Problems faced by the Central Government
Slide 1:
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Shortage of Capital
Inexperienced Politicians and British Indian trained administrators
Faced a problem whether to first focus on building an effective administration
system or a effective political system in the party.
Pakistan league council separated from the All-India Muslim league
No comparable hierarchy of command within the Pakistan Muslim League
Slide 2:
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Lack of resources (Less than 10% of Industrial base among both countries to govern
68.6 million people, nearly 25% population of the British India)
Pakistan’s main source of revenue was exporting primary agricultural goods
A lot of world price fluctuations in agriculture led to state managers realization to
focus on export of manufactured goods
Several conferences and policies were rolled out to incentivize industries for
manufactured goods but traders wanted import licenses for consumer goods
Slide 3:
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Traders began to import consumer items in short quantity, driving up their prices.
Ibrahim Ismail Chundrigar (Commerce minister), declared public utilities and hydroelectric be state owned and heavy industries be regulated.
5-year plan made to set up jute mills
In Feb 1948, first budget was presented but 70% of it was allocated for defense.