BENAZIR BHUTTO:

On 17th August 1988, Zia Ul Haq died in a plane crash and Ghulam Ishaq Khan became the President.
Elections were announced by the caretaker government. In 1984, Benazir was leading a life of exile in
London she returned to Pakistan in 1985 and then in 1986 when Zia’s Martial Law has ended. She received
a warm welcome and started her election campaigns done after Zia’s death and PPP got an overwhelming
majority with (94) seats. She then became the first lady Prime Minister of a Muslim country.

BENAZIR BHUTTO AS PRIME MINISTER (1988-1990):

She won the elections because of the hatred campaigns against Zia Ul Haq and people had
sympathies with her because of Bhutto’s hanging. She had a strong command over politics and
foreign affairs. In these elections PPP was the major party of Sindh but could not get desired seats
in other provinces, specifically Punjab. She was invited by President to form a coalition
government with Muhajir Qaumi Movement(MQM).

BENAZIR BHUTTO’S REFORMS:

POLITICAL REFORMS: By providing with political freedom, health and social reforms she
promised to make Pakistan purely a democratic country. Bans on the political activities of trade
unions were lifted. She wanted to introduce more reforms but due to lack of support from senate
she was unable to do so. She could not control unemployment, inflation, population increase,
education, health and drugs in Pakistan.
LABOUR REFORMS: Women and Youth ministries were made for the first time to resolve their
issues. Labour wages were increased and forty thousand workers who were dismissed were
called back on their jobs. Right of pension after retirement was provided to the people.
FOREIGN POLICY: Pakistan restored its membership of commonwealth in 1988, shows that her
foreign policies were better. In 4th session of SAARC conference which was held in Pakistan
(Islamabad) an agreement was signed that no attacks would be made on Nuclear installations of
Pakistan and India. South Asian games were held successfully. Pakistan also started preparing its
native aircrafts. Sixty F-16 planes from USA were also obtained by Pakistan.
NUCLEAR REFORMS AND PROBLEMS: Pakistan was having enough rights to secure herself,
because India has started their nuclear program, Benazir had to convince US for Pakistan’s
nuclear program. After Afghan war US President Bush refused to declare Pakistan a nuclear free
country and stopped the aid including F-16 aircrafts by implementing PRESSLER’S AMENDMENT.
According to this amendment, the country being declared by US President having nuclear
weapons would not get any aids from US. Nuclear issue, drugs and weapon issue declined Pak-
US relations.
REASONS BEHIND THE DOWNFALL:
UNFAIR PLACEMENTS:
She placed her family members on high official positions which has created controversies over
her political appointments in civil bureaucracy. She made her mother Federal Minister and her
father in law Chairman of Public Accounts Committee. She and her husband Asif Ali Zardari were
accused of corruption despite of making Pakistan a corruption free country. When Ghulam Ishaq
Khan dismissed her government, 19 corruption cases were filed against the couple, those cases
included money laundering, kick-backs and Swiss accounts.
CORRUPTION ISSUES: Bank loans were given to PPP leaders and many other corruption charges
were levied on Benazir Bhutto. Zardari and his father were blamed for corruption, commission
and kick-backs. Nawaz Sharif also protested against her corruption issues.
POLITICAL ISSUES: MQM and PPP were in conflict because of compulsory teaching of Sindhi in
schools. In May 1990, PPP government had launched an operation against MQM leading to
violence in Karachi and other areas. On 30th September 1988, Sindhi militants killed 250 people
in Hyderabad which also affected Karachi. Over half of the population of Pakistan was in Punjab
and its government was under the control of Nawaz Sharif. Her reputation was also damaged by
a no-confidence motion which had been started by opposition parties just after 11 months of her
rule in which she had survived with just 12 votes to save herself as Prime Minister.
END OF COALITION GOVERNMENT:
In 1989, MQM ended its alliance with PPP government. In February, 1990 MQM called for strikes
in Karachi and they protested against their worker’s abduction by workers of PPP, created riots
among Sindhis and Muhajirs. Benazir turned towards army to restore the law and order situation
and held operation against MQM (who were their allies in government).
RELATIONS WITH THE PRESIDENT:
On 6th August, 1990 President Ghulam Ishaq Khan dismissed Benazir’s government by using 8th
amendment over the unemployment, corruption and incompetence.

BENAZIR BHUTTO AS PRIME MINISTER (1993-1996):

On 19 October 1993, Benazir Bhutto was sworn as Prime minister for second term as in 1993 election the
PPP won the majority of the seats. Benazir Bhutto learned a valuable experience and lesson from the
presidency of Ghulam Ishaq Khan, and the presidential elections were soon called after her re-elect. After
carefully examining the candidates, Benazir Bhutto decided to appoint Farooq Leghari as for her President.
NAWAZ SHARIF AS PRIME MINISTER (1990-1993):
Elections were held after Bhutto’s dismissal, Islami Jamhuri Ittehad had victory. Nawaz Sharif was
the leader of IJI then, the largest party of that time and he became the Prime Minister of Pakistan.
Whereas Benazir Bhutto became the leader of the opposition.
Nawaz Sharif joined his family’s influential House of Ittefaq group after completing his education.
In 1981, he was appointed as Finance Minister first and then after 1985 he became Chief Minister
of Punjab. In October, 1990 he became the Prime Minister of Pakistan following the dismissal of
Benazir Bhutto by President Ghulam Ishaq.
ECONOMIC DEVELOPMENT:
During Nawaz’s first term, he initiated an ambitious program of economic development by
privatizing a range of state owned businesses. Pakistan continued to defy U.S calls for it to
suspend its nuclear program and in response it halted U.S’s financial support. Important
industries such as: shipping, electricity supply, airlines and telecommunications were opened up
to the private sector. Nawaz Sharif also introduced hydropower project at Barotha and projects
at Gawadar port in Baluchistan. He also introduced yellow-cab scheme to provide taxis to poor
people on installments.
COMMUNICATION:
To link Pakistan with Russian states and Central Asian regions a developed road network was also
constructed which was a costly project. The first Motorway (M2) was completed in 1997 and it
was stopped by Musharraf in 1999.

PROBLEMS FACED BY NAWAZ SHARIF:

SHARIAT BILL:
Being close to Zia Ul Haq Nawaz Sharif had the same mindset regarding Shariah and its laws. In
1991, Shariat Bill was passed in which Quran and Sunnah were used for taking decisions made
people unhappy but was adopted by simple majority. Setting up of commissions for Islamization
of educational and economic systems and the media, in addition to elimination of corruption,
bribery, obscenity.
ECONOMIC PROBLEMS:
Various projects were introduced but they turned out to be costly and the arrangement of capital
was necessary. There was no such foreign aid and there was a decline in economy. Sharif’s policies
were undermined by lack of capital for investments. There was an influx of foreign capital when he
loosened foreign exchange restrictions and opened Pakistan ‘s stock market to foreign capital, but the
government remained short of funds for investments.
BCCI SCANDAL:
The bank of Credit and Commerce International (BCCI) collapsed in 1991. It was established by a
Pakistani financer in 1972 and it became the 7th largest bank of the World. It’s head offices were
in Karachi and London. It was involved in money laundering, tax elusion, bribery and smuggling,
illegal purchases of banks and real state. A team from Britain investigated about activities of the
bank and it was ordered seal the bank. Pakistan’s finances were badly suffered and investors lost
their huge sums of money deposited in the bank.
COOPERATIVE SOCIETIES SCANDAL:
Co-operative societies accepted money from members and could make loans for purpose of
benefiting the society. In Punjab and Kashmir, around 700,000 people lost their savings, when
the societies went bankrupt and it was discovered that billions of rupees had been loaned to the
Ittefaq Group of Industries. Although the loans were repaid but the reputation of Nawaz Sharif
was damaged.
KALASHINKOV CULTURE:
As the first batches of Afghan refugees started to cross into Pakistan from war-torn Afghanistan,
with them also came black marketers dealing in AK-47s and heroin. By early 1980s, markets in
the tribal regions of Pakistan were flooded with AK-47s and heroin. In Sindh kidnapping,
bombings and other crimes were increasing and even police lost the control because of criminals
having weapons better than police and in larger amount.
RELATIONS WITH THE PRESIDENT:
Nawaz Sharif’s relations with President Ghulam Ishaq started getting bitter and he used to dislike
8th amendment as well. He fell out with army too because he wanted his desired army chief in
place of General Asif Nawaz. When his government was decided to be dissolved by the President
Ishaq he fought a case against President in Supreme Court and won. But later on resigned
because of the fear that army might take control.