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Reforms of Bhutto
Reforms of Bhutto
Reforms of Bhutto
2. Introduction Mr. Zulfikar Ali Bhutto In His Very First Speech On The Night Of 20 December, 1971,
Declared That He Would Introduce Various Reforms And Would Come Down With A Heavy Hand On
Corruption: His Declared Objective Being To Put The Social And Economic System Right. The Reforms
Introduced By The People’s Government Reflect A Radical Change In Respect Of The Organization Of The
Social And Economic Systems.
3. Economic Reforms (Nationalization) Nationalization, Govt. Wanted To Save People From Adverse
Impact Of Galloping Prices. Ten Basic Industries Were Immediately Taken Over By The Government.
These Include Iron And Steel, Basic Metal Industries, Heavy Engineering, Heavy Electrical Industries,
Petro-Chemical Industries, Cement Industries, Public Utilities And Power Generation, Transmission And
Distribution, Gas And Oil Refineries.
4. Economic Reforms (Life Insurance Nationalized) By A Presidential Order Of 19 March 1972, 32 Life
Insurance Companies Were Nationalized. This Sweeping Move Was Aimed At Removing The
Interlocking Of Life Insurance With Private Ownership Of Major Industrial Groups. The Life Insurance
Corporation Established In November 1972 Has A Paid Up Capital Of Rs. 10 Million. Since Then, Life
Insurance Has Gained Momentum.
5. Economic Reforms Govt. Raised The Wages And Salaries Which Laid Tremendous Inflationary Stress
On The Economy. Nationalization Program Could Not Arrest Inflation And Also Missed The Corporatist
Element An Economic Reforms Order Promulgated In January 1972 Removed The Boards Of Directors
And Managing Agencies Of 20 Big Industries. A Little Later 11 Industrial Units Were Added To The List.
6. Land Reforms (1st March 1972) It Was Promised Of Fixing A Low Ceiling, Abolition Of Absentees,
Landlordism And Promotion Of Cooperative Farming. Landholdings Limited To 150 Acres Irrigated And
300 Acres Un-Irrigated In 1972. Landholdings Later Limited To 100 Acres Irrigated And 200 Un-
Irrigated In 1977.
7. Land Reforms - Continued Rights Of Pre-Emption Were Granted To The Tenants For The Area
Cultivated By Them, To Ensure Security To The Tenancy Rights. In 1975, Small Landholders Of 12 Acre
Irrigated And 25 Acres Un-Irrigated Were Exempted From Land Revenue And Cesses(E.G. Irrigation-
Cess). Generous Tax Deductions Allowed For The Purchase Of Agricultural Machinery, Agriculture
Credit Also Channeled Into Financing Mechanization.
8. Social/Educational Reforms 1st Phase Of Educational Policy Announced In Oct, 1972. Education
Made Compulsory Up To Class 8th. In 2nd Phase Education Made Compulsory And Free Up To Class
10th.
9. Labor Reforms Labor Law Ordinance 1975, To Satisfy The Militant Labor Force. The Industrialists &
Factory Owners Were Made Responsible For Bearing The Expenditure Of Education Of One Child Of
Every Worker Or Laborer.
10. Banking Reforms The Primary Aim Of The Banking Reforms Is To Subject The Commercial Banks To
An Elaborate System Of Social Control. Specifically They Aim At Bringing About Equitable Distribution
Of Bank Credit And Also Ensure Greater Social Accountability. To Achieve This Goal, A National Credit
Consultative Committee Was Formed Which Formulated A Rs. 1,560 Million Bank Credit Plan For The
Private Sector In Respect Of Small Loans For Low Cost Housing And Advances For Agricultural
Production.
11. Health Reforms This Was The Most Neglected Sector Independence. No Health Scheme Could
Succeed Because The Common Man Did Not Have The Means To Meet The Cost Of Drugs. To Obviate
This, It Was Necessary As A First Step To Make Medicines Available Within The Reach Of The Common
Man By Bringing Down The Prices And Rationalizing Their Means. To Achieve This Goal, An Act Called
The Drug Act, 1972, Was Enacted Which Prohibited The Manufacture And Import Of Any Drugs Under
Brand Names After 23 December, 1972 And Their Sale After 31 March, 1973.
12. Law Reforms In A Historic Declaration Bringing To An End The Notorious And Outdated British
System Conferring On District Officers The Power Of Both Judiciary And Executive, Mr. Zulfikar Ali Bhutto
Announced The Separation Of The Judiciary From The Executive. Under These Reforms The Legal
Procedures Have Been Simplified, Rights And Duties Have Been Clearly Defined And Criminal Litigation
Made More Liberal Which Meet The Long Felt Needs And Cherished Desires Of The People.