Ps Lectures

Introduction to Pakistan’s
Studies
Lecture 1
Pakistan Studies
Fatima Jamil
Lecture Outline
• Indus Valley Civilization
• Decline Of Mohenjo-daro And Harappa Culture
• Aryan Tribe And The Caste System
• Buddhism And Jainism
• Rebirth Of Aryan Culture- Gupta Empire
• Evolution And Growth Of Muslim Society In The Sub-continent (700-1526)
• Islam's First Wave
• The Campaigns Of Muhammad Bin Qasim
• Islam's Second Wave: The Ghaznavids
• The Delhi Sultanate (1206-1526)
• Effects Of Islam On The Subcontinent
Indus Valley Civilization
• Old Stone Age roamed the Indian subcontinent, but the first great civilization to flourish
there developed along the banks of Indus River in the third and second millennia B.C.
• Harappa and Mohenjo-Daro are the remains of two large cities which were the focal points
of an archaic culture extending for 1000 miles along the Indus Valley.
• The uniformity of the architecture and artefacts suggests the existence of a centralized
state comparable to Egyptian civilizations
Decline of Mohenjo-Daro and Harappa Culture
• There are various causes of the decline of this region, such as:
q The usual massive inundations of the Indus and its tributaries which undermined the
agricultural economy.
q The death blow at the hands of the invading Aryan tribes during the second
millennium B.C.
o Tribes were armed with good quality weapons while the Mohenjo-Daro defenders
had inferior quality weapons.
o Food supply of this culture was dependant on vulnerable system of irrigation while
the invaders were mobile with the seminomadic techniques such as cows and other
animals that could move along the tribe.
Aryan Tribe and The Caste System
• The Aryans worshiped a well-defined group of powerful gods- the sky, earth, rain
storm and lightening.
• The Aryan tribal solidarity was based on clan kinship standards- priests, warriors,
artisans and slaves- which is the structure of the classical Indian “caste” system.
• The growth of the priestly power and status in the Aryan society was an important
element in the extension of the Aryan political power- they slowly marched from
the Indus Valley down the western portion of the Ganges and its tributaries.
Aryan Tribe and The Caste System (Contd.)
• The diffusion of the Aryan culture brought the importance and the development of the
caste system in the traditional Indian society.
• They battled their way down from the northwest through the Ganges Valley, and conquered
and enslaved local people mostly who were darker and smaller than them.
• This principle became the basis for a further development into four traditional Vernas
(Caste levels) with the distinction based on occupation:
Aryan Tribe and The Caste System (Contd.)
• Brahman (priest)
• Kshatriya (warrior)
• Vaishya (merchant)
• Shudra (cultivator)
Buddhism and Jainism
• The latter half of the first millennium B.C. is very important for India in the light of history.
• By the sixth century B.C. there emerged many new religious and philosophical schools which taught
new religious practices by Buddha and Mahvaria (founder of Buddhism and Jainism)
- such as assuming new physical form and status in each successive life depending on the actions in
the previous life, the law of karma.
• These new views were shared with important differences with the Aryan religious views- their
messages of salvation were preached openly without regard for caste.
• This period reflects the struggle of control between the leaders of Aryan society and the new
religious elite with the teaching of Buddha and Mahavira.
• The arrival of Buddhism and Jainism led to the emergence of Mauryan state (a centralized
bureaucratic empire).
Buddhism and Jainism (Contd.)
• One of the Mauryan king, Asoka, whose rule began about 270 B.C. was converted to
Buddhism after his conquest of the subcontinent.
• The ideology through which Asoka hoped to unify his empire was comprised of laws
Buddhism, it bypassed the caste criteria and outlined economically efficient virtues
which might also be expected to facilitate political integration.
Rebirth of Aryan culture- Gupta Empire
• The events in the forth century A.D. led to the emergence of a new political power- the
Gupta empire.
• In 320 A.D. Chandragupta 1 ascended the throne to conquer the whole subcontinent
and to restore and bring new fruition the sacred values of the Aryan tribe.
• The arts and science reached new heights and standard of perfection was set which
endured for centuries.
• The Gupta leaders succeeded for a long time bringing political stability and new
cultural unity to the troubled land.
• However, incursions of the new foreign invaders who were already active in Europe
and Middle East led to the demise of the Gupta Empire- the Huns.
• By the end of the fifth century, Hun rule was spreading rapidly and the empire was
steadily torn apart.
Evolution and Growth of Muslim Society in the Sub-Continent
(700-1526)
• In the beginning of the 8th century A.D., Islam entered in the Indo-Pak Subcontinent
• Its real impact began when Muslim rulers from Central Asia invaded the subcontinent in
the 11th century through Sindh.
• The subcontinent was accustomed to invasions but unlike the Persians, Iranians or Greeks,
the Muslims introduced a strong central government and many other social
innovations
-left a legacy of incomparable art, architecture, scientific knowledge and many other contributions to
the world heritage.
• But in the process, it has created a schism with the Hindu majority of the subcontinent
which defines the relations between India and Pakistan to this day.
ISLAMS FIRST WAVE
• Islam was brought forth by Prophet Muhammad (S.A.W.) in the Arabia in 570-632
A.D.
• Soon after his death, the Arab armies set off on campaigns to conquer and spread the
message of Islam.
• When Islam arrived to what is now Pakistan, the Huns and other warfare had left the
area subcontinent unstable and unsafe.
• Between 637 and 643, during the reign of Caliph Hazrat Umar (R.A.) the Arabs
conquered Kamran (Iranian province that included south of Baluchistan) however
this was under loose control and the inhabitants revolted after a few years.
• In 660 under the Caliph of Hazrat Ali (R.A), Haris ibn Marah was sent to conquer
Makran, Baluchistan and Sindh but he was killed in a revolt and lost all Islamic
control.
The Campaigns Of Muhammad bin Qasim
• In 710, when Hajjaj bin Yousuf was the governor of the Islamic empires, an Arab ship was
seized in Sindh and Muhammad bin Qasim was sent to launch a campaign against all
Sindh.
• His attack force included:

o 6000 Syrian horse
o 6000 troops on camels
o 3000 camels to carry supplies
o ships with 5 large catapults
o a network of couriers was organized for battlefield communications.
The Campaigns Of Muhammad bin Qasim (Contd.)
• The coastal strip of Makran was the first region of Sindh to attack and fall.
• Qasim set out for Debal at the Indus River delta and dug trenches and awaited orders for
attack.
• Qasim made the holy flag of the city the target, knocked it down and conquered the town.
• Qasim issued the decree:

“All human beings are created by ALLAH and are equal in His eyes. He is one and without a peer. In my
religion only those who are kind to fellow human beings are worthy of respect. Cruelty and oppression are
prohibited by law. We fight only those who are unjust and are enemies of the truth” (Hussain, 1997, 103)
The Campaigns Of Muhammad bin Qasim (Contd.)
• The Muslims had soon won over the populace.
• Next Qasim marched to Neronkut then Sehwan then Brahmanabad conquering

all, where Sehwan became the centre of Islamic power in Sindh.
• During the campaign Yousuf and Caliph Walid died.
• The new Caliph Sulaiman ceded power against Yousuf ’s family and Qasim was
recalled and executed before further advances were made.
• Nonetheless, Sindh became Islam's path (door of Islam) to the subcontinent.

Sindh after Muhammad bin Qasim
• Despite the halt in advance of the Arab forces, for the next 200 years Sindh
remained part of the Islamic Empire under at least 37 Arab governors.
• Islam spread while Hindus and Buddhists practiced their faith.

o Mosques were constructed with temples and shrines
o Jizya and zakat was collected
o disputes between Muslims were settled by Muslim judges while disputes between Hindus
or Buddhists were settled by Brahman priests.
• Over time Islamic and Sindh customs intertwined to create a new culture, so
much that Sindh became the first language into which the Quran was
translated.
Islams Second Wave: The Ghaznavids
• Mahmud of Ghazni in the start of 11th century attacked and conquered Multan and its
Hindi allies.
• He also continued his battles against the Hindu Shahi dynasty which gradually lost
ground from 1000 to 1026. In 1001 he conquered Peshawar and it became the centre of
the empire.
• During the Ghaznavid period the Muslim scholars and missionaries travelled throughout
the kingdom spreading the message of Islam- from Lahore to the Salt Range to others
in Punjab.
The Delhi Sultanate (1206-1526)
• The Delhi Sultanate established Islamic rule throughout the subcontinent and
maintained for more than three centuries.
• About 1500 independent Muslim kingdoms had arisen in Multan, Gujarat, Malwa,
Sindh and Khandesh in central India.
• Sufism also made it way during this era.
• With the death of the last ruler, the Delhi Sultanate came to an end and it gave way to a
kingdom that would be among the grandest the world had seen: Mughal Empire.
• The Mughal era is known as the period of Muslim architecture, literature, religious
reformists.
Effects of Islam on the Subcontinent
• Islam completely changed the living standard, style and thinking of the people
in the subcontinent.
• Economic and social development boosted in the subcontinent and so did inter-
religious harmony as well.
• Turks introduced Persian language which intermingled with Arabic and gave birth
to many languages including Urdu.
• Though the Muslim society experienced ups and downs throughout history, yet
it yielded positive effects on the minds of people at large in Indo-Pak subcontinent.
Indian Revolt of 1857
Sir Syed Ahmed Khan
Lecture 2
Pakistan Studies
Lecture Outline
• Indian Revolt
• Ideology of Sir Syed Ahmed Khan & The Aligarh Movement
• The Muslims Political Struggle
• Legislative Act, 1861
• Sir Syed Ahmed Khan And The Aligarh Movement
• Indian Councils Act, 1892
• Hindi- Urdu Controversy
MUTINY OF 1857
• The Indian Rebellion of 1857 refers to a rebellion in India against the rule of the British
East India Company.
• It ran from May 1857 to June 1858.
• The rebellion began as a mutiny of sepoys of the East India Company's army on 10 May
1857 in Meerut
• It soon escalated into other mutinies and civilian rebellions
• The rebellion posed a considerable threat to East India Company power in that region
• The rebellion led to the dissolution of the East India Company in 1858.
• It also led the British to reorganize the army, the financial system and the
administration in India.
• The country was thereafter directly governed by the crown as the new
British Raj
Cause of rebellion
• The domination of higher castes in the Bengal Army has been blamed in
part for initial mutinies that led to the rebellion.
• Many people were convinced that the Company was masterminding mass
conversions of Hindus and Muslims to Christianity
• There were also grievances over the issue of promotions, based on seniority.
• The final spark was provided by the ammunition for the new Enfield P-53
rifle
British reaction
1. The rebellion was an event of great importance in the front of history of modern India.
2. The Parliament of the United Kingdom withdrew the right of the British East India Company to
rule
3. The United Kingdom started ruling India directly through its representative called the Governor
General. (Comes in the Legislative Councils Act of 1861)
4. It made India a part of the British Empire.
5. It promised "the Princes, Chiefs, and Peoples of India," equal treatment under the British law.
6. In 1877, Queen Victoria took the title of Empress of India and the Viceroy of India ruled India
for her.
7. The Mughal dynasty, which had ruled India for about four hundred years, ended with Bahadur
Shahs death.
British reaction
1. The British also took many steps to employ members of Indian higher castes and
rulers in the government.
2. They started employing Indians in the civil services but at lower levels.
3. They stopped taking that lands of the remaining princes and rulers of India.
4. They stopped interference in religious matters.
5. They increased the number of British soldiers, and allowed only British soldiers to
handle artillery.
6. The Indian troops were tired with the mouth of cannons and was burst out in
pieces
Post 1857 Conditions
• Already had an exposure to British education, culture, liberal ideas and
above all the English language.
• Hindu populated cities or Bombay, Mudras and Calcutta. The first
educational institutions based on British pattern were established in those
cities.
• The first three universities were established by the British India
government in the same cities in 1858.
• Hindus found it easier to switch over from Persian, the official language
or Mughal courts, to English the new official language.
Conditions of Muslims Post 1857 War
• British blamed Muslims for the revolt
• Denied jobs in the government sector
• Muslims disappointed and aloof.
• Education was their weakness, politics was an enigma, and religion was
an obsession
Sir Syed Ahmad Khan
• Revivalist
• Favored mending relations with

The British (had served the British
East India Company formerly)
• Hence began the

Aligarh Movement
Ideology of Sir Syed Ahmed Khan &
The Aligarh Movement
• The Aligarh Movement marks a watershed in the history of modern India.
• It was this movement which under the leadership of Sir Syed that brought about
significant changes in social, economic and political lives of the Muslims in India
that left tremendous impact on the overall society and polity of India.
• The Aligarh movement guided the Muslims to recapture their lost glory in the
British Indian rule.
Purpose of the Movement
• He wanted to persuade the British to change their
policy of hostility towards the Muslims on the one
hand and infuse a sense of profound loyalty
among the Muslims to the British on the other. He
pleaded with his community to remain loyal to
British
Purpose of the Movement
• The intended purposes of his movement were:
1. To minimize all grounds of animosity which the Muslims were likely
to harbor against the British; and
2. To remove all doubts from British mind that Muslims were not loyal.
Sir Syed Ahmed Khan And The Aligarh Movement
• Sir Syed's first and foremost objective was to create friendly atmosphere
for the two communities - He thus started the Aligarh Movement.
• The purpose of his movement were:

o To minimize all grounds of hate which the Muslims were likely to bear against the
British
o To remove all doubts from the British mind that Muslims were not loyal
Sir Syed Ahmed Khan And The Aligarh Movement
(Contd.)
• Sir Syeds major strategy was urging the Muslims to acquire education with
emphasis on learning English language and science.
• Muhammadan Anglo-Oriental College at Aligarh was established in 1875.
• Sir Syeds Aligarh movement played as significant role to bring about an

intellectual revolution among Indian Muslims.
Educational Work
• Instill new ideas (English and Science)
• Ghazipur scientific society 1864
• Schools in Ghazipur and Muradabad
• Aligarh scientific society

• Tahzeeb-ul-Akhlaq
• Muhammadan Anglo Oriental College 1875
• Muhammadan Educational Conference 1886

Political Services
• Causes of the Indian revolt (Rasala-i-Asbab-e-Baghawat-i-Hind)
• Loyal Mohammadans of India (Indian Patriotic Association): to counter

the anti-Muslim propaganda by the Hindus
• Congress (asked the Muslims to resist taking part in its activities)
• Separate electorates
The Muslims Political Struggle
• After the First War of Independence in 1857, direct British rule was imposed over India changing the
whole structure of India.
• The Muslims were the worst sufferers because they were the rulers and were not willing to accept the
supremacy of the British.
• The British with the help of the Hindu took actions to crush the Muslims completely-
o their economic condition was denied
o their lands were confiscated
o they lost their jobs
o they lost advantage of their language, literature and culture
The Muslims Political Struggle (Contd.)
• The Muslims were looking for ways and opportunities to the old position in their society.
• Sir Syed Ahmed Khan pulled the Muslims out of this despair.
• With their vigorous support Sir Syed started the Aligarh Movement.
• He launched the Aligarh movement which guided the Muslims to get stability back in their social,
economic, educational and political aspects of life.
Legislative Councils Act 1861
• The first ever constitutional structure was formulated in 1861.
• The British Government passed the Legislative Councils Act to

introduce better provisions for the Governor-General’s Council and for
Local Government.
Legislative Councils Act 1861
• The governor-general was authorized to veto provincial regulation and make
new provinces
• Heads of the provinces known as Lieutenant Governors
• According to this Act, Indian people were included In the Governors General
Council for the first time but were not allowed to criticise or question the running
affairs of the council.
• The governor was given authority to nominate at least 6 members to his

council
• The council made laws
• Syed Ahmed part of the nominated team
• The nominated members were not authorized to criticize the actions of the council
Indian Councils Act, 1892
• Indian National Congress was formed in 1885.
• It was formed to safeguard the interest of the Indian people but with
time it turned into a pure Hindu body working to safeguard the interests
of Hindus and eliminating the Muslims from the society.
• Sir Syed criticised the demands of the Congress.
• In 1892 the government introduced the Indian Councils Act.

Indian Councils Act, 1892 (Contd.)
• The salient provision of the Act were as follows:

1. The number of the non-official members in the Council were increased
2. The members of the Legislative Councils were given the right to put up questions and discuss
the budget
3. The local bodies were given right to send their elected members to the Legislative Councils
• The Act of 1892 could not fully safeguard the interests of the Muslims and the
Muslim leaders now rightly felt for a separate electorate to protect the Muslims
interests.
• The Indian National Congress expressed its dissatisfaction :
1. Over the inadequate representation which the legislative councils act
of 1861 gave to the Indian people
2. Demanded that nomination to the Central and Provincial Legislative
Councils should be through general elections instead of by nomination
3. It also demanded the appointment to the government service
through competitive examinations
• Syed Ahmed Khan criticized these demands
1. System of education based on Western democracy can not be introduced in India -
Hindu majority over Muslims
• Advocated the procedure of nomination
2. Opposed competitive exams as well (Hindus more educated compared to Muslims)
• Another Act introduced in 1892

• Number of the non-official members in the central and provincial legislative councils
was increased, official members were still in majority
• The members were given right to put questions and discuss annual budget
• The local bodies were given right to send their elected members to the Legislative
Councils- could not ensure maximum rights to Muslims.
Hindi- Urdu Controversy
• Introduced in the subcontinent in 1825 as an official language of the Muslims.
• Urdu was a symbol of unity and culture of the Muslims.
• The Hindi-Urdu controversy began in 1867 when Hindus demanded the replacement of Urdu by Hindi as
an official language in public offices and courts.
• In 1871 George Cambell, Lt Governor of Bengal ordered that Urdu be completely eliminated from
syllabus books.
• In 1900 Governor Anthony MacDonald also ordered that Hindi should be used in courts, public offices
and educational institutions as an official language
Hindi- Urdu Controversy (Contd.)
• Sir Syed was disappointed to see the Hindus behaving in such a manner and was now convinced that the
Hindus would never be friendly with the Muslims.
• On this occasion he said:

”I am convinced that Hindus and Muslims could never become one nation as their religion and way of life is quite distinct from
each other.”
• He decide to adopt measure to protect Urdu- he established Central Association in Allahabad for the
protection of Urdu.
• Nawab Mohsin-ul-Mulk criticised the governments demands.
• The students of Aligarh college also protested against the elimination of Urdu from their syllabus
books.
• However, Nawab Mohsin-ul-Mulk did not stop his efforts for the protection of Urdu- he wrote
several books on Urdu literature.
• The elimination of Urdu as an official language had an impacts on the political scene of the subcontinent
as it meant the total destruction of Muslims as a nation.
• This created awareness amongst the Muslims who realized the hatred of the Hindus and British
towards the Muslims and their culture.
• The anti-Urdu stance strengthened the belief in the Two-Nation concept by the Muslims which later on
came to be the main factor for the struggle of a separate homeland.
“Acquisition of knowledge of science and technology is the only
solution for the problems of Muslims.”
Sir Syed Ahmed Khan

In Class Assignment based on Article:
Explain why Sir Syed Ahmed Khan was considered to be a socio-

intellectual reformer.
PARTITION OF BENGAL, SIMLA
DEPUTATION, ALL INDIA MUSLIM
LEAGUE & MINTO-MORLEY REFORMS,
ANNULMENT OF PARTITION, LUCKNOW
PACT & KHILAFAT MOVEMENT
Lecture 3
LECTURE OUTLINE
• Partition of Bengal (Activity)
• Simla Deputation
• Formation Of All India Muslim League
• Minto-Morley Reforms
• Annulment Of Partition
• Change In Muslim Leagues Political Strategy
• Lucknow Pact, 1916
• Rowlatt Act, 1919
• Montague-chelmsford Reforms, 1919
• Khilafat Movement
o Khilafat Committee
o Treaty Of Sevres
o Non- Cooperation Movement
o Chauri Chaura Tragedy
o End Of Khilafat Movement
o Results Of The Khilafat Movement
PARTITION OF BENGAL
• Bengal was the biggest province in the subcontinent.
• The whole province was under one Lieutenant-Governor who could

not look after the requirements of such a huge area alone.
• Lord Curzon became the Viceroy of India in 1899 and undertook an

extensive tour of Bengal and felt that the province was too big to be
administered effectively.
PARTITION OF BENGAL
• Lord Curzon decided to divide the province into two provinces and
Bengal was divided into two parts on 16th October 1905; Western
Bengal and Eastern Bengal.
• The new province of Eastern Bengal consisted of Dhaka as capital with

majority Muslim.
• West Bengal with the capital of Calcutta and become the Hindu
Majority.
MUSLIM REACTION TO THE PARTITION
• The new province of Eastern Bengal gave happier prospects of
economic political and social life to the Muslims.
• The partition gave huge chances of progress to the Muslims who were
supressed and dominated class of society before the partition.
• They now hoped that their social status would get a tremendous
boost in the new province.
MUSLIM REACTION TO THE PARTITION
• The partition is given a lot of prospects for the Muslims to improve
their cultural and educational interests to the best level.
• The Muslims endorsed the partition of Bengal because it was the

betterment of Muslim politics.
HINDU REACTION TO THE PARTITION
• The Hindus reacted toward the partition of Bengal in a hostile and
violent manner.
• The Hindus believed that they would come under the domination of
the Muslim majority in the new province.
• As the provincial High Court and other judicial bodies were to be
shifted to Dhaka, the Hindu lawyers feared that their legal practice
would be affected.
• The Hindus, therefore, launched an intensive movement against the
partition of Bengal.
• Moreover, it was beneficial of the Muslims rise and threat for the
Hindus monopoly so that they react it as a negative
• Hindus’ response was negative because it was not in favor of the

Hindus.
• it abolished the supremacy or dominancy of Hindus.

• Religion & colour were given the agitation in order to arouse intense opposition by the
Hindu masses.
• They termed the partition as degrading and an insult to the national character of the
Hindu population.
• The day of 16 October, 1905, when the partition was enforced, was declared as a
national tragedy.
• Hindus were outraged at what they saw as a "divide and rule" policy, even though Curzon
stressed it would produce administrative efficiency.
• They thought that the partition of Bengal will be the favor of Muslims economically and
politically and more loss for us that is why their narrative as opposed to the partition of
Bengal.
• People disobeyed government orders by refusing to pay taxes and
rentals.
• Bombs were thrown and attacks were made on the lives of the British
people, Hindu majority boycotted the British manufacturers.
• The net result of this was that the Hindu agitation definitely disunited
the Muslims from the Congress.
• This agitation against the Muslims further strengthened the Two-

Nation Theory.
• It also convinced the Muslims leaders for the need for a separate
Muslim political organization which would safeguard the interests of
the Muslims of India.
SIMLA DEPUTATION
• Liberal Party of England had won General Elections in 1905 and announced
it would introduce constitutional reforms in India.
• Muslims decided to avail this opportunity and a Muslim delegation of 35 st

Muslim leaders known as the Simla Deputation called on the Viceroy on 1
October 1906 in Simla.
ü The Simla Deputation was a gathering of 35 prominent Indian Muslim leaders led by the Aga Khan
III in Simla in October 1906.
ü The deputation aimed to convince Lord Minto, Viceroy of india, to grant Muslims greater
representation in politics.
SIMLA DEPUTATION
• The deputation apprised the Viceroy of Muslim demands and
expressed the need of protection of Muslim interests
• Deputation asked for separate electorate through which the Muslims

should elect their own representatives for councils.
• They demanded seats in legislatures, quota in government services

and seats of judges in the courts for the Muslims.
SIMLA DEPUTATION
• The deputation presented the memorial in front of viceroy, which was
consisting of the demands that rights of separate electorates should
be given to the Muslims
• Muslims should be given more seats in central legislature
• Quota should be given to the Muslims in civil services
• Muslims should be given representation in universities senates
• An aid should be given to the Muslims for the establishment of a
Muslim university.
SIMLA DEPUTATION
• Lord Minto patiently heard the demands presented by the deputation
and completely agreed with the principle of a separate electorate.
• It was a great achievement for the Muslims to have convinced the

Viceroy about the Muslims demands.
• At this time the Muslims had left the Congress and they had no
political platform to project their demands.
FORMATION OF ALL INDIA MUSLIM LEAGUE
• The annual session All India Muslim Educational Conference was held
in 1906 at Dhaka.
• Nawab Salim Ullah Khan of Dhaka convened a meeting of the Muslim

leaders to discuss the possibilities of forming a political association for
the Muslims known as All India Muslim Federation.
• He said that Congress political activities were highly injurious for the
Muslims.
• The events following the partition of Bengal and Urdu-Hindu controversy

strengthened the desire of the Muslims to organize themselves politically
as separate community.
• The birth of All India Muslim League at Dacca on 30th December 1906
came as an expression of that desire.
• Nawab Mohsin-ul-Mulk was elected as Joint Secretary of the Muslim

League.
• A committee of 60 members was set up for the Muslim League which

included all members of the Simla Deputation.
• The Muslim League met with immediate success in the initial stages.
• It drew the governments attention towards the Muslims demands

expressed by the Simla Deputation.
• It secured seats in the councils, it demanded appointment of judges

in the courts, and secured safeguards for educational interests of
Muslims.
• The principles of the league were written in the "green book," which
included the organisation's constitution, written by maulana mohammad
ali.
• Goals at this stage did not include establishing an independent Muslim

state, but rather concentrated on protecting Muslim liberties and rights
• Promoting understanding between the Muslim community and other

Indians
• Educating the Muslim and Indian community at large on the actions of the
government, and discouraging violence.
Indian Councils Act of 1909- Also known as
Morley Minto Reforms
• The act was formulated by John Morley, secretary of state for India (1905–10).
• In Britain the Liberal Party had scored an electoral victory in 1906 (under
leadership of Lloyd George) that marked the dawn of a new era of reforms
for British India.
• The relatively new secretary of state—hampered though he was by Lord

Minto, the British viceroy of India who had replaced Lord Curzon (1905–
10)—was able to introduce several important innovations into the legislative
and administrative machinery of the British Indian government.
MINTO-MORLEY REFORMS
• The British government realized that current constitutional provisions were
not enough to safeguard the Muslims interests and decide to introduce
new constitutional reforms.
• The Viceroy Lord Minto with Lord Morley prepared a Bill which was
enforced in 1909 and came to be known as Minto-Morley Reforms of 1909.
The Morley-Minto Reforms became law in 1909 as the Indian Councils Act.
Minto-Morley Reforms gave importance to the constitutional development in India.
These introduced a system of elections for the first time.

MINTO-MORLEY REFORMS
• The Act contained the following provisions:
1. The long-standing demand of Muslims for a separate electorate was conceded and
included in Minto-Morley Reforms.
2. The preparation of separate electorate was ordered.
3. The authority of council was enhanced- members were given more liberty.
• The Minto-Morley Reforms helped to ease the disturbance in the country.
The acceptance of separate electorate for the Muslims enhanced their political importance for which members of the Simla
Deputation deserve all credit.
The importance of the Councils was to ensure that Indian legislators were given a chance to express their opinions.
ANNULMENT OF PARTITION
• The Hindus threatened the government to boycott and it could not
stand extreme pressure and give way to the Hindus agitation.
• Lord Harding, the new Viceroy, agreed to reverse the partition of

Bengal and was ultimately annulled on 12th December 1911.
• New provinces were created based on linguistic lines rather than

religious lines. Bihar and Orissa Province was carved out of Bengal.
(Bihar and Orissa became separate provinces in 1936).
ANNULMENT OF PARTITION
• A separate Assam province was created.
• The capital of British India was moved to Delhi from Calcutta in 1911.
• Despite the annulment, the partition did create a communal divide

among the Hindus and Muslims of Bengal
CHANGE IN MUSLIM LEAGUES POLITICAL
STRATEGY
• Many national and international political incidents led the Muslim
league to adopt a new line of action- establishment of self-rule in
India.
Self rule usually refers to Gandhi's concept of Indian independence from foreign domination.
• Quaid-i-Azam joined the Muslim League in 1913.
• On 22nd March 1913, a resolution was passed for the attainment of

self-rule in India which demanded co-operation from leaders of both
sides for the accomplishment of common objectives.
LUCKNOW PACT, 1916
• The leaders of both parties agreed to co-operate to attain common
objectives.
• In December 1916, the Muslim League and the Congress for the first
time in the history of India held their sessions together in Lucknow.
• Quaid-i-Azam was elected as President of the session who presented

the political situation of India, rejected all objections by the British
against self-rule and declared Indians were capable enough to run the
governments affairs.
LUCKNOW PACT, 1916
• The pact included the following recommendations:
1) There shall be self rule in India.

2) The right of Muslims separate electorate was accepted by Congress.
3) Salaries of the Secretary of State should be paid by the British government
and not by the Indian funds
4) Half of the elected members of the Executive Council of the Governor-
General should be Indians and should be increased to 150.
5) Four-fifth members of the Imperial Council should be Indians and One-third
should be Muslims.
LUCKNOW PACT, 1916
• The Lucknow Pact was a symbol of unity between the Hindus and
Muslims for first time in the history of freedom struggle in the Sub-
continent.
• Its most important feature was that it led Hindus to realize a separate
political entity of the Muslims.
• The credit of for creating this harmonious situation was given to

Quaid-i-Azam who was given the title of Ambassador of Hindu-
Muslim Unity.
ROWLATT ACT, 1919
• A Committee under Justice Rowlatt was appointed who presented a
report, Rowlatt Committee Report in 1918.
• Political leaders expressed utmost annoyance and protests against

this report.
• The most tragic incident of Jallianwala Bagh mass killings created

extreme political aggravations in the country.
• All of these incidents created much hatred towards the government.

MONTAGUE-CHELMFORD REFORMS, 1919
• On 20th August 1917, Edwin Montague said that in order to satisfy the
local demands, his government was interested in giving more
representation to the natives in India.
• The report was discussed in 1919, known as Montague-Chelmsford

Reforms.
MONTAGUE-CHELMFORD REFORMS, 1919
• They included reforms like:
1) Separate electorate was retained for Muslims

2) The Central Legislature was to consist of two houses, Upper House (Council
of the State), and the Lower House (Legislative Assembly).
3) Self Government would be established gradually in India.
• The Montague-Chelmsford Reforms conceded far less than the

Lucknow Pact and were not accepted by the Muslim League and
Congress.
KHILAFAT MOVEMENT
• The First World War ended in 1918 with the Allies emerging as
conquerors and were bent upon destroying the Khalifate of Turkey.
• The Indian Muslims were greatly disappointed over the fate of Turkey
and desired a respectable settlement be concluded between British
and Turkey.
• It left the Indian Muslims in a very awkward situation as they were

stuck between British and Turkey.
KHILAFAT COMMITEE
• In order to protect the Khalifat, the Muslims formed the Khilafat
Committee.
• The Khilafat Committee decided to send a representative deputation

of Hindus, Muslims to the Viceroy to apprise him of the demands of
the people for Turkey.
• The Viceroy promised that the demand would be met and no harm
will be done to the Khalifat and the sacred places of Islam.
• He promised that religious and political matters will and should be
kept separate.
TREATY OF SEVRES
• The war ended and peace was made through the Treaty of Sevres in
1920.
• According to this treaty that Allies could occupy any part of Turkey at
will.
• Syria, Iraq and Jordon would be separated from the Turkish Empire.
• The Muslims were disappointed over the betrayal of the government.
• The Muslims launched the non-cooperation movement to safeguard
the Khalifate.
The Treaty of Sèvres was a 1920 treaty signed between the Allies of World War I and the Ottoman Empire.
NON- COOPERATION MOVEMENT
• The Hindus under the leadership of Ghandi gave full support for the
Khilafat movement.
• The plan was to boycott all British institutions and goods completely.
• The Congress adopted and re-affirmed this program in December
1920.
• Quaid-i-Azam was against this as he thought it would bring more

violence in the country and resigned from the Congress.
CHAURI CHAURA TRAGEDY
• Ghandi intended to begin his Civil Disobedience movement in 1922 from
Chauri Chaura.
• People refused to pay taxes, fire was set to police station.
• This shook Ghandi and he immediately called of the non-cooperation event

without consulting other leaders.
The Chauri Chaura incident took place on 4 February 1922 at Chauri Chaura in the Gorakhpur district in British
India, when a large group of protesters participating in the non-cooperation movement, were fired upon by the
police.
The incident led to the death of three civilians and 22 policemen
END OF KHILAFAT MOVEMENT
• The Khilafat movement ended in a complete failure for the Muslims-
they felt betrayed at the eye of victory.
• The Khalifat was abolished by Mustafa Kamal Ataturk.
• This shook the Muslims and left the Muslims almost leaderless.
• The Indian politics entered a new era once again back to rivalries
between Hindus and Muslims.
RESULTS OF THE KHILAFAT MOVEMENT
1. The Khilafat movement was a great Muslim struggle and established
foundations to launch further Muslim Freedom movements.
2. Ghandi's betrayal confirmed to the Muslims that Hindus can never
be sincere to the Muslims.
3. The British now seriously felt of giving independence to India.
4. It played an effective role in eliminating un-Islamic trends and
concepts from the religion.
5. It immensely strengthened the Two- Nation Theory.
6. It added much to the economic miseries of the Muslims.
• Your Analysis on the article
SIMON COMMISSION, NEHRU REPORT,
JINNAHS 14 POINTS, RTC’s, Government
of India Act 1935, elections & Congress rule,
Pakistan Resolution, Cripps Mission, Cabinet
Mission & Independence Act 1947
Lecture 4
Pakistan Studies
Lecture Outline
• Simon Commission
• Nehru Report
• Fourteen Points Of Quaid-e-Azam
• First Round Table Conference Nov 1930-Jan 1931
• Ghandi – Irwin Pact
• Second Round Table Conference Sep 1931-dec 1931
• Third Round Table Conference
• Government Of India Act, 1935
• Elections of 1937
• Congress Rule
o Issues After the Congress Rule
o End of Congress Rule
• Pakistan Resolution
• Crips Mission
o Proposal of Crips Mission
o Rejection OF Crip’s Proposal
• Cabinet Mission
• Clauses of the Cabinet Mission Plan
• Act of 3 June 1947
• The Indian Independence Act 1947
Simon Commission
• The British government appointed a Commission under Sir John
Simon to report the constitutional progress for India in Feb 1928.
• Since the Commission had no Indian member, the Congress and the
section of Muslim League under Quaid-i-Azam decided to boycott the
Commission.
• The people received the Commission with the slogan “Simon go back,
Simon go back”
Simon Commission (Contd.)
• In spite of the non-cooperation by the people the Commission did its
work and prepared a report for constitutional reforms in India.
• A scheme of constitutional reforms on the basis of the Simon

Commission recommendations was prepared by the government.
• The Congress and the Muslim League both refused to accept the
recommendations of the Simon Commission.
Nehru Report
• To draft constitutional reforms in India an All Parties Conference was held at Delhi in
February 1928.
The Nehru Report of 15 August 1928 (approved on 28 August) was a memorandum to appeal for a
new dominion status and a federal set-up of government for the constitution of India.
It also proposed for the Joint Electorates with reservation of seats for minorities in the legislatures.
• The conference failed to reach any conclusion about the issues of minority rights.
• In the third session committee under the chairmanship of Nehru determined the basic
features of the future constitution of India and came with a report known as the Nehru
Report.
Nehru Report (Contd.)
• The Nehru report consisted of the following points:
o Dominion Status
o Separate electorate should be replaced by joint electorate.
o Full voting rights should be given.
o Linguistic
The language of the Union shall be Hindustani, which may be written either in Devanagari or Urdu
character. The use of the English language shall be permitted
Nehru Report (Contd.)
• An All Parties Conference held in December 1928 in Calcutta, Quaid-
i-Azam issued the following points as amendments to the report:
• There should be no less than one-third Muslim representation in the Central

Legislature.
• Punjab and Bengal should have seats reserved for the Muslims on population
basis.
• Sindh should be a separate province.
• Jinnah’s proposals were rejected when put to vote in All Parties

Conference
Fourteen Points Of Quaid-e-Azam
• Jinnah presented his proposal in the form of Fourteen Points in Delhi in 1929:
1. Federation System - The residuary power will be given to the provinces and the future constitution will
be federal.
2. Provincial Autonomy - All provinces shall be granted autonomy of uniform measures.
3. Minority representation - There shall be an adequate and effective representation of minorities in all
legislature and elected bodies of the country.
4. The separate electorate will continue.
5. Sindh will be separated from Bombay and shall be treated will all provisional rights.
6. 1/3rd seats in Legislature - There shall be one-third seats for the Muslims in the Central Legislative.
7. Religious Freedom - Full religious liberty shall be given to all the communities.
8. The NWFP and Balochistan shall be given full provisional rights.
9. The boundary changes shall not affect the Muslim minorities in Bengal, Punjab,
and NWFP.
10. Muslims shall have equal job opportunities in the governmental sector.
11. 1/3rd seats in Cabinet - No cabinet shall be formed whether provisional or central without one-third
representation by the Muslims.
12. Muslim rights and culture should be safeguarded - The Muslim rights including their culture,
language, education, and religion must be protected by the constitution
13. The Central Legislative shall not make any changes to the constitution without the
agreement of the State constituting India.
14. No law can be passed regarding any religious community unless on-third people of
that group's legislature vote in agreement.
(Contd.)
• The reasonable demands of the 14 points were rejected by the Hindus.
• With this the divide among Muslims, British and Hindus grew deep.
• At a meeting of All India Muslim League at Allahabad in 1930 its

president Allama Iqbal raised the possibility that peace would be
impossible between Hindus and Muslims unless they were given a
separate state.
Allama Iqbal’s Address at Allahbaad 1930
• After fourteen pointsà Muslims adamant on the Two Nation Theory.
• Annual Session of AIML
• Presided by Allama Iqbal (recognized as poet/philosopher)
• Declared Islam as a complete code of life
• Expressed views on Two Nation theory
• Punjab, Sindh, Balochistan, NWFP together should be given dominion status.
• The demand for a separate nation was made from the platform of the Muslim League.
• His address inspired and motivated Muslims who feared their rights to practice their religion
and culture.
• In 1940, it also became the basis for Pakistan resolution.
Gandhi’s Salt March, 1930
• Simon Commission Report published in 1930: negative response.
• Gandhi started a civil disobedience movement.

• Taxation on salt production by the British Officials.
• Increased price for the locals; 8.2% of the British Raj’s tax revenue.
• Choice of salt as protest focus:
• An item of daily use could resonate more with all classes of citizens than an abstract demand
for greater political rights.
• He also reasoned that it would build unity between Hindus and Muslims by fighting a wrong
that touched them equally
• Movement declared illegal; Gandhi and Nehru arrested.

The Round Table Conferences 1930 – 1932
• The Simon Commission report was received with resentment by both Hindus and
Muslims.
• Congress started a Civil Disobedience Movement.
• The British organized three Round Table Conferences in 1930, 1931 and 1932 to
discuss constitutional reforms in India.
• The main aim of these Conferences was to discuss the Simon Commission report
and to resolve the constitutional issues of India.
• However, these conferences failed to achieve much success in resolving constitutional
problems.
First Round Table Conference
Nov 1930-Jan 1931
• The first session of the RTC began in London on 12th November 1930.
• All parties were represented except the Congress. (why)
• The most important decision taken at the conference was the approval of a
federal system for India.
• They also agreed on giving Sindh a separate identity and for establishing a
responsible government in the province.
• The deliberations of the minorities could not reach a conclusion.
• In comparison, this conference was more successful than the other two.
Ghandi – Irwin Pact
• Congress regretted not attending the First RTC.

• British also wanted to make peace with Congress
• Lord Irwin, the Viceroy invited Ghandi to discuss the future of the subcontinent.
• Under this the Congress would discontinue the Civil Disobedience and
participate in the second RTC.
• The British government on their part would withdraw all acts relating to offences
not involving violence and would release all persons jailed due to the Civil
Disobedience.
Second Round Table Conference
Sep 1931-dec 1931
• Ghandi was the sole representative of the Congress.

• When the minorities issue came up, Ghandi refused to accept any
rights of the minorities - emphasized that there are no minority
problems in India.
• Muslims and other minorities’ leaders disagreed with him.
• The Second RTC thus ended without reaching any conclusion.
• Ghandi resumed the Civil Disobedience Movement.
Third Round Table Conference
• The third RTC began on November 24th, 1932.
• The Congress was absent as Ghandi had started the Civil Disobedience
movement.
• Quaid-i-Azam did not take part in the conference.
• The Third Round Table Conference was short and did not achieve
anything of significance.
Government Of India Act, 1935
• After the Round Table Conferences failed to achieve a successful outcome, a
joint committee was established to propose a new set of reforms.
• Under the leadership of Lord Linlithgow, the committee spent one and a half
year to complete the bill.
The following were the salient features of the Act:

• The provinces were given more power and authority.
• Every province was given a minister whose advise was binding on the Governor.
• Special powers were given to Governors.
• Abolished Dyarchy system
• Established Federal Reserve Bank of India and Federal Court of India
Government Of India Act, 1935 (Contd.)
• Both the Muslim League and the Indian National Congress expressed
their dissatisfaction over the Act.
• There was no guarantee of individual liberties - People were not

given their rights.
• All authority was vested in the Parliament which was under British
influence.
Elections of 1937
• Both the Congress and the Muslim League were critical of the
Government of India Act, 1935.
• But decided to participate in the elections, which were held under

this act during the first weeks of 1937.
Elections of 1937 (Contd.)
• Congress was victorious and took power in Bihar, Bombay, Madras, United
Provinces, and the Central Provinces.
• Created congress parliamentary board: to determine national policy
• Congress refused to include any Muslim politicians in the provincial rule in Muslim
minority provinces.
• The Muslim League didn’t do well in the elections

o Divided into factions.
o Local Muslim leaders were extremely reluctant to follow on All India Muslim League.
• As a result, All India Muslim League lost in the elections and Congress was able to
form ministries in eight out of eleven provinces.
Congress Rule
• Congress rule from 1937-39 is often termed as a "Hindu Rule" due to

a number of steps which Congress took during power.
Issues After the Congress Rule
• One of the first controversies to arise was the singing of Congress

Anthem, Band-e-Mataram with which opened each day’s proceedings
in Legislative Assemblies in the Congress run provinces.
• And then they made singing of Band-e-Mataram a permanent feature

of school curriculum.
Issues After the Congress Rule
• Another issue was of Warda Education scheme or Vidya Mandar scheme
started.
According to Wardha Scheme, the medium of instruction in the schools would be Hindi. There
would be no religious education in the schools. Moreover, students would bow their heads before a
portrait of Gandhi hung in the schools.
• The purpose of the scheme was to obliterate the cultural traditions of the
Muslims and to inculcate into the minds of Muslim children the superiority of
the Hindu culture.
• Then they introduce three colored flag.

End of Congress Rule
• At the outbreak of the Second World War:
o the Viceroy proclaimed India’s entry into it without prior consultations with the
main political parties.
• When Congress demanded an immediate transfer of power in return for

cooperation of the war efforts, the British government refused, as a
result Congress resigned from power.
Pakistan Resolution
• In 1940, the annual session of Muslim League was held at Lahore in
Minto Park (Iqbal Park) under the chairmanship of Quaid-e- Azam.
• The resolution of Pakistan was passed on 23rd March,1940.

o The Resolution was moved by Bengal Chief Minister Maulvi Fazlul Haq and
seconded by Chaudhry Khaliq-uz-Zaman.
• Purpose:
o Two nation theory
o The idea of separate homeland
o Muslim quest for political, economic and cultural safeguard.
Cripps Mission
• Japan attacked Pearl Harbor (the American Naval Base) on 7th

December 1941 and destroyed it.
o It had taken over the Philippines, Malaysia and came to the borders of Assam.
Japan could have easily attacked India.
• To check the situation Sir Stafford Cripps a member of the war cabinet
was sent in March 1942 to India
o to get India’s cooperation to fight the war.
Proposal of Crips Mission
1. Dominion status after war like Canada and Australia.
2. Promise of the formation of a Constituent Assembly to finalize the
Constitution.
3. Princely States to be free to join India or remain independent.
4. Provinces could decide to be separate from India and frame their own
Constitution.
5. Till further notice the Defense would be handled by the British
government.
Rejection OF Crip’s Proposal
• It proposed division of the Nation.
• No time limit for Dominion status was given.
• Representative of Princely states were nominated by the rulers of the

state.
Cabinet Mission
• Cabinet Mission arrived in India in March 1946 in India to facilitate the

process of transfer of power. It consisted of three cabinet members:
o Pethic Lawrence
o Sir Stafford Cripps
o A.V. Alexander.
A Cabinet Mission came to India in 1946 in order to discuss the transfer of power from the British government to
the Indian political leadership, with the aim of preserving India's unity and granting its independence.
Clauses of the Cabinet Mission Plan
1. Federal Union
2. Provincial Autonomy
3. Grouping of Provinces
4. Formation of Constituent Assembly
5. Representation of Minorities
6. Formation of an Interim Government
7. Freedom to join the Commonwealth
8. Transfer of Power
Act of 3 June 1947
• Lord Mountbatten was appointed as new Viceroy in 1947.
• He presented his plan- The Mountbatten Plan before the Congress and Muslim League leaders.
o Nehru, Patel, Kripalani, Jinnah, Liaquat, Nishtar and Baldev Singh.
• Both accepted the plan and it was announced on June 3, 1947

The 3 June 1947 Plan was also known as the Mountbatten Plan. The British government proposed a plan, announced on 3 June 1947, that included
these principles:
1. Principle of the partition of British India was accepted by the British Government
2. Successor governments would be given dominion status
3. Autonomy and sovereignty to both countries
4. Can make their own constitution
5. Princely States were given the right to join either Pakistan or India, based on two major factors: Geographical proximity and the people's wishes.
The Indian Independence Act 1947
• After the acceptance of the Mountbatten Plan by all the Indian leaders
then British PM introduced the Indian Independence Bill in the
British Parliament and it was passed by both the British Houses on July
5, 1947 and got the royal assent on 18th July, 1947.
• Pakistan Emerged as an independent state on the eve of 14th August

1947.
• What do you know about the The Indian Independence Act 1947?
Jinnah’s Vision and Pakistan’s
Early Problems
Lecture 5
Pakistan Studies
Lecture Outline
• Jinnah’s Speeches
• The Challenges Of Independence (1947–1958)
1. Unprecedented Migration & Settlement of Refugees
2. Unfair Boundary Distribution
3. State Language Movement
4. Indus Water Crisis
5. Division of Military and Financial Assets
6. Accession of Princely States
7. The Kashmir Crisis
o Crisis-UN Action
8. Objectives Resolution, 1949
9. Economic Issues And Other Problems
10. Growing Unrest
11. Military Rule
Quaid’s Concept of State
Democratic Muslim state
Jinnah’s Speeches
“Every person no matter what is his color, caste or creed, is first,

second and last a citizen of this State with equal rights, privileges and
obligations. … you are free to go to your temples; you are free to go to
your mosques or to any other place of worship in this State of Pakistan.
You may belong to any religion or caste or creed – that has nothing to do
with the business of the State. … in course of time Hindus would cease
to be Hindus and Muslims would cease to be Muslims, not in the
religious sense, because that is the personal faith of each individual, but
in the political sense as citizens of the State.”
(August 11, 1947)
Jinnah’s Speeches (Contd.)
“Let it be clear that Pakistan is going to be a Muslim state based

on Islamic ideals. The whole world, even the UN has
characterized Pakistan as a Muslim state.”
(AIML last session 1947)
The Challenges Of Independence
(1947–1958)
• Pakistan was a nation physically divided,

o its East Wing (present-day Bangladesh)
o and West Wing separated by some 1,000 miles.
Post Independence Problems
• Pakistan was carved out in desperate urgency.
• It came into existence with horrible loss of life and
property.
• But what the Muslims wanted and they achieved was a
separate homeland of their own.
• Freedom of religion and culture.
The main problems were:

1. Refugees
2. Indus Water
1. Unprecedented Migration & Settlement
of Refugees
• Refugee influx
• Interstate migration of more than 12 million, and killing of
about one million
• Riots in Northern India
• Carnage in the Punjab was caused by “the chaos and anger”
owing to the “surprise of partition” when no one was
prepared organizationally to cope with the change.
1. Unprecedented Migration & Settlement of
Refugees (Contd.)
• Till 1955, about seven million refugees from India entered West
Pakistan and about 5.6 million Hindus and Sikhs left Pakistan
• One out of every ten persons was a refugee.
• “But it was the patriotism and self-denial of the people that

pulled the country through the most precarious phase of its
existence.” (I.H. Qureshi, Pakistan)
2. Unfair Boundary Distribution
• A boundary commission was set up under a British
Chairman, Sir Cyril Redcliff..
• Unfair boundary distribution.

• It was “mostly the British fault” but local grievances and
hatred created a bloodbath which has left its own “lasting
scars” in both states.
3. State Language Movement
• Many in East Pakistan wanted Bengali to be the state
language of Pakistan.
• West Pakistanis, who controlled the political power, planned

to make Urdu the state language.
• In November 1947 university students in Dhaka staged

protest for Bengali to be the state language.
• Muhammad Ali Jinnah visited East Pakistan and declared

that Urdu alone would be the national language of
Pakistan, further inflaming the public.
4. Indus Water Crisis
• Pakistan was largely an agrarian society, and about 80
percent of its agricultural production was in the Indus
River basin.
• At the time of partition the British awarded the area
containing the control of the Indus River to India.
• In the aftermath of partition, the East Punjab government
cut off the flow of water.
4. Indus Water Crisis (Contd.)
• Prime Minister Liaquat Ali Khan called for an immediate
restoration of the water supply and proposed a conference
to resolve the dispute with India’s Prime Minister Nehru.
• In May 1948, representatives of the two nations met in New
Delhi and signed the Inter-Dominion (Delhi) Agreement,
which did little more than affirm that each country claimed
rights to the waters of the rivers in East Punjab.
• The final agreement, the Indus Waters Treaty—a landmark
treaty in water-dispute resolution—would not be signed until
1960.
5. Division of Military and
Financial Assets
• It was announced in 1947 that military and financial assets
will also be divided among two nations.
• Pakistan was promised 35% of the assets but received scrap
and out of order machines, broken weapons,
unserviceable tanks and aircraft.
• There were 16 ordnance factories and all were located in
India. Pakistan was given 60 million rupees towards its share
in the ordnance factories.
5. Division of Military and
Financial Assets (Contd.)
• 4 billion cash in reserve bank of India were to be divided
in 17:5. Pakistan was to receive 750 million rupees,
which was in initially delayed by the Indian Government.
only 200 million rupees were paid.
• Then another installment of 500 million was paid,
however, rest of the 50 million are still due.
• Prior to partition, there existed around 560-625 semi-autonomous
Princely states in British India.
• On July 25, 1947, Lord Louis Mountbatten in his address to the

Chamber of Princes, advised them to join either side based on
communal composition and geographic location.
• Nearly all states opted for either Pakistan or India accept four states,
Junagadh, Hyderabad, Jodhpur and Kashmir.
o Junagadh: Nawab accepted Pakistan on September 15, 1947, however India stormed in
the troops and Reversed Nawab’s Decision.
o Hyderabad: Nawab was reluctant to accede to either India or Pakistan, however hindu
majority was incited to revolt against Nawab’s desire to be independent. The whole
province suffered turmoil and violence. At the end Indian troops invaded this state and
forced Nawab to join India.
o Jodhpur was also forced to join India

7. The Kashmir Crisis
• Hindu ruler Mahraja Hari Singh - 78% Muslim
population wanted him to join Pakistan however he was
Indecisive.
• India began airlifting troops to Srinagar, where they engaged
with the Pashtun tribesmen in battle.
• Pakistan asked the United Nations (UN) Security Council
to broker a cease-fire, so that a referendum could be held
among Kashmiris, the results of which would determine which
state they would join.
7. The Kashmir Crisis-UN Action
• In August 1948 the UN Security Council called for an
immediate ceasefire under four guiding principles:
• withdrawal of Pakistani troops
• withdrawal of armed tribal groups
• installation of an interim civilian government under UN
control
• withdrawal of Indian forces after the departure of
Pakistani and tribal men.
• Pakistan and India agreed to the terms.
• The referendum on Kashmir’s future was never
held.
8. Objectives Resolution, 1949
• Another important task facing the new state was the
creation of a legal framework for its governance.
• The Government of India Act of 1935 became the

working constitution of both new nations. However,
Pakistan’s leaders were anxious to draft their own
constitution.
8. Objectives Resolution, 1949 (Contd.)
• Liaquat Ali Khan drafted the Objectives Resolution, which laid the groundwork
for adopting a constitution, which was presented in the legislative assembly on
March 12, 1949.
“Wherein the State shall exercise its powers and authority through the chosen
representatives of the people; wherein the principles of democracy, freedom,
equality, tolerance and social justice, as enunciated by Islam, shall be fully
observed; wherein the Muslims shall be enabled to order their lives in the individual
and collective spheres in accordance with the teachings and requirements of Islam
as set out in the Holy Qur’an and Sunna; wherein adequate provision shall be made
for the minorities freely to progress and practice their religions and develop their
cultures”.
• But Liaquat was unable to create a sufficient base of support to achieve a

consensus on a plan for the constitution, and discussions and negotiations
progressed slowly.
• The plan met immediate opposition.

9. Economic Issues And Other Problems
• When Pakistan came into existence, it mostly consisted of economically backward
and underdeveloped areas.
• The agricultural system was obsolete and outdated.
• The entire capital was in the hands of the Hindus.
• No federal government., no secretariat, no state central bank (only two commercial

banks limited number of network branches)
• Number of total registered doctors approximately 1000.
• Electricity generation capacity in West Pakistan (50 MW only) and number of telephone
(16,500)
• Low level of literacy (close to 5%, some sources say 15%)
• One degree awarding institution/university

10. Growing Unrest
• The domestic political situation was deteriorating rapidly.
• After Liaquat’s assassination, Khawaja Nazimuddin was

named prime minister and Malik Ghulam Muhammad
was elevated to the post of governor-general.
• The issue of the state language burst forth again in 1952.
• In January Nazimuddin came to Dhaka reiterated that the

national language of Pakistan would be Urdu.
10. Growing Unrest (Contd.)
• His statement further inflamed the public and the

support for Bengali independence movement
increased dramatically.
• Malik Ghulam Muhammad dismissed Khawaja

Nazimudin and made Mohammad Ali Bogra as the
prime minister of Pakistan.
11. Miltary Rule
• On October 7, 1958, with the cooperation of the
commander in chief of the armed forces, General
Muhammad Ayub Khan, Iskander Mirza declared martial
law.
o The Constitution of 1956 was abrogated,

o The central and provincial assemblies dissolved.
o Elections scheduled for January 1959 were cancelled.
o The Muslim League was dissolved, never to be revived again.
• On October 27, 1958, Ayub Khan declared himself

president, who became the undisputed ruler of Pakistan
and its military-run government.
GENERAL YAHIYA KHAN,
CREATION OF BANGLADESH
AND ZULFIQAR ALI BHUTTO
Lecture 6
Pakistan Studies
Lecture Outline
• General Yahiya Khan (1969-1971)
• Elections Of 1970
• Creation Of Bangladesh
• Zulfiqar Ali Bhutto (1971-1977)
o Bhutto’s Address
o Economic Reforms
o Agricultural Reforms
o International Relations
o Constitution Of 1973
o Downfall Of Zulfiqar Ali Bhutto
General Yahiya Khan (1969-1971)
• Yahiya Khan was the second Chief Martial Law Administrator of Pakistan.
• He became President on 25 March 1969.
• Yahiya's regime is accused for being one of the major causes of the division of
Pakistan
General Yahya Khan (1969-1971) (Contd.)
• 1962 Constitution was abrogated
• Basic Democracy was dissolved
• Interim constitution of Pakistan from 1969 to 1973.
• Removed 303 officers, posted army officers instead at different levels of
administration.
• The jurisdiction of judges was curtailed.
• However, unrestricted political activity from January 1970 onwards and
announced elections to be held by the end of 1970.
• Curbs on press were lowered
Elections Of 1970
• Elections were held on 7th December 1970
• Results:
o Mujib’s Awami League emerged as the single largest part winning 160 seats
out of 300 seats
o while Zulfiqar Ali Bhutto’s PPP won 81 seats.
• The landslide victory turned the Awami League to call it a victory of

Bengali Nationalism.
Elections Of 1970
EAST PAKISTAN WEST PAKISTAN
AWAMI LEAGUE 160 00
PPP 00 81
OTHERS 2 57
TOTAL (300) 162 138
Creation Of Bangladesh
• The National Assembly session was fixed for March 3, 1971 but
Bhutto insisted not to participate.
“Break the legs of any party member who dares to attend the March 3 session”
• This resulted in:

o Large scale strikes
o Violence
o Burning and Riots
o Anti Pakistan movement broke out.
Creation Of Bangladesh (Contd.)
• Political impasse between East Pakistan and West Pakistan (Political

leadership & Military) resulted into a military action on the 25th March,
1971.
• The situation devolved into a full scale civil war and India invaded East
Pakistan in November 1971 to support the Bangladeshi rebels.
• War of 1971 started between India and Pakistan.

Creation Of Bangladesh (Contd.)
• The Pakistan Army surrendered to Indian Army and East Pakistan was lost,
becoming an independent state on the 16th December, 1971.
• So under strong public pressure Yahiya resigned and asked Zulfiqar Ali
Bhutto, president of the PPP to form the government.
• Who is to be blamed Bhutto or Yahiya and What were the main reasons of
this divide?
• Both, Partially Bhutto but mostly Yahiya regime

During his time the Bengali-ism reached its peak due to economic disparities between the
two wings of the country.
Zulfiqar Ali Bhutto (1971-1977)
• On 20th December, 1971 Zulfiqar Ali Bhutto became the president of Pakistan.
• Bhutto had campaigned on the simple promise of “roti, kapra aur makan”.
• Other groups swarming the PPP were Sindhi landlords, army officials,
industrialists and civil servants.
• Accordingly his policies were aimed towards these groups: industrialists, civil
servants, landlords and the military.
Bhutto’s Address
• After becoming the president, Bhutto addressed the nation saying
'My dear countrymen, my dear friends, my dear students, labourers, peasants... those who
fought for Pakistan... We are facing the worst crisis in our country's life, a
deadly crisis. We have to pick up the pieces, very small pieces, but we will make a new
Pakistan, a prosperous and progressive Pakistan, a Pakistan free of exploitation, a
Pakistan envisaged by the Quaid-e-Azam'.
— Zulfiqar Ali Bhutto, 1971

Economic Reforms
• Nationalized 32 large manufacturing plants in eight industries.
• Domestic private banks, insurance companies, shipping etc. were

also nationalized.
• Management of private schools and colleges was taken over.

Agricultural Reforms
• He also implemented land reforms in 1972.
• These reforms:
o Reduced the ceiling on landholdings
o Promised the land to tenants by taking it back from landlords
• However, no land was given to the tenants which led to tenant-

landlord clashes in some rural areas.
International Relations
• Bhutto also tried to repair the picture of Pakistan internationally.
• He signed the Simla Agreement with Indira Gandhi on 1972.
• In 1974 when India conducted nuclear tests,

o Bhutto decided that Pakistan would go nuclear too, so Atomic Energy Commission
was set up.
“We(Pakistan) will eat grass, even go hungry, but we will get one of our own (Atom Bomb)....
We have no other choice!”
Constitution Of 1973
• Bhutto stepped down as president and became prime minister.
• Bhutto’s greatest contribution was his role in drafting in constitution of

1973.
• The constitution guaranteed:
o Freedom of speech and freedom of judicial system
o Addressed the power of provinces
o The division of power between the prime minister and president
Constitution Of 1973 (Contd.)
• The president is to be elected by the National Assembly, the Senate
and the four provincial assemblies.
• The prime minister is to be elected by the National Assembly.
• The constitution contained provisions which made it impossible for the

National Assembly to remove the Prime Minister.
• Unconstitutional abrogation of the constitution was punishable by

death.
Downfall Of Zulfiqar Ali Bhutto
• He got the reputation of “an elected dictator”
• By the mid 1970s Bhutto’s determination to crush any and all

opposition had become an obsession.
• He was also notorious for ridiculing his opponents mercilessly in

public speeches.
• Democratic institutions could not take root because of Bhutto’s

monopoly over the national decision making process.
Downfall Of Zulfiqar Ali Bhutto (Contd.)
• A national Alliance of 9 parties named as Pakistan National Alliance
(PNA) was made against Bhutto in elections of 1977.
• But PPP won 77% of the seats in the National Assembly.
• The opposition accused PPP of rigging, thus demanded for a re-

election.
• Bhutto denied the allegations and refused to hold the elections again.
Downfall Of Zulfiqar Ali Bhutto (Contd.)
• This led to political unrest, mass demonstrations and violent anti Bhutto
protests.
• On July 5, 1977, General Zia-ul-Haq led a military coup and declared

martial law.
• He suspended the constitution and brought up criminal charges against

Bhutto for murdering a political opponent.
• Bhutto was arrested on September 3, 1977 and hanged on the 4th April ,
1979 by Zia’s order.
General Zia-ul-Haq (1977-1988)
&
The Muddling Nineties: Benazir
Bhutto And Nawaz Sharif (1988-1993)
Lecture 7
Pakistan Studies
Lecture Outline
• General Zia-ul-Haq
o The First Phase
o The Second Phase
• Benazir Bhutto’s First Government
o Bhutto’s Foreign Policy
o Bhutto’s Domestic Policy
o Downfall Of Benazir’s First Government
General Zia-ul-Haq
• It was the third time in Pakistan's history that martial law was imposed.
• Like Ayub Khan he had been appointed chief of army staff.
• But, unlike Ayub Khan he had a more stronger version of Islamic

orthodox and introduction of Islamic order as his top priority.
General Zia-ul-Haq (Contd.)
• Zia inducted a very large number about 400 military men into
administration, industrial sector and other economic organisations.
o Commanders were appointed as Zonal Martial Law Administrators, some were

made governors and a number of generals were made secretaries.
o In corporations like PIA and WAPDA, military men held top positions.
o From 1980 onwards the regime ensured that the army officers would fill 10% of
the vacancies of the Civil Services.
General Zia-ul-Haq (Contd.)
• Zia’s regime can be divided into 2 phases:
o Before the Soviet Invasion of 1979
o After the Soviet Invasion of 1979

The First Phase
• When Zia took power, he announced elections would be held soon.
• Shortly after Bhutto’s hanging, elections were cancelled and political

parties were banned.
• Disqualification Tribunal was set up.
• Majlis-e- Shoora was set up in 1981.

The First Phase (Contd.)
• The Islamic Ideology Council to prepare an outline of an Islamic state and
announced that Pakistani law will be based on Shariah law.
• He established the Federal Shariat Court.
• The Islamic punishments (whippings and cutting hands) to be carried out in

public and televised.
• Zia also brought Islamization in financial system

o prohibiting interest and taxation through the Zakat and Ushr Ordinances in June 1980.
The Second Phase
• The Soviet Union invaded Afghanistan in December 1979.
• Within a period of eighteen months more than 2 million refuges had

poured into Pakistan
o and 1.2 million followed later.
• The Pakistan government

o put up camps mostly in NWFP and
o provided food, clothing and medicine to the refugees.
The Second Phase (Contd.)
• Pakistan indulged into war and after that massive aid flowed into Pakistan
o about $3.5 billion
o 40 F-16’s
o 100 tankers
• Pakistan's role in the fight against Soviets dramatically changed its image
both domestically and internationally.
• Moreover, the depiction of war helped Zia to transform Pakistan into an

Islamic state, in return he gained the support of Middle Eastern Muslim
countries, giving him more international fame.
• At the same time the war had disturbing effects on the Pakistani society.
• The influx of more than 3.2 million refugees into Pakistan

o overwhelmed the local economy
o stretched the facilities
o strained the infrastructure
• The refugees also brought with them weapons and drugs which created the
Kalashnikov culture and led to a dramatic increase in ethnic and religious
violence.
• At the domestic level, PPP and other parties launched the Movement for
the Restoration of Democracy (MRD)
• After that, Zia promised elections to be held in Feb 1985.
• Local elections were held on a non-party basis in Feb and martial law was
lifted in December 1985.
• The composition of National Assembly showed the dominance of landlords,

and tribal leaders which helped Zia retain his president-ship. However,
Mohammad Khan Jonejo was made the Prime Minister.
• An amended version of the 1973 constitution was reinstated which

increased power of the President.
• However, in may 1988 Zia dissolved the National Assembly.
• Which led to the tensions and violence across the Pakistan, the
situation of law and order kept on deteriorating.
• The spread of Kalashnikov culture led to a sharp increase in robberies and
kidnappings.
• At the same time ethnic tensions increased between the Sindhis and
Afghan refugees which escalated to great heights in the late 1980s.
• The Muhajir Quami Mahaz (MQM) was formed to voice their grievances.
• Zia’s death was in a suspicious airplane crash along with several other top
generals on August 17, 1988.
• Ghulam Ishaq Khan became the new president of Pakistan and elections were
announced in November 1988.
• Two rivals came to dominate the political landscape during this period:
Benazir Bhutto and Nawaz Sharif.
Elections of 1988
• Elections were held in November 1988.
• In the elections, PPP won a majority and Benazir became the first female
Prime Minister of Pakistan.
Benazir Bhutto’s First Government
• In her first address to the nation as prime minister, Bhutto presented

her vision of Pakistan
o forward-thinking and democracy but guided by Islamic principles
• She announced
o the release of political prisoners
o restoration of press freedoms
o the lifted ban on student unions and trade unions
Bhutto’s Foreign Policy
• She strengthened relations with Muslim countries.
• After taking office, she attempted to strengthen the country’s alliance with
the United States.
• Bhutto tried to ease tensions with India while seeking solutions to the
disputes—primarily Kashmir.
• Bhutto succeeded in gaining readmission to the Commonwealth in 1989.

Downfall Of Benazir’s First Government
• Benazir was often criticised for being autocratic during her first term.
• She appointed her mother, Nusrat Bhutto as senior minister without any
portfolio and her father in-law, the chairman of the Parliamentary Public
Accounts Committee.
• Two major problems her government had to face were:

o Excessive levels of corruption within the PPP and her inability to stop banditry in
the rural Sindh.
o Ethnic violence between Sindhis and Muhajirs in urban Sindh.
Downfall Of Benazir’s First Government
(Contd.)
• On 6th August, 1990, President Ghulam Ishaq Khan dismissed the Bhutto
government, alleged corruption and incompetence;
o he dissolved the National Assembly and declared a state of emergency.
• A care taker government was made in 1990 and Ghulam Mustafa Jatoi was
named as the caretaker prime minister.
• Ishaq Khan soon dissolved the provincial assemblies as well and scheduled
new elections for October 1990.
The Muddling Nineties:
Benazir Bhutto And Nawaz
Sharif (1988-1999) Contd.
Lecture 8
Pakistan Studies
Lecture Outline
• Nawaz Sharif ’s First Government
o Foreign Policy And Kalashnikov Culture
o Downfall Of Sharif ’s First Government
• Second Benzair Government (1993-1996)
o Failure In Benazir’s Policies
o Benazir’s Central Asia Policy
o President Dismisses Benazir’s Government
• Nawaz Sharif ’s Second Government (1997-1999)
o Nuclear Tests And The Economy
o The Coup Against Sharif
Nawaz Sharif ’s First Government
• On November 1, 1990, Mian Muhammad Nawaz Sharif, became prime minister for
the first time.
• In his first address to the nation he promised a comprehensive national

reconstruction program and to increase the pace of industrialization.
Focused on improving the infrastructure for industries.
Wanted to promote industrialisation.
Called the unemployment as the greatest problem, which could be solved with the growth of industrial
setup.
• He presented his vision:
"turning Pakistan into a (South) Korea by encouraging greater private saving and investment to
accelerate economic growth."
Nawaz Sharif ’s First Government (Contd.)
• Sharif introduced Islamic Laws:
o The Shariat Ordinance

o Bait-ul-Maal (to help poor)
• He gave these tasks to the Ministry of Religion.

Foreign Policy And Kalashnikov Culture
• Nawaz Sharif strengthened relations with Central Asia’s Muslim countries.
• He tried to form a Muslim Bloc by uniting all Central Asian Muslim countries
o Thus he extended the membership of Economic Cooperation Organization (ECO) to
all Central Asian countries.
• Pakistan also joined the international coalition to drive Iraq out of Kuwait
during the Gulf War.
• Afghanistan was disintegrating into chaos Nawaz Sharif attempted to broker a

peace, but the violence continued.
Achievements Of Sharif ’s First
Government
• The most important achievement was MOTORWAY project
• He founded various airlines (Shaheen, Aero Asia, Bhuja and
Hajveri etc)
• He introduced large scale projects
1. Ghazi Barotha Hydro Power Project
2. Yellow-Cab Scheme
Downfall Of Sharif ’s First Government
• Differences over policy matters surfaced between the prime minister

and the president.
• In 1993 the president brought up charges of corruption and

mismanagement against Nawaz Sharif, dismissed him and dissolved the
National Assembly
Downfall Of Sharif ’s First Government
• New elections were announced for July 1993.
• Till that, Nawaz Sharif was reinstated as prime minister.
• In July 1993 both Nawaz Sharif and Ishaq Khan resigned from their
positions.
• Moeenuddin Ahmad Qureshi was named as the caretaker prime

minister and Wasim Sajjad the caretaker president.
Elections of 1993
• However, elections were held in October 1993.
• Pakistan Muslim League (PML) led by Nawaz Sharif won 72 seats.

The PPP won a plurality, with 86 seats in the National Assembly but
formed a coalition government with 121 seats.
• Her position was further strengthened when a PPP member, Farooq

Leghari won the presidential elections in November 1993.
Elections of 1993 (Contd.)
• In his first address as president, Leghari pledged to revoke the Eighth

Amendment, which had previously been used to dissolve governments
at presidential will.
• He also supported weakening the power of religious courts and

expanding women’s rights.
Second Benzair Government (1993-1996)
• Benazir's second government promised to strengthen the democratic
Institutions and pursue her reforms program.
• Her reform program addressed:

1. Train MARCH
2. Pakistan visit by first US lady
3. Formation of banks for farmers
4. Development programme
5. Foreign visit and Kashmir issue
Failure In Benazir’s Policies
• However, various problems such as inefficient bureaucracy, weak
infrastructure, widespread tax evasion and corruption, neglect of
social development and high population growth continued to plague
the economy.
• One of the major problems was the widespread violence in Sindh.
• Pakistan also became one of the leading sources of drug supply to the
US and Europe.
President Dismisses Benazir’s Government
• Throughout the later half of the 1990s relations between Bhutto and Leghari
deteriorated.
• On November 5, 1996, Leghari dismissed the Benazir Bhutto government,

alleging crimes including corruption, mismanagement, and murder.
• The National Assembly was also dissolved.
• After Bhutto’s dismissal, Malik Meraj Khalid was named caretaker prime
minister.
Nawaz Sharif ’s Second Government (1997-1999)
• In the February 1997 elections, PML won a two-thirds majority in the National
Assembly and Nawaz Sharif was re-elected as the Prime Minister.
• In April 1997, the Thirteenth Amendment to the constitution was adopted

by the National Assembly which again gave Prime minister authority over
the president.
• No longer concerned about dismissal from his position, Nawaz Sharif let his
relationship with President Leghari deteriorate.
Nuclear Tests And The Economy
• On May 28, 1998, Pakistan conducted its own tests of five nuclear
devices.
• The United Nations passed a unanimous resolution calling on both

Pakistan and India to end their nuclear weapon programs, and
urged both countries to sign the Comprehensive Test Ban Treaty.
• Pakistan expressed willingness to sign the treaty if India did the same,
but India declined.
Nuclear Tests And The Economy (Contd.)
• Following Pakistan’s nuclear tests of late May and early June 1998,
o the United States reimposed sanctions included a ban on aid , financing, ban on
loans from US banks and restrictions on exports.
• Japan joined the United States, freezing most of its development aid
to Pakistan and withdrawing support for new loans.
The Coup Against Sharif
• Sharif, worried about the potential for a coup, planned to replace
Musharraf.
• On October 12, 1999, General Musharraf was on a commercial flight to

Karachi, returning from a visit from Sri Lanka, Nawaz Sharif ordered the
Civil Aviation Authority to deny the flight permission to land anywhere in
Pakistan.
• The plane ultimately landed with only minutes of fuel left on-board.
• This became the “Plane Conspiracy” case.

The Coup Against Sharif (Contd.)
• Musharraf proclaimed himself the chief executive of Pakistan and
Pakistan was once more under military rule.
• Musharraf became the president of Pakistan on 20 June 2001, only to

win a controversial referendum on 1 May 2002 which awarded him five
years of presidency.
• Although, Musharraf relinquished the position of Chairman of Joint

Chiefs in 2001, he remained the Army Chief until retiring from the army
in 2007.
Phase 1: 1947 to 1958
(The Formative Phase)
Lecture 9
Pakistan Studies
Lecture Outline
• Problems
• Economic Performance
• Broad Objectives
1. Rehabilitation of Refugees
2. Defense Capability
3. Industrialization
• Agriculture Sector
– Agriculture Stagnation
• Steps taken for development
1. Non-devaluation decision of September 1949
2. Trade Policy Regime
• Devaluation -1955
• Domestic Capital Formation
• Institutions/Organizations
Problems
• Poor infrastructure
• Illiteracy
• Heavy influx of refuges
• The immediate problem of shelter, food, clothing and medical attention.
• Total central government expenditure on refugees by 1958 was almost Rs.491 million
• Jinnah’s death, 1948
• Assassination of Liaquat Ali Khan, 1951

Economic Performance
• The overall growth for Pakistan for the period 1949-50 to 1950-
60 was 2.5% per annum.
• Per capita income growth was negative in East Pakistan and

only moderately positive in West Pakistan.
Broad Objectives
1. The Rehabilitation of Refugees:
• Total central government expenditure on refugees by 1958 was almost Rs.491

million
• In order to help the artisans and craftsmen among the refugees, the government
established a Refugee Rehabilitation Finance Corporation.
Which
o Provided credit facilities
o gave 17 million in loans
o invested 3 million in industrial colonies
o distributed sewing machines worth 4 million
o supplied raw materials worth 12 million to refugees at cheap rates.
Broad Objectives
• After independence the major tension with neighboring India was on
Kashmir conflict.
• This led to a firm commitment on the part of the government to give high
priority to strengthening the county’s defense capability.
• This was done by setting aside major portion of the country’s revenue
for building up the defense forces.
Broad Objectives
• Commitment to strengthen the defense capability
Defense expenditure as a proportion of revenue receipts and GNP

1949-50 1954-55 1957-58
1)% of Central government revenue receipts 63.7 46.6 48.0

2)% of GNP 3.0 - 2.0
Broad Objectives
3. Industrialization
• Pakistan had almost no industry in 1947.
• The government played an important direct role in the country’s industrialization program.
o Government’s industrial policy statement issued in April 1948 emphasized
manufactured goods based on domestic raw material.
• Increase in the production of sugar, cigarettes, vegetable ghee, cement and natural gas.
• A large demand for domestic markets was created by imposing import controls and for
the early entrants who could charge monopoly prices
• In 1947-58 the average annual growth was over 19%.
• Jute industry was set up in East Pakistan in late 50’s.
• High profits, high savings, high investments, and high rates of growth were the main
features of the industrial development in the earlier years.
Agriculture Sector
• Pakistan was an agricultural economy at the time of independence
omore than 75% of the population living in rural areas.
o65% of civilian labor force was employed in agriculture.
oAgriculture's share (including forestry and fishing) was 53% of GDP in FY 1950.
oWest Pakistan, for example, traditionally produced more wheat than it consumed
and had supplied the deficit areas in India.
• Commodities such as coal and sugar were in short supply in Pakistan they
had traditionally come from areas now part of India.
Agriculture Sector - Stagnation
• The biggest policy failure in Pakistan’s early years was agriculture failure.
o Agriculture suffered from negative growth rates in some years.
o Agriculture growth was less than population growth, around 1.7% annually.
o Only once in this period achieved double digit growth rates.

Agricultural Stagnation
Causes:
oPolicy makers laid more emphasis on industrial growth.
oSevere floods in the Sindh and Punjab in 1948.
oFloods adversely affected food grain.
oIn 1951, the failure of the monsoon, continued drought conditions and
locust attacks led to a disastrous wheat crop harvest.
• In order to meet the shortage the government approached the USA, Canada,
and Australia, and other countries to provide long-term credits as well as
outright gifts to help in the import of food grains.
Steps Taken For Development
1. Non-devaluation decision of September 1949
• The main motivation behind the non-devaluation decision was to be able to

sell raw jute to Indian industry at higher prices.
• As a result of this India suspended trade by not accepting the value of the
Pakistani currency and a trade deadlock ensued.
• Decision not to devalue the currency lead to price control.

o Controls were exercised on the prices of cloth and yarn together with articles like
drugs and medicines, paper, chemical dyes, cigarettes, vehicles, and construction
material with a view to lowering cost of living.
Steps Taken For Development (Contd.)
• Korean war (1952-53) and collapse resulted in raw material boom, high
exports earnings for Pakistan.
• Pakistan had a strong balance of payments surplus as export of raw

material came under heavy demand.
• India had to rescind its earlier decision and trade was once again opened
between the two countries.
• After Korean boom there were expectation for a devaluation
• But as in 1949, government decided not to devalue but instead imposed

very strict exchange rate controls and physical controls on imports and
exports.
2. Trade Policy Regime

Import Substitution Policy (ISI) was imposed. The type of protective
policy pursued in Pakistan are as follows:
• Produce anything that can be reasonably produced domestically.
• Once production has started domestically, ban imports of

competing goods to save foreign exchange.
Import substitution progressed easily and rapidly.
• A large demand for domestic markets was created by imposing import controls and for the
early entrants who could charge monopoly prices, profits were very high.
• With controls imposed on imports, esp. on consumer goods, the prices of the domestically
produced goods increased sharply in the domestic market because of monopoly power which
changed the terms of trade in favor of industry and against agriculture.
• Manufacturing proved highly profitable, attracting increasing private investments and

reinvestment of profits.
• High profits, high savings, high investments, and high rates of growth were the main
features of the industrial development in the earlier years.
• This led to a sharp increase in the profitability of the industrial sector.

“The process of Industrialization began in Pakistan.”
Devaluation -1955
• The devaluation of Pakistani rupee in July 1955 by 30% in relation to the pound
sterling.
• The impact of devaluation on the balance of payments situation was mixed.
oThere were some improvements in exports, but imports which were earlier
being curtailed by government control were not really falling.
oDue to devaluation domestic prices rose, especially for food items, and this
reflected itself in a rising cost-of-living index.
oAnother adverse affect of devaluation was that the government had to pay
more for the food and grain.
oThough the government tried to reduce the effect on retail prices by

providing subsidies, there was increase in retail prices.
Domestic Capital Formation
• The statistic for domestic capital formulation in 1950’s shows some
discrepancies among various resources.
• The rate of growth for both private and public investment was high during
1950-5.
• Some investments were made in large irrigation projects such as Taunsa

barrage and Lower Sindh barrage.
• Significant investments were made in infrastructure development especially

in transport and communication sector.
Domestic Capital Formation (Contd.)
• There was also substantial private sector investment in housing, which

was mainly undertaken by higher income groups.
• After 1955, growth of real private investment went down in West

Pakistan because of the sharp increase in the price of investment goods,
triggered by the 1955 devaluation.
• Investments in social sectors, i.e. education and health were minimal and
these sectors had very low priority in the total development expenditure.
Domestic Capital Formation
Institutions/Organizations
• Organizational growth was very rapid and impressive during this period.
• Establishment of Pakistan Industrial Finance Corporation (PIFC) in 1949.
• National Bank of Pakistan in 1949.
• Pakistan Industrial Development Corporation (PIDC) in 1950.

o The major objective of PIDC was to help establish industries which were handed over to
private sector when they were completed.
• PIA in 1956 and WAPDA in 1958.

Phase 2: 1958 to 1968
(Decade of Development)
Lecture 3
Lecture Outline
• Overview
• Growth
• Agriculture Growth
– Green Revolution
• The 1959 Land Reforms
• Investment
• Inflation
• Tax mobilization
• Water and Power Investments
• Failure: Negligence of Social sector
• Foreign Aid
• The consequences of Growing Dependence
• Trade policy
• Export Bonus Scheme
• Concentration of Economic Power
• Ayub Khan’s Policies – An Assessment
Overview
• Martial law October 1958
• State’s take over by General Ayyub Khan in October 1958.
• It brought about a new era for development in Pakistan
• Economic and social reforms were high on Ayyub's agenda.
• These reforms mainly included

oEconomic planning
oProviding basic needs such as food to the overall public of Pakistan.
Growth
• GDP growth in Pakistan of nearly 7% per annum during the
1960s was exceeded among large countries only by Korea, Thailand
and Mexico.
• Agricultural growth rate in Pakistan was 3.7% between 1959-

1964.
– It rose to a peak of 6.3% annual rate during 1965-1970 as record

increases were registered in the production of wheat and rice.
Growth Rates
• Measured by GDP growth, economic performance in Pakistan in the 1960s
clearly exceeded initial expectations.
1950’s 1960’s
East Pakistan
Overall 1.9 4.0
Agriculture 1.9 2.7
Non-agriculture 2.9 5.0
West Pakistan
Overall 3.1 6.7
Agriculture 1.4 5.0
Non-agriculture 5.0 7.9

Agriculture Growth-Green Revolution
Agriculture output grew by 11.7% and maintained high growth rate of 9.6% in
1968-1970.
There were 2 phases of green revolution
• Phase 1 (1960 to 1965)- Main cause of growth was increase in irrigation facilities,
mainly tube wells.
• Phase 2 (1965 to 1970)- Impressive growth rates when irrigation facilities were
supplemented by the technology package of high yield variety (HYV) seeds,
chemical fertilizers and pesticides.
(Contd.)
The Issues of the Tube wells:
• High concentration in few districts of Punjab 91% of 76,000 tube

wells in 1968 were in Punjab because of favorable conditions.
• Due to size and cost of tubewells were mainly installed by landowners

with over 25 acres of land.
o 70% of tubewells were put in by farmers owning over 25 acres, and only 4% by
farmers owning fewer than 13 acres.
(Contd.)
Tractorization:
• Imports of tractors was encouraged after 1960 by the provision of cheap

credit through institution such as Asian Development Bank of Pakistan
(ADBP)
• At the same time overvalued exchange rate made tractors available in

Pakistan at prices considerably below world market prices.
• In 1959 there were 2,000 tractors in the country which increased to 18,909
in 1968.
The 1959 Land Reforms
• Before reforms of 1959 land ownership was highly skewed in favor of few
large landlords who controlled large track of land.
• The reforms were meant to put ceiling on landholdings and were supposed
to be an attempt to change tenancy regulations.
• Approximately 6000 owners owned more than the ceiling of 500 acres
permitted in 1959.
• They constituted of 0.1 percent of the owners but owned 7.5 million acres
or 15.4 percent of total land.
The 1959 Land Reforms (Contd.)
Recovered land:
• Not only was a small amount of land handed over but of that land, more than half
(57 percent) was uncultivated. Of this,
o part were hills and deserts

o Terrain which was not fit for cultivations
o And some consisted of land that needed to be developed in order to be made
fit for cultivation.
The 1959 Land Reforms (Contd.)
Central Feature:
• Since a central feature of 1959 land reforms was that owners were to be paid
compensation for their lands,
o many benefitted by handing poor quality land to the government
• Another feature of these reforms was that these lands were to be sold to landless
tenants.
• By 1967, only 50% of the resumed land was sold, with only 20% of the resumed
land sold to landless tenants.
• The reminder was auctioned to rich farmers civil and military officials.
Tax mobilization
• The 1960s were the only period in Pakistan’s fiscal history with significant
public savings
oi.e. the excess of government revenues receipt over revenue expenditures
materialized.
• Efforts to broaden the direct taxation system kept the indirect taxation
to minimum and hence prices of goods remained stable
• Needs of additional defence spending were met by additional taxation.

o Substantial additional taxation, undertaken especially during the Third
Plan, helped to increase the ratio of taxes from 6.1 % of GDP in 1959-
60 to 7.6% in 1969-70.
Investment
• During 1960-1965 real investment grew very rapidly,
o reaching a peak of 21.5% of GDP in 1964-1965 before declining rather sharply
to 14.6% in 1969-1970.
• Private investment growth in West Pakistan during 1960-1965 was

explosive as it increased over three folds in short period of just five
years.
• 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.
Inflation
• Inflation remained in check - the average annual rate of growth of

prices was only 3.3%
• As a part of the package of measures to fight inflation, government

borrowing from the banking system for financing fiscal deficits was
reduced sharply.
Water and Power Investments
• Massive investments including the Indus Basin Replacement Works spending.
• Total water and power investments in West Pakistan during the 1960s accounted
for more than 50% of total public sector spending
• Tarbela Dam: Reluctant donors were persuaded to include Tarbela dam in Indus
Works.
o Completed in 1971, just in time when there was oil price hike (1973-OPEC) which made
thermal power extremely expensive
Failure: Negligence of Social sector
• Pre occupation with increasing long term investment in water and

power and raising food grain production after 1966 led to major
neglect of social sector investments.
• Ignored education and health

Foreign Aid
• Political alignment with the US, therefore, a lot of foreign aid was flowing
into Pakistan.
• By the mid 60s net foreign aid flows were:

– financing over one third of total investment spending
– over 45% of imports
Foreign Aid: The consequences of
Growing Dependence
# Foreign aid $ domestic saving effort
• Excessive concentration on foreign aid mobilization led to relative

neglect of the domestic saving effort
• This led to the problems of foreign debt which we are still facing
today.
Trade policy
• Like many developing countries, Pakistan did not give importance to its exports
during initial period.
o Between 1960 and 1970, West Pakistan exports increased by around 7% annually,
more or less in line with the growth of output
o However, exports were narrowly focused on cotton textiles and required large export
subsidies
o There was no significant improvement in the structure of exports over the period.
Export Bonus Scheme
• Introduced in January 1959
o Provide incentives to exporters of manufactured goods which financed from the

excess profits which could be made on imports due to the overvaluation of
exchange rate.
o Bonus vouchers facilitated access to foreign exchange for imports of industrial

machinery and raw materials.
• The main purpose of the scheme was to increase non traditional

exports but, at the margin transferred excess import profits to
exporters of manufactured goods.
Concentration of Economic Power
• Public frustration within the perception of unequal sharing of growth benefits

began to merge after 1965 as investment and industrial growth slowed down in West
Pakistan.
• The concentration of wealth and economic power was transformed into a major
political issue in 1968 as a result of Mahbub ul Haq’s now famous speech of 22
families.
o His speech was not aimed against the business community but was intended as a symbolic
criticism of the entire system of distribution and social justice developed during the Ayub regime.
• The speech had an electrifying effect on public attitude

o as it said that the economy of Pakistan had become dominated by 22 families who controlled
66% of total industrial assets, 70% of insurance and 80% of banking.
Ayub Khan’s Policies – An Assessment
• Quickening the tempo for growth
• Dramatic turnaround in investment and growth in both East and West Pakistan.
• This development momentum was seriously disrupted by the 1965 war with India.
o Reduction in foreign aid availability and increased defence spending squeezed
investment.
• Growth of GDP remained high both in East and West Pakistan in the second half of 1960s
but still this was concentrated mostly in agriculture in West Pakistan.
• In economic policy terms, major failures were the perpetuation of the industrial and trade
policies of 1950s and an excessive reliance on external assistance.
Phase 3: 1972 to 1977
Lecture 8
Lecture Outline
• Experiment With Nationalization
• Macroeconomic Management
• Pattern Of Growth
• Foreign Trade
• Oil Price Shocks
• External Debt Problem
• Foreign Assistance
• Budget Deficits
• Tax policy
• Inflationary Pressure
• Energy Price Subsidy
• Wheat Subsidy
• Public Investments
• Social Services
– Education
– Health
• Reaching The Poor
• The Bhutto Reforms of 1972
• Bhutto’s Bad Luck Factors
Experiment With Nationalization
• After the separation of East Pakistan, Zulfiqar Ali Bhutto was brought into power by
Pakistan's military and was President till 1977.
• Bhutto undertook large scale nationalization of industry, insurance and banking,

extending the state control to different sectors of economy.
• The nationalization programme was implemented for the first time in the history of
Pakistan on 1st January 1972, and it was promulgated through three different stages.
• Bhutto’s government also took full control of country’s educational system by

nationalizing private educational establishments.
Macroeconomic Management
• There was a virtual stagnation of GDP at less than 1.7% annual growth in
the transition years 1971-72.
• During the five years of Bhutto's government the annual growth rate of
economy averaged 4.9%.
Pattern Of Growth
• The major sources of growth during 1972-1977 were construction, public

administration, defense and services sector.
o Real investment expanded by 50% between 1972-77
o The rate of investment as per GDP recovered from a low of less than 13% to over 19% over
the period of four years.
o Higher military expenditures while adversely effecting long term economic growth did
help short term economic expansions.
o The beginning of the boom in worker remittances also had positive effects on the expansion
of the service sector.
Foreign Trade
• The separation of East Pakistan did not lead to a major decline in Pakistan’s
exports.
• Three principal reasons:
1. Exports of primary products from West Pakistan, such as cotton and rice were sold
below the international prices.
2. The real devaluation of the exchange rate in May 1972 facilitated the exports in
international markets.
3. The boom in the international economy and commodity markets in 1972-3 increased the
demand for Pakistan’s exports.
Oil Price Shocks
• External payment position worsened due to rise of international oil
prices at the end of 1973 because of OPEC.
• Pakistan’s oil import bill was over 6% of GDP during 1972.
• However the official grants and loans from Middle Eastern oil exporting
countries increased, so the financing of the enlarged deficit did not pose
major problems.
External Debt Problem
• Pakistan had to face rising debt servicing burden because of the existing debt
of 60s.
o As political crises began in 1971 and economy stumbled, Pakistan found itself unable
to meet debt service obligations.
o The seriousness of the problem can be judged from the fact that the debt service
payments due in 1971-2 would have absorbed over 40% of Pakistan’s foreign
exchange earnings of that year.
o The fresh assistance from abroad relatively neutralized the situation.

Foreign Assistance
• Western industrial nations, OPEC countries and multilateral banks resumed the
assistance for Pakistan on substantial scale in 1974-5.
• The average level of foreign assistance commitments and disbursements reached a peak, over
1.2 bill US dollars annually between 1974-78.
• Because of this large foreign assistance, the oil shock on the balance of payments was greatly
neutralized.
Budget Deficits
• Budget deficits showed explosive growth during 1972-77.
• It averaged over 8% of GDP (compared with fiscal deficits of 2-3% of GDP in

the 50’s and 4-5% in the 60s).
• Government also began to incur large deficits on Revenue Account and

between 1972-77; government revenue account deficit was close to 2% of
GDP.
• The high rising burden of defense expenditure was a root cause of fiscal
imbalance.
Tax policy
• The government was not able to use the tax policy as an effective
instrument of resource mobilization.
• Collection from income and corporate tax during the 70’s did not exceed
1% of GDP.
• The essential inelasticity of tax system remained intact with its heavy
dependence on indirect taxes and especially certain duties.
Inflationary Pressure
• The growing fiscal deficit, combined with inflation resulted from higher
international oil prices, had serious inflationary consequences.
• The devaluation of May 1972 also contributed to price pressures, as it raised

domestic agricultural prices.
• On the economic front, the rapid rise in price level quickly dissipated any gains
from exchange rate adjustments.
Wheat Subsidy
• Initially the government was slow to adjust wheat procurement prices but later on
these price were increased to around Rs.1 per kilo from Rs.0.5 per kilo in 1969-
70.
• The efforts to keep wheat prices relatively low provided strong incentives for the
production of raw cotton.
• In order to compensate farmers for wheat prices, which were well below
international prices through out the 70s, government continued to provide large
direct subsidies on fertilizers, pesticides and equipment for plant protection.
Public Investments
• There was a massive increase in public investment as the total public sector
development spending increased from 4.7% of GDP in 1971-72 to 11.7% of
GDP in 1976-77.
• The share of public investment in gross domestic fixed capital formation

grew from 49% in 1969-70 to nearly 70% in 1976-77.
Social Services - Education
• New educational policy of March 1972 outlined an ambitious program of

educational development including:
o Free and universal education up to class VIII,

o Strengthening of technical education
o An educational program for women in the rural areas
• The immediate focus was the nationalization of private educational

institutions
Social Services – Education (Contd.)
• Total government expenditures on education increased from Rs.0.8
million in 1971-2 to Rs.2.8 million in 1976-7.
• Only about one third of the education expenditures were directed at the
primary level.
Social Services - Health
• Health policy - 1972
o Extension of health facilities to rural areas

o Expansion of medical education
o Shift to the production of generic drugs to avoid the soaring prices of brand named
medicines.
• As a proportion of GDP the growth in health sector was from 0.4% in 1971-2 to
0.8% in 1976-7.
• Number of basic health units increased from 249 in 1971 to 786 in 1977 and the
number of rural health centre increased from 87 to 256 over the period and 1900
health guards were trained.
Reaching The Poor
• Food, clothing and shelter for the poor was a key slogan of the founders of the PPP and
it was this platform which had brought Bhutto to power.
• Large parts of Bhutto’s economic and social program land reforms, labor policy,
educational reform, sharp expansion in public development spending, credit
policies for small farmers and businessmen were aimed at improving the condition of
poor.
• While there was defined a reduction in absolute poverty after 1971-72.
• Between 1976-79 worker remittances, a major source of poverty reduction increased

from 562 million US dollars to 1749 million US dollars.
The Bhutto Reforms of 1972
• Land ceilings were lowered in 1972.
• Unlike 1959 land resumed from landowners would not receive any compensation.
• Land to be distributed free to landless tenants.
• All those peasants who acquired land under 1959 land reforms and had dues outstanding, had their dues
written off and were not to make any further payments.
• Resumed land
o Punjab 42%
o Sindh 59%
• In all 0.6 million acres were resumed far less than 1959 figure and constituting only 0.001 % of total farm
area in country.
• The act was completely ignored by military government after July 1977.
Bhutto’s Bad Luck Factors
May 1972 Devaluation of Pakistani rupee; initial outcome highly positive with exports growing
by more than 100%
August 1973 Massive floods hit Pakistan; import of food grain
Octber1973 Fourfold increase in international petroleum prices; imports cost much more; prices
of fertilizers; essential inputs, and oil jump; excessive inflation domestically
1974- 1977 World recession follows OPEC price rise; demand for Pakistani exports remain severely
depressed and affects industrial output
1974- 1975 Huge failure of cotton crop by as mush as 25% at a time when international cotton
price risen; affected industrial output
1976-1977 Worst floods in Pakistan’s history; agriculture crops destroyed; further import of food
crops; excessive expenditure on public good measures all affecting industrial output.
Phase 4: 1977 to 1988
Lecture Outline
1. Economic Performance and Policies
2. Economic Performance- Worker Remittances
3. Agricultural Growth and Policies
4. Privatization
5. Export and Industrial Growth
6. Exchange Rate and Trade Policy
7. Industrial Policy Framework
8. Slow Growth in Investment
9. Rising Debt Burden
10. Social Progress
11. Islamization of the Economy

Economic Performance and Policies
• Economic growth averaged 6.6% per annum.
• An increased role for the private sector
• Inflation tended to decline during 77-88
• Increased sharing of the benefits of growth because of increase in real wages

and leading to a decline in poverty.
Economic Performance
1958-68 1972-77 1977-88

Ayub’s Era Bhutto’s Era Zia’s Era
GDP Growth 5.6 4.92 6.6
Agriculture 5.5 1.68 4.41
Manufacturing 6.4 3.2 9.2

Economic Performance- Worker Remittances
• Worker immigration to Middle East.
• During 1977-83, the rapid rise in worker remittances had pushed GNP growth rate to an
annual record of 7.6%
• As worker remittances tended to decline steadily after 1982-3 and interest payments on
external debt gathered momentum, the GNP growth rate fell sharply to 4.9% per annum
during 1983-8.
• In the first half of the 1980’s, worker remittances proved important in building foreign
reserves and helped the government in meeting its foreign debts.
Economic Performance- Worker Remittances (Contd.)
• Unfortunately, the workers remittances boom did not translate into a significantly higher rate of
national savings and investments.
o The pattern of expenditure of families benefiting from remittances did not increase the national
savings rate or enhance the long-term growth of the economy.
o About 63 % of remittances were spent on consumption goods (primarily imported luxury goods
such as video-recorders, cars, TVs) and only 12% percent went to savings.
o As a consequence, the domestic savings rate fell from 7.8% of GDP in 1977–1978 to 5.4% by
1982–1983
Economic Performance- Worker Remittances
(Contd.)
Years USD (Millions) % of GDP
1972-1973 136 2.1
1976-1977 578 3.8
1982-1983 2,886 10.1
1987-1988 2,013 5.2
1990-1991 1,848 4.1
1993-1994 1,455 2.3
Agricultural Growth and Policies
• The agricultural growth increased to 4% in 1977-88 from 2% in 1972-77.
Reasons for Growth:
o Wheat production rose from an annual average of 8.5 mill tons in 1975-7 to nearly 13 mill tons in
1986-8.
o Cotton production increased from 0.5 mill tons average in 1974-6 to 13 mill tons in 1985-7.
o Domestic fertilizer production of nitrogenous fertilizer nearly tripled during the first half of 80’s.
o The livestock grew annually by 5.5% in the 80’s and further continued.
Privatization
• The process of gradual deregulation of markets and production continued over the years but
so massive was the scale of nationalization and its consequences that despite successive attempts
to privatization, large segments of banking, insurance and industry remained in the state
control during the Zia regime and couldn’t be deregulated.
• In mid 1977 was the need to restore business confidence and motivation, in order to revive
investment in industry and agriculture.
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.
Reasons for Growth:

o Large public sector investments which started in Bhutto’s resulted in major increases in steel, cement,
fertilizer and vehicle production.
o Incentives for manufactured exports were strengthened

– by the introduction of a flexible exchange rate policy after 1982,
– The export subsidies ranging from 7.5% to 12.5% were extended to all important manufactured exports.
o The investment climate for the private sector was improved by providing guarantees against future
nationalization,
Export and Industrial Growth (Contd.)
• 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.
Exchange Rate and Trade Policy (Contd.)
• Pakistan in 1982 began to regularly adjust the value of the rupee.
• The rupee was devalued 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.
• Between 1982 and 1988, there was a substantial real depreciation of the rupee; the nominal exchange rate was
devalued almost twice as fast as warranted by the relative change in prices between Pakistan and major trading partners.
• This real devaluation assisted the overall export expansion of 7-8% per annum during the period and contributed in a
significant way in reducing the relative dependence on worker remittance.
• By 1988 exports were more than double the level of remittances.

Exchange Rate and Trade Policy (Contd.)
• The industrial zone was established in the late 1970’s to attract:
o foreign investment
o speed up flow of modern technology
o provide more job opportunities
o raise skill and management standards
o 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.
Industrial Policy Framework
• While there were significant improvement during the Zia period in the
industrial policy framework in terms of emphasis on the role of
the private sector,
o greater import liberalization of industrial raw materials,
o and relatively strengthening of incentives for manufactured exports,
o not much was done for fundamental change in industrial policies which
had hampered the structural change in manufacturing during the 1960’s and
1970’s.
Industrial Policy Framework (Contd.)
• By the early 1980s, East Asian countries like China, Thailand, Malaysia, the
Philippines and Indonesia were successfully following the lead of Korea, Taiwan,
Hong Kong and Singapore to develop manufactured goods export aggressively.
• Pakistan’s manufactured exports increased fourfold from US $ 1.3 bill 1980 to

US $5.6 bill in 1983.
• Weaknesses in the trade policy were a key factor in the lag in manufactured exports.
Slow Growth in Investment
• High economic growth during the Zia period was not accompanied by a rapid rise in
investment.
• It was inadequate in relation to both current needs and future requirements.
• Serious shortages on infrastructure, especially in the energy, transport, and urban

development sectors.
• Equally serious was the neglect of investment in human resources.

Rising Debt Burden
• Interest payments had become the fastest growing element in government expenditures during 1977-88, rising from
1.9% of GDP in 1976-7 to 4.9% of GDP in 1987-8.
• The main element in the rising of fiscal debt burden has been the interest payments on domestic debt reflecting
both the enormous growth in internal debt and the high interest rates at which the borrowing was done.
• Domestic debt increased from 2.8% of GDP in mid 1981 to 4.2% of GDP in mid 1988.
• There was a much higher reliance on government borrowing from non bank sources at relatively high interest rates
of 14-15% per year.
• A greater reliance on non inflationary sources of financing meant that credit creation in the public sector and the
overall rate of monetary expansion slowed down sharply in Zia period.
Social Progress
• Substantial economic growth and relatively low inflation during the Zia period did translate into broad based income growth for
most income group.
• Average per capita GNP grew at an annual average of 3.3% per annum or by 4.3% during 1977-88 though the growth was much
higher in the earlier period.
• Real wages which had increased during the Bhutto period, showed further increase during Zia’s rule.
• The annual earnings of two main wage groups of factory workers indicate an increase in nominal wage of around 150% over
1977-88.
• The wages of unskilled laborers tended to rise faster than those of skilled.
• High growth rate of the economy, good agricultural growth, and labor immigration influenced real wage rate and incidence
of poverty.
• Like Ayyub's period, in Zia’s regime employment creating growth did not receive special policy support and agricultural
program did not favour farmers.
Social Progress (Contd.)
• Primary school enrollment during 1977-88 expanded at an annual rate of only 4% only moderately faster
than the growth rate of the population.
• Nearly 75% of the real increase in public sector development program between the Fifth and the Sixth plan
period was pre emptied by increase allocations for energy.
• Total public spending on education did increase to 2.7% of GNP by 1987-8 from 2% of GNP in 1976-7.
• Progress in increasing access of the population to basic health services was slow.
• Only modest gains were made in reducing infant mortality and increasing life expectancy.
• The increased demand for services in rural areas following rising incomes generated pressures for rapid rural
electrification and rural roads.
Islamization of the Economy
• As a part of general emphasis on Islamic values and codes of conduct, Zia announced a plan for the implementation
of an Islamic economic system in February 1980.
• The institutionalization of zakat and introduction of interest free banking were the two most important
measures of Islamizing economy.
• The aim was to free the economic order from exploitation and provide equal socio economic opportunities for the
needy.
• Under the Zakat Ordinance, most financial assets in the banking system and saving instruments were made subject
to 2.5% deduction annually on account of zakat.
• By 1987-8, zakat collections deducted at source were Rs.1.9 billion and had risen further to Rs.2.6 billion by
1988-9.
Islamization of the Economy (Contd.)
• Even assuming that all the benefits were to the lowest 20% income households and that the administration
expenses were minimal, the zakat donation would have augmented the income of this group by only 2%.
• Islamization also affected the interest rate policy. Technically all lending and deposit rates were by 1988 set
on profit and loss sharing.
• The move to profit and loss sharing as such did not make big difference to the process of financial
deepening that is increase in share of monetary assets to GDP.
• The ratio of the total monetary assets to GNP, which is suffered a sharp decline in Bhutto’s period due to
higher inflation and uncertainty about the future of private enterprise, had recovered to 36.5% in 1980.
• Under the circumstances zakat deduction of 2.5% per annum, from which foreign currency deposits are
exempt, provides a strong disincentive to hold rupee assets.
Phase 5: 1988 to 1999
(Economic Management Under Benazir
Bhutto And Nawaz Sharif)
Pakistan’s Studies
Lecture Outline
1. The Muddling Nineties
2. Inherited Government by Bhutto
3. Macro Economic Management
4. Reasons for Slowdown of the Economy
5. The Age of Structural Adjustment-1990’s
6. Shift Towards Private Sector
7. Fiscal Deficits
8. Debt Growth
9. Agriculture & Industry
10. Financial Sector
11. Pet projects
12. Social Development

THE MUDDLING NINETIES
Also known as Return or Decade of Democracy and Structural Adjustment Era
• Benazir Bhutto 1988-1990
• Nawaz Sharif 1990-1993
• Benazir Bhutto 1993-1996
• Nawaz Sharif 1997-1999

Inherited Government by Bhutto
The economy that the democratic government of Benazir Bhutto inherited in December 1988
was not in good shape. Macro economic imbalances were large:
• The fiscal deficits had touched a new peak of 8.5% of GDP in 1987-8
• The current account balance of payments deficits had grown further.
• The investment rate had stagnated
• Spending on human resource had been greatly neglected.
• Shortages of infrastructure had become serious issue
• Structural weaknesses in manufacturing and exports sector were constraining future growth.
• Political intervention in state owned commercial banks also resulted in large increases in bad
debts of the banking system, increasing the large contingent liability of the public sector.
Macro Economic Management
1988-96 periods was marked by a slowing down of the rate of economic growth, sharp
acceleration in inflation and worsening of distribution of benefits of growth.
• GDP growth rate during this period averaged 4.9% per annum compared to 6.6% per
annum during 1977-88.
• The rate of inflation accelerated during 1988-96 and exceeded 12% per annum during
1993-6.
• Workers remittances continued to decline, interest rate on foreign debt rose modestly
but steadily.
Reasons for Slowdown of the Economy
1. The continued low rates of savings and investments.
2. Governance problems hindering the effective use of public sources.
3. Structural problems in large scale manufacturing.
4. Considerable financial and political instability.
5. Macroeconomic policies à failed to halt the growing imbalances in the budget à growing financial
vulnerability.
6. Long term investment in infrastructure was neglected.
7. No serious efforts were made to mobilize domestic resources in the public sector for development.
The Age of Structural Adjustment-1990’s
• Seventh five year plan (1988-93) was commissioned at the same time as
IMF/World bank implemented Structural Adjustment Program
• Plan sets ambitious targets for overall reforms in industrial sector

o And included further deregulation, privatization, tariff reform and regulation
of foreign investment.
The Age of Structural Adjustment-1990’s (Contd.)
Impact on Pakistan’s Industrial development:
1. An increase in the level of indirect taxation (in the form of generalized sales tax) by July 1990.
2. Withdrawal of subsidies on gas, electricity, telephones and fertilizers.
3. An increase in producer prices of major crops (wheat, cotton, sugarcane, rice and oil seeds ) and in
the prices of petroleum products.
4. A 12.5% reduction in public sector development program during the agreement period (1989-1991)
5. Restriction in government borrowing and credit allocation to the private sector.

The Age of Structural Adjustment-1990’s (Contd.)
World Bank Review:
• Economy responded well to these policy reforms, progress in implementing

structural reforms to promote private sector activity has been exceptional during
the last four years, despite three changes in government during this period.
• Large scale manufacturing showed impressive growth 7.4%

• Due to rapid expansion in cotton manufacturing
• World Bank considered Pakistan to achieve an “Excellent Growth Performance”

Shift Towards Private Sector
• Government stepped up the rate of privatization in 1991..
• The first large energy development project in the private sector, the hub
power project was completed in 1997.
• With the help of the World Bank, plans for the first large oil field power
station with a capacity of 1293 MW at hub in Baluchistan were finalized.
Shift Towards Private Sector (Contd.)
• The sale of the part of the shares of PTCL to the foreign investors was
only a first step towards the privatization of this important entity.
• The bulk of the growth in private investment was concentrated on the

manufacturing sector.
• Private manufacturing investment:

o increased from 2.4% of GDP in 1986-8 to 4.3% of GDP in 1992-4
Shift Towards Private Sector (Contd.)
Criticism:
• Lack of transparency, corruption and concentration of wealth in a few

hands
o E.g., monopoly in cement where Mian Mansha got all five plants of DG cement under
privatization scheme in 1992.
• Only 22% of privatized units performed better, however 34% were really
performing worse:
o 20 privatized units were closed

Fiscal Deficits
• In the real sense, the inability to control fiscal deficits was the root cause
à high inflation.
• The fiscal deficits averaged 6% of GDP during the fiscal years 1990-3 and
1994-6 respectively.
• The worsening of financial position of the State Bank of Pakistan

because of losses on foreign currency deposits meant that smaller
profits were available to cover fiscal deficits.
Debt Growth
• Given the high level of fiscal deficits, the rapid growth in government debt continued as domestic public
debt increased from Rs 290 billion in the mid 1988 to an estimate Rs 909 billion by mid 1996.
• Public sectors external debtà nearly doubledà rise in ratio of debt to GDP.
• Interest payments on public debt increased to 6.1% of GDP.
• The debt-servicing problem was compounded àby a faster growth in interest payments than in debt
stock
• Pakistan’s external debt burden increased to US $32 billion in mid 1997.
• Pakistan came close to default.

Agriculture & Industry
• Declining importance of agriculture
o Public expenditure on agriculture declined from 20% of total budget to just 8%
o Share of GDP declined from 31% in early 1980s to 26% in 1999
o Growth rate slowed from 5.4% to 4.4%
o Share of agricultural products in exports also declined
• Textile industry – Cloth production grew at 3% per year

o Widespread crop virus in early 1990s
o Lacked adequate quality control
• Sugar industry became key area

o From 45 in 1988 to 78 sugar mills by 1999
Financial Sector
• Liberalization of foreign currency account
oFreezing in 1998 -> loss of investor confidence
• Loan defaults
o loans were issued based on political motivations rather than economic

assessment
Pet projects
Politicized infrastructural development
• Nawaz Sharif
oMotorway
– 1991: signed contract with Daewoo to build a four lane motorway by 1995
oYellow Cabs
– Easy loans to import duty free vehicles
– Banks were unable to trace 50-60% of the vehicles on defaulted loans
Pet projects
• Benazir Bhutto
oPower Sector
– 1994: 19 agreements for independent power projects (IPPs)
– Subsequent problems with high tariffs
oSocial Action Programs

• Designed by World Bank – aimed at improving primary education, health
care, family planning, rural water and sanitation.
Social Development
• At the beginning of 1990’s, Human development indicators such as life expectancy at birth, infant mortality,
adult literacy rate, and primary school enrollment ratios compared unfavorably with most other low income
countries, including India and Bangladesh.
• The current budget for social services went up from 1.7% of GDP in 1991 to 2.2% in 1994.
• Total government expenditure on education in 1994-5 was 2.5% of GDP.
• The rise in female enrollment ratio from 31% to 57% over the same period was particularly notable because it
signified a substantial narrowing of gender gap in basic education.
• In 1992, with the assistance of the World Bank, a comprehensive Social Action Programme (SAP) was designed:
Ø It aimed at improving and expanding primary education , basic health care, family planning, and rural water supply and sanitation
(RWSS)

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Introduction to Pakistan’s

• His attack force included:

• Qasim issued the decree:

• The Muslims had soon won over the populace.

• Next Qasim marched to Neronkut then Sehwan then Brahmanabad conquering

• During the campaign Yousuf and Caliph Walid died.

• Nonetheless, Sindh became Islam's path (door of Islam) to the subcontinent.

• Islam spread while Hindus and Buddhists practiced their faith.

• Sufism also made it way during this era.

• It ran from May 1857 to June 1858.

• It soon escalated into other mutinies and civilian rebellions

• Favored mending relations with

• Hence began the

• The Aligarh Movement marks a watershed in the history of modern India.

• The purpose of his movement were:

• Muhammadan Anglo-Oriental College at Aligarh was established in 1875.

• Sir Syeds Aligarh movement played as significant role to bring about an

• Ghazipur scientific society 1864

• Schools in Ghazipur and Muradabad

• Aligarh scientific society

• Muhammadan Anglo Oriental College 1875

• Muhammadan Educational Conference 1886

• Loyal Mohammadans of India (Indian Patriotic Association): to counter

• Congress (asked the Muslims to resist taking part in its activities)

• The British Government passed the Legislative Councils Act to

• The governor was given authority to nominate at least 6 members to his

• Indian National Congress was formed in 1885.

• Sir Syed criticised the demands of the Congress.

• In 1892 the government introduced the Indian Councils Act.

• The salient provision of the Act were as follows:

2. Opposed competitive exams as well (Hindus more educated compared to Muslims)

• Another Act introduced in 1892

• Introduced in the subcontinent in 1825 as an official language of the Muslims.

• Urdu was a symbol of unity and culture of the Muslims.

• On this occasion he said:

• Nawab Mohsin-ul-Mulk criticised the governments demands.

Sir Syed Ahmed Khan

Explain why Sir Syed Ahmed Khan was considered to be a socio-

• Bengal was the biggest province in the subcontinent.

• The whole province was under one Lieutenant-Governor who could

• Lord Curzon became the Viceroy of India in 1899 and undertook an

• The new province of Eastern Bengal consisted of Dhaka as capital with

• The Muslims endorsed the partition of Bengal because it was the

• Hindus’ response was negative because it was not in favor of the

• it abolished the supremacy or dominancy of Hindus.

• This agitation against the Muslims further strengthened the Two-

• Muslims decided to avail this opportunity and a Muslim delegation of 35 st

• Deputation asked for separate electorate through which the Muslims

• They demanded seats in legislatures, quota in government services

• It was a great achievement for the Muslims to have convinced the

• Nawab Salim Ullah Khan of Dhaka convened a meeting of the Muslim

• The events following the partition of Bengal and Urdu-Hindu controversy

• Nawab Mohsin-ul-Mulk was elected as Joint Secretary of the Muslim

• A committee of 60 members was set up for the Muslim League which

• It drew the governments attention towards the Muslims demands

• It secured seats in the councils, it demanded appointment of judges

• Goals at this stage did not include establishing an independent Muslim

• Promoting understanding between the Muslim community and other

• The relatively new secretary of state—hampered though he was by Lord

Minto-Morley Reforms gave importance to the constitutional development in India.

These introduced a system of elections for the first time.

• The Minto-Morley Reforms helped to ease the disturbance in the country.

• Lord Harding, the new Viceroy, agreed to reverse the partition of