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?

<p>Nizam-e-Mustafa</p> Signup and view all the answers

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

<p>General Muhammad Zia-ul-Haq</p> Signup and view all the answers

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

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

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

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

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

<p>Cotton, sugar, and edible oil industries.</p> Signup and view all the answers

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

<p>Crimes like drinking wine, theft, adultery, and qadaf.</p> Signup and view all the answers

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

<p>Nizam-e-Zakat and Nizam-e-Ushr</p> Signup and view all the answers

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

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

How did salary increases contribute to inflation after nationalization?

<p>Salary increases, meant to avoid public unrest, resulted in higher production costs, further fueling inflation.</p> 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?

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

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

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

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

<p>April 12, 1973.</p> Signup and view all the answers

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

<p>August 14, 1973.</p> Signup and view all the answers

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

<p>Economic crisis and general unrest.</p> Signup and view all the answers

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

<p>Section 58-2-B</p> Signup and view all the answers

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

<p>Pakistan Muslim League Nawaz (PML-N)</p> Signup and view all the answers

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

<p>To retire the country's debt.</p> Signup and view all the answers

What was the main objective of the 13th amendment?

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

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

<p>Gen. Muhammad Zia-ul-Haq.</p> Signup and view all the answers

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

<p>Enthusiastic.</p> Signup and view all the answers

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

<p>14th amendment bill.</p> Signup and view all the answers

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

<p>18 years</p> 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'.

<p>The City District and the District Council.</p> Signup and view all the answers

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

<p>District Coordination Officer or DCO</p> Signup and view all the answers

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

<p>13 members</p> Signup and view all the answers

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

<p>33 percent</p> Signup and view all the answers

Who was the head of the Tehsil government?

<p>The Tehsil Nazim</p> 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'?

<p>The District Nazim; he exercised all administrative powers.</p> Signup and view all the answers

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

<p>The District Nazim</p> Signup and view all the answers

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

<p>The disintegration of the Soviet Union.</p> Signup and view all the answers

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

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

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

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

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

<p>Martial law was lifted.</p> Signup and view all the answers

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

<p>To legalize Zia-ul-Haq's actions and give the President power to dissolve Parliament.</p> 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?

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

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

<p>He started to assert the authority of the civil government.</p> 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?

<p>A power struggle between warlords.</p> Signup and view all the answers

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

<p>The charges against Benazir Bhutto's government were corruption, incompetence, and mismanagement.</p> 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?

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

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

<p>The key policy was privatization.</p> Signup and view all the answers

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

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

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

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

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

<p>He introduced agricultural reforms.</p> Signup and view all the answers

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

<p>It was established to provide financial assistance to the needy.</p> Signup and view all the answers

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

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

Flashcards

Nationalization

The process of transferring ownership of companies from private individuals to the government.

First Phase of Nationalization in Pakistan

The first phase of nationalization in Pakistan focused on key industries like iron and steel, heavy engineering, and petrochemicals.

Second Phase of Nationalization in Pakistan

The second phase of nationalization in Pakistan expanded to include industries related to food production and processing, like cotton, sugar, and oil.

Intended Goals of Nationalization in Pakistan

Nationalization in Pakistan was intended to increase government control and promote economic equality. However, it had unintended negative consequences.

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Failures of Nationalization in Pakistan

The nationalization of industries in Pakistan led to a decline in efficiency, corruption, and an increase in inflation due to inefficient management and bureaucratic control.

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1973 Constitution of Pakistan

The 1973 Constitution of Pakistan established a parliamentary system of government with a prime minister as head of the government.

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Goals of the 1973 Constitution

The 1973 Constitution aimed to transition Pakistan to a parliamentary democracy and to establish a more secular system of government.

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Adoption of the 1973 Constitution

The 1973 Constitution was adopted by the National Assembly and approved by Zulfikar Ali Bhutto, then acting as president.

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What was the official name of Pakistan according to the 1973 Constitution?

The 1973 Constitution of Pakistan codified the country's official name as the "Islamic Republic of Pakistan" and declared Islam as the state religion.

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Who was elected as the Prime Minister of Pakistan after the 1973 Constitution?

Zulfikar Ali Bhutto was elected as the Prime Minister of Pakistan by the National Assembly following the adoption of the 1973 Constitution.

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Due to political turmoil, what action did General Zia-ul-Haq take?

General Zia-ul-Haq imposed Martial Law in Pakistan in 1977, leading to the removal of Zulfikar Ali Bhutto from office and the establishment of a military government.

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What was Zia-ul-Haq's primary political agenda after taking power?

The implementation of Shari'a Law, also known as Nizam-e-Mustafa, was a central objective of General Zia-ul-Haq's rule, aiming to implement Islamic principles in law and society.

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What was the judicial body established to enforce Islamic principles?

The Federal Shari'a Court was established during Zia-ul-Haq's rule to interpret and implement Islamic law.

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What were the economic policies implemented based on Islamic principles during Zia-ul-Haq's regime?

Zia-ul-Haq's government introduced the concept of 'Nizam-e-Zakat' and 'Nizam-e-Ushr' as economic policies based on Islamic principles.

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How was the Objectives Resolution incorporated into the Constitution by Zia-ul-Haq?

The Objectives Resolution, a document outlining Islamic values, was incorporated into the Constitution, making it legally enforceable during Zia-ul-Haq's rule.

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What types of punishments were implemented based on Islamic law?

Zia-ul-Haq's regime introduced Islamic penalties for crimes such as drinking alcohol, theft, adultery, and false accusation.

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Impact of Afghan Jihad on Soviet Union

The Soviet Union's military defeat in Afghanistan significantly weakened its communist regime, contributing to its disintegration in 1991.

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Pakistan's Gains and Losses after Afghan Jihad

Pakistan's support for Afghan Mujahideen during the Soviet-Afghan War improved its international image, but also led to challenges like illegal weapons influx, drug trafficking, and economic strain due to Afghan refugees.

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8th Constitutional Amendment (1985)

The 8th Constitutional Amendment of Pakistan in 1985 legalized all changes made by General Zia-ul-Haq during his rule, including Islamization policies, and granted the president the power to dissolve parliament.

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Junejo's Initial Approach

Muhammad Khan Junejo, appointed Prime Minister in 1985, initially appeared to follow Zia's policies, but later began asserting the authority of the civilian government.

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Post-Soviet Withdrawal in Afghanistan

After the Soviet withdrawal from Afghanistan, a power struggle erupted among Afghan warlords, destabilizing the region and making Pakistan's western border insecure.

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Negative Effects of Afghan Jihad on Pakistan

The Afghan Jihad resulted in the spread of illegal weapons and drugs within Pakistan.

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Afghan Refugees and Unemployment in Pakistan

The influx of Afghan refugees into Pakistan during the Afghan Jihad significantly increased unemployment.

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Increased Terrorism in Pakistan

The Afghan Jihad created a climate of instability and insecurity which contribute to increased terrorist activities and crime in Pakistan.

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Dismissal of Benazir Bhutto's Government

President Ghulam Ishaq Khan, using his constitutional power, dismissed Benazir Bhutto's government in 1990, citing corruption, inefficiency, and poor management. He dissolved the National Assembly, ending her 20-month term as Prime Minister.

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1990 Election Results

The Islami Jamhoori Ittihad (IJI) led by Nawaz Sharif won the 1990 elections, securing 105 seats in the National Assembly. The Pakistan Peoples Party, led by Benazir Bhutto, won only 46 seats.

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Nawaz Sharif's Economic Policy

Nawaz Sharif, as Prime Minister, prioritized economic liberalization and privatization. He believed that nationalization had harmed the economy and aimed to reverse this trend.

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Privatization in Pakistan

The government established a Privatization Commission tasked with selling off state-owned industries and financial institutions, including banks. This marked a shift towards private ownership in the Pakistani economy.

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Yellow Cab Scheme

To address unemployment and public transport shortages, Nawaz Sharif introduced the "Yellow Cab Scheme." This aimed to improve transportation through private taxi services, providing jobs and easier access to transportation.

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Motorway Project

Nawaz Sharif believed in infrastructure as a key to economic growth. He initiated the construction of high-quality motorways, starting with the 367 km long Islamabad-Lahore Motorway.

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Agricultural Reforms

Agricultural reforms were introduced during Nawaz Sharif's tenure to improve the position of Pakistani farmers. This focused on modernizing farming techniques and possibly improving crop yields.

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Bait-ul-Mal

To provide financial support to those in need, the government established Bait-ul-Mal in 1992. This institution aimed to distribute resources and assistance to the less fortunate.

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Devolution of Power and Responsibility Plan 2000

A policy aimed at transferring power and responsibilities from the central government to local levels.

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Union Council

The lowest level of local government in Pakistan, responsible for basic services and community issues.

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District Council

The second level of local government in Pakistan, responsible for coordinating administration and development at the district level.

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Nazim

The elected head of the Union Council, responsible for managing local affairs.

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Female Councilors

Part of the Union Council, responsible for providing representation to women.

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District Nazim

The elected head of the District Council, responsible for overarching administration and development.

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Tehsil Nazim

An elected official responsible for overseeing the Tehsil level, mediating between the Union Councils and the District Council.

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District Co-ordination Officer (DCO)

The senior administrative officer of a district, responsible for coordination and implementation.

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Dismissal of Benazir Bhutto's Second Government

Benazir Bhutto's second government was dismissed by President Sardar Farooq Ahmad Khan Laghari on November 5, 1996 due to a severe economic crisis, widespread unrest, and a successful sit-in protest by Jamat-e-Islami. This dismissal was based on Article 58-2-B of the constitution, which grants the president the power to dissolve the National Assembly under certain conditions.

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Qarz Utaro Mulk Sanwaro Scheme

The 'Qarz Utaro Mulk Sanwaro' (Retire Debt to Adore the Country) scheme was launched by Nawaz Sharif to encourage public contributions towards reducing the country's mounting debts. Despite public enthusiasm, the scheme couldn't achieve its intended goals due to management issues.

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13th Amendment

The 13th Amendment, passed in April 1997, significantly reduced the president's powers by stripping them of the authority to dissolve the National Assembly and provincial assemblies. It also revoked the president's independent power to appoint Chiefs of the Armed Forces, requiring consultation with the prime minister.

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14th Amendment

The 14th Amendment, passed during Nawaz Sharif's second term, aimed to strengthen the parliamentary system in Pakistan.

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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.

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