Q: Corporate Societies scandal was the most important reason why Nawaz Sharif

was dismissed in 1993? (14)

Corporate societies accepted deposits from members and can legally make loans only to members however
mismanagement of these societies let to a major collapse in which millions of Pakistani’s lost their money and
700000 people of Punjab lost all their savings. It was later discovered that the societies had granted billions of
rupees in loans to Sharif family’s business which damaged his reputation severely and led to his dismissal.

Secondly another damaging scandal was the BCCI. BCCI was founded by Agha Hassan Abedi and established
its bank in Pakistan. However concerns arose and led to an investigation by a British team and was proved
that BCCI was engaged in widespread fraud and pol manipulation which led to closing of the bank and
investors losing money. This damaged Sharif’s reputation as he was unable to manage properly.

Thirdly, after the sudden death of COAS, Nawaz Sharif wanted to appoint his own candidate as COAS but the
president Ishaq Khan was in conflict with Nawaz’s idea. Thus the relation between Nawaz Sharif and Ishaq
khan worsened and he used the 58(2b) to dissolve the assembly and dismiss the prime minister but later the
Supreme Court reinstated him.

Fourthly under Nawaz Sharif’s self-employment scheme, 40000 households were given to purchase taxis and
trucks but opponents such as the PPP argued and it came at a cost as few of the loans were repaid so this
was the strain on treasury and Pakistan’s economy was affected adversely which made Nawaz Sharif even
more unpopular.

Fifthly, Nawaz Sharif was dismissed because of the passing of Shariat bill in May 1991, making Quran and
Sunnah, the law of the land but Nawaz Sharif stated that the laws could be implemented as long as it did not
challenge the existing system of the government. The scholars were disappointed and thus opposed this law.
So the government support weakened and its reputation was damaged.

Sixthly, supporting the afghan war lord had an adverse effect on Pakistan. Guns were made available in the
streets of Pakistan in town such as Sialkot and Dara Adam Khel where the Russian Kalashnikov were copied
and made. As refugees flooded in from the war drug addiction also spiraled which created problems for the
government. As the number of heroin addicts increased and the government had to deal with rampant
crimes particularly in Sindh where the conflict between the Sindhis and the Muhajirs led to bombing and
murders, so the government had to create the speedy trial courts which was criticized by the opposition as it
was supporting fundamental rights and thus the government lost support and credibility.

Lastly Nawaz Sharif failed as Pakistan lost the US aid. Pakistan had been making nuclear weapon and US was
against it. The US stopped the aid but the refugees were still in Pakistan, now we had less resources to bear
the burden of those refuges, so Pakistan’s economy suffered a lot and the treasury became almost empty,
this led to the government imposing high taxation. Therefore the USA’s dispute over Pakistan making the
nuclear weapons led to the stoppage of US aid and Pakistan and its economy suffered adversely.

Therefore, I conclude that NS was dismissed because he was in conflict with the President so he dismissed
him and dissolved the National Assembly.