Business Cycle of Pakistan1960-1970

Presented by: Samad A Pirzada12-ARID-1566

Business CycleThe business cycle is the periodic but

irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables

Four Phases: RecessionTrough Recovery Boom

Business Cycle of PakistanBUSINESS CYCLE

RECESSION TROUGH RECOVERY PEAK

First B. Cycle(1949-69)

1949-50 to 1959-60(11 years)

1959-60 1960-61 to 1968-69(9 years)

1968-69

Second B. Cycle(1969-1991)

1969-70 to 1978-79(10 years)

1978-79 1979-80 to 1990-91(12 years)

1990-91

Third B. Cycle(1991 - ?)

1991-92 to 2004-05 *(14 years

2004-05 * 2005-06 to ?

Business Cycle 1960-1970

GDP Growth Rate

Effects ( 1960-1970 )As Pakistan Experienced Recovery & Boom in this period

During 1960s, the growth of trend component was rising while the second half witnessed a slow down. This pattern of growth has some bearings on structural developments in early 60s including the green revolution, the industrial revolution, the development of financial institutions, etc.,

Two Five Year Plans 1960-651965-70The second five-year plans gave highest

priority to heavy industrial development, advancement in literature and science, and had single underlying purpose: "to advance the country as far as possible, within the next five years, along the road of these long-range objectives.". 

The country had become urbanized by 1970 and only 10% population lived in rural areas as compared to 1950. The third five-year plans promoted the activities of private sector investment and tend to increase the directly productive investment for the stable Financial sector development.