Burden of Refugees

At the time of partition, Pakistan had to face a flood of refugees and a lot of resources were needed for their settlement.
Again, due to war with India in 1948, a large number of refugees came from Kashmir. In 1979, after the invasion by Russian forces Afghanistan, more than 35 lac refugees came from Afghanistan, which are still in Pakistan after 23 years of invasion. This entire situation disturbed the whole economy of Pakistan and changed economic scenario of the region.

War With India

The two big war (1965 and 1971) fought against India created economic problems, because resources were diverted to defense instead of development and cou4ltry remained poor and undeveloped industry.