2. Business Cycle of Pakistan
1960-1970
Presented by: Samad A Pirzada
12-ARID-1566
3. Business Cycle
The 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:
Recession
Trough
Recovery
Boom
4. Business Cycle of Pakistan
BUSINESS
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
2004-05 *
2005-06 to ?
Third B. Cycle 1991-92 to
(1991 - ?)
2004-05 *
(14 years
7. 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.,
8. Two Five Year Plans 1960-65
1965-70
The 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
