Pakistan, for example, traditionally produced more wheat than it consumed and had supplied the deficit
areas in India. Cotton grown in West Pakistan was used in mills in Bombay and other west Indian cities.
Commodities such as coal and sugar were in short supply in Pakistan--they had traditionally come from
areas now part of India. Furthermore, Pakistan faced logistic problems for its commercial transportation
because of the four major ports in British India, it was awarded only Karachi. But the problem that proved
most intractable was defining relations between the two wings of Pakistan, which had had little economic
exchange before partition.
The two dominions decided to allow free movement of goods, persons, and capital for one year after
independence, but this agreement broke down. In November 1947, Pakistan levied export duties on jute;
India retaliated with export duties of its own. The trade war reached a crisis in September 1949 when
Britain devalued the pound, to which both the Pakistani rupee and the Indian rupee were pegged. India
followed Britain's lead, but Pakistan did not, so India severed trade relations with Pakistan. The outbreak
of the Korean War (1950-53) and the consequent price rises in jute, leather, cotton, and wool as a result
of wartime needs, saved the economy of Pakistan. New trading relationships were formed, and the
construction of cotton and jute mills in Pakistan was quickly undertaken. Although India and Pakistan
resumed trade in 1951, both the volume and the value of trade steadily declined; the two countries
ignored bilateral trade for the most part and developed the new international trade links they had made.
The assets of British India were divided in the ratio of seventeen for India to five for Pakistan by decision
of the Viceroy's Council in June 1947. Division was difficult to implement, however, and Pakistan
complained of nondeliveries. A financial agreement was reached in December 1948, but the actual
settlement of financial and other disputes continued until 1960 (see Structure of the Economy , ch. 3).
Division of the all-India services of the Indian Civil Service and the Indian Police Service was also difficult.
Only 101 out of a total of 1,157 Indian officers were Muslim. Among these Muslim officers, ninety-five
officers opted for Pakistan; they were joined by one Christian, eleven Muslim military officers transferring
to civilian service, and fifty Britons, for a total of 157. But only twenty of them had had more than fifteen
years of service, and more than half had had fewer than ten years. These men formed the core of the
Civil Service of Pakistan, which became one of the most elite and privileged bureaucracies in the world.
Members of the Civil Service of Pakistan were the architects of the administrative, judicial, and diplomatic
services. They proved indispensable in running the government machinery during Pakistan's first two
decades, and their contributions to government policy and economics were profound during the era of
Mohammad Ayub Khan. The Zulfiqar Ali Bhutto government in the 1970s precipitated a major
reorganization and reorientation of the bureaucracy, however, which resulted in a noticeable decline in
both the morale and the standards of the bureaucracy (see Zulfiqar Ali Bhutto and a New Constitutional
System; Zulfiqar Ali Bhutto, 1971-77 , ch. 4).
NEW
The nation state of Pakistan is going through convolutions of many constraints. For
developing state like Pakistan however, the problem is from within, due to fragmentation
along ethnic, religious and linguistic lines. The cohesiveness of these entities is crucial to
nation building. An absence of this process on the contrary could threaten the very
existence of a state and so is the case with Pakistan. The end of the Second World War
introduced strategic sophisticated and deadly weapons system and new aid, defense and
security concepts. Security is increasingly being interpreted as “security of people, not
just territory, security of the individuals, not arms; security of all people every where, in
their homes, on their jobs, in their streets, in their communities and in their environment
Security issues are surrounded by the threat perceptions and different constraints.