Economic Reforms in Pakistan (1971-1977)

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Questions and Answers

What role did Zulfikar Ali Bhutto play in the Islamic Republic of Pakistan after the National Assembly election?

He was elected as the Prime Minister.

How many articles are included in the written constitution of Pakistan from 1973?

280

What is the official name of the republic as proclaimed by the 1973 constitution?

Islamic Republic of Pakistan

What was the slogan used by the opposition parties against Bhutto's government in 1977?

Nizam-e-Mustafa Signup and view all the answers

Who imposed Martial Law in Pakistan on 5 July 1977, deposing Bhutto?

General Muhammad Zia-ul-Haq Signup and view all the answers

What was General Zia-ul-Haq's primary objective after coming into power?

The implementation of Nizam-e-Mustafa or the Shari'a Law. Signup and view all the answers

What was the main assurance provided to small industrialists regarding nationalization?

The government assured them that they would be protected and encouraged and that no further industrial units would be nationalized. Signup and view all the answers

Name three industries that were nationalized in the second phase of nationalization.

Cotton, sugar, and edible oil industries. Signup and view all the answers

What kind of crimes were subject to Islamic penalties under General Zia's Islamization policy?

Crimes like drinking wine, theft, adultery, and qadaf. Signup and view all the answers

What financial systems/policies were introduced under General Zia's Islamization program?

Nizam-e-Zakat and Nizam-e-Ushr Signup and view all the answers

What was one negative consequence of nationalization of industries on prices of essential goods?

Prices of essential items like flour, ghee, and sugar increased substantially due to production shortfalls and higher costs. Signup and view all the answers

How did salary increases contribute to inflation after nationalization?

Salary increases, meant to avoid public unrest, resulted in higher production costs, further fueling inflation. Signup and view all the answers

What was the impact on the country's economy when investors began shifting their capital out of the country?

The economic condition of the country further deteriorated when investors started moving their capital elsewhere. Signup and view all the answers

What was a negative consequence of nationalized education regarding students and transport?

Students were allowed almost free travel, leading to tension with private transport providers and students became negligent in their studies. Signup and view all the answers

When was the new constitution of the Islamic Republic of Pakistan approved by the president?

April 12, 1973. Signup and view all the answers

What was the date on which the new constitution was officially put into effect?

August 14, 1973. Signup and view all the answers

What was the primary reason for the dismissal of Benazir Bhutto's second government?

Economic crisis and general unrest. Signup and view all the answers

Under which section of the constitution was Benazir Bhutto's second government dismissed?

Section 58-2-B Signup and view all the answers

Which political party secured the largest majority in the 1997 general elections?

Pakistan Muslim League Nawaz (PML-N) Signup and view all the answers

What was the purpose of the 'Qarz Utaro Mulk Sanwaro' scheme?

To retire the country's debt. Signup and view all the answers

What was the main objective of the 13th amendment?

To strip the president of the power to dissolve the National Assembly. Signup and view all the answers

Who originally granted the president the discretionary powers that were revoked by the 13th amendment?

Gen. Muhammad Zia-ul-Haq. Signup and view all the answers

What was the public's initial reaction to the 'Qarz Utaro Mulk Sanwaro' scheme?

Enthusiastic. Signup and view all the answers

Besides the 13th amendment, what other amendment was passed during Nawaz Sharif's second term?

14th amendment bill. Signup and view all the answers

What was the minimum voting age according to the 'Devolution of Power and Responsibility Plan 2000'?

18 years Signup and view all the answers

Besides the Union Council, name two other tiers of local government established by the 'Devolution of Power and Responsibility Plan 2000'.

The City District and the District Council. Signup and view all the answers

Under the restructuring of civil services, what position replaced the Deputy Commissioner (DC)?

District Coordination Officer or DCO Signup and view all the answers

In the Union Council, how many members were to be directly elected by voters?

13 members Signup and view all the answers

What percentage of seats in the Tehsil Council were reserved for women?

33 percent Signup and view all the answers

Who was the head of the Tehsil government?

The Tehsil Nazim Signup and view all the answers

Who was the head of the district government, and what was he responsible for under the 'Devolution of Power and Responsibility Plan 2000'?

The District Nazim; he exercised all administrative powers. Signup and view all the answers

Under the 'Devolution of Power and Responsibility Plan 2000', who were District Police and district administration accountable to?

The District Nazim Signup and view all the answers

What was a major consequence of the Soviet Union's defeat in Afghanistan?

The disintegration of the Soviet Union. Signup and view all the answers

How did the Afghan jihad impact Pakistan's international image?

It improved Pakistan's image as a dignified and honorable country. Signup and view all the answers

Besides improving Pakistan's image, what negative consequences did the Afghan jihad create for Pakistan?

Increased illegal weapons, drug spread, and economic stress due to refugees. Signup and view all the answers

What significant change occurred in Pakistan's governance in 1985?

Martial law was lifted. Signup and view all the answers

What was the purpose of the 8th constitutional amendment in Pakistan?

To legalize Zia-ul-Haq's actions and give the President power to dissolve Parliament. Signup and view all the answers

What was a general expectation of the new Prime Minister, Muhammad Khan Junejo, at the time he took office?

That he would remain loyal to General Muhammad Zia-ul-Haq. Signup and view all the answers

How did Junejo's actions differ from what was generally expected of him?

He started to assert the authority of the civil government. Signup and view all the answers

What resulted from the lack of international effort to establish a democratic system in Afghanistan after the Soviet withdrawal?

A power struggle between warlords. Signup and view all the answers

What were the main charges against Benazir Bhutto's government that led to its dismissal in 1990?

The charges against Benazir Bhutto's government were corruption, incompetence, and mismanagement. Signup and view all the answers

What was the name of the political alliance that won the 1990 elections under the leadership of Muhammad Nawaz Sharif?

The political alliance was called Islami Jamhoori-Ittihad (IJI). Signup and view all the answers

What was a key economic policy initiated by Nawaz Sharif’s government to reduce state control?

The key policy was privatization. Signup and view all the answers

What was the primary objective of the 'Yellow Cab Scheme' introduced by Nawaz Sharif's government?

The scheme aimed to address unemployment and public transport shortages. Signup and view all the answers

What was the first major motorway project completed by Nawaz Sharif's government and when was it inaugurated?

The Islamabad-Lahore Motorway was inaugurated in November 1997. Signup and view all the answers

Besides improving infrastructure, what other sector did Nawaz Sharif introduce reforms to during his first tenure?

He introduced agricultural reforms. Signup and view all the answers

What was the purpose of establishing the Bait-ul-Mal in 1992?

It was established to provide financial assistance to the needy. Signup and view all the answers

In addition to domestic policies, what diplomatic effort did Nawaz Sharif's government undertake regarding Afghanistan?

The government attempted to bring warring Afghan groups to the negotiation table. Signup and view all the answers

Study Notes

Economic Reforms (1971-1977)

Zulfikar Ali Bhutto's Pakistan Peoples Party emerged as majority party in West Pakistan in December 1970 elections.
General Muhammad Yahya Khan invited Bhutto to form a government after the separation of East Pakistan, and Bhutto took over as president and civil martial law administrator of West Pakistan on December 20, 1971.
In 1973, Bhutto introduced a new constitution, establishing parliamentary democracy.
Bhutto's economic reforms, termed "People's Government Reforms," focused on industrial policy.

Economic Reforms Initiatives

Nationalization of 32 factories (January 1972): This included iron, steel, petrochemical, oil refinery, and gas companies.
Nationalization of 40 ghee and vegetable oil manufacturing units (September 1973).
Nationalization of banks and insurance companies (January 1974).
Labour reforms (February 10, 1972): Provided labour representation, bonuses, profit-sharing, and old-age pension. This boosted trade unionism.
Agricultural reforms (March 1, 1972): Fixed upper limits on landholdings at 150 acres for irrigated land and 300 for non-irrigated land. Protected tenants.

Nationalization Policy

The government took major industrial units under control to address economic deprivation.
This included steel, petrochemicals, heavy engineering, heavy electrical, automobiles, tractors, petrochemicals, cement, electricity, gas, and oil refineries.
Protections were given to small industrialists against further nationalization.
A second round expanded nationalization to cotton, sugar, edible oil, and ghee industries by 1976.
Life insurance was nationalized in 1973, while general insurance remained private. State Life Insurance Corporation was established.
All private banks nationalized in January 1974.

Nationalization Impacts

Inefficient bureaucracy and corrupt management hampered the nationalized industries' performance.
Production decreased, and costs of essential goods increased (leading to inflation).
Investors shifted capital out of the country.
Salary increases to avoid unrest further exacerbated inflation.

Other Initiatives

Registration of citizens (national identity card scheme).
Beginning of nuclear program.
Establishment of Peoples Open University (now Allama Iqbal Open University).

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Description

This quiz explores the significant economic reforms introduced by Zulfikar Ali Bhutto's government in Pakistan from 1971 to 1977. It covers the nationalization of industries, labor reforms, and the establishment of parliamentary democracy through the 1973 constitution. Test your knowledge on these transformative years in Pakistan's economic history.