made responsible for carrying them ;oi2t o ' Ih those, eases "where, the schemes are submitted , by the Ministries of the centra!, government and are ap­ proved by the Development Board, financing is done out of ' .the eentral.exshetuer and the project is run by one of the Ministries of the esstral

©f ■ Sohemes

' , . : Xt has': been- mezLtioned that . so far the Development ■ 105 sohemes 9 of whieh the ■ total esti- id;'over-a ■period ©f f ive' years' would ‘amount to :1:!30: :*i!liOn'. rupees: or |312; millionp ;- Xhese sohemes \ ©over:e; wide field :©f> stibieats:iubh asIrrigation9.■ agri-' -■ ©ultiire.s) industry9 generation :of:;' p@[email protected] healths ©orflauaiea<= , •tions's: and' :s© forthc The following ti?o tables show the dis­ tribution ' of this expenditure province-xwise and subjeet<= wi se 9 in ,which the aaowiEUits that are expected to be i '. ■ 1, li i schemes are shoWo ' ' . - id expenditure on industrial development is small sino© it is intended that the development ©f Industry in Pakistan should' be largely through private 1; and for this reason state expenditure is meant

io.. Us pp o- 4=5« 50

r Off 4PPB0TO BOiBB

50

319,750 15,194 3 1 , 7 0 6 : 10,450 4,741 2,512 59,255 76,005. v: :■: , 42,364 23a#09 ■ 1 9 , 3 7 4

■ Ps’ot^ .•.. , , ' ■/ ■ ■130,728 6,807 14 ;

1,122,949 :106,468 2 0 3 , 3 1 2 i". ■/:■;. ■ ' -|10O:’ @ 332 1/2 . YI

S U B ^m eT^W lS B I S T im T lD GOST o r D W m e P W T SCEE1XES D BY D1V1L0P5SSHT BOAED UP TO 2=28-1950 ■ (Ia„. 0 0 0 rapees) ■

estimated

moult m?:e 2 9 ©43

% 1,800 331s200

295, 318 400 ' ">71 75 14,

221a68f 3 3 944 .40 £,328

' 2,773 373 '1,178- 1 Total 1,122 >49 ,4e 2038312 52 only for sneh seas toes as say aid industrial development o la tk@ @as© of iadnstrieg for w M e h large oapitai invest" meat is required the government ^ finding little response from, private enterprise8 has deeided to.enter the field and has reoeatly passed the Industrial,Development Aet0 Under this Aet9; ,th© goverzisient is establishing a corporation re« sponsihle for the- setting up of industries like paper3 fer«- tlli%ersg jmt# !;manufaetures^ heavy ehemidals9: and heavy .

' .In view of the predominantly rural economy of Pakistans initial emphasis must perforce rest upon the reoonstruotioa and development of agriculture add of industries Msed upon or connected with it „ Emplmsis in the first place has been laid on schemes which tend't© increase the production of foodI to increase the efficiency of the methods of agri" ■ cultural produet ion s marketings, and distrihutlon; to stisU" late th© production:of raw materials of industries both for domestic manufacture and. for export; to seeure for agri" cultural produce an assured market at a price remunerative to the producer and fair to the, consumer; and to secure continuous ant profitable employment in agriculture by the.

l o - fhree.. Tears., of Pakistan. (Karachig Pakistan Publl=

cations^ 195^) ■ . . In addition, tbene, is the. Wag-sak hydro^8lee= trie 5 in tbe'Sorth West frontier Pnovinee whioh is to make that pnoTinoe .self^staffieiesit in food., ' ' ' ' ' . ' 3= . ; ' ' whieh it is at present a.: d@f ieit area»

. Bnmmary and" GWmiatly@ “Mfte&t of Sohemes

Xt m y he interesting to have a ..brief susmary of the sehem.es and' their euaulafive effect on the of Pakistan* . It has been' estimated that if schemes for the generation of electric power which hair© been ap= proved are completedi the prodmetion; of ©leetfic power in Pakistan will be increased by 160a000=200a000 kilowatt0 This power will be:used for running new.and large-scale

lo The-Second Year (Karachi: Pakistan Publications9 faetcffiles whleh are established all over Pakistaa8 ■ especially' for those industries whieh tise Pakistan raw ma- ; terlals sneh as jute9 cottonc, hides8 skins$, and the like0 It will also be used for the establisInaent of eottage in- - due.tries by providing ©heap eleetrie power to the country- side o . .It will also be used'la working pimps for reclaiming' ’lan.d which has been lost to cultivation on account .of water= logging; and.: if there is' surplus power8 it may also be used for' the ©leotrif i eat Ion of. trains' on certain specified see-

1 If has; also been estimated; that if all the irrigation ' .and; agribnitural schemes approved by the Board.are imple- menfedp these will have the,effeot of providing.irrigation fabilities In an area'of-3#7 million'abreso The inereased : Irrigation facilities in this area .will yield an'additional lid 'million tons of ©reps' per- ananm0. fh©s@ f igmr.es- d© not InelMe, the/addifional'area: in Which, irrigation facilities 1 .will be': provided' by the lower Bind. 'Barrage which is mated :f© 'bis BIB million acres» " Although the f all:road: development program of R has mot' yet beea:- prepared s ' if ig. estimated ;fhat ■ as a result of the a ciaeaes' ■ «hi oh. have already been approved by the ' ' Board 3 d500 additional miles of. road .will 'be;, constructed in - the .©ours# of. the next, five 'yearso ' I, ; , ; , . ' , . . .: 4 nwber of hospitals and dispensaries will be, @sfab» listed3"and,several'institutes for;research IS.medical and: s cience will also' be;.set . up . IS: the course of .the S^eelal'attention will be paid to the deWlopsient of the of Chittagongo ' As a result of this expansion the of the;port for handling ships (whieh was of the of , 0 o5 million tons per annum at the time- of parti= will he,'inereased , to OTer three million tons per

During the World War'the transport system.of Pakistan was to tremendous strain by the Mots- sent of suppliesi and 3 on the other hands, the measures, f or not taken» Xt is now t© pay attention to , of old • and' worn® out also the lntrodue» tlorn of Bils el ©leotrie1 engines instead of the eoal=burning @ng:

of State to

la planned eoohomy nafionalized, industries o In order 56 hairaessiag$ . to the mazlmm extent the foroeS and’ treasures of nature in the senfiae of the There le a general agreement that .lea and ,11©" 'utilities are 'peeniiarlj suitable for Mention be made • of'

s'emooi ‘ railways ? all regard to. other iaSmstries? the Pakistan Government it'for the .present § the following should-' be owned and .operated .by .the States ■ / .. . : r - ' a» '&rm. and mwiitiOBS of war ; •’ -eieetrio power ; wagons tele^

g v.w*- „ reserires . their. : i ih: any other industry ®' seetarity/or: . well-being of; the State „ ssary9 ■ in the•national in= - forthGoming in

measure for. any particular ,im« : of national importance t#-set up a .limited'mumber , of standard units m© as a 'meanstof ; attracting; prirat# ' enterprise ■ than f©r, any other : : :■ :' , It''is %ot , the desire' of the : Pakistan Ooferhmeht that, their ''role in industrial 'should' be mereiy; negatise':and regulative<, :.:©i 57

"positim side9 the govermaent will give all reasonable . help'foz1 the estaDllshiaent and development of private ln» '■ dustrjo Apart from the .maintenance ©f peace and Internal s©eurlty and fh© establishment of stable administration. ■ which an© the easehtlal prer©g.nlsites of any economic d@» ■ velepment91 the government will aeektth create conditions. . in which industry, and trade may develop; and prosper0 ’i ; , : y ' Pakistan9 s comsld erahla r as © wc @ s:: of Mineral oil and .: :' ;.minerais will bs. surveyed and energetically exploited * . -, Schemes: f or' the dey© lepzBient;■ - of the-: eonhtry? s power >e~ :, soarce# are being; worked out 9 and their' implementation will . be accorded'the highest priorityv ■:Plans,for the improve^ :y: sent1: of porta of.^raehi .and ehittag©ng: are. in hands end . steps are being taken to gear :np th© transport services to ; the maximuE effieiehcy0. Beasurbs are also being, taken to . ' ' develop agriculture to increase the production.of raw am- terials [email protected]. by industryc fh© government will. continue to render all possible assistance■necessary for production " of capital goods and machinerya for securing essential raw materials from foreign countries-for the.development of • scientific and industrial research3 and for obtaining fa­ cilities; for technical education and training abroadc , : Provincial and state governments already doj, 'and. will . continue tOg assist industrialists in the purehase of land required for factory sites g and in the provision of 1 electric power and other services 0 . Industrial-S'rading ; : Sstates adequately served with communicationss power„ and ; with faetosy 'buildings: eonstrueted' on the most progressif© lines are balng developed In different suitable parts of

; It. is a well^neobgni^ed prnotiee ©f governments to pnoteetvnew and naseent industries against outside compe­ tition 0 The government of Pakistan will always be, prepared to- give favorable consideration.-to telaims for reasonable measures of protection to industries established in Paklg« tano In' order to deal with the■question of protection to v&rious industries s a Tariff Commission has been eonsti®

,.s the Pakistan Government recognises that its taka» tion, p©lidya as far as possible,, should mitigate .the hazards to which.new industrial,projeets ar© likely to be subject for some time to e©me8 and that a reasonable opportunity and level of profit should fee allowed those who fake part in - the Industrial development of the country0. ' The govern^ ment has recently announced . the following measures of taza-® ■ ' h ^ i h i 1 ■ . .f; ' . ' , : . fion relief. to industry? : , - - : ' - 59

•is:;la. ad- 633.@, morflial depreeiatieaa.., allwaaew): is - gl^en- la the first year at the rate ■of 15-per sent ©a buildings eyeeted between April 1« 1946 and. lareB.' 31,,' .1953 Cboth dafes: inelmsiwj s; & 10 per

a is allowed at 20 per eent la ■ the ease of maeMnery or plant installed where the jiaoMnery of - plant .has. not previously been .used in

P a k i s t a n - ■• . ■■ ' : :' . v ■ 1 Bepre.eiation in respeet to plant and' saehinery in­ stalled on or after April 1 s 1948 and before April lg 1953 is allowed at double the prescribed

An extra depreelation allowance is given on ma» ■ ©hinery and plant at 50 per sent of the noriaal rat

; So far as BaMstan^is'ueneerned fl' the teelimtew for investment which investors from abroad s©; often go i s ' . search @f has .bees 'provided^ Prime Minister9 ifco liaiuat All Shan8 while inaugurating the first session of Pakistanis Oousoil of Industries held at Karachi in'

•; Xs April last year 9 ■ the' government of Paki@' tan annomieed. that Pakistan would welcome capital seeking,investment from a purely Indus­ trial and e'conOmi# objective and not claiming r ot.het special privilege 0 The goverriment also of­ fered to g i w all reasonable facilities for re- mifta&ee of profits a earned on capital invested / in the eototry '0 0 0 0 " V- : *' ’ 1 . " ' 1 ■ ' , ' - ■ . The government is aware of a-feeling, in certain anarters-s,' that foreign capital is hot essential for .the indmsfrial and ecohoaie level- oprnent of'Pakistano This opinion is- obviously , ■ based oh' the as swaption that there is enough of : capital in the eoimtry,, and ■that all'that is re» is to r eib-ove the severai handicaps ' from. l, investors; now, suffer 0 • Bovermient offieials not aeoept:this viewpoint1 , They are satisfied5 on the Information available to th@m9: that if Pakistan.has to take rapid strides in the matter ©f development of industries 9' it should obtain financial assistance from abroado It has been recognised by- those who have mad© a study of the general conditions.in undeveloped and underde­ veloped countries that the financial problems:of development cannot be solved9 within & measurable ■ period of ' time 9 by reliance on the slow process ; of local capital format ion o’ Bueh comtries mi® t \ ■ look t© the capital,markets;ate©ad<,1 , ■;■■ ' ' 'dertain'. safeguard's :hav@ .been:':tak@a9 ’howevers, ing. the exploitation of - the country'by foreign investorso Pakistan, would welcome foreign capital” however» participa­ tion of nationals of Pakistan must be■ensured in adminis» trative and technical services of the'industries concerned< Pakistanis should ordinarily be given the option, to sub«. scribe to at least 51 per cent of all classes of share cap­ ital and debentures in ■ the following industries s 1 ;

' 1o Development Plans for Pakistan Lngfon9 DoC, Embassy 195.0 f8. ppo 3=4 splnaing aai weaving aills /., ■. d0 S’lali eaaaiag' and fish oil- “■ of eleetrle power (othes? than hydE1©”

to Glass and ©eramlos

f. ©hemieals anc

h: ±E 6 -

f eatheFt'x C-, V 1 ■ to. oth.es? S^ndustz-ies 3, an opportunity should normally be given to Pakistan nationals to subscribe at-: ,least 30 per eent of all ©lasses of share capital and deben= fareso .But, ifr in either oase $ the government is satisfied .genous capital is not fortbeoisi&g < g balance with their prior'approval may bevsmbscribed by foreign in­

vestors » : / V. ' - Apart from these conditions * which -are,necessary for :. . the' safety a M -politieal and .economic well-being of the . countrys industries1 financed and. controlled by■nationals of 1 other countries are assured of 'fair and just treatment 0

' .' , - Industries, Subject to Central Blannimk -

In two statements of industrial September a 1948 by the Ministry of Industries 8 gGve^mmemt of Pakistan declared that the' following indiis« tnies wonld b@ subject to oentnal planning? , - ■■■ ; a'a/'i.a?ine. :and Jauni'tions-of' mp^.' ■ /bo Oeaent, and .dement piod.neta- .■. .©o Edihle oil8 hyii-ogetiated 05? otlienwise ; ’ r . ■ do Electrical eommunieations and.Moadeasting' ' .00 Eleetnieltyg In eluding 'hfdiO^eleetiie power 1' v ■.•v; f ^::'lleeti:ieal,^e'^ttipj^nts\>ppliajnees\and goods ' go '©lasa and eefaaieS' ' ' . ■ / : ■ , lid Heavy: ehemieals: . , 'ii Iron and. steel , :v- : j0 Ma.shine• fools9 pr-eeision tools» gauges, and work> : ghop equipsent; ' . ■ / . .v ■' : k:0, l^lnfabtwes :.of heavy engineering industry

. lo .■'IViinerals 5, in eluding salt and coal . /' V . mQ Hbn=f e2s2oous: metals and alloy manufaetiares 0.0 Paper? eardhoardg and pnlp. . ■.

v'jOo,. P©trolem...©ad^.''j^heial’-oils.'; : - . po Pharmaeeufieals9 drugs9 and 'light chemicals . ' 'do Power and' industrial 'aleohol ." ,, vro. 'Preseryed and .prepared f©©dp .- v z' '.' a''Products of earbonization industry ■. . ■ ' t 0 lubber Mnnfaetures.' ; ; . : '' ; n:o Seienf if ie and mathematical instruments -. 63

leather and o eottoiio

fhs gofesaiaeBt has ©Bly one object In view, and, that do, ail it,earn to help forward systematic and planned detelopffleht, o f .industries0 In order to - ensure the., Indus = - trial development of Fakistan ©n -sounS,linesg it is neces~ sary that su©h development should'he carried out: according to a . well-defined and integrated plan0 : In preparing, such s :'plahg due' account will he taken of the resources and re^y 4uirements :©f■ the oowtry, : v. - V" y:: ^ ' Ih®'goverhmeht is'fully cdnscious'of the fact that State action alone9' however beneficial or far-reaching .it may heg. will;not usher in an era of Intense industrialisa® tion a Individual initiative and private enterprise must , play- their part if Pakistan is to succeed,in building up a halanced economyc ' , 1 z : . I . . empTBR t

IimUSTRY M D

?s@al@ XMmatgles

industrially laekwa^da' ©.felg .isdMStrles„in the Lsiag, larg© ithe eoonomy of

o. The result iras: that at. t M time #1 the "birth staa there were very-few going ©omeeraso mled ©ther hottldhecsks la ^ the •.speedy■ growth ©f hi; fh* laflazlef" s ;,la©k mi aaoessary a# ■ eahe ■■

the’ maim had -1©

■ ; : -fh© ’ terlals am laekf ©f ’©leetrio © 1 1 .

©re« and & it- ■ J Faklstan had t© faee t© festei its. eeomosle ’i ffiie so ope tor the :iadust$-ia'ligat Ion ©f: the oora2trya r* is .fes'i greato '£l'aB:isteia pzoduees most of the raw ?Tials. requires for the tarlous consumer goo.ds Indus<= triesp' Her p©teatlal resourees of. hydro^eleotri©; power are millions" oan .labor foree' requires for industries o Her plus ia:'th®:form of b s and .-so forth: proiriSes:1 her for the; and'serviees in whieh is her«

the short .■ of three years s despite Innumerable handicaps and difficulties ^'Pakistan has been able to. take a flying start in the industrial field» From the wery start,, government :Offieials have considered their foremost duty to develop the -resources of the eouatry at the greatest possible speed Addressing;the.Canadian Parliament at Ottawa in' iime, 19$0g the Prim® Minister, 3fc<,, Maquat All Khang said: • Kven |h-fhe days of our greatest anxieties • we Were able to go ahead^ with this task<, Al<=> though muoh remains to be done 8 we are glad that WO' have been able to reviv® our trade a to plan for th@. development: of our irrigation ^ the @x» pans ion and modernisation, of our agrieulttar© : and the utilisation of our power resourcesy to . keep our budgets balaneed and to throw th©. gates . wide .open." to .private ' enterprise in our indus^ A teief aeeotmt of' some of the important industries

Is givea belowc , '' : JnfPakistan and India;together hold a virtual mos.©p©lf of the. jmte production of the worldD Pakistan ae= t Qomits for 70 per ©©at? :pt the total jute - aoaeage of the a f iado^Pakistan sutieoatiaent 0 Besides s a large paart of 'Pakis^ ; tan jmte is of hard and mediwa hard quality. whieh is fairly strong and' eoatains a great deal of highly colored fibre suitable,for the manufacture of high grad® hessianso She average annual produefion of jute , is about six million bales of 4G0 pounds'©aeho, lute is often ealled the - ^golden f ibre,s,: of Pakistan0 Wfortunatelys Pakistan has no :jut© millso The entire crop therefore has to be exported0 Before it ean be exported it. has. to be pressed into bales 0 Pres® eat arrangements' for the baling of raw jute are also inade® quateo : ' : : : - The government is encouraging private enterprise t© establish jute mills» Three private parties have so far oome forward to set up three small units in East Pakistan0 It is antielpated that these milis will begin functioning in the- near futurej producing hessiam cloth and gunny bagss both of which.are in;great demand0 . -

: io; of Economic iffairsj Investment Qpppr= tunities•In Government of Pakistan« ] Po' 6Z^" As tS©.'response' from private industrialists for set=' ting 'np ©f jnte mills, has not been encouragingg especially in the matter of setting up large mi3,Is s the government has .ieeidea, to establish initially:five jute mills5 each ... of IgQOO . looms0 . fhe first is expected to be working : ■ ■ . : . : . V"' ; ■ t , ■ ■ - . i . , shortly^ the second by 1952a and the third a year latero

Cotton Textile Xmdustry.g ..like :i jute in :East; Pakistan, eotton is the principal .oojamercial crop in West Pakistano % # average annual . product ioti:Is about one and a half million'bales of 400 pounds each* More than. 9® . per cent: of the cotton produced.im Pakistan is of high grade9 long staple American varieties0 .The standard•staple length varies from 7/S to 27»32 ineho At the:time of partition9114. cotton mills existed in the areas comprising Pakistan: aine in East Pakistan and five in West Pakistani, .,The total production capacity of- these- units ©oaes to '103 million yards. as against Pakis» " tan’s, normal, requirement of about. 675 million yards per

In, order to meet th© country’s ever «=• in or easing demand for ©loths goyernment- offieials have decided to permit the of textile mills with a total capacity of

lo, Three . Years of Pakistan' (Karachi t cations s l^flTa’spY^59< -ome millloa' sglm'&les in tbe f iMt fIt® yeans and 105 ail- ' , lien1 spimdles is tli$: neact; fiT© yeare 0 laeMnery for lm- ; ffiediafo'' development is being procured from various ■eo«n«', trieso notably the %it©d Eing&om^ United States9 and lately-

Woollen Teytllesg Pakistan lias ©.bundant supplies of raw itool 'wMeb. is suitable for mannfaeture of eoaree m=> terlals: sueb as blankets 9 rugs3 and tweedSo But she does not produoe the wool required for the manufacture of fine worsted ©loth and hosiery yartto . , • Pakistan at present has only on® worsted mill with 2®000 worsted spindles 0 _ A woollen mill with 4$,000 spin­ dles has reoently started production at' Karaohio However, it is decided to install- some 24s000 woollen and 20n000 ' ■ I - . ' 1 v-. '-': : worsted spindles in the country by 1954^550 ; Sugar and Industriesg Sugar cane is a large scale in-Horth West Frontier Provincelast Bengal8 -and Punjabd fh® soil: and climate; of Pakistan are extremely- favorable for/its cultivation 1 ’ - At th®. time' of partition; there were seven factories producing;sugaro 'The annual production capacity of sugar

is estimated- at 5 4 »000 tons. Since partitiong one new fae« tory. has been established in Horth- West Frontier Proyince M s as. annual capacity of 50g000 tonso " : l; ■ fBeS'S wefe two fastos?ies at the time of pa^tltioa pyo® '4u©iag,aleeholo' The capacity is estimated at I06 million : gallons of alcohol and 0=3 million gallon of liquor per annuSo ' ■ ■ ■ : v . ■ . . / .. / : ©me: to prohihitioh..in yari©m$. proyimoesy and also.due■ to the limited market available■in Pakistang the industry . was hard hit. How@?er s in spite of all oddss the manufac­ turers have hiade an :©ff,oft :to heep- up ::produetion<, ,• Goment: la W@st Pakistan there are four cement fac­ tories having an. annual production of approximately 500 9000 tonss while in East Pakistan, there is only one factory hav-

■ .2 . lag a production capacity of 75»Q00 ton per ahnum« • Pakistan has a surplus in cement ? and It is being ex­ ported to countries in the Mddl® last and India 0 - in a country is dependent on the extent of its industrial development o In fact a the degree of industrialization, of a oeimtry / is measured by, the^ extent .of Its ©onsumptioa of heavy ©hemieals 0 " As Pakistan is industrially backward s the , consumption of heavy chemicals is. rather limited0 . SulphuriC' A.cldg ' Sulphuric acid Is rightly called one

, lo Ministry of Industries. Pakistan Industry {Karachit Government of Pakistan9 1949) s p? 67t '' .; • So The Second 'Tear - (Karachis . Government of . Pakistan 9 195©:) S '; P? 71o ' ' '/ ■ -'V 70 of -toe a©at ekemlo#!#* 1# the world of ia- , . ' iustryb ■: It' is ;t1ie : f omSation- atoa.© of the ebeaiieal Indus= teiQ ■ fhere aro: only two small units manufaetm?Ing stt.t» phurie aoid by the chamber phoeeSs;:: with a capacity of 300 ' • ■ .;. ■■■::■■ . 1 ...... ' . tons per ahnhHio ■ If forts are being made to ensure the in» stallatioil, df;'mre plantso. ' ' ; Oaustio Sodas Pakistan’s-annmal requirements of eamstio, soclas which M s extensive us'® in so much' industries like soap9 Tegetable .oil refiningp and textiles8 dose:to" about'. 1^9.000 tonso : fher®' is'p h©w®¥er9 no'eaustie soda unit in Pakistani9- Efforts: are/being .made to ensure Installation ■. of a ©austie soda unit by the earliest possible date . ; Soda Ash: There is only, one .soda ash. plant in Pakis=- ". taBo fhis is a modern plant with the capacity of 209000 , . . 2 - tons of . 'light and heavy soda ash per year-» This is suff i« olent to' meet the requirements of the country and. leave an exportable surplus«/ -Fertilizer: Pakistan being an agricultural country9 the'. iapor tanee : of. f ®r t ill zer s eannot. be over ^emphasized 0 fhere ,1s -at; present ;:no synthetic, fertilizer plant in the e©ihtry0 ',Matural materials such as fish meals.©rushed bone : are .the/main, ferfilizers available for local usei There . are seyeral bone=orushing units in the country9 but these

Id Three Tears of Pakistan,, to 6lo / • 2Q Ministry of industries9 figs,?, sit»p p0. 6io 4© not meet the growing fertilizer. n®.ed,s of; the country0 . Besiising the iBportanee of fertilizers for soiehtifie ■■development, of sigriealttires' two Teelmieal Missioiis^=on@ hnglo-Amerioaii and- the other. Belgian==»W@r® invited, hy the , government of Pakistan to survey the resources of the eonn= try.and report on the suitability of synthetie fertilizer plantso Their survey reports are now under consideration

Industry: . The annual:production of hides is estimated:at five: million pieoeagifhmt of skins at eight, million, and that■of fur’and fancy skins at' two million ■v.l 'i; I -- .,:. ' . t', ' 1 v ' ■ ■ : ' ' ■ pieces o,: /' Thus Pakistan produce s. large quantities of raw hides' and; - skins o. -'There is a number of small tanneries in Pakistan,, hut they are ill equipped and are quite insuffi­ cient for the country9® retulresehiSo There is a vast f or; the estahlishmenf of tanneries o. .In order to develop the tanning industry9 the govern* ment:decided to fix 'targets for the establishment of v a n » oiis; fastories = ■ Twenty■ mechanized; tanneries for the pro* - - ■ duct ion, of. sole leather; with a .dally, soaking, .capacity' of I 150=200 buffalo hides in each tannery9 and 25 mechanized tanneries of upper leather a soaking - capacity of 200 day in each ..tannery are planned to he estab* '■ : '.■' " -'■ .. . 2 during the next ;.flir©'/ yearso ";v;;..■ ; \

l o . Ministry, of Eeonomie Affairs3 op0 Git a , p 0 6 0 ' _ ■ 72

yat ©f Other Igdogtrleg?- With the assumptiea , of; aespensihillty for the. plaiming anddefelopment of 27 jnajor ladttstries jsee ■ the list' oa pages 62 and 63, mat®), the government of Pakistan has fized targets for develop® sent of varlomg industries and all possible effort is be® ■ . . ■ ‘ ' " ; . / • . i ' ' ; ing made to achieve these goals c

Industries

;ry such as Faklstaa, where .65 per ©ent of the ;■ on agrionltiare' and live, in villages s. imdustries hate; a speelal sigaiflean©©.and play a .role in the, maflohal e©onomy of the Stat©0- On a©» . ©ouat'of ■ h©^ Indtistrial. ba©kwardne:sS;91 as has been seen* Pakistan def icient,In. a large .mpaber of manpf aetnred goodso Ihis. deflolenoyg "at least in partg ©an be made up by" the ' products of the cottage.industries 0 ’. Moreover^ the ■ establishment of large®s©ale. indnstries which is now being stimulated through various means by the government will help curtail the need for imports of certain ©lasses of goodso Difficulties smeh as scarcity of capital equipment g shyness of money, ©apitalg laek of industrial ©xperien©® and technical skill in the establishment, of large-scale is® dustries 9 however 8 would take some' time to be' eleaned np0 The systematic;' organisation and development of cottage/

lo For a', detailed dlseussiehg-':: refer to Ministry of Industries, Mr..pjjy ■ • ‘ 1" '-r ''' : ; - ' Industries wnld -p^vide as Immediate and largely effective solmtieBg iBasmiaejd. ;aB the machinery and implements retired are simpls'and are lavailehle la1: the eemtryd Cottage ia= dustrles show results iniefcly with a minimum of-capital and

of.the Cottage Industry? The financial re= sourcesg if anys of most of.the actual and potential cottage workers ar.® very meagre6 Financial assistance is therefore .required for the purchase of implements and raw materials and for the maintenance of the worker and his family until the disposal of the finished products of his labor0 Lack of suitable agencies, for the financing of various cottage Industries is one of .the most serious obstacles in their development 0 Tery- frequently it results in the exploitation of .the; worker by middlemen who usually supply raw materials on credit and purehas®"the. products; at ridiculously low priceso Due to his financial dependence and his ignorance8 the worker has. neither th© choice hor the ability to dis­ pose of the goods at reasonable prices independently of the middlemen and is thus virtually reduced to the status of a paid worker of the latter9 receiving miserably low wages» Mother serious difficulty experienced by the cottage worker is in respect to: the marketing of his products 0 The marketing costs are very.,high9 for the margin between. the prie© paid by the. consumer and that realized by the . producer is very large.». The sale of goods is not an easy . ;adequate knowledge #f OoaditioiiSo It 'is

fore too; mtaek to; , illiterates, iso- lated cottage worker with limited3 if■any9 resources would be able to dispose of M s goods in an efficient manner Q He m y be a good producer buta due to his liaitatiens <> 'definitely 'is;a -bad salesman0 So. he is exploited by mid« - dleaen* : . . " A serious difficulty in connection with the marketing ,Of .edttage produets is the lack of uniform quality of the artieles produced« The uncertainty about the quality, of , . the .eottage products renders their physical examination by the oonstlmer necessaryc ' This tends to .limit the market to \ the immediate neighborhood of the producer» - . \ ■ ■. Measures Adopted: by the Central Government: The Minis ter of Industries deelared while addressing the Pakistan . Gouneil of Industries held at Karaehi in September ^ 1949« / ' ' ' Gentr® Is! fit ally interested‘in the devel^.:. ■- - ■ opmentj ..on-an' orderly basiS p .©f .e.ottage'indue- . ■: tries o The interest of cottage worker willnot$, . v ■ X can assure one and aXX3 be sacrificeds because . . ; the'Centre is directly responsible for the d®« . . - of large seal#' industries0. There Is n© of the two should not go , in raid stano dehtre is titally in» ;. ' . -•in cottage industries: as a means of: . . absorbing the'hundreds of thousands of ref ugee •■ •'••''• - ' migrated . to Pakistan^ 1 gly8 .la order 'to work out a it .for Pakistan as a wholes it was decided to .. . ; : ■ . ■ ■■ ' 75

estaislis,!! a Cottage . la&usteies A&visozy Oomti.ttee soasist” . ing of b©tli: off ieials and . nen^offleials •' iSraim • f roia Tai’if ©ms regions aad -;r ©presenting various Industries <> The fractions, .of the CosEitte® air©;. tb ofganige and develop ■ sffial3,»:seale' and eottage industries9 t.o assist ia, the mar= ' ■ testing of their nroducts both'in'Pakistan and : abroad a and to oeordinate eottage industries with.large-scale■industries*" ; A Gettag© Industries Dlreetorate in the Department of Supply and Development has.been establishedo The,fume- tions,of this Direotorat© are to.look after the development of eottage and small-seale indmstries 8 ■te provide assis­ tance Is the pr©ettremeiit.. of raw materials „ to. help in the : marketing of the.finished goods,; This 'Directorate has de- eiSed .to oenduet -worldwide publicity for the. products of the cottage industries'$, to ©pen. sales and. display centree (one at London and another. at Hew York) 9 and t© open show : .,v. , .;2 -. : 1 : rooms' ia. other. d.iplematic. ©ff iees overseaso : Gdttage • Industries In. Pakistan: Some of the impor­ tant cottage industries: are-listed belowc '.Hand Spinning and Weavingo— This is the most important, eottage;industry and is carried' ©n all over Pakistan9 - espeelally by women as a part-time ■oeeupatioao'..'In -East Bengal some women earn their living fr©a, it g ■ by tiakiag it : ■

lo, Hinigtry of Industries9 epo cit0„ p0 127*

20: Ibido p pp, 129”130o,: reafing still holds plaoe la the ■ Isdasts?spo-®»I goods Is an industry of West S/.-is a good ©f woollen produets sueh as rugs, shawls„ and

Jute Spinning and Wearing0-“In last Pakistan jute is grown in abundanee; while the hulk is exporteds a eoasider- able part is turned into eldth on a eottage basis0 . Silk Industryo-^I'his is yet aaother important eottage - industry, of Pakistan,, The varieties of silk ©loth produced an®.sareesg oap@9 and,turbansa table eovers 'and;©urtains0 ;..Metal Industryo —Metal work'is;done all over Pakistan and ©onsists. of work in brae's^ bell, metal, eopper g ir©n$ 11

to-date f wait we o • OeeasioziallT otm .sees exquisite earifing on fwaitwOs .wiBdows^ sere:@as8, and doorways c : : fanziing and Leather Goods 0 — This forms am. important iteavem. the;--eettage- iadistry'9s list 0 / Side : hy .side with. . rough and partial taiming there is high-class tanning and. ■ ehrome Mather a$aaufa0tWe o- - Shoes 9' slippers g h©Its^ pws©s9 sxtitcases 9. and other goods are also produced by eot<

In addition to the ahOTe9 there is a number of other .ge Industries praotieed in Pakistaa.0 fhese include ry, Ivory^ earring g fruit h g 9 surgical -instruments in«.«.®-»*^.Si g>, oil pressing’sglass' -hamgleBs and ;fhe u

Resources

: It- is axiomatie. that there can he no industrial level- without motive power» • The -normal sources of power -s or waterl The coal resources, of Pakistan are limited0 Coal deposits-are not large- enough to make her at a M s -furthers they have not been-f ully, fie- ilist ,'@y#ry. effort is being made for the proper utllitafion vof ;these .fdsoureesg’ Pakistan has to- look to other sowoes of power-, for rapid and Intensive development - of the comtryo ; She will have to ■ depend on her water power .

lo Ministry of Industries 3 opP e.lt.o pp0 ,131-liOo ' ' ■ ■ ■ ■ 7 8 r^sowees' :aa she kas. Tagt poteatialtties for the generation of %)qwet'o , $h,e ladmstrles eonf e^eho© of ,1947 / . fixed, a target, of 500a000 kilowatt at the end of five years» A Geafral Eaglaeer-5,ng Authority has been set up for at lag j .sefut iaizlBg 8 epordinatiagg aad .paess lag forward 'seheaes for the ©oatrolj, r@guXatioas, and mtilization of the water, aad power resources of the eomntry0 The total capacity under dev elepmeat / hy way of schemes' now under way 8 is over :: : v * ■: ' ^ : 77 9 000 kilowatt 0 ". v - As for- -oil,9 the r equiremenfs of Pakistan at the pres= - ®mt level:- of ©oasuaptioa- are -.ISO- million - tohs. - of -which about 15 per : cent ig. produced indigenously and the rest im- V ' -v ' ■ k. ; ■ ■- • 21 i portedg mostly from Iran or other Middle East countries» The prospects for increasing the indigenous production are brighto The geological survey of the .country, which is in progress will help: the position 9 it is hoped<,

„ : , , . Mineral Resources -

, Pakistan5@ mineral deposits ar© believed to he Immense, ' though ,at. present, a very small quantity of the minerals Is ©ktyeetedi ■- A geological survey-: of the: country is. well: under m y and9 as, a result , many valuahl®' ;deposits -are expected to., ^ he hit at o ' The'chief minerals whose development Is the need ■ of the .day are the following: ' ',

-' . Id Ministry of Economic Affairsn- QPo .®it0 a p 0 10o '' , i0. ' .loco ©it o : , ; , - : 79

are iiot ,eaough \ ; %&■ make lies? self '=s-uf,f'ioient aaclj,. further g they hair© - not f tally developed o:: Her iaaig@h©tas' product ion at ■pres* ent ; lS' daly - abomt 350 $,000, tdns as against an annual re= ; . ■ ' ■ ' ; . 1 ■ -■:•'■ ■ V ■■■ ^ " q,mirefa©nt of 2o„5 million tohSo. [email protected]©ntly she has to depMS .o b ; imported1 eoali . ■ ■ 1 ■" v :\ v . ■ ’ : Oil: Unlike the United Statesa the oil is the proper® ty of the, gererniaent ' of Pakistan:^ the oil eoneessions are ed, only to, epapanies of re'piit@o. At present the pros® and/mining hf petrolenffij, ' imolmding natural gas9 is heing oarriet on by two c0£#anies8 ,,-;:-fl} Att©ek:611- Company and • (21: Burmah Oil'Companyltdo., ^ ' •" • . ihe total1 production of oil was 426 g000 barrels during v .'- :• ' ■■ 'i - .-a . ... • ■ I ■ ; ' 1942,and 224jUOG/barrels'during 1949o This output does not plaoe Pakistan on th© oil map of the.world„ . , There is only one refinery in Pakistan at present whleh was'©onstruoted' by the At to ok Oil Company at Bawal® puidib This refinery has :a maximum refining eapaeity of

■■ ■■. . : . i - ■ '. ■. 3 - ■■ . ■ ■ As5©C .barrels of ©rude .oil per day0/ : ’A.y . . Chromite, or ©hrom@ ■ ore 9 f rom:whioh ' is -ob® . • taimed: tW' metal- ©hromiumg: :is ' used/as ah ‘alloy for .the

lo • Ministry of Industriess ^ in Pakistan .s • Government of Pakistan/ ' p» 2G.o 3 o'. . loo o . bit o' 'SEMfa@tw® '&£■ ©hroBiutt st@el9 staialess steely and armour ;plate's.o'." ■ It-"is f ound in abundanoe in Pakistan a fhe mineral is also used'fos? the manufaeture of refractory bricks for .furiiaeB linings as well as. in the dyeing IMmstryp in ele©» trieal and marine engineerings and in many other wayso The total production of one has varied from year to yeano ; 'In 194S. the prodticstion of ehroM® or® was 1 S 8GOO . tons 9 . : f ■ . : ;; '' ■/ ' ' ■ ' ■ v v - ' ' .1 ' . : '; ■ ; . - . ' ; and dming 194’9 about 1597©0 /tonso' ■ • The entire .tnantlty is - found, in Baluchistan and is exported in raw fom- fo various countries such as England s America 9 and Sweden since there . are no.facilities in Pakistan for refining this ore= Antimony: Antimony is a metal used in chemicals and: in .metallurgy: for imparting hardness and fusibility to vari-. 'oms;, alloys; sueh as type/metal a insulated' wires 9 lead and' so f ortho It is also -used . in maaufao«

During the Second'World War some work was den© on . antimony deposits in Pakistan9 but these operations have been'suspended sinee partition0 The total production dor» • ■ - ■. . • ■. -a ■■ ■ ' ■.. . ■' . ing 1947 was about 400 f onso The . question of working the: deposits; ©n a commercial basis' is receiying the 'attention

ofctbe a

. 1 0 .Ministry of Industries a Mining Industry In Pakistan, :ppo 43“44o " ' - a . - -i- vv:' ; ■ ' 81

Sill da Sands Siliea saad is employed, la mortar and oement g, and is used fox-:: toSeks fox*, the lining, of f.taxaaees. and. xaffaotories designed for m@tal»saeiting op° exatipnSp; It' is an essential ingredient for the m&nnfae~ ture ’ of glass and. faxiens. types of paints and eheraieals0 . This sand is fotand. in' raniens areas of West Pakistanp xly in , Sind> The. product ion in' 1949 was about ir been ■1 a600 tons»: /The methods' of pnoduotion have so ir been ■1

- ■ Sulphur: Sulphur is an essential raw material for ,, ehemieal and various other,industries as it is one of the ehief sources from whioh sulphur1# adid9 the most Important single commodity 1m the ©hemieal industrya is derived c B@-= sides" heing used in the manufacture of ehemieEls 9 sulphurie aoid is utilised for refinlmg of'petroleum and sontferrous metals o It is . also" used in the mmif aoture of explosives 3 paints9' eolors 9 rayon$, and so forthg and if is required in papera pulps and .rubber industries as well as being used in fertilisers and food-product s. 0 - . osits demar in many plae'es in. West were worked during the iasf :War Poomr ..In .Baluohistan; they are estimated at - V v.,;4,. '' 1 4 -'si ' :. ; ^-\: :\ . , ' Vi';.;-ti . about & dQO . tons o' ':.;'The- question of working them .again oh

lo Ministry of Industriesg r in. Pakis tan s 47e,48o . ' ^ "

20 Ibido 8 ppo 4 8 to49o ' elal limes is mder eonsid@pat»ion >$• the gove^mmeat ^

The hydratM ealeitsa is knovm as gypsu e 0 It is a.s@4 fo^; manuf aet'nye oi1 spseial semeat „ fiye^pyoof wall hoayds a ;wFlastey of Fay is salphwi© aeidg ■ am.d.haleius. sulphateo It - is also .msed- as! a' fertiliser, aad'as an iasB-= lator against heat and ©old in modern homeso In Fakistan^, gypsm,deposits, oeear in North West Fron= tier FroTineep the Pmmja.bg and Sind0 The reserves9 which are mainly .located in Punjab* total more than 30 million

. - - . 1 tons0 The total annual production is about IS^OOO tons0 The question■of utilizing; this valuable mineral as a fertiliser is under consideration by the government * which" has secured the services of a few foreign technical experts for this purposeo lime stone: limestone is the stone with .calcium car-'. honate whiehy when-.burned3: forms a white caustic, earth known as; lime 0 Limestone feeds the lime industry as well as the cement industry« It is also used for the, manufac- ..Sure ©f chalk and calcium ear hide $, and as a -building stone 6 The total annual output during 1947 was 3429000 tons while in 1948 it (was 3568000 tons6 The known production of : ■ ■ ■ a limestone during 1949 was 2793000 toss0 . Most of this is used by cement factories within the country.0

lo Ministry of Industries 9 Mining Industry in Pakistan n PPo 46*47o ■ • - ' ' - - ^ Salt 8 .Pakistan is in. alnei'al salt as the salt mines' in Punjab and Worth West frontier Province, produce ■' ■ : • ■ • ■ ■■ . V: '\... : , P . , V 1 - :■ ■ ... about 60' million mounds of salt. ©Teny f ear 0 . The salt ; fnom- these, mines is ©f ' -rerF good quality^ a,earlF;; 99 per eent pure, sodium, ©hlorid©^ ' • ., .

.I*' Ministry of IndustriesP Mining in Pakistan PPo 49=52° . V ■ be (

"is. the ■ mpkisci': eeatvhst iaad 'iti.vexta?:©fflB;' tidustrial ‘ing aea^lf-.TS. pW; oent of the iXB.-:.

Industrial ;lah©V of ■. sc m b the

Pakistan is'/ total ' ■ S ’. 85

L : tteref ore s is: not large c As & result s . labor d^es ;mot oeetipy that position of importance la fh© eeomomy of Pakistan which it does, in the sore .industrialized ,'eotiBfries0 ' if eiS: .also,.hot well,, organiiod<, ' , ; ; • An 'overwhelming m'j orif y. ofpeople‘ depend oh . lando: -V .. iher'are' Mihly either -tenant onlti'Fafors or peasant pro* A relaf iTely" ameh ssaller; ntm’ber/ is employed as : ihis is but 'natural:when large-scale farming -is praetioaiiy ,nntiiown» The emitiwators depend' on their d w '; family5 s' labor and take-on some .hired labor only in the busy season^:, nsually at haryesf^ ' . ■ Less than 1 percent of the total population of Pakis­ tan is employed in organized industries,,. According -to. gov=> ertiment estimates3-the number of industrial workers in P&kis® fan is jmsf orer 662sQQQa Th© following table shows the .strength and distribution, of labor, employed in the various categories o ■ - ■ Employment, s Detailed statist lea for employment (or un­ employment ) are not available D. if is difficult to assess the number 'of landless - agricultural laborers and wage earners employed In guasl-agrioultural3'home and eoftage industriesg but,there is no doubt if rims into several -millions0 More­ over 9 agricultural - operations- are .seasonal in character„ and the agricultural workers do not f ind enough work to keep them busy all the year round». There is thus a great deal of par- . ■fial unemployment amongst - agricultural workers even in ; .normal. times0 '; In a country where ‘the overwhelming 86

'■ T m m jjx INDUSTRIAL LABOR1

. 1©0 Of Type of employment . : • (in 0009s)

•in factories subject to the' 3’aetories Act • ■ ' 200

• ■ , : ' •'■■■ ■ 15© Tea; ©states ■ '• 150 Mercantile 'marine • .. 125 Bocks and ports of,EaraeM andChittagong 15 Inland water and other transport , 15 Mines : ; ' ' : : : : ; ' 7 Total •: 662 of people life on land9 where methods of production are primitives, and where agricultural workers remain partially unemployed0 how low the, standard of' living of. workers. would he can. very well b e visualised» v With the partition of the Indo»Paklstan subcontinent and the 'exchange of population which took place 9 the' pressure: of ' population, on. land and. also the volume 'of agricultural uaem- '.hafe substantially increased 0 This exchange of' .

lo: Basic facts about Pakistan (Karachi s Government of :Pakistang:'-'1950] 9 p,' 186. :. t. f ■' A •'.. ' ;' ' -s. A,A .. • population, has also resnltdd in.a oonsidenatle.net inenease in ttie number of oottage workers in.Pakistan0 They consist :of artisans 9 teolmieians ^ an,fi other skilled and unskilled • workers e The rolwae of unemployment amongst them is -eon* siS.©rabl®'0 ' . . ■ ’ ' r. - Employment Szehanges: The Bmplojment Exehanges play an important part in tackling the problems of unemployment. These were originally intended to assist resettlement of demobilised soldiers and discharged war workers o.; With the- , inf lux -of millions of destitute refugees from'across the borderg the scope of. the Employment Exchanges was widened:to. include the resettlement of refugees along with ex»servloe^ meiio . . ■ ' ■ . ■ ... ' ' :.. , ' , ' ■ ' In the whole of Pakistan ? there are 23 Employment Sx« • ■ ' . ' ' ' '. , v ■ " " ; ' '■ 1 '.' i . ■ ' , : ' ' ' changes g -distributed as i f ollows: - 1' • ' :: ■ T . ■ mrachi ' :: : , i', "-v • ■ : Sind t - .; yy 3 '/t ' , ' .' ,-:.y. , /■/■ '■ Baluchistan . 1 . ; ■: • . : /■: West' Punjab .10 ; ■ r • , ' %orth West Eron« , ■ ■ - :v ' tier Province , 3, ' ' . . ■ : East Bengal ;... - 4, • ’ " . / Gentral Exchange . ... ' - , ' -Headauarterg ; Jl- V : ■ :vv.V rTotal : ■ .■■■■'. 23 - : . .., ; In the period 'August^ 19'47 to Becember $, ' 1943 j,. the Ss~ ' ' : V . ■ : ■■ ; ,1 , ...... (about half being, refugees) were found work* ■ If is proposed to increase the number of these employ^ sent ©%@haages in Pakistan with a view t© making the serriee available to a larger- proportion of the population0.. fh@ long-term, plans include the covering■of the whole of the country by a .network .of employment exchangess with an of- fie© in each district.and important subdivision with the ■ ,1 '! 2 w', v.. ■ ■ ,. following objects* .. ■ 10 To give Pakistan an integrated nationwide employ- - ... ■" : sent - serviceo - 2o To eliminate the evils of jobbers and middlemen from which the recruitment of labor suffers at present, by providing an impartial service to both . and workers =>' ■ . . ' • 3 o To help.: in obtaining and .. f@# ‘ ' ’ho, To help in the location of Industry by giving data' ig supply of labor:to prospective Industrie

.'5». To increase the ; its' regional and 6o To-prepare a- man-power budget-for the.nation:so,. ' • ; that fh© • best may W mad©' Of the available f esourees <> 7o in the event of a national emergen©ys to1 help . in ■ „ ' ,: the mjobilisatlon of total',.man powr.?/" ■ their :standard of living by ' and .administering a scheme of social insuranceo . - -: . " 89

Wages s' T'he majority of the workers join industry as laborers or helpers a and after gaiming ©^perienee of dustrial teehnxq.ue rise to the higher categories of semi™ : skilled9 skilled5, and highly skilledo There are two systems 'of payment prevalent in Pakistan^ one of time, and the ..other of pieee rateo The former sys» . tes epnaotee that wages are paid in aeeordanee with the time ©lement 9 ^oOo §. .daily9 weekly a ©r monthlyd The latter say be def ined in terms of quantity of work done o The ma­ jority of workers In Pakistan are employed on the tlme^rate syst@m0. The. general ■ rat'e of wages in her tain of the organ.™ . ized industries is given in. Table ,Till» ■ In a period of rising price's 9 the wages of labor fol­ low the rise in the cost of liviago There is 5 however9 a . time-lag im the beginning at early stages <, But 'as the in­ flationary, spiral gets well on Its way9 the rise in wages more or le ss keeps, pace with the r ise in the cost of living & The movements of wages, in Pakistan have generally been on these limes <, , ■ From Table Till it will be observed that wages paid to labor are'very low3 maybe below subsistence level0 This is so, because the laborers are not well organized* the numbers employed in large-scale Industry are rather small9 and the f@lume of unemployment is very large owing to' the great in­ flux of -refugeeso If was not - possible for them to secure . wages which* under the prevailing: level of prices* might b© regarded a s .unreasonably higho There was* therefore * no M I S f i l l

Unskilled 2 6# ' . 57 ' ^ 80 : 100- 56 : 66 . 1”8 i= 2 ”8 33 '- 38 - #7*70 :■ .10o95; 23o70 29 o05 ..17? 20. 19? 55 : 0 . 45 ::i 0.75 9.1# 11.25 Semi..”,skilled 38 : - 45 90 . - " 140 60 • 113 2/8. 4 #11o2$ >; 13 o32. .25 o 65 41o50 - 19 o 35 33650 0,75 lo20; Skilled "150 ■- 150. ' 275 . ' 113 193 " 4/8 ^: -5 kl $17 o 80 k •; 44o5Q 44900 ;81c 50 : . 33o50 .57.10 1?33\, 1.50: S.mpezf iso^y. '' . ,:3.25 ' - : . 5 # : 160 ■ 3# 162 175 per bio 0: staff . #36,90 I W o # 47«50 #*90 4So00 :145o00 51o95 : ffAt presaat- sate of ©xebstBge.Sl = 3 rap@©s and 6 amas (1: rupee ^ 1 6 aua&sj smpees ' ' . y - - ; ::: . ' : • ■ ^ ^ ^

lo Mixilstry of lM«striesg iadusfsy in Pakistan (Ks.ra.Qhi? Government of Pakistan^ 1950) s,, p<. 109o „: 90 91 necessity of:, having -a wage eontrol to prevent, an undue rise

The .workers8- ■bargaining powerg which was already very , poor9 suffered a further weakening owing to the arrival in millions of.refugees from India in a state of utter destifu= tioni and the wage rates3 especially in occupations which did not:call for any skill or previous trainings tended to fall' below the subsistenee level 0; The need for the iaposi® tion of control oyer wage rates' -.witti a view to ensuring a minimum .wage was ObviouSs .and the. government was. not slow to reoognlt# it o. The Stats5:proteots the workers through the 1 , Payment of lag@s '4dt. which provides for. the prompt and time«= - ly payment without •unauthorized deductions-A minimum Wages, Bill which provides for: fixation .of miaimmm wages in several occupations 2 including agriculture 3 is under the consider ac­ tion of the: Constituent Assembly« it - is the intention of the government to. help- labor in obtaining reasonable condi­ tions, of employments . : ■Hours, of Employment: The State has long discarded the iaisse^air© doctrine which allowed - the employers complete : freedom to do what they liked with the worker s. 0 The Fac­ tories Act of l93ks> as amended in 1946 9 prescribes a maximum 48“h©ur weeko . Generally eight hours a day are worked, but in ease where workers are to- be employed for more than nine .hours, a day. or more than 48 hours a weekr, the time in excess of the, weeklf or. daily limit is paid for at double the, rate -of pay» The Factories Act also makes, it 92

obligatory :#m the part of the employers to grant to workers with 12 Eionths of service at their. eredit ten -days paid '

;' Employmeh$:ih industries s like other employment 9 in= irolres risk's of adoident resulting ' in personal: injuries to the workmeno The Workmen°s Compensation Act protects the workers against aedideiits and makes the employer liable to , pay compensation of injury to the workmen employed by them. IndustrialBmployment Standing Orders The employers : can no longer dictate their own terms.and conditions of s©r« tic# to the workerss as the Industrial Employment Standing ' ©r more persons ' eohditlons of service in,the form of Standing Orders and.submit them to.the government certifying officers for'certification after necessary @n= - gulrles and consultations with the workmen’s organizations or their r epre sentat ive s o :'r-I Industrial fielatlonss There.has-not been much Indus= trial ^strlh®:in Pakistan<, There) were a. f ew disputes'; .which ■ so that the number of working hours very sWll*x $ihce' partition and to the- end of : .1948 there, were no industrial .disputes, in the North West Eroniier Province and Bai'achistan 0 ’. In Sind9 however $, there were 12 strikes invQlving'about 105,000 workers and a loss of '22p000 man dayso East Bengal .had 69 strikes involving . ; ' . ; - ' 93 - : ■ ■ : : " ■ ' i ■ ' 40.p50$ "workmea a M ;a loss of 130,000 man days0 W e Industrial Disputes A@t 5, 1947» and the Central ’ Buies framed tlaeretmSer ' prOTlda. naeliiaery f the settlement of industrial disputes Q, This eonsists of a Works Committee at the' establishment level 9 ;:©os.oiliatIob :off 1 @eirs ^ ;a Board■ of Coaeiilatioa^ Court of Enquiry 3 and an Industrial Tri- ' 'buual»': W e 'mohluer^loau be- put: into, operat 1pm by the r ap®> :■;, - pointment;of an ad hoe body9 if necessary9 as soon as the : need'for it arises :o : ' ' : ; .i: . i- ' ■ ■ ■ v - labor 8 s Welf are: Were are no specialized agencies eon«= trolled by the workmen, themselves<> Some of the employers - have their own agencies for the purpose6 W e railways have labor welfare inspectors who are required to ascertain the grievances of railway workmen and to.get them redressed0 We: ©rdnance depots^ the""salt minesg naval headquarters„ : Kara ©hi Port Trust, have . also; labor .iof fleers entrusted with the work of labor welfare.o ^ , :" The ^Pakistan C-oy ernsent ■has established a'#lrebtorate_ ©f ,Seamen8s Welfare 0 More than i009000 Pakistan nationals are, working as searaen0 The Directorate is ekpedted to direct oontrolg supervise 3 and coordinate seamen8 s welfare .work ' ' ; ■ . ■ • V ' - - ' ■ 2 at Pakistan ports and of Pakistan8s seamen at foreign ports = B@am@n8s welfare of fleers, have been; appointed at the ports.

1c The Second Yearg p0 850 20 Pakistan0 p-o 12'80,'1 94

of EarasM and.GMttagongo The welfare off leers, are ©2d=> peeted to""■ interest themselves Is the health,. reereatioB, ©Imh and hostel facilities for seaman and in the provision of amenities’ both ashore and afloat0 ■ - Shile it ' cannot he denied that-very little has been done toward:promoting the welfare of labor, it appears that a good beginning has.been made'and:in the coarse of time of labor should improve„

b of 'Capital and Labor ■:

There is not a simple organisation •which may ; be ’regarded’ .as fhlly,representative of capital-for the whole of fahi.stahc: There ars, however,; e:@rtain organizations sueh as, the Mmsiim. Chamber of Commerce,- Chittagong; the Indian" M@rchantsr Association, Karachi; the Buyers0" and Shippers9 Chamber,/Karachi; the Muslim Chamber of Commerce, Karachi; and the, Muslim Chamber of Commerce, Lahore; which represent certain sectional interests.only», The government has been representatives of some of these organizations to capital in.the various national and international : $S». ! ' ’ ' . , . ' ' ■ ’ / : ' ; ' : ’ ' Labors Before partition there were two important or­ ganizations in India, namely, the All India Trad© Union Con= grass and the Indian Federation of Labor0 After partition ,the labor leaders, whose field of activity fell in" Pakistan areas, decided'to work Independently of their counterparts in 'Indiao The .unions in these areas which were previously ,tlieas@lT©s: .into th© ’Eastern Pakistan %acl@ Union Federation and Pakistan Trade Union FederationsVfor Eastern and Western :Pakistans respeoti¥©l.yo

TUe former has 3 5 unions affiliated to itg and claims to hare a. membership of 4 8 9 0 0 0 0 The ..unions in Western- Pakis- t a n 9 ' ifcieh; %@r© ^reriously affiliated to the Indian Federal tioh:of labor 9 f o r m e d themselves .into the P a k i s t a n F e d e r a ­ tion of labor o This has wan ions affiliated to: it arid elais tO; have a membership-of 3 l 9U 0#o. t ■ Ho national organization tfhieh m&y be regarded as representative of labor in the whole of Pakistan, has as yet emerged a: Sueh an organisationj however 9 is absolutely.neoes? sary in the interests ,of the laboring .classes 3 and. it is that one will come into existence before long0

; '.; -' Labor laws ' '■ . . •

t' has inherited a labor; code from undivided' India 0. -Bhe/ is a member of : the International Labor Organize-.. tion and .has .declared’ 'that as a free country she believes in ' social'ingtie© : and it-will be her •endeavor not to lag be­ hind any of her neighbors in the 'march of progress in the labor field0 ' • ; ' 'Iv i The working of factory and labor, legislation is ; - 1 ^ : ■' • ■ ' : : '.f ' ... StaStoariseS, as :.f olloWss. : • .. ! '. faGtQgy M gialatloh:: ' Faetory legislation aims at the yegalatiohs, eovering conditions of worko The present posi= tioa is regulated by the Factories Act of 1934= It was ameMed - la 1946 when a 4S'=-hour week was enf oreed-o The Act applies to 'industrial mdertakings. using mechanical power and employing mot . less than. 20 persons^ . • ,The.. making. hoiirs ■ for children are fixed at five per , day0 Soaeh and 1 children ;af e' not; ailowed to work, at night „ The provincial.governments are empowered to.prescribe standards of artificial hnmldlfioationg protecting workers against exeessive heat 9; and providing rest shelters in f£<$<=»' toriesf There are.provisions to ensure safety of factory Btrtihtnreso- ; . . ' , . . ' -Payment of Wages ■ Act B 1936 $ This Act applies to per- , sons employed in faotorlea and on railways o The' wage , periods must be:fixed0 .and ne.wag©.pefiod is to exceed one months In the ©as© of persons whose services are terminated by the employer^ their wages must be paid before.the expira­ tion of the second working, day .from the date of discharge <> All payment of'wages must be made on a working day in cur­ rent coin or cnfrency'notes or both* - \' Act .lays 'dOimL.'details .of'deductions„ fiaesg and

lov For detailed dlscnssiott9 consult Ministry of Eeo= nomio Affairs a Investment Opportunities in Pakistan 'aQ.4raaeesi) and makes. a contract or agreement whereby an ear ploy©*! person relinquishes any right conferred by this Act null and ;voido ; : ■ Industrial.Blmputes legislations 'The Industrial Dis» , putes A@t of 1947 is the only eentral legislation ©n the . - investigation and settleaent of -industrial:disputes0 It. prohlhita,strikes in a public utility serrie© fa) without tha employee giving notice to the employer of a strik:© Within .Six weeks 'before striking9 or (b) before .the expira­ tion of the dates of strike specified in any such notice as aforesaid3 or (e) during the pendency of any conciliation, proceedings o Similarlya. no employer engaged An public • • • utility serif ice can lock opt its workmen (a) without giving them proper notice within six weeks before' looking out9 or; ' (h)' during, the pendency of any conciliation proceedings0 , The Aet provides for the .Investigation •and settlement of industrial disputes, through the agency of a Court of En­ quiry or - a Board of Conciliation:or an Industrial Tribunals ; It also makes provisions for the establishment of works .committees t© promote measures for preserving' amity and good •relations9 as between employers and their workmen0 Coneill-, ation officers are appointed under the Act charged with the duty of mediating in and promoting' the , settlement --of Indus- . trial 'disputes = . : . ^ ...... Trade Union, Act,* 1926: , Under this Act , any. seven or more members' may apply •.for _ registration of their trad.®' union* The registrar is bound to register a union if it . eomplie.s with the provisions of . the Xaw0 It necessitates a Regular comstitmtiphi a periodical audits, the composition of the exeeutiTe so. that a majority may he workers0 In re­ turn it enjoys immunity from the conspiracy provisions of the Civil and Criminal haw in respect of any act done in contemplation or furtherance of- the dispute0 . ■Workmen?s Compensation hot, 1923? The Act applies to - : all workers in f actoriesj, miness railways, ports, and her- ■ : tain other specified occupations0 It imposes an obligation on employers to pay compensation for accidents arising out and in the course of their employment and resulting in death or total or partial disablement for a period exceed- ing-seven dayso. Compensation is..also payable for some occu­ pational diieases,o The amount of compensation depends ©n the nature of the accident and the amount of average monthly

wages of the worker concerned-* : The Maternity Benefit Act: . There are Maternity Bene­ fit Acts for women employed in factorieso The qualifying • per iod' varies / from five to nine months» The maximum period of benefit Is two months 0 The Employers8 Liability Act„ 1938: This Act abro­ gates to a considerable extent the defense of "assumed risk" and common employment in suits for.damages for injuries sus- tained by workmen 0 CHAPTER T O

TRMSPOHf M R GdMpHlOAPIOZS ,

fzansport and commmications play an important role in the eoonomy 6f any Gewitry* The most oWioi.e @ff ©et. of: la» pyoT@d transportation is to make available to a. comimity ' the goods:, whieh of- neeessity ianst he. predtieed' ©.lsewhere0 A eomunity without cheap transportation mmst he largely self» sufficingo Climatie eonditions and available, natural- re*®': souroeS' limit, the.,goods which may he produced9- and only those products: from, other .lands can be brought in which will stand . high transportation costs0 Cheap transportation'permits other goods to be brought in. s© that these products may be= come as .commonplace as the articles prodnced at homed Transport and comiami cat ions are much mora • irital. than usual in the ease. of: Pakistan because the two Rakistamsones v are not.geographically contiguouso Eastern.Pakistan is separated by more than 1 $,000 miles from Western Pakistan0 - , The sea prorides the only independent,means of commimicatlon between the two 3one s 3 and hence shippingj combined with an offielent ;system’:: of: land:'transport .for1 internal1 sow- ' ’ ments^ will play- an' important,; part; in coordinating their ■ activities, in - the eeohbmie .sphere, and insupplementing .each ■

^ 8 '.requirements 0 . -- .'''1;-/ . , .v ' v-'h: " - - i2268 10©

&s ; st&te

- ■ • v' ' ■■ ■ - ■ Bailway transport

■ fhe railways;'are the main arteries of transport 0 The- .total length of railways in Pakistan is 6,982 miles which is divided into two main, systems, namely, the Horth Western - Eailway in Western. Pakistan and the Eastern Bengal Railway in Eastern; Pakistano •'Phe present position of route length of railways is' given1 in Table IZ® 101

; TABES 1% - : OE^SS IF I OATIO'N Of RAILWAY MILEAC-S]

Total miles 482 5:8363 last Bengal 1,101 la 420 6,982

West Pakistan is setved by the Month 'Western Railway which eonneots . faraohi a the':faaerai capital and the most Im­ portant port of West Pakistanp with all; the important towns of the regiono . The main trunk of this 'railway runs from ■Karachi to Lahore, and.-thenee, to:Beshawar0., . The Khyher Pass is connected by rail to: Peshawar3 and thus transport facilil ties afe provided to the/remotest northwest corner., of the \ .'country .on Afghanistan border» Mother important branch con- ■ nects: the: federal capitai to Quetta, and Ghaman a and runs to %abldam ih .Iran territdryo -',. y : % ■, ;r': v. -A network of' branches g, which are most intense in Punjab s • connects the interior of. the country with the main trunk, thus providing quick and convenient transport throughout the The important rail link with India is that between

of' Economic Affairs., Basic facts about Pakistan eimaemt ..of Pakistan, 195GT7"p□ 20 = 102

Ealore and ismitsari siMe this ; llae'g especially-, that of passengers, has been restrict^ : : : v' East Pakistan' is served "by the East Bengal Railway whieh" has a route mileage of about 1 s62© miles 0 ., This rail­ way serves an area smaller- than that served by the Berth Westerxi Bailway9 but it has mueh greater density of popular tiena The railways of Pakistan ar© a .state enterprise' and so. the i t ; freight rate policy is based on the eons iderat ions of broader policy of providing facilities for industrial and. eommerelal deyelopmemt of; the eonhtry-o ■ Concessional, freight rates j, priorities s quick transport for perishable and fra»' gile commodities 9 and other privileges are offered by the . Fakistan railways<,. - - : Both- these railways' had to--face numerous problems and pass through many ylcissitudes - s,%o®. partitiong .and how they have progressed: - during the past three years is a 'story well

. ■ ; Worn-out Condition of Stock: The worn-out condition of rolling stock: was- Pakistan' s inheritance at the -fime ’of par^ titioiio During World War II the. railways in the two sones of Pakistan'werevsubiected; to very' heafy wear and teaf o - The government of the day found' it impossible 2 owing to the strain put upon its resources by; the conditions' prevailing . during wartime a ,to obtain adequate materials to carry out , and, - renewals o. The railways., were harrying . of troops and supplies; and8 eince the . ■ 103

produotIon machinery la other countzeies whieh eeuld have supplied the neeessary stores was geared to wartime pr-odue= :tion3 it was found impossible to replace- worn-out stock« iSnglhes and rolling stock, .which, had reached, the limitof its age 'were .pressed into service g while the, perm©.neat way was,subject to very heavy traffic0 Deterioration was par­ ticularly .severe on. the Eastern Bengal Railway during the Burma operations, where large numbers of troops and vast quantities of war. materials and equipment were moved by

local production of coal is., exceed- ingly small and is - unsuitable for 'locomotive purposes0 , India is unable to supply the full requirements8- .consequent­ ly arrangements have been made to import coal from, America and. the TJnited Kingdom0 . To reduce the eonsumption and'de- pendenceon eoal3 some of the coal-burning locomotives'have been-; ; .Improvement to'Train Se^vieest , Nevertheless „ la spite; of all the difficultie.s mentioned above ^ the trains kept run hing-o The I'orth -Western Railway: mad® a remarkable recovery. In Marchs 1948 only 74 passenger trains were running daily but by March 9 1949 the .ntmber :had -'risen t©; .191 per day. On the ;last Bengal- Railway'also there, has been considerable 1 augmentation: in train'services0-.-... ’’/■ ’ ' , ..; Taking both the Pakistan railways, the number of pas sen ger miles increased from 2s215$,502s 629 in 1948 (April to Movement' of Good.#: -; The :af©ffiagj© mimber of teoad^gange : wagons loaded daily during the period August 15 9 l % ? to - ,. IferoJa Jil 1948 on the 'North Western 'Railway was only 886 s whereas' for-, the 'year 1948^49 this figure rose to 1 $, 565 0 The number 'fwther- ihereased from:.!.$>565 in 1948-49 to, 1,968 in 1949”50 o The n@t<=>ton miles carried also increased from : ■ r n y :: '4 ' : . . ' ' ■■ 2 about 170 million in 1948-49 to 17? million in 1949"50o There was,a similar.proportionate improvement on the East BOngal Railwayo The statistics for this line are not avail”

: , While the railways hear the major portion of the bur­ den of long distance transport, the roads, play their part in

and in bringing/ oOtnitrysiie^heareh to more Important commer­ cial town So ' "-'f .4-.; . , ■ ■ 1.. ■' 4 ' , Road transport plays'r an- Important role in the e eonomy of Pakistan, partly, beoause railway transport is inadequate' and partly beeause it is through the network of-roads that the. railways ban be Gonnebte& with rural areas o Road 105

' : ; "fe^ansportg WBleli sappleiBeats the railway transport g1 is ' ; ; therefore essential for the eeonomic development of the eountry and for the ' ebaimereiaiimtion of agrieultureo Agri^ ; eulttar® is the hasie inanstry of/-the eenatryg a M so agri= • ©ultural products are the prinelpal articles of export aer~ , ©hanaiseo The railways cannot link every village^ and so. a very Important facility of transport is provided hy the vl; roads oi-r; ^ .■ ■■ ' ;; .. loads,.may he: olasgifled: as national, highways* pro» . yiacimi 'highways * and rnral roddsV/. The national .highway's .. are of national importance and connect one part of the eomi- try with anothero The proyineial highways, are the ti®in ar» ; teries. of road^ eosmtahlcation and connect important places of the provineeg with one anotheri they are maintained hy the provinceso. Bnral roads are of local importance and serve . the needs of’rural areas; and generally as feeders to the na« . f fional and, provineiai highways,p- ' . ' , ; The ..present position about the mileage of the various ■ types - of roads in ■Pakistan is shown in Table' Zo . • ■;:■ ■. The hafional-highways: of. Bakl'mtam. were subject to very . : ‘ heavy traff ic, on account of the movement of troops' and sup« ' plies, during the waro After partition these roads* especially in Western Pakistan* were subjected to further strain owing :- to the'mov©meat of millions of refugees who were -compelled to use'-primitive forms- of transport0 As a result of this* the national highways have suffered,,; greatly, in• respect of . their .surface eonditiono ROAD MLEAGB IN TMISnir

£[email protected] ailed Rrwisoi

: ' 2,694-: V 410 ' 12-88B3 .: '15,'

Wes4 RzoBtier ' : Proviso# i:»W3 * 120 1,899 3,122 S I M ' . ; ' ' : ' y :: ' 5W. , .160 11 fl 648 12,405 BalueMstaa' ■ . : 586', 637 •' 3,453 4,676 ;Iast Pakistaa , 594 . ' 1,028 . 20,17-2 21 Total Pakistan. . , 5,574 2,355 50,055 57,

. : . Tlie existing road system is altogether inadequate eon= sidering the requirements of the country. There are large parts of the country irRich are practically inaccessible be= cause they are not connected with the rest of the country roads or by railways 0 , Draught animals are the, main source of transportation . in the rural arear a cart driven by bullocks or camels is generally .used for the purpose. The -number• of motor vehicles on the road in Pakistan' is insignificant,, as will be seem "from the-'following table-o: ■ \ . ' : . . 10?

' ; t&EES ZI :

1 Of ;M050E OT1GL1S, OH R O A D S 3- is 0 t DeeeMber 318 1949)

Lorries fi'OTlne© ■ a % and • or state Bases vans . Total

45 .12 $ 30 35 6,33$ ' ;::;; 1:9:447: :1.,07'5: 1 0 , Forth West fron- 1, 101 300 , 016 1,305 4,122 fast Bengal 1*742 149 623 1,603:.2,207 6,524 - 20- ; » - 64 . :..;i05' .407: s in d ; '' : . ■ ■; 5 ; 896 222 326 ' 852 : 7,593 ilstan: 163 32 . .■127 ; 391: ■ ^ 3,242:1^357 4,613 5,970 31,328

litles are important for'the eoo= noiaio and : Indagtrlal development of. any emmtry.o But the geography of Pakistanthe two.parts of whloh ar® uneon-= ■ nested by land, makes ezlste.nee: of w@ll=d@v©loped ports doubly laportant f or this: doantry,0 West /Pakistan is f or- tunat© in possessing the. port of .Karaohi with adequate fa- ellitles ;to■:me@t all.the immediate foreseeable requirements.

lo Three fears.of Pakistan, p,.89< . . ; - .. ■ 108 fiie. Tolmae of •braffle at this port 3aas teen steadily on the ln.erease£, as will be seen from the following figures ?

: . ■ ; : ■: , m s m SIX : ; ; 'vn;: • : ^ ' . ■ ' ,. V. :,, ' ; -Xi^oBfS .i® vlIXORXS AT-fHE .vBRieHX POHf1 :

. Imports ■ 'Ss:ports; ' Total Tear ■ '■ ‘ fin OOOWg .of. ' 1947-46 ' ' ' XsX56 : . 1 , 0 # ' 2,184 1948-49 ' ' 1^60^ . .,940: 2,543 1949-50 . 1,908' : ' 924 2,832

Xofts ;Hast Pakistan In the'past was en^ ' : , upon. Calcutta (Indian: port), and . earn©,..into ' existence ■ witliont pbsaessing adetnafe port facilities0 The port of;Chittagong has assumed great importance'sinee the birth of Pakistano. The full potentialities of this port were allowed to remain dormant in the interests of Galoutfa.o Tull development of this port is now a matter of vital ur­ gency for the economic life of last Pakistan0 To meet,the situation, the- government of Pakistan . g,ulckly drew mp. a short-term plan _ and started to implement . ito MeanWSilie: Messrso. Mer^ Bendel. Talt©n fPakistan) .Con­ sulting Engineers'were invited to draw up long-term plans for the development of. the port 0 If his firm is a combination

. . : lo . , Three.. Years, of Pakistan0 p 0 09» ; v'::; v;::: v. : \ . w

of three well=iaiO¥im. engineering firMs,- one of them being Swedish end two Britisho j The short-term' plan consisted of extending two out of four existing- jetties* extension and f econatf net ion of-existing two sheds«, addition of, a; separate jettjo The short»terra plan has increased the •capacity of the port from 500s000 to 750*000 tons 0 , The long-term plan dr aim. up by the eon suiting en.» gineers * which has been approved by the governments Is as • followsg :. • ■ av Construct ion .’of new. jetties {including one passes- gef . cum-llft 'jetty) b» Construction of. corresponding transit sheds 9 siding , and mrshaillng yards -7 ! - f ;’ ■ ' : cf- 'lightefage ^jetties. with sheds.’.and railway1 sidings . do Provision of eq.uipment such as heavy-lift cranes 9 mobile trucks s shunting locomotives * and so forth . @o Hoadsg lighting power a wafer s and.other■services „ : fo BiTer fraining works* and’ , go lew off ices for -fhe port and custom authorities * and a housing estate for the staff0 • With the ©oMpletion of this projects the port capacity will have increased to 3* 000 * 000 tons 0 ./ . The possibility of finding an 'alternative port has.also '.been receiving: attention» To relieve the burden on Ohitta- 'gong* port surveys of the rivers Barringhafta» ffieghna* and

lo Ministry of Industries„ Transport and Industry , {Karachi: '. Government- of.:BakiStan gn # $83» P « 10 o " . i m

Wusb & t were undertaken with a view to ■es'tabligling an-' amxii^ i&r5r port 0 - The surveys have revealed the possibility of haviag.a sheltered lighterage a M anchorage for deep sea vessels'o ; This scheme is in handb

'tfates

Internal waterways are another important means of trans­ port 3 especially ih'3hst Pakistan^ thongh so far full ad® 'Vantage has,not been .taken of those natural facilities for cheap transporto The-rIvors of East Pakistan are mostly served hy country eraft and barges which are extensively used for transporting jute9' but most of these rivers are,eminently , ;p«Ited for heavier. vessels, whleh can provide faster-s cheaper and safer transports' A,flotilla, has been purchased. by■ the East Bengal. Rallway which will be used mainly to collect jute from the interior of the country and bring it to Chittagong<, the main •port of' East,Pakistani . r ; - . y The two Pakistan zoness which are not geographically ■ contiguous»".'ar© connected by sea» In addition .to air. the. only other independent, means of transport between "East and West Pakistan is by sea along the Indian peninsula's:.'' Since :i part it ion,;, the , ports- of .Karachi and Chittagong^ which were formerly only ports of call, have been declared -also as ports ©f registryo ': ,. . There are two principal Pakistan shipping companies9 namely3 the Moharmnadi Steamship Companya and the last and West. Steamship Company o' • Country craft provide, not only short coastal transport faeilltleSp.- but a great rmany of . them' oof©f long' distaneei 0 Fon aefeloplng Pakistan•* s ship­ ping lad.tisfry9 saBy measweb- are under eonsideration which.. iuelude the oonstruotion 6f dry do©ks and increased port and storage, facilities0 p " ^

- • - - . Air Transport - '

Air transport has assumed great importance in modern times ands, with the impetus of wartime inventions» it is; still developing;:rapidly:o • For Pakistan if is particularly important because:of; .the limitations of surface communica­ tions and the;s©paration of the two parts of the country by the stretch of' a. land l/OQQ miles . wide 0 It has 9 therefore a. . major . comtn^ make'- la 'the f ields of national admin» \lstf at ion g :umif y,a and e conomy of the: country»' : '"i'./ ■ Civil aviation£,; though ;ia a nascent stage in Pakistan9 is attraeting due attention as ®, means of quick transport ; for bringing the far-extending, regions of the country closer At the,time of'partition in 1947a Orient Airways was the only airline, registered in Pakistan96 which then operated a . short services, Phis was evidently., not sufficient, for the country8S' need and soon a license was issued for. Pak Airways Both the airways have' since been extending 'the circle of their operation^ and in addition to internal lines they have been operating some services to neighboring countries0 With the,exception of the Karachi airportg there was '.at.- the time of partition a serious shortage of the aerodrome 112 eQ.til$im6nt la Pakistan0, Since then .the position has im» profeSo, Current plans paovlde for- the operational maiming of the f ollowing aerodromes to.' appropriate standards: .Karachi^ lahore9.Quetta» Hyderabad (Sind) and Multan in Western Pakistan" and GhittagongV Dacca? and Sjlhet in. 'Eastern Pakistan» In additions the air force aerodromes at Bawalpuidi and Peshawar:are available to civil airlinesa .' ■ '' ; Khraehi: airport:has, heen;.'f ittedv with the. modern high- - intensity; contact . runway's .lighting' system0 This Is the only airport - in the eastern countries.having this type of night lighting equipment hy means of which pilots are able to land safely in had weather = Besides3 Karachi9 being on' the trunk ■ air- routes of the: wbrld^ holds an- extremely important posi­ tion 0- It commands all the important'. routes- to the Middle and the Bar Bast o. ' ■ , ' - . Agreements g Booh after partition the government of Pakistan notified its adherence to. the Convent ion of Interna­ tional Civil Aylation and the International Air Services Transit Ag r e e m e n t O n .December 5:9' 'Wb?7s> Pakistan became, a • member of the International Civil Aviation Organisation which aims at worldwide.standardisation of civil aviation safety and operational, standards and practices0 Pakistan also be- . . came a member of the Commonwealth Air. Transport: Council Q

1 6 Pakistan (London: Thomas de■la Rue - and - Co«

@0 122.0; ' f ■■ ■ ■ : : If W;; V v " ; ' ' • The United StatesKfetherlands and franee ware in= ; formed in 1947 that the,air ■ agreement negotiated hefween their■ governments and the undivided government of India t?@re'.'aoeepted as blndln Pakistano Further agree» ments have been concluded and ted sinoe with ■Sweden ^ 0#y<= Iona Indias Australia 9 BorWaf9 the k the tJnited Kingdom3 and' Denmark«

t. ':.i' ’ ’ . Postal Services ■ ■

' In, mat ter g of .infernal postal, serf'iee 9: extensive facil­ ities are afforded, hy the Post and Telegraph Department of the government of Pakistan0 ■ Pakistan- is a member of the International' Postal IJmiom, and has postal' links with all the Countries' of; the world» International-airmail fa- are also provided, and internal airmail service is between important towns and between last and West Pakistan o' \ "

are both internal and external eonneetions which. link, important toms via the country with each other and ;also provide, connection with overseas countries 0 The total mile­ age of telegraph connections9,both.external and internals at the inception of Pakistan.was 20G3000o The total installed .eapaoitf .of t elephone exchanges In Pakistan . is 15»000 lines o A ■ winelesslink: Ms also,"been.: established between Karaehl and paedat,:; Pakistan has a dineot wireless link with london . .and. also-a omble linko Karachi a and. through Karaehl the whold eonntryg is eonne'eted with Hew-York on a difeet wlre= less telegzEph; oinonito;: .. : . Badio telephone f acilities with Hew York are available 1 via londbB.and; Berneo Direct radio telegraph circuits are working with Egypt and,Irans: and direct radio telephone links ' with london and Berne connect Pakistan with the whole of the Ewopean ^eontinento-v Ixtehsion of - these facilities to South American countries has recently been arranged0 CHAPTER ¥111

CURRENCY. AND BANKING

The part it ionplan' was announc ed on June 3 $> 1947 and August 13,9, 1947: was:-.the date fixed for this plan to take a '. practical shape in the formation of two separate Dominions j,, India and Pakistan» ' Since the entire work in connection with partition had to be completed by the middle of August9 it Mb' considered unwise:': at that time to 'force an immediate di­ vision of the monetary systemo The security press .of un- . divided: 'India for the printing of the paper eurr#mey was situated in the territory of the Indian Union» Thus after partition Pakistan was without a security press of her: own. So she had: to enter into’, temporary'arrangements-with the In­ dian Union with regard' to her currency. , .. These were embodied in the Pakistan Monetary System and Reserve Bank Order8 19479 of which the main .features in : ■ ■ '• ■ - ■' . ' ;.■■■ • ' : . ' , : . ' ■' 1 .. ■ • respectof Pakistan currency were as follows: - . ' . lo' The Reserve Bank of India would continue to be the

1.0 The Second Year (Karachif Pakistan Publications „ 1949)a po 144» , .. ' ' . Pakistan Builds a Sound Economy/’ Wealth. August 1950V po::7o ' . : u . . :i-v' " ■ ' 116

sole aot@» is suing authoz-ity in Pakistan till Jnne. 30s 19SS : and - ® India not eg F would ’© ontinue to be le gal t ender in. Pakistan till tbeno 1?3ae Be serve- Bank of India m y issue af <=> ten Apnil 19 1940 ^Pakistan notes’” {India note's overprinted with, the Government of Pa;kistaart)-o After June 30g 194ds however g the, Reserve' -Bank of India would . not issue any notes for Pakistana and the government of Pakistan had to make its own arrangements for issuing eurrenoy notes0 2 o - Soon after June 30.» 1948$, assets of a value eq.ua! to the Pakistan notes would b© transferred from the Issue Department of the Beserfe Bank of India to the government ©f Pakistano ; The government of Pakistan would aeeept ■’’India notes” at par until.; June-’3O9 1949 and assets of the value. ■ e%ual to suoh ’’India .notes” outstanding in Pakistan would he transferred from the Issue Department, to the government of

3 o As in the ease of. ourreney notes issued hy the R@= serve Bank of Indiav/tke rupee coins and subsidiary coins issued by the government 'of India would he legal tSnder in Pakistan at least for one year from the intrbduotion of the corresponding Pakistan .©oinso The Reserve Bank of India, after March 31& 1948 would put into circulation Pakistan coins as far as 'possible.9 and use India coins only to sup­ plement them .when they are in short supply0 After June 30g .1948 the government of Pakistan would be responsible for is­ suing coinso . ' ' But unhappy events that followed the partition compelled 11?

' Pakistan to retisa. t:kis\aa?sang©fflent and. to establish its own. monetary a?mtto3?lty;.©arlier0 ; It was subsequently' agreed that the leserre Bank of India would ©ease to operate in Pakistan after lame 30* 19W,p and that up - to that date it .would also eontlnne, to;, laanage the public debt and exchange control op~ orations: on behalf of PakistanQ In. aeeordanoe with these reTised'arrangementss the State Bank of Pakistan:was estab~ ' 11shed and It took over the central banking and currency ■ ■ "■ ■ ■: ■ v ■ - ■ i ■. . ■, anthor.ity of Pakistan from, July 1 s' 1948 o . India, notes g - that isr the bank notes' of the Be serve : ' Bank\o'f'' Imdi%'s' continued to be issued in Pakistan until ; March ^ 31s 194$v■ On April ls 19489 the issue of Pakistan itiseribed n6te@;-»-=that iss. india, notes, inscribed with the •words'^Government of Pakistan” in English and Wrdu— was , . commeticedo ' As from October ls 1948 the State Bank of Pakis= • tan began .issuing Pakistan notes of the denomination of Bs.o 1009 Rso lOy and tSo 5 of distinctive designso State " Batik of Pakistan Bs0 2 notes and. government of Pakistan one® rupee, notes -of new designs were Introduced from .March :1„

;■ ■' ' Prom October ly- 1948 India :notes.- ceased to be legal ' • tender la Pakistana --but fWllltleSfor the exchange of these*'

It Ministry of Economic 'Affairs9 Basic Pact's about Pakistan... (Karachi s Government of Pakistan9. I95^j P° ; . ..' 20 Ibido-v to 3?o : ' Y'?--? ' ;'■ : , :: 1949 ° The government of Pakistan was laa^es1 ft© obligation to ©sohange ;the. OBe^ftftpee not ©s'after September 309 I946y -when they eeased to :b@ legal.tendeft 0 hardship; to' the •holders In Pakistg ks these notes irea?e' ■I ■ • ■ ■ . JL1 ' changed with Pakistan notes up .to lammary 319 1949 o fhe State■Bank of Pakistan■possesses the sole right to■ issue bank notes' 1ft Pakistan0 Its note issue would be fully cohered by assets consisting Of gold 00in, gold bullion9 silres? bull ion 9: sterling securities 5 approved foreign, ez^ r/' rnp©® eoias and'rupee, securities0 Of the total Of the.assets of the Issue, Department of the Banks not" less than 30 per.cent■ shall eonsis* of gold,eoim9 gold' bullionv•sterling securities,'and.approved foreign:ezehange0 .She remainder of the assets''shall be. held in rupee- coins s rupee securities3 approved bills of exchange, and promissory a VI:/:' r ':,/ :^ . "V:, " ' ■■■■; / '■ l • : notes O: .. - .' '.' ■' •: ' : -' . " .. / . ... . : t Printing Press: Sis Excellency th© Governor of Pakistan:: laid the foundation stone of: the Security v ' ' .'/-. : ; ; ■ ' ' ; / 3 ' . ", . ' ■■ / . s': at Shraehi: ©n Wroh 119.1949o ' ' This was the first step it an agreement reached between the government of Pakistan and Messrs 0 Thomas de la Pu© and Company3 Ltd0, for' the Setting' up of e

lo ■' £» P° Za Ministry of: .Economic Affairs, eit o. .. Do 380 TABLE XXII FAKISTM $ & tni

H©t@s held la. lotes Xb Baakiag 0@ggat-= meat ©f the . State Bank

759s85?: ; 0 / 59,300 1,^63,460 1,397*600 ; 65,860 ' 14779,280 38,275 ■ £ :98X&,2p6y I #62,915 96,291 ; 1,700,551 1,659,556 #,995 1,6#0,191 : .1,633', 007 ■47,184 789/546 1,745,563 •43,-983 1,843^ 67?; 1,780,597 63,080

^The f igaaes tip t© Ian® ,; 1949 aslw of ■ladla' notes do not repaeseat the- total la elr©ulatloa in Pakls= taho ladia SLbtes t© the of afeout 1,750 million were . withdrawn from elrealatloh the end of lime, 1949 c : #100 = Hso 332 1/2; A

print s.eenrity. doeuments snch as eurrenoy notes, .•The"Companr has undertaken to the neeessary maehinery and equipment for intaglio: printing Of the latest designo Technical arrangements to hi s' will ensure that the -produets of the faotory are equal and seenrity to those of any other 120

The teehhieal .experts-, required will Initially be made ' available by the Company9 but it will take Immediate steps to train nationals of Pakistan for oecupying positions of responsibility In .the eorporation'o ; The ehairman of the eor»; 'poratlqn will be appointed by the government« . Cwreney Polloy: . /The,, ehrrehey policy of the ■ govern^ sent is1 not linked with either gold or. silver» . It has only one ob5eet-:-andi::thatL.lhiSO 'enstir©:, orderly trad©8 both ,. , internal:and externals and stable' eoMif ions of . employment :at a high level in the eoimtry0 Within the ©otintry the State ■ Bank Of PakSstM Is responsible for ensuring that sound or edit conditions ’are: maintained 0 Production and employment - are encouraged or discouraged by the credit-policies adopted by the bankss and it.is in this field that a central bank has to .play its most: important rele;o . ■ . ’ The’ batik has. no spectacular achievements to describe and. record-o ’ It is yet an inf ant v struggling to take its . . . place in the scheme of lif@0 . IVhatever has been achieved so; far' is in ad way small.' but what remains:' to be’.achieved is; still big0. The; ground3 however s has been prepared; the foundation: has been laid;-, some structure has been ."built; . Btlll .much remains to be doneo. ; 1 - hot' to Devalue: I n September, 1949

' ' !<> Pakistan (Londonr Thomas 'd@. la Hue and Go0 5 19491 po 54a’x:!’''"'! ;,; . ' ’-I'V’ ’ ' . ' - , •; ' States' SdHa^s to 2cSO'dollarsc India defalued its rapse V to a similai" estent:P ' The 'old. exchange rate was 13,02 rupees to the English pomd and 302 rupees to, the United States dollar o ' But Pakistan g taking' her eeonomie conditions as a, whole in TieWs, did hot • devalue her ewreh©y0 Thus g whereas the .Fakis t an .'rupee .retained its old dollar valuation f 3<,2 rupees t© the dollar) s its, new exehange rate was 9=26 Pakistan rupees to the pound, (as against 13 o 2 rupees to the Snglish pound at the old exohang© rate) 0 „ . ' ' Pakistan’s. decision not to devalue was ■ explained in a,. hroadeast hy'the governor of the State Bankb'. ■ , ; . . Pakistan is - a predominantly agricultural, n @omtrys and is in need of Industrialization^ ,, Devaluation would have placed the hard-=>eurreney v, area beyond its reaehs, whieh is a cheap and r eady s our a# of c apit al goods <,1 ' ' Pakistan heimg an importer .of consumer goodss it was antici^ pated that the new rate of exchange would reduce the cost of imported goods {both consumer goods and capital goods)8 and consequently bring.ahout a fall In the cost of living of■ ::thh :peoplea.; . .. : l''- : ; 'g ' ' . : ' :, Regulations: . The government of .stan has - .’all facilities for obtaining

lb Broadcast from Karachi on 22f 19491 in Richard Symonds9 The Making of Pakistan (London; and, Paher g ■ 1949) a p o : 114 o. . ', ^ 2.o’ - I: of Eeonomie Af» B Investment CtOV= meat-of■Pakistan, p o 43 .122

foreign exehange0 Under the Foreign Exchange Regulation Act8 19473 611'dealings in foreign exchange are subject to regulation,;and they ean be earried' out: through hanks, author~ ized to deal in foreigaexehangeo . The general praetiee under,the. present set-up of exchange control is to supply foreign ourreaey or rupees to aoa^resideafs permitted for, approved current traasaotionso ; ,. As laid;doma in th© statement of industrial policy9 the government of Pakistan provides facilities for the;'remit-,1 tanee of profits, to countries from whieh capital is drawno ^ who are temporarily resident in Pakistan t© make remittances to their own.eountries.for payment, of ■ insurance premiums or other' expensess support of families^ ©duoation'of children 8 and the like 0 ; ' Paymehts' in respect of. imports from outside Pakistan , are', freely allowed 9 provided ■ the goods have' been imported .after 'obtaining 'an' import lieenge wherever neeessaryo

, Th© Money ferketi,. The money market in Pakistan areas before part it ion- consisted of the: indigenous, moneylenders and bankers9 the cooperative banks s other joint stock banks run on modern lines» and the Reserve Bank: of Indiao As a result of the exchange of population8 the money market.of Pakistan was completely dislocated0 The indig­ enous money lenders .and bankers $, who were mostly non- Muslimss, left, the country en masseo They supplied credit 123 facilities to tile people in rural areas 0 Tley eliarged ex«=> ©rbltant rates5, jet they proirided a useful ser¥iee0 ■ Their exodus left a complete void in the credit structure of the eoimtrysid®.o The staff of the hanks run on Modern lines also con­ sisted Mostly of non-Muslims j, whose sudden departure from Pakistan resulted more or. less in the complete breakdown of •the banking services.for some time0 The.partition thus resulted in widespread'chaos in the banking system of the country0 SeferaX banks, which were operating 'in Pakistan before" partition either closed their business or curtailed it considerablyo. In pre-partition days there were 22 scheduled banks with 229 branches in Punjab and Worth West frontier Province^ ' There were only two; banks functioning with a total of setren branches in all " • . . 1 ' ' , . after partitiono : • : The Central Bank: It was under these circumstances that the State Bank of Pakistans which is a central bank g was, established oa- July 1 s 194Bo Unlike some of the other central banks 9, howerer 9 the State Bank is not controlled by a few private individual shareholders0 It is a bankers” bankj, banker to the central and provincial governments s and also a shareholders8 bahko Every scheduled bank has to maintain a balance, with the State Banks the amount of which

lo • Ministry.of loonomle iffairs g Basic Pacts about Pakistan a. p0 , 34c. .. ■ 1. shall not at the close of business on any day be less than ■ 5 P©3?' cent of their demand liabilities ahd 2 per cent of their time liabilities 0, , , ®he State Bank controls and regulates the currency9 ,credit9 and foreign exchange of Pakistan» It; discounts paper and enters -Into„the,market for purchase and sale of securities o Howevers,It does not engage In trade nor influ­ ence directly any of the commercial and industrial undertak­ ings o The bank also'manages the Gleaning Houses at Karachi8.' Dacca s, and Lahore on behalf of the clearing bankers 0 Mention should also be made of the training scheme launched by the State Bank with a view to meeting the shor­ tage of trained personnel which the banking organization felt immediately after partition as a result, of large-scale mi­ gration to India of non-Muslims who dominated the whole bank­ ing system^ To overcome the. acute shortage Of technical per­ sonnel 5, special arrangements have been made for the .training of Pakistan nationalsin banking in Pakistan and abroad with the leading banks» v Expansion in Banking System: The position of the bank­ ing system had materially improved and the number of offices of scheduled banks had increased to 22$ at the end of July^ 1 ■ , " • • ' . / 1949c The improvement was mainly on account of theestab- . lishmeht of the State BankP and the, stable and sound

I*. . Ministry of le.ondmio Affairs, Basic Pacts about Pakistan0 p0 35o . . v 125 f5.nan.6iai position of the countpyo ; The offlees of sched.uled banks in.varioHS pro^inees at tU® . ena of April 9 195P : are sHown; in the following table*

' ' : TAB&E %IY Vv; ; . , - '' ' DISTRIBUTION OF 0F1IGBS OF SGHEDU1ED■ BAMCS :

Number c Piovinee ©ifless

last Pakistan •82

Pwi'jab 55 Kanaehi 25 12 Month ..West Frontier - 9

Baittehistan:, . .. 5 '5

Industrial Finance Cog nor at ions To proride' medium and long-term credit to'industrial eoneerns3 which is not■ordi= nafily aTailable frosa. commercial 'banks 3 the government has ■ set up #n Industrial' Finance Corpora!lop.- with an authorized share l:of RSo 30 million9 of which 51 per eent has ■ : V.-' ' . ' 1 h \ . ;.i 1 ■. n . ; ' 'r' ■■ ; ■ , been ' suhscribad by the government»

I* ■■Thr.es 'Tears of Pakistan : G-ov@rnment of Pakistan9 1950)^ ppo 31^32° ' Befttgee Reiia-bllltatlorn Finance Oogporation; Some seven million refugees uprooted from.houses in India came to Pakistan Immediately after partition of the subcontinent :fo provide. credit to enable them to take, to some vocation ■ and' thus earn their livings, the central government estab­ lished. Baklstaa Refugee.Rehabilitat ion Finance Corporation0 fhis Gofpdration is finineed: entirely .bf the State b; / .Rational B a ^ of, FaMstaat; ■ il's the existing, banking facilities were not ade

" Xq ^Pakistan Stabilizes her Banking Set=upa Wealtha , August .1950> pp-o lg-19o . ■’ - _• , ; v: Ministry of Seonomic Affairss Ihvestment Op port uni ties ■ jg. .Pakistan^. pb bit,■. . 12?

provision of 0red.lt to the agrieultmristso As the ’banks are goireriim.ent eontrolled anS not SepenSent so muoM'on prl« vate enterprise as the other Joint stoek banks9, the govern® ’ Ment tried1to fix up the gap as•far as possible by inereas- ' lag the field of activity of the eooper-ative bankso ■; - GH&PTSR IX

; IMBHi-TIomL TEADE

‘ 1: ’ " : ■ lyporfrs^' i ' '

fhe eseports of Fakistazi mainly eoEsist of raw j#e, ©otton9 woo2.s hMee-and skins» and food "grains 6 fh© eea= iaorn© -exports including. •rs'^s.xpoftSl during; 1948-49 and 1949“ 50 w@fe: valued at Rs0 91 «7 million and Rs 0 84 o 8 million 9 . . 1 ' • ' " . ■■■ ■■ ' "■■ ■ respectively^ These figures do not include exports to India hy land.routes s whieh are considerable 0 , Jut eg This is the principal export of. Pakistan 0 .An­ nual average production of jute is about six million bales, of 400 pounds eaeh0 But there is not-a single jute mill in the -country,. .so the entire crop is exported0 By far the greater part of it is sent to India9 and the balance to the rest of the world\ - . . Pakistan es ability to export jute, directly " to countries

1. ilQO . as, 332 1/2 : 2o : 'Ministry of loohomi©. Af f a i r s Basic Facts. about :. Pakistan .'(Karachi g .G-overnment of - Bahistahj, 19507TTP <> 24* : 3o Ministry of Icohomie Affairs <, Investment Opportuni- ties in Pakistan (Karachi g Gotrernment of Pakistan8"195GT7=~“' ,:p;0/5.o”?“" ' ' • 5 ' : ' ‘ " ' ' ' ' other -tbam Im&la is limited hy two factors s namelyg the hal- ing oapacity of the . |y„te./.presses in Pakistans which is not very iarg@i; and the handling capacity of the Eastern Pakis­ tan port of Chittagong9 which has yet to he developedo fhis explains why the htilk of Pakistanis jute product ion is ex­ ported to Indiao ,. The total'"value'. of" exports of jute during 1919^50 was: Is! .518^ $00^000 of which jute worth Bs0 220 9 800,000 ; 'I.- .: \ . : ■; i: ■ \' y : v ' . '..;: ;. "exported to. I n d i a ^ , '/ v ' '/ ■ to 'jut e, ' eotton is. the most, important com- expofted' from Pakistan« ' its pr©duetion Is©onf ined ', mainly to; Western' Pakistah0-•The annual production is/ about one'and a half million bales of 400 poundseach9 the great- . er part' of whieh: oonsist s', of; long staple. Amerloan - varieties / varying in lehgth from 7/8 to 27/32 inch0 As there are. very , few - ©otton'textile mills in Pakistana the consumption of cot- . ton in the country is very smallThe bulk of the crop is available for exportQ ' ■' ■ Pakistanis exports.of eotton during the year. 1949=59 totalled 8009363 bales which in terms of value amounted to ;■ ' ; 3 ■ ■ ■. ': ■- - . ■ ■ i ;'- . -:' RSb ;355^000»000b . The main customers were Eranoeg Japan9 the United Kingd©m9 Germanyg Poland9 and Italy0-

; lo Three Years of Pakistan (Eai^aehi? Pakistan Publioa= tiona g. I950:)y P<> 37 c, ' ■ . . ; . • * - So Ministry of Economic Affairss Investment ties :ln Pakisfanw- po ..130

. Wool: Pakistan prbStiees -2k Mlllen pounds of raw As ■ the Ipeal. oonswptiop; Is' noSligl^1®» the entire quantity■is exported» Of raw wool shipped to overseas eotm^ tries during the•year.1949-50 the total amounted to Rg0 - 31g 600 9 000 o The United Kingdom - and the United.States were the:principal customers0 The United States^ which was, Pakis­ tanis biggest oustomer of raw wool in.1948”49 (12o? .million . 'pounds) redueed,its off-take to 9o2 million pounds0 ; The United. Kihgdom. he dame'Pakistanis higgest buyer, taking - about 12o6 million .pounds as against 8o4 million pounds in the preeedins'yearo . Pakistan's other customers of raw wool '

lear Tea is an important article of export from lust Paklstano :: Pakistanis annual output of tea-has. been esti» mated at '45 million :pounds a .About: ■ 70- per eent of this quan­ tity. is exported every■„yearo The total shipment of tea was ' 53 million pounds valued at :Bsd 79:930U3<)go: in 1947-48.it to. 26^5.million pounds in 1948«49; the ■ inoreased hy ,;heyeii..'.siilliW p< ':.33o3: 3...... valued: at .'Hsi, 493IGOVUGO«

of a in. .FU Po' 7o 2o ;'iool, eit

' >6 ' Three., Tears ' o f in9 po 380 ■Pakistanis - tea industry faced collapse tfter partition0 Thes?© was iri3?tual. break^doim qT tlie maeiiinery for; finaneing tii@ tea 'tya&#cam&, marketing it0 ■ Partition also involved a •ape@&«*mp . ia jute exports from Ckitta.gong0 The ©Sport season; for jute and tea': eoineide and Chittagoug port was suddenly oalled upom to eiear;the'major.port ion of'the stocks.going I. ahroad.o The result was'congestion and' encroachment by jut e ■ :en storage facilities, n'.■:■■: - v' . : v'-.'-.^SIore-.thah 90 per cent of Pakistan’s tea findsits mar® ket in the United Kingdomo. Egypt?■Canada, Burma9 and the United States are some of the other'customers of Pakistan8s

:'■ :; ' r ■ Sides, and, Skins? The annual production of hides is estimated, at Sgl^SgWO piece's and-that of skins .at ?5,56'4 9000 : ■; ' ■■ ■. ' ' - - - 1 pieces and that of fur and fancy skins at 1 ,9039000 pieces0 Thus:Pakistan produces large quantities of raw hides and skinsv Pakistan8s chief huyess of hides and skins in 1949». ‘50 were .the United States (Rso 79 400,000), Italy (Hs0 - . 4 S500,0001 s Germany' (Iso- 4,000„000), a^d the United Kingdom

(EB o 3 s6 0 0 s0 0 0 ) o " ■ ' The total value 'of exports to principal countries for the years 1948=4 9 .and 1949^50 is as follows %

lo Ministry of Economic Affairs, Investment ties in Pakistan g p 0 12o . . • 2* Three Year© of Pakistan, pp0 39-40o 132

- fABEB XT . ' . - \ TALUS OF SEA-BORNE EXPORTS1 TO PRINCIPAL COUNTRIES

1948-49 1949-50 ComitrT ' . , (Ib millioBS o f Rs 0) United Kingdem . . ;■ R ' . 148 172 \ India .216 77 United States 88 61 fiengkmg 24 , 5 8 Japan A ..... 'A.' : " : ' / - : U '/ -} - 58 \ Russia 44. ■ 45 [email protected] 31 34 Italy. . 32 . • 30 Belgium f 50 24 CzedkosloTakia A 1 : :: A';" ' -Ai I?: ' 13

The principal imports of Pakistan are e^tton and yarn manufactures g macliineryg vehicles 9 oils s eoal9 sugar» ehea- leal® and drugs o : ' A; The sea-borne imports of foreign merchandise during 1948=49 and 1949-50 amounte.d to Rs0 109.4 million and 11104

lo . Three Tears ;of Pakistan9 pp. 39=40< , ' ' V ■■ . . ■ 133 .

' ' ' ' ■■■■ ' ■ ■ 1 . ■' . ' ' ; ^ Sillloa» respeativelyo These figures,

14940O9O00), . / : . The total yalue: of imports from the principal suppliers "Of Fahistah' is giyenlin Table 135o . . -.i ' \ :

■ Direction of $#a«Sorne Trade ■ .

During 1949-50 the Dnited Kingdom was the principal buyer ©f Pakistan merchandise9 and her purchases aggregated about 22 per cent of the total .exports by s ea n Other imp or= tant importing countries -are. India 9 Prance 9: the United States s Hongkonglapan9 and Russia^ ; . . ." ■ J '

lo Ministry of Economic Affairs9 Basic Pacts about ■ Pakistani p’o 22 0 : ■ • ' . 3.34

YA im OF S1A«B0RKE HWORTS1 OF FOREIGN MEROHMDISE

. .. '194.9-5© , Merehandise (In millions of Es0)

Oottoia pieee goods 26 o 9 25.7 Gottorn yarn and twist 11 o 3 16.4 and M i l work 5.7 8.3

'4 . 7 ' 5.2 3.4 L 4.5 ; 2oS x 4.0

Drags and medicines 4 . 2 2.4

Provisions and oilman5s stores 2 . 1 ' . 3.4' lo'baoco mnaf aetuges 2.7 3.0

Instraments and apparatus. 2.1 ' . 2.0

... 0.8 1.3

Ihree Tears of Pakistan, 155

M L S x m TAI.tiE OS SEA-BOHFE FRO®‘PRINCIPAL OOIMTRlES

194.S-49 1949-50 millloms of Rso)

Smite#: 348

449 : iao 94 .Italy, ' ' ■’ ■,82 O M a a 54 Setlierlands 13 27 Russia 16 25

Surlmg 1949-50' the Smite# Elmg#om,was also the chief country am# claims about; 310 2 per .cemt of Pakls=. ' Other important exporting eomrbrles' the Shite# States 9 Sapan8‘ Italy"-;, an# China 0 :■ The percentage share of various countries is given in Table 'TttZlo . . :

1 o' Three Tears of Pakistan^ p0 40 => 136

v ;; T i s m m u ;v:::'-.. A ;■ ' ; . DIRECTION OF SM-BORHE TRADE AND ' „ PERCENTAGE SHARE OF VARIOUS COWR I E S 1 A p M l .1, 1949-March 31, 1950

share ■ Country United Kingdom 22 o 23 United Kingdom 3Io21

lOoOl India 15=27. ,73 .United States 10 o 75 8 o 44 Hongkong, 7=40 86 China ■_ „ 4 o 83 Russia. Netherlands . 2o41 4 o 44 Egypt 2.30 ■Burma , 2.14 Other eomtries Other eotmtries 100o00 100.00

4 1. ; -Mnistry of Economic Affairs, Basie Faeta about Pakistan, p. 26. ' ; ... v:' ' ;v;'- ^ / ' • y:'.":;:

Dm?lag the'thae© yeara"of its 'existeno® as an indepen^ dent stateV Pakistan, has finally set at rest doubts '-ex­ pressed in some g.uartsys. as to its. eeonomie stability« The predictions .of financial ^experts” before the birth of 3?akis= tan proTed astonishingly;inaccurateo , ' The escperts forecasted that Pakistan would .hot he able to. stand on-its : own legs Vand meet the expenses, required to fun the.new: Efiatethat it would.not have enough foreign ex» change: and would .have to face a serious unfavorable balance of trade; that Pakistan currency would not command confidence; and that there was no capital in Pakistan and the government would not be able to borrow funds to carry out any develop- ment schemeso Actually^:the,reverse of the above'prediotions proved correct: f -The wfalse' prophets'® overlooked certain Important ' facts o: The 'first .was that .Pakistan would be sur.pius in food !.and:wduld not require foreign exchange for food .purchases abroad to feed her population,: The■next was that while in­ dustry was located in the Indian "Oniong the major portion of ■ the raw material -for ■ industry (not ably jut e s e otton, hides . and skins) would be located in the new state of Pakistan= S’a.kistSBg it is true^ was faced with problems unique in - 'the history:of a new 1 state caused by the greatest migration ever known, ■ with disruption of trade 9 industryp cozam.ere@5, finances, .eomBmnieatipns9 and the entire economic life of the ^ '.©otmtryo' These difficulties might, well have■■ overwhelmed any V :well=estai?lished stat©" Pakistan at that time was in the . process of establishing a central government» : ; . : The presentation of' surplus 'budgets shows that Pakistan has been ■ invulnerable fingLneially0' . These budgets have been presented in successions, with smbstantial provisions for ' ’agricultural and . industrial developments0 . ..; - The first'budget'of the central government (l%8-49) came as a surprise:and disillusioned many who.had' anticipated a serious: deficito It was surplus budget with revenue and ‘ . expenditure of RSt, 9 560 4 million and Rs 0 952 o 1 million „ re= . : ' ' . 1 • ' . : ' ; ' ' : V . ■ "■' . ' . ’ : : speetivelyo . When this budgetary surplus is;viewed against; the background ,of the heavy burden of defense 9'loss on the working of strategic.railways 9 the. mass migration of popular.. , tion to Pakistan, and the.all-around'abnormal conditions prevaient'g. y£t';beedmeh; ;;a' great ■ a.ehieves^ent 0.; ; • . The third budget of Pakistan revealed a careful handling of Pakistan8s1 economic: resources and a sound financial posi- " : . tiojio The budget for 1958m5l . .revealed a continuous growth

■I.0 Ministry of Economic Affairs ^ Basic Pacts about Pakistan .(Karachis Gov©rnment of Pakistan,, 193o!T^p0 32o: 139

of' rewemtae as well as expen<m’eo The public revenue has b e W s.te;adil.j gfowing fyoa ^ean./to yeaf» In 1947-48 (seven ; and:a" half months) it stood at Rs0 42?o9 million and in ' 1948“49 at Hso 95604 million9 while in 1949-50. it was Hs0 1 9113o8 milliono It 195G"51 it has been estimated at ESo 'lVl56o4"milliorio' On the othen siae.s the .expenditures also shoir a marked and eontinuous inorehse» ■ In: 1947-48 1 seven and. a half months) this figure stood at Esi '.662 .Mllion9 , In 1948==49 at Es0 ,: 952'.l' million, in 1949~30 at Bs0 1 g 1360 5 million9 and in iggO^Sl it has been.estimated at Eso'lgl56o4'million0 The. chief sources .of revenue and heads of expenditure in the hudget are shown in Table'XlZ0 , . . -

’r' ; f v ■ . Pttblie. Debt .

' . :$n'fosden.:ib find the fmds. tieeessary for- the financing Of various development sehemes9; the eentral government de» eided-to raise int.eraal loans o The deeision t© raise the first .loan was taken soon after Ihe partition, at a time when the government was beset with' numerous difficulties, of gi­ gantic magnitude which would have dissuaded even older gov­ ernments from risking the hazards . of .going to. .the 'money mar-- ket for. a ioano But so great ..has always been the; faith of .the nation ih the eeonomie soundness and future prosperity . of Pakistan that the first loan was over-subseribed in a #eW hourso Response to subsequent loans has been a©' less 140

TABLE XIX 1 PRIKOIPAL HEADS OF HEVEMJE AID E X P m i T D B E : , (la millions■ of rupees).

194B-49 1949-50 1950-51 (revised.) Mdget /CmOHSrOTEHDE PrinGipal heads of 'rewAtie s- 1. Gust ©as 7 ' ■■■ 7 J • 4"': ■ 275.0 347.5 315.0 2. Central excise• v •. . 52.0 .■ 57.5 62.0 3. Income and corporation taxes 65.0 90.0 95 = 0 4. Sales tax : :.o "i:-t-v ■, ■ ;4 . 35.0 .60.0: 60.0 5 =.Salt ■ : ' ■ ■■. 33.0 \ 25.0 • 26.0 6. Land revenue, stamps , - 3,8 .- 4.7 4.7 7. .provincial excise y'i' 4 ’ 3.5 5.0 4=9 8. Other taxes and duties7: ; 2 . 7 6,2 - Total . : V- 470.0 595.5 573.8 Hailways.g■ postg. and telegraphs,.. 376.5 413*5 424*4 Othef;' hWads ' \ . 109*9 129o8 138.2 Hew tazatioa proposals 1 ... , , . 20.0 . TOTAL GROSS BEVEHHE ' 956.4 1.138.8 1.156=4

GROSS EXEEHDITDRE 402.8 509.0 500.0 lailwaysg posts9 and telegraphs 368.9 384.0 383.4 Other expenditures ; ■ ■ ' I" - - . 180.4 : TOTAL GROSS EXPEHDITURES : \ 952.1 lgl36:o5'. 1,155.4

Ministry of Eoonomio Affairs.. Basic Facts about p. 320 ■■. .'7 ' .7' 7 7 '■ : . ■ ■' - ‘v . ' 141 encouraging and en*birasiastie0 In this way the government of .Pakistan has so .far raised, internal loans to the extent - ' ' ' ■ - 1 ■■ . of Bs o .705-o 7 milliono

1.0 : Ministry of Seonomio Affairs s Pakistan Bevelopment Schemas (Karachi? Government of Pakistana 1950)s p0 30' BIBLIOGRAPHY

Sou^.e^s, Cited.

B z o w s logman W 0 s. India, Pakistan,' Hew York; Coras11 UniFersity Press g 1953.o Department of Publications and Foreign Publieitys This Land of Pakistan0 Eara©hi; Government of Pakistan^ 19451 Plans for Pakistan0' Washington, D0C0; Embassy bam, 194-9 o All „ Speeches b^ Li a gnat. All Khan 0 .Cambridge;

of Cojomero®, Samrflary of .Sea-Borne foreign Trade of ■ Pakistan 0 KarachTF^Goiernment of PaEistan, 1948-49

Ministry of Economic Affairs« Karachi; Government■of Pakis^ ' : " tan<, ' ' . ./ ' ; ; •: - . - Pakistan* 1950o investment Oppprtnnitres in Pakistan 0 19500 ' ffa^s^tan^DeTel'opment Schemes, 1950,o Ministry of - Indmstrieso Karachi; Government. of Pakistan6 Industry in Pakistan * 1950o . y y Mining Indnstry^In- Pakistan * 1950o ' ■ Pakistan Industry* 1949o' . ' . Transport and Indnstry* 1950c y de la Rue and Co0, Ltdo, 1949o Pakistan - The Struggle of Hationo Washington, D^G6; Embassy ^ ' Of: Pakistan, 1949o Richard, The of Pakistan^ London; Jahey and i’aher, 1949-0 The first Yeag* Karachi; Government of Pakistan„ 19480 . The Second Year0 Karachi; Government of Pakistan, 1949° Three Years of Pakistan0 Karachi;. Government of Pakistan, m

Atagmst 1950o *: ' ^PaJsistaa., Builds a SoBnd leonoffly0 ® ■ ^PaJsistaa 'Stabilizes her Banking Sei~up0 s?

Sourees: f oimd, ITseful hat not Cited

Ahmed 0 MpRo 0 Pakistan: An leonoiaie Propositlono Allahabad 9 India: 'Whrn, WadA.194^o Alig .Hamids "Projected Industrial Development of Pakistan/? ■ The .Asiatic Ee¥iew<, July 1950<, ho 1031° . Andrngg, .JoEo and Others9 ’’State and Private Enterprise in .Pakistan;, ” 'Par Eastern SnrlreyApril 1951$, Po 61» • Bar ton, Williamy ’’The Burghley Mi s s ion Rep or t „ ”' Eastern World, November 19501 po -35* ■ ' ' ■ Browne8 GoAP9 "Five, Year Industrial Development Program Pro= ' ' eeeding in' Pakistan^” Foreign Trade,, January 1A8 19509 . • ' Po ,lAo V ' ■ : • : .. / ^ Ohhihber 8 Ho Bo s Advanc ed‘;' 'He onomi © Geography of India and . Fakistank ,Ghowk:Bemares 8 Indiat :Nand Kishor© & Bros„? : ' : 1949k : k. ; : ; GroWg Bog. ’’Seonomy of Pakistan9 # The Asiat jo Review, Janmry . ' ::19469 Po ?2o ; , : ; ;v ; ' Deans f oM, a. ’’Pakistan Strives to Bmlld Modern leonomyi,66 ■ : Foreign Policy. Bulletin, Oetober'27g 1950g:po 2o ’’leonosde Tiability of) Pakistan9W World Today, March 1949» - p0 i23o ■■ - • ■ a .. ■: Indian and'Pakistan Yearbook, 1949 o 'Bombay: Times of India

Ghosehg B 0B». a Indian, Jecmo&lQS and Pakistani Eeondmieso. . Galoutta:'~A^n0Ekher3®F%^r6s'1949^' '' ' ' •' Griff iths'£, Pereivalg ' nConditions :in: India and Pakistan Today 8 ” ' The Asiatie- Revienf,) April 1950k to 957o ■ ’ ' - Hyder n- So, Progress of Pakistan^ Pahore„ Pakistan:- Lion ' ■■ Preasy , 19500 - % /;k A_ A- -4: ; ’’India’s Rough Economic Road,” Business Week,. August "23s 1947*' ' p° 86k ■... ' , : . ■■. : a ;; 144

'^ladustyiai Policy in:Paklstan$ ■Labour Review, August -1940p o 211 „ .Islam '4: fbe Religion of Peace* , Washington.p B0Co: Washington MosQti© Somiaatioiis 2aeC9 194&^ \ - : - . . ; ’ Zlhaay Po¥o -aad Arshad, Ao 0 West Pakistan in fe-ps and Statisticso Xahores Perossoas;, 1949o ■ McGhee, G0G0 s,;^leonosie Outlook la India and Pakistan/? The United States .State' S'epartment Bulletin, October 30,

Ministry of Inimstrieso' Karachi s .Goveraraent of Pakistan c A Budget of Power Resources0 , . . A Budget of Resources ani RftCuirements of.Technical Personnel a ■■ - . se ■to.;.Industryo- A Pnel _ Import a M ;Rxnort Policy in'Relation to me] -— ■ - ^0teetT5nT~ ^ . . . Eress' of Prime Minister B and of 1.6' of Indus= ; ■ tries , MimmtaB of the Advisory Oommifte®- Meetings and Other

JMgS§£EL° : r : : ' . ': -'■ ■ : . ... . Pakistan and Industry 0 / >.., , . . ' ■ ^Pakistan Bids for industry,W: Business Week, April. 17V 1948; ' ■ Vo. 122° ,. 14,',. .''■., ’■ - ■:'■" : . • ■: ■> ’’Pakistan” s 1 Economic i- Balt e d Sat ions . Bullet in < '. liar eh. lf9-' 1943 9, p< Fithwalla, MoBo w .Introduction.; to Pakistan,, London? Arthur

Ad,, ’’Economic Basis Of Pakistan/8 The Asiatic Review .p o l6G o ■' ?, of Industrial Eield 9 n The Pakistan Hews 0 Hoveaber 26 9

1950, p. 643, . Shaff id,:Lo, ®Birth of an Economy, * The.-United Hat ions World, ~ ‘ 1950V P, 50, : : ~ /: ' : . ■Sherwmnij, LoAos toBaSIs of Economic in Pakistan, }? Pacific Affairs, December.1949, bo 3610 145

Spates 0oH9Ko s ^a^tieion of India and1the Prospects of / Pakl stan (. ^ G-eo^raplilo Review, J an nary. 1948 9 p0 5 o Swaainatliatij ToSo j, ''Pakistan Problems and Pr-os.peotsf. The ..lllddl© East lournaln October 1950n no 447. ' : Vakil g CoSo 8 Beonomie Gonsegtiences of Divided India 0:.- , • Londons H E a n ’^Ed 6o0;> Ltd* a 1950 o ' " Waugh$, A c 9 '®India and Pakistans Economic Bffeots of Parti- : tionq n The Asiatlo R@vlew. April 1948. Po 113° l i f e of M o m m m D a l i Jim&E, THE FOWD1H OF PiKISTil

ini every day, Pakistafi semembeps Q,uid»i»A2am {tLe great leader) 9..Mohammad All Finnaho Few men in history have created and founded a state "by peaceful agitationj he took an Inchoate mass and moulded a natioiio . Mohammad All Jlanah {1876=1943) was born in Karachi of a wealthymerchant family, ' At, the age of sixteen he went to England.where he qualified as a barrister of Lincoln’s Inn, . On his. ref urn s he earned an Immediate reputation .and a luera- tive . pr:aetio©o He : organised, fh© 100 .million Muslims of 'Lndia‘ and altered: the destinies of one»f ifth of the human

' Heither visionary nor seer^ he preached no Htopla, . 'Pakistan was• Intended as ,the; solution to a problem which had defied solution for'.a hundred years— the replacement of foreign.''ruleo f ■ ' An intense patriot with a lifetime service to the na^ tional cause'.9 linnah rejected the doetrlne - of the Hnited , India when eonvineed of its unreality*' He considered it not merely, a .myths but a millstone 0 For bondage In unity he sub- stitut©d:freedom in aeparationo : ' . •' To, Tinnahp the idea of relegating 100 millions to a . perpietual minority status was intolerable. Hindus and Mus­ lims bdtli: believed in demoeraey; .why not 8 therefore 81 demoo- raey in whioh they could develop and progresss ©aeh aeeord" ing to it s own enltnre-; and. genius? . During the greatest exodus, in human history8 h@ organ™ ized a government and laid the foundations .of the biggest Muslim state and the world*s fifth largest. He fold:.his .people.how it had been aehieved: ’faiths, unitys and dlseipllme? Born in travaila it was the basis.of his eharaefef and of his lifevs aehievement0 He was essen­ tially a realist who.took these three ;ideals and forged them into a weapon which none eould withstand <>' He died as he had lived8 in the serviee; of his people0 Niaz' Mohammad was bora January, 1914 in Patiala (India) c He received his elementary and high school education in Few ' Delhi g Simla, graduating from Muslim-High School, Amfbala, in 1931o He attended the Mohindra College,. Patiala, and ■ obtained his Paculty df: Arts ;:degree from the. Punjab Univer-= ' sity In 1933 o' From 1933 to 1936 he studied at the Hailey ' College of Commerce, Lahore, Punjab University, and: graduated with the degree of Bachelor of Commerce i •' ■ . . He entered the (undivided) Government of - India employ M n 1938 and was attached to the: off ice of the Economic Ad­ viser 0 He was deputed to work as an Investigator in the Planning and Development Department of the Government of India 1943~1946o He reverted to the office of the Economic Adviser, as Research-Officer in 1946-0 In 1947 when part it Ion ■ of India took place, he opted for Pakistan, and has been - ;; working - since then as Research: Officer in the ‘ off ice of the ' Eeohomic Adviser s Ministry of Economic - Aff airs, Oovernment of Pakistano ;A \ ' ’ . -' / - He joined the University of Arizona as a graduate stu­ dent majoring in Economics in the fall of 195O0 While making the study of economic.development in Pakistans this writer, as a student of economics, has tried to approaoli the problem in an unbiased w'ayv Conseiously he has" tried to investigate and formulate his • opinions in an unpr*ejudioed way2 but subconsciously he is not sure Whether he has kept the tradition= ' As far as pbssible, 5 - the data used in the study, have been taken from Government of Pakistan publipations.o ' r .. At the time of partition, the witer suffered the loss of property, and some of his relatives were either killed or Injured in the disturbances which took place in India in 1947°' Every effort has- been takenhowever, to keep away. , the personal sentiments while approaching the problemo 1 - - The undivided Government of India published.in 1947 . the writer ’ s - study of f!Cabinet Mission Plan, A Statistical : Study of Proposed Groups of India" "" ■-v:: . E-';v; 7