ISSUES IN

PAKISTAN'S ECO

NO

MY

(S. AKBAR ZAIDI)

Abdul Razzaq M.Phil Applied Economicsabdulrazzaqeco@gmail.com

00923006593748

Deregulation and Liberalization

Deregulation: Deregulation is the process

of removing or reducing state regulations.

Liberalization:  Liberalization  refers to a

relaxation of previous government restrictions, usually in such areas of social, political and economic policy.

Background of deregulation

Sixth five year plan (1983-8) was the starting point of deregulation

Main points: Shifting to the higher value added

exports. An increase in investment limits Reduction of tariff on raw material,

intermediate and capital goods 3 year liberal trade policy Upgrading IIRC into tariff commission

(1989) Introduced to deregulation in

Cement ,oil ,seeds, fertilizer industry

Foreign trade before 1983 and after

Before 1983: Free or tied imports Other goods bannedAfter 1983: Introduce negative list of goods Tariff quota to tariff Rebates on exports Facilitate to importers

Major activities of Zia era

Removing of fixed peg in term of dollar Managed floating exchange rate (1982) Devaluation of Rupee (1982-8)

(38.5% average 7.7% per annum)

World Bank Report

increase investment in private sector (in FY83 is 38% to 42% in FY88)

Manufactured sector investment(Increase 51% to 83%)