PAKISTAN STUDIES NOTES-GRADE 10TH

Chapter # 8 – Political Development in Pakistan 1947-2002

8.2.3   Analyse the Impact of General Ayub Khan’s Reforms on the Economy of the Country.

General Ayub Khan’s reforms had a significant impact on the economy of Pakistan during his tenure from 1958 to 1969. These reforms aimed to modernize various sectors of the economy, stimulate growth, and reduce dependency on imports. Let’s analyze the impact of Ayub Khan’s reforms on the economy:

1.Agricultural Sector:

1. Land Reforms: Ayub Khan’s land reforms aimed to redistribute land ownership, reduce disparities, and increase agricultural productivity. By imposing limits on land holdings, the reforms intended to ensure that more individuals had access to land for cultivation. However, the effectiveness of these reforms was mixed, as implementation challenges and resistance from landowners hindered their success.
2. Modernization Incentives: Providing loans and incentives for modernizing agriculture, such as purchasing machinery and inputs, helped improve productivity and efficiency in the agricultural sector. Farmers were able to invest in tractors, irrigation systems, and pesticides, leading to increased yields and output.
3. Infrastructure Development: Investments in infrastructure, including the construction of dams for irrigation and hydroelectric power plants, contributed to agricultural development by providing water resources and electricity to rural areas. This infrastructure development enhanced agricultural productivity and facilitated rural development.

2.Industrial Sector:

1. Investment Incentives: Ayub Khan’s industrial reforms, including the Export Bonus Scheme (EBS) and incentives for foreign investors, aimed to attract investment and promote industrialization. These measures led to the establishment of new industries, job creation, and increased production capacity.
2. Expansion of Industries: The expansion of industries in Pakistan reduced dependency on imports and stimulated domestic production. New industries were established to meet local demand and enhance export competitiveness. Oil and gas development projects also contributed to energy self-sufficiency and industrial growth.
3. Regional Economic Cooperation: Collaboration with countries like Iran and Turkey through initiatives such as the Regional Cooperation for Development (RCD) aimed to promote economic integration and cooperation. This regional cooperation facilitated trade, investment, and infrastructure development, contributing to economic growth.
4. Overall Economic Growth:  Ayub Khan’s reforms led to a period of economic growth and modernization, often referred to as the “Decade of Progress.” The economy experienced significant expansion, with the Gross National Product (GNP) reportedly increasing by around 15%. Investments in agriculture, industry, and infrastructure laid the foundation for long-term development and contributed to improvements in living standards.

Challenges and Criticisms:

Despite the positive outcomes, Ayub Khan’s reforms also faced challenges and criticisms. The concentration of wealth and power in the hands of a few elite families led to social and economic disparities, particularly between East and West Pakistan. Implementation issues, corruption, and unequal distribution of benefits raised concerns about the inclusivity and sustainability of the reforms.