International Business

Report

A detailed perspective on the culture, economy, politics of

Australia and Pakistan

Ramin Ahmed
Munsif Hussain
Sami Saeed
Jahandad Luni
 Australia
Australia (pronounced /əˈstreɪljə/ ə-STRAYL-yə or /ɒˈstreɪljə/ o-STRAYL-yə,[7] or /ɔːˈstreɪliə/ aw-
STRAY-lee-ə), officially the Commonwealth of Australia, is a country in the Southern
Hemisphere comprising the mainland of the Australian continent (the world's smallest),[8][9] the
island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans.N4
Neighbouring countries include Indonesia, East Timor, and Papua New Guinea to the north, the
Solomon Islands, Vanuatu, and New Caledonia to the northeast, and New Zealand to the
southeast.

For at least 40,000 years before European settlement in the late 18th century, the Australian
mainland and Tasmania were inhabited by around 250 language groups[10][11] of indigenous
Australians.[12] After sporadic visits by fishermen from the immediate north, and discovery by
Dutch explorers in 1606,[13] the eastern half of Australia was claimed by the British in 1770 and
initially settled through penal transportation to the colony of New South Wales, founded on 26
January 1788. The population grew steadily in the following years; the continent was explored,
and another five largely self-governing Crown Colonies were established during the 19th
century.

On 1 January 1901, the six colonies became a federation and the Commonwealth of Australia
was formed. Since Federation, Australia has maintained a stable liberal democratic political
system and remains a Commonwealth realm. The population is 22 million, with approximately
60% concentrated in and around the mainland state capitals of Sydney, Melbourne, Brisbane,
Perth and Adelaide. The nation's capital city is Canberra, in the Australian Capital Territory.

Australia is a prosperous developed country, with a multicultural society. It ranks highly in many
international comparisons of national performance such as human development, quality of life,
health care, life expectancy, public education, economic freedom and the protection of civil
liberties and political rights.[14] Australian cities rank among the world's highest in terms of
cultural offerings and quality of life. It is a member of the United Nations, G20, Commonwealth
of Nations, OECD, APEC, South Pacific Forum and the World Trade Organization.

Human habitation of Australia is estimated to have begun between 42,000 and 48,000 years ago,
[26]
possibly with the migration of people by land bridges and short sea-crossings from what is
now Southeast Asia. These first Australians may have been ancestors of modern Indigenous
Australians. At the time of European settlement in the 18th century, most Indigenous Australians
were hunter-gatherers, with a complex oral culture and spiritual values based on reverence for
the land and a belief in the Dreamtime. The Torres Strait Islanders, ethnically Melanesian, were
originally horticulturalists and hunter-gatherers.[27]
A replica of Lieutenant Cook's ship HM Bark Endeavour in Cooktown Harbour

The first recorded European sighting of the Australian mainland and the first recorded European
landfall on the Australian continent both belong to the Dutch navigator Willem Janszoon, who
sighted the coast of Cape York Peninsula on an unknown date in early 1606. On 26 February
1606, he made landfall at the Pennefather River on the western shore of Cape York, near the
modern town of Weipa.[28] During the 17th century, the Dutch charted the whole of the western
and northern coastlines of "New Holland", but made no attempt at settlement.[28] In 1770, James
Cook sailed along and mapped the east coast of Australia, which he named New South Wales
and claimed for Great Britain.[29] Cook's discoveries prepared the way for establishment of a new
penal colony. The British Crown Colony of New South Wales was formed on 26 January 1788,
when Captain Arthur Phillip led the First Fleet to Port Jackson.[30] This date later became
Australia's national day, Australia Day. Van Diemen's Land, now known as Tasmania, was
settled in 1803 and became a separate colony in 1825.[31] The United Kingdom formally claimed
the western part of Australia in 1828.[32]

Separate colonies were created from parts of New South Wales: South Australia in 1836,
Victoria in 1851, and Queensland in 1859.[33] The Northern Territory was founded in 1911 when
it was excised from South Australia.[34] South Australia was founded as a "free province"—it was
never a penal colony.[35] Victoria and Western Australia were also founded "free", but later
accepted transported convicts.[36][37] A campaign by the settlers of New South Wales led to the
end of convict transportation to that colony; the last convict ship arrived in 1848.[38]

Port Arthur, Tasmania was Australia's largest gaol for transported convicts.

The Indigenous Australian population, estimated at 350,000 at the time of European settlement,
[39]
declined steeply for 150 years following settlement, mainly due to infectious disease.[40] The
"Stolen Generations" (removal of Aboriginal children from their families), which historians such
as Henry Reynolds have argued could be considered genocide,[41] may have contributed to the
decline in the Indigenous population.[42] Such interpretations of Aboriginal history are disputed
by some conservative commentators, such as former Prime Minister Howard, as exaggerated or
fabricated for political or ideological reasons.[43] This debate is known within Australia as the
History Wars.[44] Following the 1967 referendum, the Federal government gained the power to
make laws with respect to Aborigines.[45] Traditional ownership of land—native title—was not
recognised until 1992, when the High Court case Mabo v Queensland (No 2) overturned the
notion of Australia as terra nullius (literally "no one's land") prior to European occupation.[46]

The Last Post is played at an ANZAC Day ceremony in Port Melbourne, Victoria. Similar
ceremonies are held in most suburbs and towns.

A gold rush began in Australia in the early 1850s,[47] and the Eureka Stockade rebellion against
mining licence fees in 1854 was an early expression of civil disobedience.[48] Between 1855 and
1890, the six colonies individually gained responsible government, managing most of their own
affairs while remaining part of the British Empire.[49] The Colonial Office in London retained
control of some matters, notably foreign affairs,[50] defence,[51] and international shipping.

On 1 January 1901, federation of the colonies was achieved after a decade of planning,
consultation, and voting.[52] The Commonwealth of Australia was established and it became a
dominion of the British Empire in 1907. The Federal Capital Territory (later renamed the
Australian Capital Territory) was formed in 1911 to provide a location for the proposed federal
capital of Canberra. Melbourne was the temporary seat of government from 1901 to 1927 while
Canberra was being constructed.[53] In 1911, the Northern Territory was transferred from the
control of the South Australian government to the Commonwealth.[54] In 1914, Australia joined
Britain in fighting World War I, with support from both the outgoing Liberal Party and the
incoming Labor Party.[55] The Australians took part in many of the major battles fought on the
Western Front.[56] Many Australians regard the defeat of the Australian and New Zealand Army
Corps (ANZACs) at Gallipoli as the birth of the nation—its first major military action.[57][58] The
Kokoda Track campaign is regarded by many as an analogous nation-defining event during
World War II.[59]
Australian soldiers display Japanese flags they captured at Kaiapit, New Guinea in 1943.

Britain's Statute of Westminster 1931 formally ended most of the constitutional links between
Australia and the UK. Australia adopted it in 1942,[60] but it was backdated to 1939 to confirm
the validity of legislation passed by the Australian Parliament during World War II.[61][62] The
shock of the UK's defeat in Asia in 1942 and the threat of Japanese invasion caused Australia to
turn to the United States as a new ally and protector.[63] Since 1951, Australia has been a formal
military ally of the US, under the ANZUS treaty.[64] After World War II, Australia encouraged
immigration from Europe. Since the 1970s and following the abolition of the White Australia
policy, immigration from Asia and elsewhere was also promoted.[65] As a result, Australia's
demography, culture, and self-image were transformed.[66] The final constitutional ties between
Australia and the UK were severed with the passing of the Australia Act 1986, ending any
British role in the government of the Australian States, and ending judicial appeals to the UK
Privy Council.[67] At the 1999 referendum, 54% of Australian voters rejected a proposal to
become a republic, with a president appointed by a two-thirds vote in both Houses of the
Australian Parliament. Since the election of the Whitlam Government in 1972,[68] there has been
an increasing focus in foreign policy on ties with other Pacific Rim nations, while maintaining
close ties with Australia's traditional allies and trading partners.[69]

Politics
The Commonwealth of Australia is a constitutional democracy based on a federal division of
powers. The form of government used in Australia is a constitutional monarchy with a
parliamentary system of government. Queen Elizabeth II is the Queen of Australia, a role that is
distinct from her position as monarch of the other Commonwealth realms. The Queen is
represented by the Governor-General at the federal level and by the Governors at the state level.
[70]
Although the Constitution gives extensive executive powers to the Governor-General, these
are normally exercised only on the advice of the Prime Minister.[71] The most notable exercise of
the Governor-General's reserve powers outside the Prime Minister's direction was the dismissal
of the Whitlam Government in the constitutional crisis of 1975.[72]

There are three branches of government, known as the separation of powers:

 The legislature: the Commonwealth Parliament, comprising the Queen, the Senate, and
the House of Representatives; the Queen is represented by the Governor-General, who by
convention acts on the advice of his or her Ministers.[73]
  The executive: the Federal Executive Council (the Governor-General as advised by the
Executive Councillors); in practice, the councillors are the Prime Minister and Ministers
of State.[70]
 The judiciary: the High Court of Australia and other federal courts. Appeals from
Australian courts to the Judicial Committee of the Privy Council in the United Kingdom
ceased when the Australia Act of 1986 was passed.[74]

The official residence of the Governor-General of Australia.

The bicameral Commonwealth Parliament consists of the Queen, the Senate (the upper house) of
76 senators,[75] and a House of Representatives (the lower house) of 150 members.[76] Members of
the lower house are elected from single-member constituencies, commonly known as
"electorates" or "seats", allocated to states on the basis of population,[77] with each original state
guaranteed a minimum of five seats.[78] In the Senate, each state is represented by twelve
senators, and each of the mainland territories (the Australian Capital Territory and the Northern
Territory) by two.

Elections for both chambers are normally held every three years, simultaneously; senators have
overlapping six-year terms except for those from the territories, who only have three-year terms;
thus only 40 of the 76 places in the Senate are put to each election unless the cycle is interrupted
by a double dissolution.[75] Although the Prime Minister is appointed by the Governor-General, in
practice the party with majority support in the House of Representatives forms government and
its leader becomes Prime Minister.[79]

There are two major political groups that form government, federally and in the states: the
Australian Labor Party, and the Coalition which is a formal grouping of the Liberal Party and its
minor partner, the National Party.[80][81] Independent members and several minor parties—
including the Greens and the Australian Democrats—have achieved representation in Australian
parliaments, mostly in upper houses. The Labor Party came to office with Kevin Rudd as Prime
Minister following the November 2007 election.[82]

Every Australian parliament (federal, state, and territory) then had a Labor government until
September 2008 when the Liberal Party formed a minority government in association with the
National Party in Western Australia.[83] In the 2004 election, the previous governing coalition led
by John Howard won control of the Senate—the first time in more than 20 years that a party (or
a coalition) has done so while in government.[76] Voting is compulsory for all enrolled citizens 18
years and over, in each state and territory and at the federal level.[84] Enrolment to vote is
compulsory in all jurisdictions except South Australia.[85]

Australia's landmass of 7,617,930 square kilometres (2,941,300 sq mi)[107] is on the Indo-

Australian Plate. Surrounded by the IndianN4 and Pacific oceans, Australia is separated from Asia
by the Arafura and Timor seas. The world's smallest continent[9] and sixth largest country by total
area,[8] Australia – owing to its size and isolation – is often dubbed the 'island continent'[108] and
variably considered the world's largest island.[109] Australia has 34,218 kilometres (21,262 mi) of
coastline (excluding all offshore islands)[110] and claims an extensive Exclusive Economic Zone
of 8,148,250 square kilometres (3,146,060 sq mi). This exclusive economic zone does not
include the Australian Antarctic Territory.[111]

Australia, as seen from space

The Great Barrier Reef, the world's largest coral reef,[112] lies a short distance off the north-east
coast and extends for over 2,000 kilometres (1,240 mi). Mount Augustus, claimed to be the
world's largest monolith,[113] is located in Western Australia. At 2,228 metres (7,310 ft), Mount
Kosciuszko on the Great Dividing Range is the highest mountain on the Australian mainland,
although Mawson Peak on the remote Australian territory of Heard Island is taller at
2,745 metres (9,006 ft).[114]

Australia is the flattest continent,[115] with the oldest and least fertile soils;[citation needed] desert or
semi-arid land commonly known as the outback makes up by far the largest portion of land. The
driest inhabited continent, only its south-east and south-west corners have a temperate climate.
[116]
The population density, 2.8 inhabitants per square kilometre, is among the lowest in the
world,[117] although a large proportion of the population lives along the temperate south-eastern
coastline.[118]

The landscapes of the northern part of the country, with a tropical climate, consist of rainforest,
woodland, grassland, mangrove swamps, and desert. The climate is significantly influenced by
ocean currents, including the Indian Ocean Dipole and the El Niño-Southern Oscillation, which
is correlated with periodic drought, and the seasonal tropical low pressure system that produces
cyclones in northern Australia
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas
Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island
states of Kiribati, Nauru, and Tuvalu. After the 2006 merger of the Australian Stock Exchange
and the Sydney Futures Exchange, the Australian Securities Exchange is now the 9th largest in
the World.[137]

Ranked 3rd in the Index of Economic Freedom (2010),[138] Australia's per capita GDP is slightly
higher than that of the United States, UK, Germany, and France. The country was ranked second
in the United Nations 2009 Human Development Index, first in Legatum's 2008 Prosperity
Index, and sixth in The Economist worldwide Quality-of-Life Index for 2005.[139] All of
Australia's major cities fare well in global comparative liveability surveys;[140] Melbourne
reached 2nd place on The Economist's 2008 World's Most Livable Cities list, followed by Perth
at 4th, Adelaide at 7th, and Sydney at 9th.[141]

An emphasis on exporting commodities rather than manufactures has underpinned a significant

increase in Australia's terms of trade during the rise in commodity prices since the start of the
century. Australia has a balance of payments that is more than 7% of GDP negative, and has had
persistently large current account deficits for more than 50 years.[142] Australia has grown at an
average annual rate of 3.6% for over 15 years, a period in which the OECD annual average was
2.5%.[142] Australia did not fall into a technical recession during the late 2000s recession that
affected most other Western countries.[143]

Destination and value of Australian exports in 2006

The Hawke Government floated the Australian dollar in 1983 and partially deregulated the
financial system.[144] The Howard Government followed with a partial deregulation of the labour
market and the further privatisation of state-owned businesses, most notably in the
telecommunications industry.[145] The indirect tax system was substantially changed in July 2000
with the introduction of a 10% Goods and Services Tax (GST), which has slightly reduced the
reliance on personal and company income tax that characterises Australia's tax system.

In January 2007, there were 10,033,480 people employed, with an unemployment rate of 4.6%.
[146]
Over the past decade, inflation has typically been 2–3% and the base interest rate 5–6%. The
service sector of the economy, including tourism, education, and financial services, accounts for
69% of GDP.[147] Although agriculture and natural resources account for only 3% and 5% of
GDP respectively, they contribute substantially to export performance. Australia's largest export
markets are Japan, China, the US, South Korea, and New Zealand
English is the national language.[173] Australian English has a unique accent and a small number
of peculiar terms, some of which have found their way into other dialects of the English-
speaking world. It has less internal dialectal variation than either British English or American
English. Grammar and spelling are largely based on those of British English.[174] According to the
2006 census, English is the only language spoken in the home for close to 79% of the population.
The next most common languages spoken at home are Italian (1.6%), Greek (1.3%) and
Cantonese (1.2%).[175]

A considerable proportion of first and second generation migrants are bilingual. Between 200
and 300 Indigenous Australian languages are thought to have existed at the time of first
European contact, of which only about 70 have survived. Many of these are exclusively spoken
by older people; only 18 Indigenous languages are still spoken by all age groups.[176] At the time
of the 2006 Census, 52,000 Indigenous Australians, representing 12% of the Indigenous
population, reported that they spoke an Indigenous language at home.[177] Australia has a sign
language known as Auslan, which is the main language of about 5,500 deaf people.[178]

Religion
Main article: Religion in Australia

Australia has no state religion. In the 2006 census, 64% of Australians listed themselves as
Christian, including 26% as Roman Catholic and 19% as Anglican. About 19% of the population
cited "No religion" (which includes humanism, atheism, agnosticism, and rationalism), which
was the fastest-growing group (refer difference in census 2006 versus census 2001 results) and a
further 12% did not answer (the question is optional) or did not give a response adequate for
interpretation. The second largest religion in Australia is Buddhism (2.1%), followed by Islam
(1.7%), Hinduism (0.8%), and Judaism (0.5%). Overall, fewer than 6% of Australians identify
with non-Christian religions

Since 1788, the primary basis of Australian culture has been Anglo-Celtic Western culture.
Distinctive Australian cultural features have also arisen from the country's natural environment
and Indigenous cultures. Since the middle of the 20th century, Australian culture has been
strongly influenced by American popular culture, particularly through television and cinema.
Other cultural influences are from neighbouring Asian countries, and through large-scale
immigration from non-English-speaking countries.

Australian visual arts are thought to have begun with the cave and bark paintings of its
Indigenous peoples.[184] The traditions of Indigenous Australians are largely transmitted orally
and are tied to ceremony and the telling of the stories of the Dreamtime.[185] From the time of
European settlement, a theme in Australian art has been the Australian landscape,[186] seen for
example in the works of Albert Namatjira,[187] Arthur Streeton and others associated with the
Heidelberg School,[186] and Arthur Boyd.[188] The country's landscape remains sources of
inspiration for Australian modernist artists; it has been depicted in acclaimed works by artists
such as Sidney Nolan,[189] Fred Williams,[190] Sydney Long,[citation needed] and Clifton Pugh.
Australian artists influenced by the modern American and European art include cubist Grace
Crowley, surrealist James Gleeson, abstract expressionist Brett Whiteley, and pop artist Martin
Sharp. The National Gallery of Australia and the various state galleries maintain Australian and
overseas collections, from early in the 20th century until the present.

Sunlight Sweet by Australian landscape artist Arthur Streeton

Many of Australia's performing arts companies receive funding through the federal government's
Australia Council. There is a symphony orchestra in each of the states' capital cities, and a
national opera company, Opera Australia, which became prominent through the singer Joan
Sutherland. Nellie Melba was her famous predecessor. Ballet and dance are represented by The
Australian Ballet and various state dance companies. Each state has a publicly funded theatre
company.

Performance of Aboriginal song and dance in the Australian National Maritime Museum in
Sydney

The Australian cinema industry began with the 1906 release of the The Story of the Kelly Gang,
which is regarded as being the world's first feature-length film,[191] but both Australian feature
film production and the distribution of British-made features declined dramatically after World
War I as American studios and distributors monopolised the industry[192] and by the 1930s around
95% of the feature films screened in Australia were produced in Hollywood. By the late 1950s
feature film production in Australia had effectively ceased and there were no all-Australian
feature films made in the decade between 1959 and 1969.[193] Thanks to initiatives by the Gorton
and Whitlam federal governments, the New Wave of Australian cinema of the 1970s brought
provocative and successful films, some exploring the nation's colonial past, such as Picnic at
Hanging Rock and Breaker Morant,[194] while the so-called "Ocker" genre produced several
highly successful urban-based comedy features including The Adventures of Barry MacKenzie
and Alvin Purple. Later hits included Mad Max and Gallipoli. More recent successes included
Shine and Rabbit-Proof Fence. Notable Australian actors include Judith Anderson, Errol Flynn,
Nicole Kidman, Hugh Jackman, Heath Ledger, Geoffrey Rush, Toni Collette, and current joint
director of the Sydney Theatre Company, Cate Blanchett.

Australian literature has also been influenced by the landscape; the works of writers such as
Banjo Paterson, Henry Lawson, and Dorothea Mackellar captured the experience of the
Australian bush.[195] The character of colonial Australia, as represented in early literature, is
popular with modern Australians.[186] In 1973, Patrick White was awarded the Nobel Prize in
Literature,[196] the first Australian to have achieved this.[197] Thomas Keneally, David Williamson,
and David Malouf are also renowned writers.[198]

Australia has two public broadcasters (the Australian Broadcasting Corporation and the
multicultural Special Broadcasting Service), three commercial television networks, several pay-
TV services,[199] and numerous public, non-profit television and radio stations. Each major city
has daily newspapers,[citation needed] and there are two national daily newspapers, The Australian and
The Australian Financial Review.[199] According to Reporters Without Borders in 2008, Australia
was in 25th position on a list of 173 countries ranked by press freedom, behind New Zealand
(7th) and the United Kingdom (23rd) but ahead of the United States (48th). This low ranking is
primarily because of the limited diversity of commercial media ownership in Australia;[200] in
particular, most Australian print media are under the control of News Corporation and Fairfax
Media.[201]

Australian food traditions have largely been shaped by those that have settled in Australia.
Throughout the majority of Australian history, Australian cuisine was based on traditional
Indigenous bushfood using native berries, fruit, fish, kangaroo and even insects such as the
witchetty grub. Later, British food was introduced, brought to the country by the first British
settlers, with the Sunday roast an enduring tradition in many Australian families. In the 19th and
especially 20th century, food began to reflect the influences of Mediterranean and Asian
cultures, introduced by many immigrants who arrived in Australia during this period. Today,
food from all over the world is popular in Australia, with Chinese, Thai, Indian, Italian and
Mexican cuisine standing out.
Cricket has been an important part of Australia's sporting culture since the 19th Century

Approximately 24% Australians over the age of 15 regularly participate in organised sporting
activities in Australia.[148] Australia has strong international teams in cricket, field hockey,
netball, rugby league, rugby union, and performs well in cycling, rowing, and swimming.[citation
needed]
Some of Australia's most successful sportspersons are swimmers Dawn Fraser, Murray
Rose, and Ian Thorpe, sprinter Betty Cuthbert,[202] tennis players Rod Laver and Margaret Court,
cricketer Donald Bradman, and prodigious billiards player Wally Lindrum.[203] Nationally, other
popular sports include Australian rules football, horse racing, surfing, football (soccer), and
motor racing. Australia has participated in every summer Olympic Games of the modern era,[204]
and every Commonwealth Games.[citation needed] Australia hosted the 1956 Summer Olympics in
Melbourne and the 2000 Summer Olympics in Sydney,[205] and has ranked among the top six
medal-takers since 2000.[206] Australia has also hosted the 1938, 1962, 1982, and 2006
Commonwealth Games.[207] Other major international events held in Australia include the Grand
Slam Australian Open tennis tournament, international cricket matches, and the Formula One
Australian Grand Prix. The highest-rating television programs include sports coverage such as
the summer Olympic Games, State of Origin, and the grand finals of the National Rugby League
and Australian Football League.[208]
 Pakistan
Pakistan (Urdu: ‫)پا ِکستان‬, officially the Islamic Republic of Pakistan, is a country in South
Asia. It has a 1,046 kilometres (650 mi) coastline along the Arabian Sea and Gulf of Oman in the
south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far
northeast.[6] Tajikistan also lies very close to Pakistan but is separated by the narrow Wakhan
Corridor. Thus, it occupies a crossroads position between South Asia, Central Asia and the
Middle East.[7] The region forming modern Pakistan was at the heart of the ancient Indus Valley
Civilisation and then later was the recipient of Vedic, Persian, Indo-Greek, Turco-Mongol,
Islamic and Sikh cultures. The area has witnessed invasions and/or settlements by the Indo-
Aryans, Persians, Greeks, Arabs, Turks, Afghans, Mongols and the British.[8]

While the Indian independence movement demanded an independent India, the Pakistan
Movement (led by Quaid e Azam Muhammad Ali Jinnah of the Muslim League) sought
independent states for the majority Muslim populations of the eastern and western regions of
British India as well. The British granted independence and also the creation of one Muslim
majority state of Pakistan that comprised the provinces of Sindh, North-West Frontier Province,
West Punjab, Balochistan and East Bengal. With the adoption of its constitution in 1956,
Pakistan became an Islamic republic. In 1971, a civil war in East Pakistan resulted in the creation
of Bangladesh.

Pakistan's history has been characterized by periods of military rule, political instability and
conflicts with neighboring India. It is the sixth most populous country in the world and has the
second largest Muslim population after Indonesia.[9] Pakistan also has the second largest Shia
Muslim population.[10] It is the only Muslim-majority nuclear state and is classified as major non-
NATO ally of the United States. Pakistan is one of the founders of the Organisation of the
Islamic Conference and a member of the United Nations, Commonwealth of Nations, Next
Eleven economies and G20 developing nations.

The Indus region, which covers a considerable amount of Pakistan, was the site of several
ancient cultures including the Neolithic era's Mehrgarh and the bronze era Indus Valley
Civilisation (2500 BCE – 1500 BCE) at Harappa and Mohenjo-Daro.[13]

Waves of conquerors and migrants from the west — including Harappan, Indo-Aryans, Persians,
Greeks, Sakas, Parthians, Kushans, Hephthalites, Afghans, Arabs, Turks and Mughals — settled
in the region throughout the centuries, influencing the locals and being absorbed among them.[14]
Ancient empires of the east — such as the Nandas, Mauryas, Sungas, Guptas and the Palas —
ruled these territories at different times from Patliputra.[15]

However, in the medieval period, while the eastern provinces of Punjab and Sindh grew aligned
with Indo-Islamic civilisation, the western areas became culturally allied with the Iranian
civilisation of Afghanistan and Iran.[16] The region served as a crossroads of historic trade routes,
including the Silk Road, and as a maritime entreport for the coastal trade between Mesopotamia
and beyond up to Rome in the west and Malabar and beyond up to China in the east.[17]
Modern day Pakistan was at the heart of the Indus Valley Civilisation; that collapsed in the
middle of the second millennium BCE and was followed by the Vedic Civilisation, which also
extended over much of the Indo-Gangetic plains. Successive ancient empires and kingdoms ruled
the region: the Achaemenid Persian empire around 543 BCE,[18] the Greek empire founded by
Alexander the Great in 326 BCE and the Mauryan empire thereafter.[19]

The Indo-Greek Kingdom founded by Demetrius of Bactria included Gandhara and Punjab from
184 BCE, and reached its greatest extent under Menander, establishing the Greco-Buddhist
period with advances in trade and culture. The city of Taxila (Takshashila) became a major
centre of learning in ancient times — the remains of the city, located to the west of Islamabad,
are one of the country's major archaeological sites.[20] The Rai Dynasty (c.489–632) of Sindh, at
its zenith, ruled this region and the surrounding territories.[21]

In 712 CE, the Arab general Muhammad bin Qasim conquered Sindh and Multan in southern
Punjab.[22] The Pakistan government's official chronology states that "its foundation was laid" as
a result of this conquest.[23] This Arab and Islamic victory would set the stage for several
successive Muslim empires in South Asia, including the Ghaznavid Empire, the Ghorid
Kingdom, the Delhi Sultanate and the Mughal Empire. During this period, Sufi missionaries
played a pivotal role in converting a majority of the regional Buddhist and Hindu population to
Islam.

17th Century Badshahi Masjid built during Mughal rule

The gradual decline of the Mughal Empire in the early eighteenth century provided opportunities
for the Afghans, Balochis and Sikhs to exercise control over large areas until the British East
India Company gained ascendancy over South Asia.[24] The Indian Rebellion of 1857, also
known as the Sepoy Mutiny, was the region's last major armed struggle against the British Raj,
and it laid the foundations for the generally unarmed freedom struggle led by the Indian National
Congress in the twentieth century. In the 1920s and 1930s, a movement led by the Hindu
politician Mahatma Gandhi, and displaying commitment to long enshrined Hindu tenet of
ahimsa, or non-violence, engaged millions of protesters in mass campaigns of civil disobedience.
[25]

The All India Muslim League rose to popularity in the late 1930s amid fears of under-
representation and neglect of Muslims in politics. On 29 December 1930, Allama Iqbal's
presidential address called for an autonomous "state in northwestern India for Indian Muslims,
within the body politic of India."[26] Quaid e Azam Muhammad Ali Jinnah espoused the Two
Nation Theory and led the Muslim League to adopt the Lahore Resolution of 1940, popularly
known as the Pakistan Resolution. In early 1947, Britain announced the decision to end its rule in
India. In June 1947, the nationalist leaders of British India — including Nehru and Abul Kalam
Azad on behalf of the Congress, Jinnah representing the Muslim League, and Master Tara Singh
representing the Sikhs — agreed to the proposed terms of transfer of power and independence.

The first Governor General Quaid e Azam Muhammad Ali Jinnah delivering the opening address
on 11 August 1947 to the new state of Pakistan.

The modern state of Pakistan was established on 14 August 1947 (27 Ramadan 1366 in the
Islamic Calendar), carved out of the two Muslim-majority wings in the eastern and northwestern
regions of British India and comprising the provinces of Balochistan, East Bengal, the North-
West Frontier Province, West Punjab and Sindh.[27] The controversial, and ill-timed, division of
the provinces of Punjab and Bengal caused communal riots across India and Pakistan — millions
of Muslims moved to Pakistan and millions of Hindus and Sikhs moved to India.[28] Disputes
arose over several princely states including Muslim-majority Jammu and Kashmir, whose Hindu
ruler had acceded to India following an invasion by Pashtun tribal militias, leading to the First
Kashmir War in 1948.[29]

From 1947 to 1956, Pakistan was a Dominion in the Commonwealth of Nations. It became a
Republic in 1956, but the civilian rule was stalled by a coup d’état by General Ayub Khan, who
was president during 1958–69, a period of internal instability and a second war with India in
1965. His successor, Yahya Khan (1969–71) had to deal with a devastating cyclone — which
caused 500,000 deaths in East Pakistan — and also face a civil war in 1971. Economic
grievances and political dissent in East Pakistan led to violent political tension and military
repression that escalated into a civil war.[30] After nine months of guerrilla warfare between the
Pakistan Army and the Indian backed Bengali Mukti Bahini militia, Indian intervention escalated
into the Indo-Pakistani War of 1971, and ultimately to the secession of East Pakistan as the
independent state of Bangladesh.[31]
The two wings of Pakistan in 1970; East Pakistan separated from the West wing in 1971 as an
independent Bangladesh.

Civilian rule resumed in Pakistan from 1972 to 1977 under Zulfikar Ali Bhutto, until he was
deposed and later sentenced to death in 1979 by General Zia-ul-Haq, who became the country's
third military president. Zia introduced the Islamic Sharia legal code, which increased religious
influences on the civil service and the military. With the death of President Zia in a plane crash
in 1988, Benazir Bhutto, daughter of Zulfikar Ali Bhutto, was elected as the first female Prime
Minister of Pakistan. Over the next decade, she fought for power with Nawaz Sharif as the
country's political and economic situation worsened. Pakistan got involved in the 1991 Gulf War
and sent 5,000 troops as part of a U.S.-led coalition, specifically for the defence of Saudi Arabia.
[32]

Military tensions in the Kargil conflict with India were followed by a Pakistani military coup
d'état in 1999 in which General Pervez Musharraf assumed vast executive powers.[33][34] In 2001,
Musharraf became President after the controversial resignation of Rafiq Tarar. After the 2002
parliamentary elections, Musharraf transferred executive powers to the newly-elected Prime
Minister Zafarullah Khan Jamali, who was succeeded in the 2004 prime-ministerial election by
Shaukat Aziz. On 15 November 2007, the National Assembly, for the first time in Pakistan's
history, completed its tenure and new elections were called. The exiled political leaders Benazir
Bhutto and Nawaz Sharif were permitted to return to Pakistan. However, the assassination of
Benazir Bhutto during the election campaign in December led to postponement of elections and
nationwide riots. Bhutto's Pakistan Peoples Party (PPP) won the largest number of seats in the
elections held in February 2008 and its member Yousaf Raza Gillani was sworn in as Prime
Minister.[35] On 18 August 2008, Pervez Musharraf resigned from the presidency when
threatened to faced with impeachment,[36] and was succeeded by current president Asif Ali
Zardari. By the end of 2009, more than 3 million Pakistani civilians have been displaced by the
on going conflict in North-West Pakistan between the government and Taliban militants.[37]

Pakistan is a semi-presidential federal democratic republic with Islam as the state religion.[38] The
first Constitution of Pakistan was adopted in 1956, but was suspended in 1958 by General Ayub
Khan. The Constitution of 1973 — suspended in 1977, by Zia-ul-Haq, but re-instated in 1985 —
is the country's most important document, laying the foundations of the current government.[14]
The bicameral legislature comprises a 100-member Senate and a 342-member National
Assembly. The President is the Head of State and the Commander in Chief of the Armed Forces
and is elected by an electoral college. The prime minister is usually the leader of the largest party
in the National Assembly. Each province has a similar system of government with a directly
elected Provincial Assembly in which the leader of the largest party or alliance becomes Chief
Minister. Provincial Governors are appointed by the President.[38]

The Pakistani military has played an influential role in mainstream politics throughout Pakistan's
history, with military presidents ruling from 1958–71, 1977–88 and from 1999–2008.[39] The
leftist Pakistan Peoples Party, led by Zulfikar Ali Bhutto, won support after the loss of East
Pakistan but was overthrown amidst riots in 1977.[40] Under the military rule of Muhammad Zia-
ul-Haq, during the 1980s, the anti-feudal, pro-Muhajir Muttahida Qaumi Movement (MQM) was
started by unorthodox and educated urban dwellers of Sindh and particularly Karachi. A
politically nationalist insurgency in Balochistan was also bloodlessly quelled by military
governor Rahimuddin.[41] The 1990s were characterized by coalition politics dominated by the
Pakistan Peoples Party and a rejuvenated Muslim
League.[38] National Symbols of Pakistan[42]
Flag Flag of Pakistan
Pakistan is an active member of the United Nations Emblem Faith, Unity, Discipline
Anthem Qaumi Tarana
(UN) and the Organisation of the Islamic Conference
Animal Markhor
(OIC), the latter of which Pakistan has used as a
Bird Chukar
forum for Enlightened Moderation, a plan to promote
Flower Jasmine
a renaissance and enlightenment in the Muslim Tree Cedrus deodara
world.[38] Pakistan is also a member of the South Juice Sugarcane juice
Asian Association for Regional Cooperation Sport Field hockey
(SAARC) and the Economic Cooperation Dress Shalwar Kameez
Organisation (ECO).[38] In the past, Pakistan has had
mixed relations with the United States; in the early
1950s, Pakistan was the United States' "most allied ally in Asia"[43] and a member of both the
Central Treaty Organisation (CENTO) and the Southeast Asia Treaty Organisation (SEATO).

During the Soviet-Afghan War in the 1980s, Pakistan was a major U.S. ally.[44] But relations
soured in the 1990s, when sanctions were imposed by the U.S. over Pakistan's refusal to abandon
its nuclear activities.[45] However, the American War on Terrorism, as an aftermath of 11
September 2001 attacks in U.S.A., led to an improvement in U.S.–Pakistan ties, especially after
Pakistan ended its support of the Taliban regime in Kabul. Its positive side was evidenced by a
major increase in American military aid, providing Pakistan $4 billion more in three years after
the 9/11 attacks than before.[46] On the other hand, Pakistan is presently burdened with nearly 3
million displaced civilians due to the ongoing Afghan war. As of 2004, in contexts of the War on
Terrorism Pakistan was been referred to as part of the Greater Middle East by the U.S. under the
Bush administration[47]

On 18 February 2008, Pakistan held its general elections after Benazir Bhutto's assassination
postponed the original date of 8 January 2008.[48] The Pakistan Peoples Party won the majority of
the votes and formed an alliance with the Pakistan Muslim League (N). They nominated and
elected Yousaf Raza Gilani as Prime Minister of Pakistan.[49] On 18 August 2008, Pervez
Musharraf resigned as President of Pakistan amidst increasing calls for his impeachment.[50] In
the presidential election that followed, Asif Ali Zardari of Pakistan People's Party won by a
landslide majority and became President of Pakistan.

The estimated population of Pakistan in 2010 was over 169,189,000[1] making it the world's sixth
most-populous country, behind Brazil and ahead of Russia. The population growth rate now
stands at 1.6% [55].

About 20% of the population live below the international poverty line of US$1.25 a day.[56]
Population projections for Pakistan are relatively difficult because of the differences in the
accuracy of each census and the inconsistencies between various surveys related to the fertility
rate, but it is likely that the rate of growth peaked in the 1980s and has since declined
significantly.[57] Life expectancy at birth was 63 for females and 62 for males in 2006.[58] Healthy
life expectancy at birth was at 54 for males and 52 for females in 2003.[58] Expenditure on health
was at 2% of the GDP in 2006.[58] The mortality below 5 was at 97 per 1,000 live births in 2006.
[58]

The majority of southern Pakistan's population lives along the Indus River. By population size,
Karachi is the largest city of Pakistan.[59] In the northern half, most of the population lives about
an arc formed by the cities of Lahore, Faisalabad, Rawalpindi, Islamabad, Gujranwala, Sialkot,
Gujrat, Jhelum, Sargodha and Sheikhupura. In the past, the country's population had a relatively
high growth rate that has, however, been moderated by declining fertility and birth rates.
Dramatic social changes have led to rapid urbanization and the emergence of megacities. During
1990–2003, Pakistan sustained its historical lead as the most urbanized nation in South Asia,
with city dwellers making up 36% of its population.[60]

Pakistan has a multicultural and multi-ethnic society and hosts one of the largest refugee
populations in the world as well as a young population. About 8 million Muhajirs—then roughly
one-fourth of the country’s population—arrived from India after independence in 1947.[61] The
Urdu-speaking Muhajirs make up nearly half of Karachi's 17 million residents,[62] with Punjabis
and Pashtuns also having sizable communities in the city.[63] Approximately 1.7 million Afghan
refugees remain in the country, about half of them were born and grew up in Pakistan during the
last 30 years.[64] They are not counted in the national census, even the ones born in Pakistan,
because they are still considered citizens of Afghanistan.

Pakistan is a multilingual country with more than sixty languages being spoken. English is the
official language of Pakistan and used in official business, government, and legal contracts,[14]
while Urdu is the national language.

Pakistan has a semi-industrialized economy.[84][85] The growth poles of the Pakistani economy are
situated along the Indus River,[85][86] diversified economies of Karachi and Punjab's urban centers,
coexist with lesser developed areas in other parts of the country.[85] Despite being a very poor
country in 1947, Pakistan's economic growth rate has been better than the global average during
the subsequent four decades, but imprudent policies led to a slowdown in the late 1990s.[87]
Recently, wide-ranging economic reforms have resulted in a stronger economic outlook and
accelerated growth especially in the manufacturing and financial services sectors.[87] Since the
1990s, there has been great improvement in the foreign exchange position and rapid growth in
hard currency reserves.[87]

The 2005 estimate of foreign debt was close to US$40 billion. However, this has decreased in
recent years with assistance from the International Monetary Fund and significant debt-relief
from the United States. Pakistan's gross domestic product, as measured by purchasing power
parity, is estimated to be US$475.4 billion[88] while its per capita income stands at $2,942.[88] The
poverty rate in Pakistan is estimated to be between 23%[89] and 28%.[90] GDP growth was steady
during the mid 2000s at a rate of 7%;[91][92] however, slowed down during the Economic crisis of
2008 to 4.7%.[14] A large inflation rate of 24.4% and a low savings rate, and other economic
factors, continue to make it difficult to sustain a high growth rate.[93][94] Pakistan's GDP is
US$167 billions, which makes it the 48th-largest economy in the world or 27th largest by
purchasing power adjusted exchange rates. Today, Pakistan is regarded as to having the second
largest economy in South Asia.[95]

GDP by Province

The structure of the Pakistani economy has changed from a mainly agricultural base to a strong
service base. Agriculture now only accounts for roughly 20% of the GDP, while the service
sector accounts for 53% of the GDP.[96] Significant foreign investments have been made in
several areas including telecommunications, real estate and energy.[97][98] Other important
industries include apparel and textiles (accounting for nearly 60% of exports), food processing,
chemicals manufacture, and the iron and steel industries.[99] Pakistan's exports in 2008 amounted
to $20.62 billion (USD).[14] Pakistan is a rapidly developing country.[100][101][102]

However, the Economic crisis of 2008 led Pakistan to seek more than $100 billion in aid in order
to avoid possible bankruptcy.[103][104] This was never given to Pakistan and therefore it had to
depend on a more aggressive fiscal policy, backed by the IMF. A year later Asian Development
Bank Reports Pakistan economic crisis easing in 2009.[105] Furthermore it is projected that in
2010 Pakistan economy would grow at least 4 percent and could grow more with strong
international economic recovery.

Punjabi is the provincial language of Punjab.Saraiki is also spoken in larger area of punjab
province. Pashto is the provincial language of North-West Frontier Province. Sindhi is the
provincial language of Sindh and Balochi is the provincial language of Balochistan.[66]
Other languages include Aer, Badeshi, Bagri, Balti, Bateri, Bhaya, Brahui, Burushaski, Chilisso,
Dameli, Dehwari, Dhatki, Domaaki, Farsi (Dari), Gawar-Bati, Ghera, Goaria, Gowro, Gujarati,
Gujari, Gurgula, Hazaragi, Hindko (two varieties), Jadgali, Jandavra, Kabutra, Kachchi (Kutchi),
Kalami, Kalasha, Kalkoti, Kamviri, Kashmiri, Kati, Khetrani, Khowar, Indus Kohistani, Koli
(three varieties), Lasi, Loarki, Marwari, Memoni, Od, Ormuri, Pahari-Potwari, Pakistan Sign
Language, Palula (Phalura), Sansi, Savi, Shina (two varieties), Torwali, Ushojo, Vaghri, Wakhi,
Waneci, and Yidgha.[67] Some of these are endangered languages with a relatively small number
of speakers and others have hundreds of thousands of speakers. Most of the languages belong to
the Indo-Iranian branch of the Indo-European family. The exceptions are Burushaski, which is a
language isolate; Balti, which is Sino-TIbetan; and Brahui, which is Dravidian.

Pakistani society is largely hierarchical, with high regard for traditional Islamic values, although
urban families have grown into a nuclear family system because of the socio-economic
constraints imposed by the traditional joint family system.[117] Recent decades have seen the
emergence of a middle class in cities like Karachi, Lahore, Rawalpindi, Hyderabad, Faisalabad,
Multan and Peshawar that wish to move in a more centrist direction, as opposed to the
northwestern regions bordering Afghanistan that remain highly conservative and dominated by
centuries-old regional tribal customs. Increasing globalization has resulted in ranking 46th on the
A.T. Kearney/FP Globalization Index.[118]

The variety of Pakistani music ranges from diverse provincial folk music and traditional styles
such as Qawwali and Ghazal Gayaki to modern forms fusing traditional and western music, such
as the synchronisation of Qawwali and western music by the world renowned Nusrat Fateh Ali
Khan. In addition Pakistan is home to many famous folk singers such as the late Alam Lohar,
who is also well known in Indian Punjab. However, majority of Pakistanis listen to Indian music
produced by Bollywood and other Indian film industries. The arrival of Afghan refugees in the
western provinces has rekindled Pashto and Persian music and established Peshawar as a hub for
Afghan musicians and a distribution centre for Afghan music abroad.[119]

State-owned Pakistan Television Corporation (PTV) and Pakistan Broadcasting Corporation

were the dominant media outlets, but there are now numerous private television channels.
Various American, European, and Asian television channels and films are available to the
majority of the Pakistani population via private television networks, cable, and satellite
television. There are also small indigenous film industries based in Lahore and Peshawar (often
referred to as Lollywood). And while Bollywood films have been banned from being played in
public cinemas since 1965 they have remained popular in popular culture.[120]

The architecture of the areas now constituting Pakistan can be designated to four distinct periods
—pre-Islamic, Islamic, colonial and post-colonial. With the beginning of the Indus civilization
around the middle of the 3rd millennium B.C.,[121] an advanced urban culture developed for the
first time in the region, with large structural facilities, some of which survive to this day.[122]
Mohenjo Daro, Harappa and Kot Diji belong to the pre-Islamic era settlements. The rise of
Buddhism and the Persian and Greek influence led to the development of the Greco-Buddhist
style, starting from the 1st century CE. The high point of this era was reached with the
culmination of the Gandhara style. An example of Buddhist architecture is the ruins of the
Buddhist monastery Takht-i-Bahi in the northwest province.
The arrival of Islam in today's Pakistan meant a sudden end of Buddhist architecture.[123]
However, a smooth transition to predominantly pictureless Islamic architecture occurred. The
most important of the few completely discovered buildings of Persian style is the tomb of the
Shah Rukn-i-Alam in Multan. During the Mughal era design elements of Islamic-Persian
architecture were fused with and often produced playful forms of the Hindustani art. Lahore,
occasional residence of Mughal rulers, exhibits a multiplicity of important buildings from the
empire, among them the Badshahi mosque, the fortress of Lahore with the famous Alamgiri
Gate, the colourful, still strongly Persian seeming Wazir Khan Mosque as well as numerous
other mosques and mausoleums. Also the Shahjahan Mosque of Thatta in Sindh originates from
the epoch of the Mughals. In the British colonial period, predominantly functional buildings of
the Indo-European representative style developed from a mixture of European and Indian-
Islamic components. Post-colonial national identity is expressed in modern structures like the
Faisal Mosque, the Minar-e-Pakistan and the Mazar-e-Quaid.

A Kalash man dances during the Uchau Festival.

The literature of Pakistan covers the literatures of languages spread throughout the country,
namely Urdu, Sindhi, Punjabi, Pushto, Baluchi as well as English[124] and Persian as well. Prior to
the 19th century, the literature mainly consisted of lyric poetry and religious, mystical and
popular materials. During the colonial age the native literary figures, under the influence of the
western literature of realism, took up increasingly different topics and telling forms. Today, short
stories enjoy a special popularity.[125]

The national poet of Pakistan, Allama Muhammad Iqbal, suggested the creation of a separate
homeland for the Muslims of India. However, Iqbal had also wrote the Tarana-e-Hind which
stated the belief of a strong united India. His book The Reconstruction of Religious Thought in
Islam is a major work of modern Islamic philosophy. The most well-known representative of the
contemporary Urdu literature of Pakistan is Faiz Ahmed Faiz. Sufi poets Shah Abdul Latif,
Bulleh Shah and Khawaja Farid are also very popular in Pakistan.[126] Mirza Kalich Beg has been
termed the father of modern Sindhi prose.[127]