Maria Anwer

2. Maria Anwer BB-11-01

3. AYUB KHAN REGIME (1958-1969)

4. Military Career • Appointed as the first Pakistani Commander-in-Chief of the Pakistan Army by Liaquat Ali Khanin 1951. • Promoted over several senior officers with distinguished careers. • Became a powerful political figure within a short period of time.

5. End of the Democratic System • By 1958, the government of IskanderMirza was unpopular and the political situation was chaotic. • Between 1955 and 1958, five different prime ministers tried unsuccessfully to establish a stable government. • In East Pakistan, severe floods caused food shortages and great distress. • People were in despair as Pakistan faced bankruptcy and chaos. • To most Pakistanis and the rest of the world, the government seemed corrupt and inefficient. • According to the Constitution, elections were to be held in 1958; politicians tried to win support by any means. • On 7 October 1958, martial law was declared by President IskanderMirza.

6. Ayub Khan Taking Power • AyubKhan took the role of Chief Martial Law Administrator. • On 27 October, he removed IskanderMirza from office and exiled him to London. • Ayub Khan took on the office of President as well. • To his supporters, this event was known as the ‘Glorious Revolution’.

7. Reforms Introduced By Ayub Khan • Political Reforms • Agricultural Reforms • Economic Reforms • Social Reforms and Educational Reforms • Foreign Policies, etc.

8. POLITICAL REFORMS

9. Public and Representative Office Disqualification Act (PRODA) • The PRODA prescribed fifteen years' exclusion from public office for those found guilty of corruption. • About 3,000 officials were dismissed and many other were reduced in rank as a result of these measures.

10. Elective Bodies Disqualification Order (EBDO) • Passed in August 1959. • Special tribunals authorized to try former politicians for "misconduct," which was not clearly defined. • 75 leaders were disqualified for 8 years. • East Pakistani politicians primarily targeted from the AwamiLeague. • About 7,000 individuals were "EBDOed.".

11. Press And Publications Ordinance • Amended in 1960 to specify broad conditions under which • Newspapers and other publications could be closed down. • Trade organizations, unions, and student groups were closely monitored and cautioned to avoid political activity. • Imams at mosques were warned against including political matters in sermons.

12. 1959 Basic Democracies • Introduction on 26 October 1959. • A four-tier system which would consist of

13. 80,000 elected Basic Democrats would also form the Electoral College for the election of the President and members of the Central and Provincial Legislatures. • First elections were held in January 1960 in which 40,000 Basic Democrats were elected in each province. • On February 7 1960, 95% of the Basic Democrats elected Ayub Khan as the President of Pakistan.

14. 1962 Constitution • Announced on 1 March 1962. • Although Ayub Khan described it as combining ‘democracy with discipline’. • Its main features were presidential: • The President nominated the Cabinet from the members of the National Assembly, but they would have to resign from the National Assembly if made ministers.

15. The President could not be removed unless impeached. • The President nominated the heads of the judiciary and the provincial governors (who then nominated their Cabinets). • The National Legislature could not pass a law without the approval of the President. • The constitution shall be amended only by a two-thirds majority of the Assembly and assent of the president. If the president does not agree, it shall need a three-quarters majority. Even then, the president shall choose whether to dissolve the Assembly or call a referendum.

17. Constitution 1962 • Introduced without debate and AyubKhan brought martial law to an end soon afterwards. • The new National Assembly met on 8 June 1962. • It appeared that Pakistan was moving nearer to a democratic system, but actually, Ayub’s reforms had increased the powers of the ruling elite.

18. Criticism-Political Reforms • 1962 Constitution The Constitution upset the people of East Pakistan. Various steps were taken for them: • National languages-Urduand Bengali. • The National Assembly Session-Dhakaand Islamabad. • President and Speakerof the National Assembly. • Despite these measures, the people of East Pakistan still believed that Pakistan was, in reality, government of East Pakistan by West Pakistan.

19. Insistence on the One Unit Scheme This produced instant reaction among the small provinces and regional parties of Bengal. They started agitation against Ayub’s regime to force him to dissolve One Unit. • A Controlled Democracy The National Assembly passed a number of controversial bills during its life. • One bill, passed in June 1964, allowed the president to remain in office until a successor was found. • The Electoral College Bill meant that an electoral college of 80,000 would be elected who in turn would elect the president.

20. MaimoonaMailk BB-11-22

21. AGRICULTURAL REFORMS

22. Agricultural Reforms • From the very beginning, a few notable agricultural families had spread their tentacles in the political set-up of Pakistan. • In the former West Pakistan, politics was dominated by a few wealthier landowner families.

23. Land Reforms Commission • Appointed in October, 1958 • Submitted its report within three months • Led to a number of reforms aimed at: • Eliminating the monopoly of the big landowners and particularly the absentee landlords, in the politics • Providing security for tenure • Providing fairer distribution and ownership of land

24. Land Reforms • A person could not own more than either 500 acres of canal irrigated land or 1000 acres of unrelated land. • Utilization of resumed area. • Creation of pool. • Jagirs. • Protection to tenants. • Proprietary rights for the tenants.

25. Effects • A total of 2.5 million acres of land was resumed • 2.3 million areas of land was distributed to nearly 1.8 lakh peasants. • Movement started for voluntary reductions in individual ownership, encouraging creation of a strong middle-class of owner-operated farms of economic size. • Some people benefited while the powerful landlords managed to hang on to most of their land holdings. Quite a bit of the land they gave up was actually very poor land that they were glad to get rid of!

26. Other Measures For Agriculture • Three major dams were built to help irrigation. • The Agricultural Development Bank of Pakistan (ADBP) was set up. • Farmers were also loaned money to build wells to reduce the need for canal irrigation.

27. Green Revolution Growth in agriculture:

28. The phenomenal increase in growth took place in two phases.

29. Phases Of Green Revolution 1. 1960-1965 • Main cause of the growth was the increase in irrigation facilities, mainly tube wells. • Between 1960-65, about 25,000 tube wells were installed, each costing R.s. 5000-12000 and the farm area serviced by tube wells doubled.

30. 2. 1966-1970 • Growth took place mainly because the expanded irrigation facilities were supplemented by the technology package of • High yielding varieties (HYV) seeds, • Chemical fertilizers and • Pesticides.

31. Criticism-Green Revolution • Issues of Tube wells • They were highly regionalized, e.g. 91% of the 76,000 tube wells in 1968 were in Punjab. • Given the size and cost of tube wells, they were mainly installed by landowners with over 25 acres of land (70%). • Poor and illiterate farmers could not take benefit of the credit policies offered by the ADBP to purchase and install tube wells.

32. 2. Issues of Tractorization • 75% of privately owned tractors were on farms that had sunk tube wells. 58%

33. 3. Regional and Income Disparities • Purchase of tractors and access to credit were inaccessible to poorer farmers. • Khyber Pakhtunkhwa and south-eastern parts of Sindh had inadequate access to water and the HYV technology. Thus, regional disparities increased. So, the Green Revolution of Pakistan was produced by the farmers who owned between 50 and 100 acres, almost all of them in Punjab. The Green Revolution has therefore been called and ‘Elite Farmer Strategy’.

34. Criticism-Land Reforms • Almost three-quarters of resumed land, at least in the Punjab, was uncultivated and untenanted. This meant that the amount of land available for redistribution was even more limited. • Landlord-tenant relations were left unchanged, to be governed by the tenancy acts passed in the early fifties and to be supervised by the revenue service.

35. Sana Irum BB-11-23

36. ECONOMIC REFORMS

37. 1) Industrial Reforms • Economic development was a priority for Ayub Khan. • He recruited able economists and advisers, many of whom had been trained in the USA. • So successful were his policies that businessmen and leaders around the world began to praise the ‘Pakistan Miracle’.

38. In February 1959, the Government announced a new industrial policy of “gradual liberalization of economy” to pave way for smooth industrial growth. • Main emphasis on the utilization of raw materials available in the country to benefit small and medium scale industries. • The extreme bureaucratic restraints were removed by a more market-oriented approach.

39. Establishment of Financial and Development Corporations • Pakistan Industrial Development Corporation (PIDC) was set up with a capital of R.s 1 billion. • It was put in charge to promote the following industries: • Jute Paper-board and newsprint • Heavy engineering • Fertilizers • Sugar • Cement • Textiles, etc.

40. Industrial Trading Estates • Four new estates for small industries were established in • Bahawalpur, • Gujarat, • Larkana and • Peshawar • This helped in the process of industrialization by handling the initial difficulties faced by new industrialists.

41. Price Stability • In October 1958, the government took several measures to check inflation. • Price Controls • Price controls covering a large number of consumer goods and industrial raw materials were imposed. • These measures led to a fall in prices and improvement in supply position of a large number of articles. • They relaxed the control over industrial investment and trade. • Moreover, the government removed the constraints on profit margin and prices.

42. Other Measures • Government borrowing for financing fiscal deficits was reduced sharply. • Efforts to broaden the direct taxation system kept the indirect taxation to minimum and hence prices of goods remained stable. • Needs of additional defence spending were met by additional taxation. • Therefore, the average annual rate of growth of prices was only 3.3%.

43. Investment Promotion Bureau • Set up in April 1959. • To attract foreign investment for the establishment of new industries • To provide guidance to industrialists and investors. • To solve problems of foreign investors in the matter findingland, water, power, etc. • Industrial legislation was introduced to facilitate the growth of industry with minimum government interference. • Therefore, this led to encouragement of private enterprise.

44. Other Measures Related To Industry • Supply of credit • Credit was liberally provided to the industrial sector by both the commercial banks & the specialized credit institutions, e.g. Industrial Development Bank of Pakistan (IDBP). • National Investment trust was set-up to attract small saving into industrial investment.

45. Foreign Aid and Loans • Loans were taken from more industrialized western countries, particularly the USA, Germany and the UK. • These played a dominant role in the industrial and economic development of Pakistan. • Without that aid, the remarkable growth in that era could not be possible.

46. Investments • New industries were given tax holidays. This led to the inflow of capital (from 13.20 Million in 1956 to 26.28 Million in 1966). • Private investment growth in West Pakistan during 1960-1965 increased over three folds. • It declined over by 20% in next five years but still during the 1960’s, real private fixed investment more than doubled, grew faster than public investment, and accounted for nearly half of the total fixed investment by 1969-1970. • Political stability, liberalization of investment controls and ample availability of foreign exchange were key factors influencing a pronounced acceleration in the pace of private investment. • The increase in investment contributed to an increase in economic growth naturally.

47. Water and Power Investments • Total water and power investments in West Pakistan during the 1960’s, including the, exceeded US $2.5 Billion and accounted for more than 50% of total public sector spending.

48. Unification of Domestic Markets • Domestic markets were unified so that the finished goods could travel easily from one place to another. • In 1962, an oil refinery was established in Karachi. • A Mineral Development Corporation was set up in 1962, for the exploration of mineral deposits. • In 1964, an economic union was formed with Iran and Turkey, the Regional Cooperation for Development (RCD) in which the three countries agreed to develop ties in trade, commerce and industry.

49. TRADE REFORMS

50. Trade Policy • Introduced in 1959. • Focus on indirect controls on imports and on domestic prices of other goods. • A number of measures were taken on import licensing that made market forces more important in determining the ownerships of import licenses.