On can rightly say that knowledge of economics as the subject Is not that important for the economic development.This is because at the time of the industrial revolution economics as the subject had not been  formulated and Adam Smith the father of economics was still writing his “WEALTH OF NATION”.In those days Indian subcontinent was ruled by the kings like AKBAR,the great,and ALLAUDIN KHILJI ,inflation,devaluation,capital formation and things like that.He knew only few things of goos governance.Besides providing an extremely efficient law and order he issued mass production amss employment and efficient system for transportation.The king early in the morning used to listen market rates and would order transportation of goods,cloth,corn etc from the areas where these were surplus and cheap to the areas which were deficient.By ensuring these simple things he succeed in making subcontinent a “Sparrow of the gold”.
The simple things were time tested policies  and still hold good and the work.But let us talk about some of the modern economic phenomena and economic flictuations faced by us and how we overcome these fluctuations and restore modern macro economic stability.
The decade of the 90`s in the Paksitan was stressful one for the whole country.the presistance of the large fiscal and current account deficits and the associated build up of the public and the external debt were the major sources of macro economics imbalance.Economic growth slowed down,investment rates decelerated,debt burden reached alarming proportions exports stagnated,foreign exchange reserve got reduced  and the relation with the financial institutions deteriorated.