AYUB KHAN’S DEVELOPMENT DECADE 1958 - 1968

Presented to: Ms Ayesha AfzalPresented by:

Ayesha FarzandKashaf Noor

Mehwish SaifMir Arooj Hassan

Midhat AbbasMisbah Tariq

Rameez AkmalSaher Aziz

Sehrish KhanTaimur Malik

INTRODUCTION

• Ayub Khan's era is known for the industrialization in the country.

• The private sector was encouraged to establish medium and small-scale industries in Pakistan.

• This opened up avenues for new job opportunities and thus the economic graph of the country started rising.

• The education standards of the country by introducing educational reforms

• First Pakistani ruler who attempted to bring in land reforms but the idea was not implemented properly.

• Labor, law and administrative reforms were also introduced during his regime.

• He also initiated Family Laws in the country.

• He planned a new city and moved the capital from Karachi to Islamabad in 1962.

• The 1965 war caused a rapid decline of the country's economy

ECONOMIC STRATEGY

• The commitment to rapid industrialization and economic growth.

• Key Priority:

- Achieve rapid rates of economic growth

- Price stability- Develop Pakistan’s industrial and

agriculture sectors.

POLICIES IN THE INDUSTRIAL SECTOR

• Agriculture based industries

• Emphasized on private sector

• Price stability

• Utilization of raw materials available in the country

PROMOTION OF INDUSTRIAL SECTOR

• Major steps were taken:- Establishment of the financial and

development corporations

- Industrial trading estates- Price controls- Investment promotion bureau- Encouragement of private enterprises

ESTABLISHMENT OF THE FINANCIAL AND DEVELOPMENT CORPORATIONS

• PIDC played an important role• Setup with the capital of 1 billion• PIDC was put in charge to promote the following industries:

- Jute- Paper-board and newsprint- Heavy engineering- Fertilizers- Sugar- Cement- Textile

• Industrial Trading Estate

- Four new estate were established

• Price Controls

- Consumer goods and industrial raw materials

• Investment Promotion Bureau:- Setup in April 1959- Main function is to sanction proposals for new

industries- Provide guidance

• Encouragement of private enterprises:- Industrial legislation with a view to facilitate the

growth of industry with minimum government interference.

- Encourage exports.

FOREIGN INVESTMENTS

• Liberal policies in tax concession and other measures taken by government, the inflow of capital increased •According to SBP, foreign private investments increased as

- 1956 13.20 M- 1959 16.59 M- 1965 26.11 M- 1966 26.28 M

DEFENCE AND DEVELOPMENT

• Model of economic development around the world •Military agreements with US in 1959

• Alliance with global US military against soviet union

• US used Badaber and peshawer airbases for U-2 flights over the soviet union

• 1965 indo-pak war ended with a Tashkent Declaration.

• 1958 – limited research facilities of PAEC

• 1965 – Munir Ahmed Khan estimated the cost of nuclear technology more than $150million

• Pakistan was economically poor to start the project

• Major economic aid from US and European nations

• 1965 war ended up with wide-scale economic slowdown • This war put up an end to impressive economic growth period during early 1960’s

• Therefore in 1966-67 the growth rate of economy slowed down to 3.1% the lowest in 10 year period

BUDGET DEFICIT

1964-65 1966-670

1

2

3

4

5

6

DEFENSE SPENDING IN GDP

1964 19660

2

4

6

8

10

12

FOREIGN AID POLICY

• “Nobody gives you freedom, you have to fight for it. Nobody fights for you. You have to fight for yourself”.

• Ayub Khan articulated his foreign policy in his autobiography “Friends not Masters”

OBJECTIVES

• Security and development of Pakistan and the preservation of its ideology .

• Improve, or normalize, relations with India, China, the Soviet Union and renewing the alliance with the United States.

INDUS WATER TREATY

• The Indus Waters Treaty of 1960 was backed by the World Bank and the United States.

• The agreement allocated use of the three western Indus Rivers (the Indus itself and its tributaries, the Jhelum and the Chenab) to Pakistan, and the three eastern Indus tributaries (the Ravi, Beas, and Sutlej) to India

U.S AID

• Foreign policy act was to sign bilateral economic and military agreements with the United States in 1959.

CHINA POLICY

• Border agreement in March 1963,

- Highway construction connecting the two countries at the Karakoram Pass - Agreements on trade

- Chinese economic assistance - Grants of military equipment, which was later

thought to have included exchanges in nuclear technology.

TURNING POINT OF AYUB ADMIN

• In January 1966, Ayub Khan and India's Prime Minister, Lal Bahadur Shastri, signed the Tashkent Declaration, which formally ended hostilities and called for a mutual withdrawal of forces.

• Ayub Khan's also lost the services of Minister of Foreign Affairs Bhutto, who resigned became a vocal opposition leader, and founded the Pakistan People's Party.

• Ayub Khan's illness in February 1968 and the alleged corruption of members of his family further weakened his position.

WATER AND POWER

• Investments-Total Water and Power Investments in West Pakistan exceeded US $ 2.5 Billion (1960’s) and accounted for more than 50% of total public sector spending.

• Indus Water Treaty (Background)- On 1st April, 1948, India cut off the supply of water from the two head works under its control.

-Eugene Black (President of International Bank for reconstruction and Development) called for the solution of the water problem in 1952.

INDUS WATER TREATY

• Signed in 1960 between Pakistan and India.

• 3 Eastern rivers to India and 3 Western rivers to Pakistan.

• Guaranteed 10 years of uninterrupted water supply to Pakistan.

INDUS BASIN REPLACEMENT WORKS(1960-80)

• A massive irrigation river link canal water scheme…

• Pakistan required to construct a system of replacement works consisting of - 2 Dams - 5 Barrages - 7 Link Canals

• A large number of existing canals and their associated irrigation infrastructure were re-modelled.

• The World Bank assistance being invaluable both on technical and finance side.

• So was the role of WAPDA which designed and executed the program.

• Completed by 1970’s.

• Massive Irrigation Canal System established on a flat plain with no natural draining.

• 30% (badly affected)

• 30% (had high water tables)

WATER LOGGING AND SALINITY

AYUB KHAN REGIME’S IMPORTANT PLANS

• Anti – Salinity and Water Logging Plans - Installation of 31,500 tubewells - Digging of 25,000 miles long and small canals - To build nullahs for the drainage of saline water

• Sind Basin Plan A large lake was made at Mangla by constructing a dam over River Jhelum at the cost of Rupees two hundred thirty-two crore.

SERVICES

The Press and Publications Ordinance was amended in1960 to specify broad conditions under which newspapers and other publications could be commandeered or closed down. Trade organizations, unions, and student groups were closely monitored and cautioned to avoid political activity, and imams  at mosques were warned against including political matters in sermons.

The imposition of martial law in 1958 targeted "antisocial" practices such as abducting women and children, black marketeering, smuggling, and hoarding. Many in the Civil Service of Pakistan and Police Service of Pakistan were investigated and punished for corruption, misconduct, inefficiency, or subversive activities. Ayub Khan's message was clear: he, not the civil servants, was in control.

The army maintained low visibility and was content to uphold the traditional social order. By early 1959, most army units had resumed their regular duties. Ayub Khan generally left administration in the hands of the civil bureaucracy, with some exceptions.

SOCIO-ECONOMIC AND POLITICAL REFORMS

• Ayub Khan adopted an essentially technocratic mode of government depending upon a number of committees and commissions to help in policy formulation. In all, the Martial Law Administration, during its entire tenure, set up as many as 25 different commissions to deliberate on policy matters within a wide variety of domains.

• Ayub Khan’s regime undertook work of equal importance, nor did they achieve similar results, but the fact that the government was able to devote its attention to all these areas cannot escape one’s attention. 

EDUCATIONAL POLICIES

• First education policy was given in 1947.

• Second education policy was made in 1958 in Ayub Khan Period.

• Introduce educational reforms.

• “Technical education was given great stress in this policy”

• In 1958, General Mohammad Ayub Khan imposed martial law and established the Commission on National Education under S.M.Sharif.

• The commission’s report, published in 1959;

- education system should meet individual and collective needs and enable people to live productive lives according to their talents and interests.

• The policy thus undertook to develop people’s skills, train a leadership group, and promote vocational abilities.

CRITICISM

• Ayub’s Government became unsuccessful as it failed in taking the problems faced by the public on whom the grip of bureaucracy grew stronger.

• Bribery corruption and unemployment increased.

• Increased impression of distress and restiveness in people about Ayub’s autocratic Government and rising popularity of opposition leaders.

• Due to introduction of family laws, family planning program was accelerated which triggered differences among religious leaders.

CRITICISM

• Industrialization had several short comings

- Use and tariffs and quotas was not carefully planned

- Regime resulted in progressive worsening in the balance of payment account with the increase in the imports of machinery and other industrial raw materials.

- Deliberate repression of wages.

- It was felt that low wages for industrial workers and the restriction of trade union activity would help industry acquire the critical mass needed for industrial take off.

•The 1960’s also marked Pakistan’s increased reliance on foreign aid.

• Economic assistance as a percentage of GDP was a modest 2.8% in 1960’s which rose to 6.6% till 1965.

• The war and the signing of tashkent treaty disappointed people.

• There was discontentment in student due to promulgation for university ordinance which gave rise to demonstrations and strikes.

• The celebration of decade of reforms and the scarcity of sugar put the last nail for the downfall.

CRITICISM BY WRITERS

• According to Z.A. Suleri, “His new Constitution concentrated all powers in him. The people Pakistan were alienated because they thought that under the new system they had been deprived of any say in the affairs of the country”.

• Foreign scholars opined that Ayub’s rule was the darkest in the history of Pakistan. According to Bcrtrand Russel, “Ayub Khan was not an expert at Foreign policy. Ayub’s statements harmed national policy. He lost funds. America moved away from Pakistan and Russia became hostile to it”.

On the other side Khalid B. Sayeed wrote that Ayub represents

• A watershed in the history of Pakistan.

• It was in his regime that one saw a clear unfolding of certain trends and developments that represented what may be described as an ideological change in Pakistan.

• Under him there was economic change through industrialization, improved agriculture and modest land reforms.

THANK YOU!!!!