Pakistan Economy

Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

Assignment 3

MBA 1

SECTION: A

SUBMITTED BY:

LAIBA JAWAD

ALMAS ILYAS

HUMA NAZ JANJUA

HASSAN ZAFAR

AYESHA SHAFA
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

Table of Contents
Growth Rates (per cent per annum)............................................................................................................3
Economic Policy under Bhutto: 1972-1977..................................................................................................3
Nominal GDP...........................................................................................................................................3
Export Growth.........................................................................................................................................3
Industries.................................................................................................................................................4
Agriculture...............................................................................................................................................5
Consequences..........................................................................................................................................5
Reason.....................................................................................................................................................5
Major Policies Adopted by Government..................................................................................................6
Economic Policy under Zia: 1977-1988........................................................................................................6
Export and Industrial Growth:.................................................................................................................6
Agricultural Growth and Policies:............................................................................................................7
Reasons...................................................................................................................................................7
Major Policies Adopted by Government..................................................................................................8
References.................................................................................................................................................10

2|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

ECONOMIC POLICIES
Growth Rates (per cent per annum)

1972-77 1977-88

Industrial Sector 3.7% 9%

Agriculture Sector 2% 4%

GDP 4.16% 6.6%

Economic Policy under Bhutto: 1972-1977

• Although the reported GDP growth rate for the five-year Bhutto rule (1972-77) was 4.16 per
cent, the overall growth rate was “puffed up” because of 1972-73 — the first fiscal year of the
Bhutto regime that witnessed a rebound in economic activity from the depressed war level of
• Excluding 1972-73, the average growth rate for the Bhutto years comes down to only 3.48 per
cent per annum for the four years i.e. 1973-74 to 1976-77. The population increase over the
same period is estimated to be three per cent per annum. As a result, the growth in per-capita
income was less than one per cent per annum.

Nominal GDP
• Even the nominal growth in national income during those years did not originate from
productive sectors like industry and agriculture. So-called growth emanated from the services
sector because of the large, unproductive expansion of jobs in the public sector.
• The commodity producing sectors – industry and agriculture – grew at two per cent and 2.9 per
cent per year, respectively. The two sectors contributed only 28.5 per cent of the cumulative
increase in the GDP during the five-year period, ending June 1977.
• In contrast, the economy had grown at an average rate of seven per cent per annum for the
1960s, with per-capita income growth clocking up at a healthy 3.8 per cent per year.

Export Growth
• Owing to a rapid increase in prices, export growth in nominal terms for the period following
1972-73 was 7.2 per cent per annum. However, there was a net decline in the real volumes of
exports over the Bhutto years. Pakistan’s share in world exports declined from 0.16 per cent in
1972 to 0.12 per cent in 1976.

3|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

Industries
• Nationalization
On January 1, 1972, the government took over 31 industrial units under 10 categories of
industries.Thenationalized industries included shipping, iron and steel, basic metal, heavy
engineering, assembly and manufacturing of motor vehicles, tractor plants, chemicals, petro-
chemical, cement, and public utilities, including electric generation, gas and oil enterprises.
• Board of Industrial Management (BIM)
The nationalized companies were put under the management of the Board of Industrial
Management (BIM).
• No Assessment
No assessment was made of the nature of the units which were selected for nationalization.
Some of the units were already making huge losses. Taking over these sick units heavily
burdened the public sector and was a drain on its resources from day one.
• Increased Marginal Cost
In 1972-73, BIM units employed 40,817 people, but the number went up 64,643 people in 1976-
77, up 58 per cent. But production did not increase correspondingly, with labour productivity
declined in a majority of units, according to government statistics
• Loss
Net earnings were negative on large capital invested in these undertakings. Among the
industrial units, profits were available only in the cement sector where repeated price increases
were introduced.
• Economic Inconsideration
A number of industrial units were set up without economic consideration. A notable example is
the sugar mill set up by PIDC in Larkana. PIDC had pointed out that a sugar factory in Larkana
may not be viable, as Larkana was not a cane-growing area. The cane had to be supplied to the
factory from a distance of 150 miles. It was established nonetheless and had incurred a loss of
nearly Rs20 million in the first two years of its operation

• The Military Government Appointed a Commission

In October 1977, the military government appointed a commission to review the financial
position of state-owned enterprises.
o The commission reported that only 15 out of 54 units were in a position to maintain
profitability in 1972-77.
o Reviewing the cumulative position of the entire Bhutto years, the commission report
said net accumulated losses for the 54 enterprises taken together was Rs320.9 million.
o The commission report said the labor productivity declined in 39 out of 54 units.
o The commission reported that 30 of these units were operating on an average below-70
per cent of installed capacity. Between 1972 and 1977, capacity utilization had declined
in the case of 21 units.
o At the end of 1977-78, there were 12 BIM units that had a negative net worth compared
to only two units in 1970-71.

4|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

Agriculture
• Between 1972-73 and 1976-77, the agriculture growth rate was 2% per year as opposed to 6.4 %
per year recorded throughout the 1960s.
• In July 1976, the government announced it had taken over cotton ginning, rice husking and large
flour mills throughout the country.
• The Rice Milling Corporation, in both quantity and quality did not achieve any major objective.
Thus the loss suffered by the corporation amounted to Rs200 million in 1976-77.
• As for Cotton Trading Corporation, it managed to operate less than half of the nationalized
ginning units. It was largely used as a source of unproductive employment, as its number of
workers almost doubled in just one year.
• Uncertainty prevailed for the whole of 1976-77 about the exact number of units nationalized.
The list included pieces of land that displayed a signboard of “under-construction”. Residential
houses were also nationalized if the owner had found it convenient to install machinery in one
part of his large rural compound. Cattle, poultry and fish ponds were also nationalized if they
were on the premises of the factory.

Consequences
• Low GDP
• Mismanagement
• Increased Marginal Cost
• Inflation
• Misuse of Resources
• Decreased Investments
• Decline in Export
• Low Savings and Tax Collection
• Corruption

Reason
Nationalization
Nationalization policy cause criticism and was serious damage to efforts for economic
development during 1960’s and results in economic insufficiency and miss-allocation of
resources.

Splitting of West Pakistan from East Pakistan

As a separate economy, West Pakistan lost the access to the East Pakistan market, resources,
infrastructure and everything. It had to arrange alternative source of supply. Export decreased
resulting in trade deficit and hence reducing the growth rate.

Extreme weather conditions

Extreme weather conditions have led to big losses in terms of increased death rate and
economy damages.

5|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

Major Policies Adopted by Government

Lying foundation of PPP
Bhutto founded the Pakistan’s People Party ,which to date remains Pakistan’s largest and most
popular party. PPP was founded in opposition to Pakistan’s 1st military ruler Ayub Khan in
whose cabinet Mr. Bhutto held the portfolio of foreign minister.

Nationalization policy
Bhutto started nationalization programme of industries, financial institutions including banks
and insurance companies and rice-husking units.

Atomic bomb program

Bhutto was founder of Pakistan’s atomic bomb programme due to his aggressive leadership he
is often known as Father of nuclear deterrence.

Suppressing revolt in Baluchistan

In January 1973, Bhutto ordered the Pakistan Armed forces to suppress a rising insurgency in the
province of Baluchistan.

Economic Policy under Zia: 1977-1988

• Martial Law was imposed by General Zia-ul-Haq in 1977.
• Zia took over with the declared purpose of resolving the rift between Bhutto’s Peoples Party and
the combined opposition to hold free and fair elections within 90 days.
• Due to Bhutto’s public popularity, Zia feared that he could return to power through free
elections, therefore the elections were postponed.
• Instead government published a number of white papers outlining Bhutto Administrations miss
deeds.
• Bhutto then charged with the murder of a political opponent was found guilty in March 197 and
hanged on 4th April 1975.

Export and Industrial Growth:

• Industrial growth under Zia was impressive as Manufacturing sector growth over 1977-88 averaged
over 9% as compared to 3.7% in 1972-77.
• Large scale manufacturing grew even faster than the small scale.
• The main reasons behind this rapid growth in industry were:
i. Large public sector investments which started in Bhutto’s resulted in major increases in steel,
cement, fertilizer and vehicle production.
ii. Incentives for manufactured exports were strengthened by the introduction of a flexible
exchange rate policy after 1982, by increasing the standard rates of rebate of custom duty and

6|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

sales tax for exports. The export subsidies ranging from 7.5% to 12.5% were extended to all
important manufactured exports.
iii. The investment climate for the private sector was improved by providing guarantees against
future nationalization, clearer demarcations of activities between the public and the private
sector and additional tax concessions.

• Private sector investment in manufacturing grew by 9.5% per annum during 1978-83
• The revival of private industrial sector was particularly important for addition to capacity in
traditional industries such as cotton textiles which have quick pay off.
• The manufactured exports boom of the 1980’s was narrowly linked to the expansion of raw cotton
production which in turn made possible a major expansion of cotton textiles.
• Over 60% of the increase in real value of exports over the decade was attributable to cotton, cotton
textiles and garment exports.

Agricultural Growth and Policies:

• The agricultural growth increased to 4% in 1977-88 from 2% in 1972-77.
• Wheat production rose from an annual average of 8.5 mill tons in 1975-7 to nearly 13 mill tons
in1986-8.
• Cotton production increased from 0.5 mill tons average in 1974-6 to 13 mill tons in 1985-7.
• Domestic fertilizer production of nitrogenous fertilizer nearly tripled during the first half of 80’s.
• The government price policies after 1980 improves agricultural incentives, especially for wheat.
• The agricultural growth since the early 1980’s also benefited from strong growth in livestock.
• The livestock grew annually by 5.5% in the 80’s and further continued.
• The high burden of fertilizer and wheat subsidies on the budget finally led to a review of
agricultural policies in the early 80’s and a substantial upward adjustment of both fertilizer and
wheat prices.
• The agricultural expansion was mainly due to the past investment and exogenous technical
change.
• The increase in the raw cotton production in 1987’s was mainly due to the development and
spread of improved variety and greater use of fertilizers and pesticides.

Reasons
American Interests
While Bhutto was reluctant about it, Zia made the best decision during his tenure. He decided to
act as an ally to USA during the afghan war. Soviet Union had intervened in Afghanistan. Zia
being ideologically opposed to the idea of communism taking over a neighboring country, he
made no secret of his intentions of monetarily and militarily aiding the Afghan resistance (the
Mujahideen) with major assistance from the United States. Zia being in a position to demand
billions of dollars in aid for the mujahidin from the Western states, famously dismissing a United
States proposed $325 million aid package as "peanuts", and ended up obtaining a larger amount
of money.

7|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

This allowed for a large influx of capital funding from USA, and as Pakistan rose in dominance on
an International forum, it allowed Pakistan to gain a firm footing globally with the country
experiencing an average annual growth in the GNP of 6.8%—the highest in the world at that
time.

Middle East Bonanza 

Although Middle East oil bonanza occurred a few years before Zia took over, it did help him in
several ways. With greater oil revenues, Middle Eastern countries started a two decades long
construction boom which absorbed hundreds and thousands of Pakistani labor, easing the
domestic unemployment situation. It also pumped in billions of remittances in the rural areas of
the country sowing the seeds of consumerism.

Mega Projects
At the same time the mega projects Bhutto had started, came on ground increasing the rate of
growth as well as relieving the country of importing fertilizers and other essential commodities.
Similarly, labor exported during Bhutto period sent in billions of dollars in foreign remittances
which eased the balance of payments position of the country.

Major Policies Adopted by Government

For General Zia, Islamization of the economy, polity and society of the country was more
important than the welfare of the people or socioeconomic development of the country. As
such he gave economic growth least priority, yet some of the measures taken during his regime
are worth noting.

Islamization of Economy
One of his landmark contributions towards Pakistan’s economy was Islamization of the
economic transactions. He emphasized on Islamic values and codes of conduct, without
introducing any substantial changes in actual business dealings.
 The institutionalization of zakat and introduction of interest free banking were the two
most important measures of Islamizing economy.
 All lending and deposit rates were set on profit and loss sharing.
 Banks adopted the interest free banking but charged the same mark-up and advanced
the loans on the same conditions as in normal banking system.
 In June 1980, the Zakat and Usher Ordinance was promulgated whereby 2.5% was
deducted from the bank accounts of Sunni Muslims on every first day of holy month of
Ramadan.
 The amount thus collected was distributed among the needy through the zakat
committees headed and staffed by his loyalists in every village and town.

De-Nationalization
On the pressure of emergent commercial middle classes and less as a policy prescription,

8|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

general Zia started reversing the nationalization process initiated by Bhutto and three steel mill
industries were returned to its previous owners in the first phase.
Reverting to pre-Bhutto policy of greater reliance on private enterprise to achieve economic
goals, a demarcation of exclusive public ownership was made that excluded the private sector
from only a few activities. There was a clear switch over to liberalization of economy with
generous fiscal and non-fiscal incentives for the private sector.
For adoption of market-based development strategy, government concluded three years
extended fund facility (EEE) with IMF in 1980 for several structural reforms aiming at financial
deregulation and greater economic liberalization.
However, state continued to play a large economic role in the 1980s with public-sector
enterprises accounting for a significant portion of large-scale manufacturing. Share of private
sector investment grew from 33% in 1980 to 46% in 1989.

Industrialization
The investment climate for the private sector was improved by providing guarantees against
future nationalization. The industrial zone was established in the late 1970’s to attract foreign
investment, speed up flow of modern technology, provide more job opportunities, raise skill and
management standards and provide exporters a base for production in an environment free
from import duties but the results were however disappointing as exports from the zone were
relatively small.
By the policy of keeping domestic wheat, rice and cotton prices low, and the government was
able to benefit the urban consumers and the industrialists at the cost of the agricultural
producer.

Rural Development
However one thing for which he must be given full credit is the uplift of the rural areas, an off
spin of his scheme to revive the local government institutions to create a constituency. These
local body members and the handpicked members of the rump assemblies were given huge
amounts to spend in their respective constituencies.  Resultantly a fair amount was spent on
rural regeneration and construction of rural infrastructure. Later on, initiation of five point
programme of his Prime Minister Junejo gave a further boost to this rural uplift. The increased
demand for services in rural areas following rising incomes generated pressures for rapid rural
electrification and rural roads, rural electrification spending was 52% higher than original
allocations while spending on rural roads exceeded targets by 29%.

Exports Promotion:
Generous incentives for manufactured exports in the form of rebates, particularly when
MahboobulHaq became his finance minister in 1982, pushed exports to new heights. This
exports push which contributed in reducing the relative dependence on worker remittances was
strengthened by three measures taken by the government;
 The export subsidies ranging from 7.5% to 12.5% were extended to all important
manufactured exports.

9|Page
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

 Expansion of raw cotton production which in turn made possible a major expansion of
cotton textiles. Over 60% of the increase in real value of exports over the decade was
attributable to cotton, cotton textiles and garment exports.
 Introduction of a flexible exchange rate policy was also very instrumental in this exports
expansion. Starting in 1982, Pakistan began to regularly adjust the value of the rupee,
devaluing it from Rs. 9.90 per US dollar to Rs. 11.84 in 1982 and then gradually depreciated
to Rs. 18 per US dollar by the end 1988. In fact the nominal exchange rate was devalued
almost twice as fast as warranted by the relative change in prices between Pakistan and
major trading partners.

Economics policies formulated in Bhutto’s Period

During this period the Political campaign of Bhutto in every case, heavily emphasized on giving essential
rights to the helpless masses, having consequently raised the popular motto, "roti, kapra, makaan". The
approaches that Bhutto adopted were based on the ideas and principles of socialism

“Our faith is Islam. Our policy is Democracy. Our economy is Socialism. All power to the individuals”.

 Land policy In1972 the policy of land, limited the individual possessions150 acres of irrigated
and 300 acres of un-irrigated land. Without paying any commission the unnecessary land
possessions were taken over without any compensation. Because of these measures farming
area continued up to this point is more than 800,000 acres of land.
 Labor policy In July 1972, labor policy was introduced by the government and in August 1972
this approach was further explained and expanded after detail investigation and discussion at a
Tripartite Labor Conference at Islamabad. This labor policy was one of the most significant stone
of Bhutto's government, shortly in the wake of assuming control; government forced a few
conditions on the excusal of laborers.
They assurance to the laborers their long past due central privileges of freedom rights and
aggregate bargaining, and affirmation of more prominent security of administration represents
in
 Executives
 Insurance of group
 Seniors pensions
 Free children educations
 Housing facilities
 Free Medical
These laws are presently operative in the halfway Administered Tribal Areas. These changes
have made the way for another serviceable connection between the businesses and workers for
the future.
 Industrial and Corporate Reforms By the Government ten fundamental industries were
immediately taken over in this policy. These industries are like iron and steel, basic metal
industries, heavy engineering, heavy electrical industries, petro-chemical industries, cement

10 | P a g e
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

industries, public utilities and power generation, transmission and distribution, gas and oil
refinery plants.
 Economic policy Order In January 1972, an Economic Policy Order declared. This policy removed
the Boards of Directors and main managing Agencies of 20 large industries. Later 11 industrial
units were added to the list. Again, in order to avoid difficulty and sufferings to the average
person, the Government has assumed control over the vegetable oil industry.
Managing Agencies systems has been discarded. To oversee and control the assumed control
over units, Board of Industrial Management was comprised, which actualizes the arrangement
mandates of the Government and has effectively put these businesses on a level. At present just
around 18 percent of ventures are under the public area. There is consequently still more
prominent degree for the private sector interest and national economy expand.
 Banking policy Main aim of the Banking policy is to subject the commercial banks to a detailed
arrangement of social control. They target specifically on achieving equitable distribution of
bank credit and furthermore guarantee more noteworthy social responsibility. To accomplish
this objective, a National Credit Consultative Committee was formed which figured a Rs. 1,560
million bank credit plan for the private sector in regard of small loans for minimal cost housing
and advances for agricultural production.
 Exchange policy Since 1959 Different rates of exchange looking like Bonus Vouchers Scheme
had been followed in the nation. On the account of which the industrial sector thrived, while the
average person endured. The Exchange policy announced in May 1972 brought realism to the
external value of our currency and also made it impossible for big business to obtain unearned
income from foreign exchange. Pakistani explorers and travelers have additionally profited by
this and in 1972, 80,000 pioneers performed Hajj. Most importantly, Pakistan earned 33 million
dollars in unfamiliar trade with the outcome that her parity of installments has given wonderful
indications of progress.
 Health policy The most neglected sector in this period is this. No health policy could win
because the average people did not have that much means to meet the basic cost of drugs. To
solve this problem, it was important as 1 step to make medicines is available within the reach of
the average man by lowering the cost and rationalizing their means. In order 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.
 Law ReformsMr. Zulfikar Ali Bhutto declared the separation of the judiciary from the executive.
Under these changes the legal techniques and procedures have been improved, rights and
obligations have been clearly characterized and criminal litigation made more liberal which meet
the long felt needs and cherished wants of the individuals.

Bhuttos’ nationalization of Education:

11 | P a g e
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

 According to official figures, 1970 enrollment rate was 47.4% of 5-9 age group.
Education policy from 1972 to 1980 centered primarily on eradicating illiteracy through
universal elementary education along with adult education programs.

 In the 1970s, some of the main causes for failure to achieve a system of free and
universal schooling were: lack of planning, financial limitations, decreasing exports, low
GNP etc. Implementation of 1970s educational policies was also interrupted due to the
war with India, the secession of East Pakistan and the collapse of the military
government.

 In 1972, the government of Pakistan nationalized the nation’s private education

institutions, restating a commitment to universal free education. While the
government’s policy initiative included increasing enrollment, provision of free
textbooks, revising syllabi, developing teacher training courses, and replacing an annual
examination system. So far around 400 universities and a few schools were nationalized
in the regions of Sind and the Punjab
 The Third Plan aimed at widening the base of primary education and proposed to
increase the primary enrollment rate from 45% to 70% in 1970. This implied additional
enrollment of 2.8 million children in primary schools by 1970. To this end, 42,500 new
schools were proposed to be set up in West Pakistan.

 The fourth five-year plans were abandoned after the fall of East-Pakistan. All fourth five-
year planning was detoured by the government of Zulfikar Ali Bhutto. Under Bhutto,
only annual plans were prepared. This plan was replaced with the nationalization
programme which featured an intense level of government-ownership management on
private entities.

 These institutions are presently to gifted students from everywhere nation without regard to
their financial status and social background. So far around 400 universities and a few schools
have been nationalized in the regions of Sind and the Punjab. The college teachers have also
been given a respectable position in society.

Economic Policies Formulated in Zia’s

Period
In this period General Zia was more centered around the Islamisation of the economy,
commonwealth and society of the nation than the government assistance of the individuals or
12 | P a g e
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

financial improvement of the nation. So broad zia gave financial development least need, yet a
portion of the monetary estimates taken by him during his system are important.

Islamisation of Economy
One of general Zia milestone commitments towards Pakistan's economy, is the alleged
Islamisation of the financial exchanges was just changing the terminologies of the apparent
multitude of monetary practices and arrangements as of now stylish in the political economy of
Pakistan. As a piece of general accentuation on Islamic qualities and implicit rules, without
presenting any considerable changes in real professional interactions, the regulation of zakat and
presentation of premium free banking were the two most significant proportions of Islamizing
economy. All loaning and store rates were determined to benefit and misfortune sharing. Banks
received the premium free banking yet energized a similar imprint and progressed the advances
on similar conditions as in typical financial framework.

Zakat and Usher Ordinance

In June 1980, the Zakat and Usher Ordinance was declared whereby 2.5% was deducted from the
ledgers of Sunni Muslims on each first day of heavenly month of Ramadan. The sum hence
gathered was circulated among the poor through the zakat panels headed and staffed by his
followers in each town and town. Ranchers were obligated to pay 5 percent of their produce as
Usher instead of land charge.

De-Nationalization
On the weight of developing business working classes and less as an approach remedy, general
Zia began switching the nationalization cycle started by Bhutto and three steel plant enterprises
were gotten back to its past proprietors in the main stage. Returning to pre-Bhutto strategy of
more noteworthy dependence on private endeavor to accomplish monetary objectives, a division
of select public possession was made that rejected the private segment from just a couple of
exercises. There was an unmistakable switch over to advancement of economy with liberal
financial and non-monetary impetuses for the private division. For appropriation of market-based
improvement system, government closed three years expanded store office (EEE) with IMF in
1980 for a few basic changes focusing on budgetary liberation and more prominent financial
advancement.
Nonetheless, state kept on assuming an enormous financial function during the 1980s with
public-area undertakings representing a critical segment of huge scope fabricating. Portion of
private segment venture developed from 33% in 1980 to 46% in 1989.
Industrialization
The venture atmosphere for the private part was improved by giving certifications against future
nationalization. The mechanical zone was set up in the last part of the 1970's to draw in
unfamiliar speculation, accelerate stream of present day innovation, give more openings for
work, raise ability and the board norms and give exporters a base to creation in a domain
liberated from import obligations yet the outcomes were anyway frustrating as fares from the

13 | P a g e
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

zone were generally little. By the strategy of keeping homegrown wheat, rice and cotton costs
low, and the legislature had the option to profit the metropolitan shoppers and the industrialists at
the expense of the farming maker.

Zia’s Islamization of Educationa:

Among the many reasons, the dictatorial era of General Zia ul Haq played a significant role in shaping
today’s educational system through its impact on education policies and syllabus of state institutions.
Policies and curriculums designed during that time were based on a rigid representation of Islam.
To achieve these objectives the policy suggested number of innovative measures. Some of the measures
are listed as under;
1. Islamiyat will be included in all levels of academic, technical and professional institutions as a
compulsory subject.
2. In all schools and colleges the teaching of Arabic will be organized.
3. Changes will be brought up in the curriculum and text-books according to the theory of Islam.
4. The important status will be given to mosques and thousands ofMadaris will be established for students
throughout country, their number grew from 893 to 2801.
5. All Madrasahs, Maktabs and Darul-Ulooms will be given full importance and all the students of
Madrasahs will be given the same facilities like other formal educational institutions.

Zia’s focus was on Islamic education and he invested a great amount in building these Madaris.
School textbooks and libraries were to remove un-Islamic material. Offices, schools, and factories were
required to offer praying space. Zia boosted the influence of the Ulema and the Islamic parties. Quranic
verses and Ahadits were spread publically by them to influence women’s perception in society.

Conclusion:

Zia period was far better than Bhutto’s period. Because in Bhutto’s era there was slow industrial growth,
the agricultural production was low i.e. 2%.The educational enrollment was only 4.49% whereas Zia
improved the educational system. Islamiyat and Arabic were imposed as compulsory subjects. Madras
were given importance. Industrialization was improved in Zia’s period. He introduced Islamization in the
country. He made special position for Zakat and Usher. Growth rate was improved in Zia’s period.
Industrial sector was improved from 3.7% to 9%.The agricultural sector raised from 2% to 4%. Military
got better in Zia’s period. GDP of Pakistan rose in Zia era from 4.16% to 6.6%. Banks were interest free.
Mehboob ul haq raised the exports. The health policy in Bhutto’s era was almost negligible.

References
• https://tribune.com.pk/article/35970/bhuttos-economic-policies-were-disastrous-for-pakistan
• https://www.researchgate.net/publication/278727792_Economic_development_in_the_era_of
_AyubZia_Musharraf_in_Pakistan
• https://www.cia.gov/library/readingroom/docs/CIA-RDP85T00875R001700010032-4.pdf
• https://hrmars.com/papers_submitted/3354/A_CRITICAL_ASSESSMENT_OF_Z._A_._BHUTTO
%E2%80%99S_POLICIES_(1973%E2%80%931977)_.pdf

• https://tribune.com.pk/letter/484226/women-and-education-under-zia

14 | P a g e
 Bhutto Era (1972-1977) v/s Zia Era (1977-1988)

 https://iri.aiou.edu.pk/indexing/wp-content/uploads/2016/06/22-islamization-of-education.pdf

 http://www.shahidhussainraja.com/political-economy-of-pakistan-under-general-ziaul-haq-
1977-88/
 https://bhutto.org/index.php/achievements/reforms/

15 | P a g e