PAKISTAN STUDIES NOTES-GRADE 10TH

Chapter # 8 – Political Development in Pakistan 1947-2002

8.2.2 Discuss the Reforms Introduced by General Ayub Khan in Agricultural and Industrial Sectors.

Background
Ayub Khan assumed power following the abrogation of the 1956 constitution on October 7th, 1958. President Iskander Mirza had summoned General Ayub Khan, the Chief of Army Staff, to assume leadership after the dissolution of the constitution. Upon becoming the First Martial Law Administrator, General Ayub Khan compelled Iskander Mirza to resign from the presidency on October 27th, 1958.

Following Mirza’s resignation, Ayub Khan exiled him to London, where he remained for the remainder of his life. Ayub Khan announced plans to prioritize economic development and implement accountability measures targeting the bureaucracy and politicians.
The reforms introduced by General Ayub Khan in agricultural and industrial sectors.

General Ayub Khan implemented significant reforms in both the agricultural and industrial sectors during his tenure as the President of Pakistan from 1958 to 1969. These reforms aimed to modernize and improve productivity in these crucial sectors, contributing to overall economic development. Let’s discuss the reforms introduced in each sector:

1.Agricultural Reforms:

1. Land Reforms: Ayub Khan initiated land reforms aimed at reducing disparities in land ownership. He imposed limits on land holdings, ensuring that no individual could possess less than 12.5 acres of land and no more than 500 acres of irrigated land or 1000 acres of unirrigated land. This redistribution of land aimed to increase agricultural productivity and address the imbalance between wealthy landowners and poor tenants.
2. Modernization Incentives: In addition to land reforms, Ayub Khan provided incentives to farmers to modernize agriculture. He facilitated access to loans for farmers, enabling them to invest in machinery such as tractors, and purchase insecticides and pesticides to enhance agricultural output.
3. Infrastructure Development: Ayub Khan’s administration invested in infrastructure development to support agriculture. This included the construction of dams to provide irrigation water, thereby facilitating agricultural activities. Moreover, hydroelectric power plants were established to address electricity shortages, crucial for powering agricultural machinery and irrigation systems.

2.Industrial Reforms:

1. Incentives for Investors: Ayub Khan introduced industrial reforms to stimulate economic growth and reduce dependency on imports. He provided incentives to attract foreign investors, such as the Export Bonus Scheme (EBS), aimed at encouraging both foreign and local investment in industries.
2. Expansion of Industries: Ayub Khan’s government focused on expanding industrial capacity to meet local demand and increase exports. New industries were established, creating employment opportunities and reducing reliance on imported goods. Additionally, oil and gas development projects were initiated to enhance energy self-sufficiency.
3. Regional Economic Cooperation: Pakistan, Iran, and Turkey formed an economic alliance known as the Regional Cooperation for Development (RCD) under Ayub Khan’s leadership. This collaboration aimed to promote economic development and cooperation among the member countries, facilitating trade and investment.

Despite the positive outcomes of Ayub Khan’s agricultural and industrial reforms, there were also challenges and criticisms. Land reforms faced difficulties in implementation, and the concentration of industries and financial institutions in the hands of a few elite families led to social and economic disparities, particularly between East and West Pakistan. Nevertheless, these reforms contributed to significant economic growth and modernization during Ayub Khan’s presidency.