PAKISTAN HISTORY (1954-1960)

Submitted to: Ma’am Sana Mughal

GROUP MEMBERS

Faiza Gul

Faiza Bakhtyar

INTRODUCTION (1955)

At the time of partition of British India by the UnitedKingdom, Pakistan was an under-developedcountry, relatively standing with Asian countries withdistressful economic situations.

The country's systems of production, transportation,trade and consumption yielded a very low standardof living of the people, with little opportunity foreducation, or economic advancement in thecountry.

The industries and financial services were non-existed in the country and agriculture developmentwas among the lowest in the world.

The vast majority of the population was still

habituated in villages and were untouched with the

scientific and technological development in past two

centuries.

The partition had the major effect on country's

existing economic infrastructure that disrupted the

wholesale transfers of population, trade and

business, channels of communication, industrial

and commercial organization, and the pressing

need to establish new provisional governments.

CHAUDHRY MUHAMMED ALI (1955)

o On October 24, 1954, Malik Ghulam Muhammad

dissolved the Constituent Assembly of Muhammad

Ali Bogra on the grounds that it had "lost the

confidence of the people", and declared a state of

emergency in the country.

o On August 8, 1955, he was dismissed by the acting

Governor General, Major General Iskander Mirza in

the absence of Malik Ghulam Muhammad, who had

gone on a temporary leave and was also

subsequently forced to resign due to his ill health.

o Chaudhry Muhammad Ali was appointed as the

new Prime Minister on August 11, 1955.

o Chaudhry Muhammad Ali's greatest achievement

was framing the Constitution of 1956 and its

approval by the Constituent Assembly.

o The 1956 Constitution was Islamic and democratic

in character, acceptable to people of all parts of the

country, and had the blessings of almost all schools

of thought.

o He proved to be a poor politician who failed to

control his own party, this ultimately led to his

downfall.

o He dropped Muslim League members from his

cabinet, and by bringing the dissident Muslim

Leaguers and other supporters, formed his own

party, the Republican Party.

o Chaudhry Muhammad Ali believed that as a Prime

Minister, his actions should be governed by the

good of the country and not by the resolution of any

party.

o Disgusted with the scenario, Chaudhry Muhammad

Ali resigned as a Prime Minister on September 8,

1956, also resigning from his membership of the

Muslim League at the same time.

FOREIGN POLICY----- 1955

BAGHDAD PACT:

In 1955, Pakistan and Iran acceded to the BaghdadPact (also called CENTO, between Great Britain, Turkeyand Iraq).

The Turkish-Iraqi “Mutual Co-operation Pact’’ .

( 24 February 1955 )

The special agreement between Iraq and Britain.

( 5 April 1955 )

which amalgamated the political-military bloc of

pro- Western regimes into the Baghdad Pact

The Iraqi premier considered the Pact as a

vindication of his source of power and to

demonstrate his allegiance to the West broke

diplomatic relations with Moscow in January, 1955.

For Pakistan, the Pact was intended to balance

relations with India and help it benefit from Western

economic largesse. Iran, having abandoned its

tradition of third-power policy and having

disregarded Prime Minister Moṣaddeq’s experiment

with a neutralist approach, wished to align itself with

the West.

BANDUNG CONFERENCE:

Asian – Africa Conference

Took place on April 18-24 1955 in Bandung ,

Indonesia.

The main purpose for which the conference held

was to discuss peace, the role of third world

countries in Cold War, the promotion of Afro-Asian

countries economic and cultural cooperation, and

decolonization.

ECONOMY OF PAKISTAN IN 1955

DEVALUATION OF CURRENCY:

When Britain devaluated the Pound Sterling and

the Indian Rupee followed suit in 1951, Pakistan

maintained the value of her Rupee, which resulted

in her main export products, to a large part

traditionally sold to markets within the British

Empire and Commonwealth, becoming more

expensive; Pakistan experienced a recession.

Pakistan did devaluate his currency in July 1955

ISKANDER MIRZA AS GOVERNOR GENERAL

[1955]

In August 1955, Major General Iskander Mirza tookover as Governor General when GhulamMuhammad became too ill to continue. He wasconfirmed as the fourth Governor General ofPakistan on October 4, 1955.

Iskander Mirza was a civil servant and it is widelybelieved that he lacked the parliamentary spirit. Hewas of the view that democratic institutions couldnot flourish in Pakistan due to lack of training in thefield of democracy and low literacy rate of themasses.

He wanted a controlled democracy for Pakistanwith more powers for the civil bureaucracy. Hethought that politicians should be given the powerto make policy but not allowed to interfere inadministration.

Iskander Mirza was also a great advocate of the

One Unit scheme and it was under his rule that all

the four provinces and the states of West Pakistan

were merged into one unit in October 1955.

It was during his tenure that Chaudhry Muhammad

Ali presented the 1956 Constitution and Iskander

Mirza was elected the first President of Pakistan.

Iskandar Mirza’s government program initiated an

industrialization and rural development program.

the karachi airport was completed in 1955 and

railways were set up. The telephone system was

setup.

WEST PAKISTAN ESTABLISHED AS ONE UNIT

[1955]

The Government of Pakistan decided that all the

four provinces and states of West Pakistan should

be merged into one unit.

Prime Minister Muhammad Ali made the first official

announcement on November 22, 1954,

enumerating the benefits of having one unit or

province.

On September 30, 1955, the Assembly passed the

bill merging 310,000 square miles into a single

province, with Lahore as its provincial capital.

West Pakistan had formerly comprised threeGovernor's provinces, one Chief Commissioner'sprovince, a number of states that had acceded toPakistan, and the tribal areas.

The result of the new bill was to unify the variousunits into one province to be known as WestPakistan.

The Bill was hailed as a measure of administrativerationalization as it was likely to reduce theadministrative expenditure.

It was claimed that one unit of West Pakistan wouldeliminate the curse of provincial prejudices

CONSTITUTION 1956

The first constitution was introduced in Pakistan on

23 March 1956. 23rd March as you know is an

important day in the history of Pakistan.

The 1956 Constitution of Pakistan had 234 articles

and 6 schedules in which the whole constitutional

framework and principles for governance and

power management have been outlined.

This Constitution describes Pakistan as Islamic

Republic of Pakistan that is the official title of the

Pakistani state.

In the provisions of the constitution we will find thatthere is an impact of Govt of India Act1935 and the1st Interim constitution of 1947 on this constitution.

Some of the articles of the Indian Act of 1935 andthe 1st Interim constitution have been incorporatedin this constitution with some adjustments andmodifications here and there and in certain caseslanguage is very similar if not the same.

So in a way there is some continuity from theprevious document to this document. Although it isdifferent from the previous one in most respects butthere in some continuity

Later on, Awami League boycotted the official

ceremonies celebrating the inauguration of the

Constitution.

INDUS WATER TREATY

The Indus Water Treaty is a water sharing treatybetween India and Pakistan.

The treaty was the result of Pakistan’s fear thatsince the sources of Rivers of the Indus basin werein India, it could possibly create shortage of water inPakistan.

The main stream of Indus as well as River Jhelumand Chenab flows into Pakistan come from thestate of Jammu and Kashmir.

Ravi, Beas and Sutlej have their veins from India.

Pakistan’s Agricultural sector totally depends onthese Water Reservoirs.

The dispute erupted into crisis soon after the

partition of Punjab.

Pakistan became the Lower Riparian, whereas

India became the Upper Riparian.

Pakistan faced acute threats of water shortage and

agricultural sector being ruined.

Pakistani delegation was sent to India to quell the

problem.

In September 1950, Indian government agreed to

solve the issue.

Eugene Black, Chairman of World Bank, took theresponsibility and made a committee of both sides.

On 19th September 1960, the Indus Water Treaty wassigned by Indian Prime Minister Jawaharlal Nehru andPakistan’s President Ayub Khan.

In this treaty Beas, Ravi and Sutlej were assigned toIndia.

Chenab, Jhelum and Indus were granted to Pakistan.

It was also decided in this treaty that India would payRs. 200 million to Pakistan that would help Pakistan inbuilding dams.

Since the Ratification of the treaty, India and Pakistanhave not engaged in any war.

GENERAL AYUB KHAN (1954-1960)

Ayub khan was assigned extra charger of the ministry of

defense in 1954 , which held almost 1954-55.

Military take over by General Ayub Khan in October

1958 brought about a new era for development in

Pakistan. This was the first of many military regimes to

mark Pakistan’s history.

In which the Constitution of 1956 was abrogated,

ministers were dismissed, Central and Provincial

Assemblies were dissolved and all political activities

were banned.

General Muhammad Ayub Khan, then Commander-in-

Chief of the armed forces, became the Chief Martial Law

Administrator

With in three weeks of assuming charge on October

27, 1958, Iskander Mirza was ousted by General

Ayub Khan, who then declared himself President.

As General Ayub Khan gave himself the rank of

Field Marshal.

There were Corruption within the national and civic

systems of administration that Ayub Khan was

welcomed as a national hero by the people of

Pakistan.

His era is known as the Golden Era of Pakistan.

Ayub Khan introduced a comprehensive scheme oflocal government, popularly known as BasicDemocracies. This scheme was enforced throughthe Basic Democracies Order on October 27, 1959.

Economic and social reforms were high on Ayub’sagenda. These reforms included economic planningand providing basic needs such as food to theoverall public of Pakistan.

A number of commissions, including land reformsand education were set up to review policies andmake recommendation. Though, in the end, onlylimited progress was achieved on issues likeeducation and land reform, economic policy-makingwas at the center stage in Ayub’s period. .

This was the first of many instances in the history of

Pakistan that the military became directly involved

in politics.

GDP

- Gross fixed investment over the ten years underAyub Khan’s rule increased nearly three folds inreal term rising from 8.5% of GDP in 1958-59.

- Private Investment was encouraged throughloosening of direct economic controls on trade,investment, prices and earmarking of foreign creditresources for the private sector through long termcredit agencies. As a consequence of thesedevelopments and the investments made morethan double from 2.5% owe annum in the 1950s to5.6 % in the 1960s; the growth rate of GDP in WestPakistan rose to 6.7% from 3.1 % and acceleratedin East Pakistan from 1.7% to 4 %

Net Foreign Inflows

- Pakistan was already receiving large net foreign

inflows in 1959-60 and by 1964-5 the net foreign

flows had more than trebled to about 7% of GDP for

the country as a whole. In the second half of 1960’s

the net foreign inflows tended to stabilize .This was

leading Pakistan to high dependence on foreign

developed countries. We were getting reliant on the

developed countries for every sector of our

economy.

Prices

- The 1960’s were the only period in Pakistan’s

fiscal history when significant public savings i.e. the

excess of government revenues receipt over

revenue expenditures materialized.

INDUSTRIAL DEVELOPMENT (1954-1960) A sum of Rs. 185.11 corer was allocated of the growth of

industrial sector.

A large number of new industries such as woolen and

worsted yarn, cycle tyros and tubes, paints, varnishes

and glass were established.

The production capacity of the already existing units like

fertilizers, jute, paper, DDT was considerably expanded.

The reduction of export duties and the introduction of

Export Bonus Scheme in 1958 increased export of the

manufactured goods.

There was all round development of industries

particularly in agricultural processing food products and

textiles.

The Export Bonus Scheme (EBS) was introduced in

1959. this scheme introduced multiple exchange rates

and gave a premium to exporters of manufactured goods

and raw materials.

Exporters were given preferential access to credit.

Several industries including cotton textiles, footwear

and leather became competitive enough to export

at the overvalued exchange rate.

Exporters started to export manufactured goods

more rather then the raw products.

The share of industrial sector to GDP rose from

9.7% in 1954-55 to 11.9% in 1959-60

ESTABLISHMENT OF PIA

ESTABLISHMENT OF PIA (1954-1960)

Pakistan decided in 1951 that it needed a national

flag carrier airline.

The government of the country accordingly

established Pakistan International Airlines (PIA)

in this role.

On 25 May 1954 ordered three examples of the

Lockheed L-1049C Super Constellation four-

engined airliner as the new operator's initial

equipment.

PIA flew its first service with the Super Constellation

on 07 June 1954 on the route linking Karachi and

Dacca (now Dhaka), which were the main cities of

the country's western and eastern halves, of which

the later is now Bangladesh.

On 1 February 1955 the airline flew its first

international service, between Karachi and London

via Cairo.

PIA was the first Asian airline with pure-jet aircraft,

in the form of a Boeing 707-321 machine leased

from Pan American World Airways for use from 7

March 1960 on the London service.

CONCLUSION

During 1954-1960, Pakistan saw growth in almost

every aspect.

From establishment of constitution and contracts

like Indus treaty to industrial development and

establishment of its own Airline services.

Ayub’s arrival also added some value to the

nation’s important sectors like agriculture.

REFERENCES http://en.wikipedia.org/wiki/Five-Year_Plans_of_Pakistan#First_Five-

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