Professional Documents
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Anwer
BB-11-01
AYUB KHAN
REGIME
(1958-1969)
Military Career
Appointed as the first Pakistani Commander-in-
Chief of the Pakistan Army by Liaquat Ali Khan in
1951.
Promoted over several senior
officers with distinguished
careers.
Became a powerful political
figure within a short period
of time.
End of the Democratic System
By 1958, the government of Iskander Mirza 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
Iskander Mirza.
Ayub Khan Taking Power
Ayub Khan took the role of Chief Martial Law
Administrator.
On 27 October, he removed
Iskander Mirza 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.
Reforms Introduced By Ayub Khan
1. Political Reforms
2. Agricultural Reforms
3. Economic Reforms
4. Social Reforms and Educational Reforms
5. Foreign Policies, etc.
POLITICAL
REFORMS
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.
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 Awami League.
About 7,000 individuals were "EBDOed.".
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.
1959 Basic Democracies
Introduction on 26 October 1959.
A four-tier system
which would consist of Divisional Level
District Level
Sub-district Level
Village Council
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.
1962 Constitution
1965-70
1959-64 6.3%
3.7%
Wheat
Production 91%
Rice
Production 141%
The phenomenal increase in growth took place
in two phases.
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.
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.
Criticism-Green Revolution
1. 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.
2. Issues of Tractorization
75% of privately owned
tractors were on farms Lahore
that had sunk
tube wells.
58% Multan
Bahawalpur
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.
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.
Sana Irum
BB-11-23
ECONOMIC
REFORMS
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.
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.
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.
Industrial Trading Estates
Supply of credit
o 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).
o National Investment trust was set-up to attract small
saving into industrial investment.
Foreign Aid and Loans
o Loans were taken from more industrialized western
countries, particularly the USA, Germany and the UK.
o These played a dominant role in the industrial and
economic development of Pakistan.
o Without that aid, the remarkable growth in that era
could not be possible.
Investments
o 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).
o Private investment growth in West Pakistan during 1960-1965
increased over three folds.
o It declined over by 20% in next five years but still during the
1960s, 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.
o 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.
o The increase in investment contributed to an increase in
economic growth naturally.
Water and Power Indus Basin
Investments Replacement Works
o Total water and power spending
investments in West
Pakistan during the
Warsak Dam on the
1960s, including the,
Kabul River in 1961
exceeded US $2.5 Billion
and accounted for more
than 50% of total public Mangla Dam from
sector spending. 1961 to 1967 across
the Jhelum River.
Unification of Domestic Markets
o 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.
TRADE
REFORMS
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.
Export Bonus Scheme
Introduced in 1959.
A flexible and fascinating device which was used both to subsidize
exports and to allow a safety valve on imports, while maintaining the basic
structure of import controls and the official exchange rate at its existing
level.
Exports of cotton
8.3% in 1958 35% in 1968
and jute textiles
Over 1959-64, total imports increased much more rapidly than
exports or GNP, and the composition of imports continued to shift
towards the import of capital goods and processed intermediate
goods.
Open General Licensing Scheme
However, at this point, relations with the Soviet Union worsened. The
Soviet Government was not happy with the fact that Pakistan was
accepting aid and arms from the USA as well from the Soviet Union.
4) RELATIONS WITH CHINA
Background
Elections for the Presidency were to take place in
January 1965. Ayub Khan was nominated by a new
party, the Convention Muslim League, which he had
helped form.
The opposition
parties all agreed
to support
Mohtarma Fatima
Jinnah.
Results
64% 36%
Ayub Fatiima
Khan Jinnah