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The Fifth Plan could not anticipate the rapid deterioration on this planet financial environment which adopted and, as such, the precise consequence of the steadiness of funds differed fairly significantly from forecasts. Quickly after the plan was finalized, the world economy witnessed rising inflationary pressures and mounting stability of payments disequilibria. Volatile fluctuations within the interest and change rates brought on huge movements of speculative capital, and above all there was a rising trend towards protectionism. The sluggish growth in world markets inflicting contraction in world commerce for the primary time since 1958, together with a steep decline within the prices of primary products, drastically decreased export earnings of the poorer nations together with Pakistan, and in addition triggered a pointy deterioration in the phrases of trade.
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