Ayub’s Era

1958-1969
 Basic Features
• 1947-1958 saw 4 heads of state and 7 Prime Ministers 
• On October 7, 1958, Iskander Mirza enforced the first Martial Law in
Pakistan with the help of Ayub Khan
• Ayub Khan was designated as the Chief Martial Law Administrator
• The two leaders couldn’t work together, so Ayub removed Mirza and
assumed charge as the President of Pakistan
• He remained Chief Martial Law Administrator. Later on, he gave
himself the rank of Field Marshal
• People in Pakistan welcomed Martial Law because they were sick and
tired of the political instability. Little people realized that military was
player behind the scene
 Events
• The poor representation given to the East Pakistan; the language issue,
political agitations in East Pakistan, poor economy and antiquated agriculture
were serious issues inherited by Ayub’s regime
• Instead of resolving it through political means Ayub’s regime focused on
development strategies to resolve political issues
• Ayub banned most of the politicians through Elected Body Disqualification
Order (EBDO) 1959. A total of 75 political leaders were targeted and banned
from taking any political activity and holding office till December 1966
• His special target was National Awami Party and East Pakistan Awami League-
both had opposed the One Unit of the West Pakistan
• Ayub resented public and the democratic process
• For Him “public was poor and illiterate” thus can not be trusted with
democracy. He introduced the Presidential Form of Government.
 Events-II
• His Basic Democracy system saw 80,000 elected members
(Democrats) were assigned task of electing President of the Republic
and to act as link between people and the bureacrats
• In 1960, the basic democrats were asked to respond to a question
“Have you confidence in Ayub Khan?”
• 95.6% showed confidence in Ayub
• Ayub tried to wipeout corruption and get rid of several social
problems the country was facing
• Ayub’s popularity among the masses grew
• Constitutional Commission headed by Justice Shahab-ud-din
presented its report on May 6, 1961
 Events-III
• After modifications this was finally given the shape of a Constitution
• On June 8, 1962, Martial Law was lifted from Pakistan and the new
Constitution was introduced
• According to this new Constitution, Presidential form of government and
the principle of Basic Democracy were introduced
• 1965, in Presidential elections, the Combined Opposition Party
nominated Fatima Jinnah as their candidate Ayub managed to sweep the
polls
• His critics consider rigging as the chief cause of his victory as they believe
that Fatima Jinnah secured fewer votes than her popularity
• Over confident Ayub Khan, goes ahead with Operation Gibraltar that led
to Indo-Pak war 1965 (war earlier same year in desert was also stalemate
with high cost and sanctions for Pakistan
 Economic inequality-I
• The much touted “Decade of Growth” economic growth witnessed growing
disparity in the masses
• Through foreign aid, the government created new industrial units and handed
over to industrialists as reward for their loyalty. No attempt was made to run
these and create capital for organic growth
• The GDP growth statistic were impressive but inflation was rampant leading to
income disparity
• The money was flowing to new influential families, Chinoitis, Bhoras, Memons
and Khojas etc.
• Central Planning was visible in Second Five Year Plan (FYP) where growth was
not organic but foreign aid driven
• In East Pakistan, despite attempts to create new jobs the unemployment
increased from 5.5 million 1960-61 to 5.8 million 1964-65
 Economic inequality-II
• During 1964-65, the loans and advances by the government were twice
the amount of investment by the industry. The resources were drained
out by the new rich families
• The violence in late 1960s specially in East Pakistan was the result of
income disparity
• Dr. Mehboob-ul-Haq, Deputy Chairman Planning Commission reported
that 20 families own two third of Industry and three fourth of banking
• Focus of government was on fanfare and it achieved praise:
- President of US and France praised Pakistan’s economic growth
- Robert Mcnamara, WB President, said “Pakistan under AK is one
the greatest success of development in the World”.
 Rise of Bureaucrats
• Ayub introduced greater role of civil servants in planning and execution of
development
• Bureaucrats controlled the political process
• Ayub was surrounded by people who were not truthful
• Military power grew during his era
• 1965 war was imposed on the country, that ended in stalemate but had long
term effect on the political and economic environment of the country
• The planning done by the generalist bureaucrats was short-sighted and done
with poor intentions
• Rise of Robber Barons was supported by system i.e. Pakistan government
creating a new class of rich at the cost of poor. The expected reinvestment by
these was not forthcoming
 Achievements of Ayub Era
• Ayub era is often known as the ‘Decade of Development’, as ‘Pakistan’s Golden
Years’ of a ‘Socially Liberal Military Dictatorship’, Pakistan’s first military dictator
laid foundation of industry in Pakistan
• January 18, 1965, the New York Times wrote that “Pakistan may be on its way
towards an economic milestone that so far has been reached by only one other
populous country, the United States”
• Times from London a year later, stating that “the survival and development of
Pakistan is one of the most remarkable examples of state and nation-building
in the post-War period”
• The high growth rates were visible in Punjab and in Karachi, and not in East
Pakistan where poverty and disparity was hurting masses
• Distributive issues were unimportant in the economic policies advocated by the
Harvard Advisory Group which ran Pakistan’s meticulous Planning Commission
 Achievements of Ayub Era
• Following large-scale land reforms undertaken in 1959, the Green Revolution in
agriculture in central Punjab changed the social and economic relations of
production permanently
• Growth rates, both for agriculture and for industry, were often in double digits
• US aid and assistance helped build dams, roads and other infrastructure.
Pakistan was on the road to economic progress
• The growth model followed by Ayub gave rise to manufacturing and
industrialization, the growth of a working class, agricultural wealth created by
the Green Revolution in the Punjab, and the emergence of what were later to
become Pakistan’s middle classes
 Agricultural Reforms
• Ayub Khan also introduced reforms in the field of Agricultural to
increase its productivity
• No-one could own land holdings less than 12.5 acres or greater than
500 acres (irrigated) or 1000 acres (unirrigated)
• The land in excess was confiscated by the govt. and redistributed among
the landless farmers. Landowners were forced to find tenets, hence the
small farms were run more efficiently than large farms
• Use of HYVs, use of fertilizers produced by  Pakistani industries,
encouragement of mechanization by the way of availability of tractors
and harvesters  on easy installments. Installation of tube wells, better
irrigational facilities due to the 3 dams built as a result of the Indus
Water treaty ensured increased crop yields
• However, it lead to large scale unemployment and these facilities could
not be used by poor peasants who found them too expensive. So they
made rich richer and poor poorer
 Achievements of Ayub Era
• Pakistan acquired a relatively sizeable manufacturing base. Manufacturing
growth in Pakistan during his time was 8.51%, far outpacing any other time
in Pakistani history
• It was the time when Pakistan first got an automobile industry, a cement
industry and few other heavy manufacturing industries
• On April 1, 1948, India stopped the supply of water to Pakistan from every
canal flowing from India to Pakistan. Pakistan protested and India finally
agreed on an interim agreement on May 4, 1948. This agreement was not a
permanent solution; therefore, Pakistan approached the World Bank in
1952 to help settle the problem permanently
• Negotiations resulted in agreement signed between India and Pakistan in
September 1960, the Indus Water Treaty
 Achievements of Ayub Era
• According to IWT, Pakistan was to build huge dams, financed partly by long-
term World Bank loans and compensation money from India
• Three multipurpose dams, Warsak, Mangla and Tarbela were built. A system of
eight link canals was also built, and the remodeling of existing canals was
carried out. Five barrages and a gated siphon were also constructed under this
treaty. Only one dam in East Pakistan the Kaptai Dam
• Initially, there were two nuclear power plants to be established in the country:
one was in Karachi and the second one in Dhaka. It was Dr. Abdus Salamm who
had personally approved the project in Karachi against the wishes of his own
government, while the project in East was never materialized
• Ayub era also saw Pakistan’s space program which was greatly successful and
later helped in our military programs
 Achievements of Ayub Era
• Two oil refineries were established in Karachi, and these reforms led to
15% GNP growth of the country that was three times greater than that of
India
• Despite the growth, the profit and revenue was gained by the famous 22
families of the time that controlled 66% of the industries and land of the
country and 80% of the banking and insurance companies of Pakistan
• Import substitution industries grew due to support by the government
• Export incentive the Bonus Voucher Scheme launched-used by importers to
increase their wealth
• The agriculture developed due to High Yield Seeds (HYS), fertilisers and better
water management
• The wealth of Rich growing due to control of raw material prices and no check
on price
 Achievements of Ayub Era
• The growth in industry was result of liberalization of economy. Some
important figures for average annual growth % :
Per capita income Agriculture large manufacturing
1959-64 3.5 3.7 16.9

1965-70 3.7 6.3 9.9

• The removal of restrictions of official sanctions and free list for industry and
trade greatly help promotion of industry in Pakistan
 Ayub Era Development
• Ayub’s advisors pressed for greater industrial development and ignored political
dialogue to resolve serious systemic issues
• The development was based on foreign aid, especially that of UK, Germany and
USA – not local or organic
• Policies such as tax holiday, tax free dividend income upto Rs. 3000 and large scale
import of technology, setting up National Investment Trust(NIT) to use private
savings for industrial development, as well as prize bond schemes, and defense
saving certificates  were mainly introduced to encourage private industrial sector
• Moreover, a national Union, RCD was made to encourage trade. Setting up of
PMDC (Pakistan Mineral Development Corporation) to explore minerals greatly
boosted the economy
• Production did rise rapidly and economy improved significantly which grew by 7%
in 1960’s
 Social and Educational reforms
• Ayub embarked on an ambitious plan of social uplift of the country
• Making primary education free and education up to 8th class compulsory, as well
as setting up of schools, colleges, technical and vocational institutes in both
wings of Pakistan helped to increase the literacy rate to some extent
• Vigorous family planning programs (FPP) financed  by American loans were
launched by the use of radios, cinemas, newspapers, posters and leaflets
created awareness among the people regarding birth control
• Family planning programs were not received with expected enthusiasm as they
were opposed on religious as well as traditional grounds
• The government could not overcome the religious resistance to FPP and all
efforts were half hearted resulting in phenomenal population growth between
1970-80s
 Achievements of Ayub Era-Religion
• Ayub was a modernist but afraid of traditional and religious groups. The 1962
constitution called Republic of Pakistan but under pressure from Ulemmas it was
changed to the Islamic Republic of Pakistan
• Ayub introduced Muslim Family Law Ordinance (1961) which provided great
support to women in terms of marriage registrations, inheritance, right to
divorce, child custody etc. This law had far reaching benefits for the women folk
• Ayub could have taken greater efforts to legalizing many religious items but was
unpopular as a supporter of US. His policy of promoting FPP became a vehicle of
political campaign against him. Student protest were brutally suppressed during
Ayub regime
• Unfortunately, secularism in Pakistan was largely superficial. Deep down the
government and its functionaries remained connected to the mullah. Also his
political ambitions met resistance in Karachi and resulted in communal riots
between locals and Pashtoon population
 Defense and spending
• Ayub relied more procurement of weapons for the military from the United States aid. Major
funding was made available for military acquisitions and procurement towards conventional
weapon
• Pakistan Navy was able to induct submarines and slowly modified itself in terms of acquisitions
of warships
• In 1960s, Pakistani military had American produced jeeps,M16 Riffles, F86 fighter jets and
submarine all acquired through US Foreign Military Sales program
• In 1961, President Ayub started the nation's full fledge space program that was established with
the cooperation of the Air Force, and created civilian SUPARCO launched unmanned space
mission throughout 1960s
• He focused on the civil nuclear power program and bypassed recommendations towards
military-use. Reportedly spend Rs. 721 million on civil-use of technology in terms of education
and nuclear power plants
• After the China-India War in 1962, the military appointments in civilian institutions grew further
and defence spending on budget hiked
• The physical size of the Pakistan Army's ground troops exponentially grew and the size of military
budget grew from 5.79% (1960s) to 9.78% (1966) until being brought down to 6.1% (1967)
 What happened after 1965 War?
• UK and USA were the major arms suppliers on both sides so in the war both refused to supply weapons which
ended up driving India to USSR and Pakistan to China then later on in US lap.
• Indian defence policy changed completely on Pakistan side as two front threat was materialised just in 3 years
apart(1962 Sino-India War). Both India and Pakistan got fully sucked in Cold War. All three branches of Armed forced
were fully equipped for potential war and USSR and US made billions.
• Pakistan came across as an aggressive and unreliable neighbor. International community shunned Pakistan for its
use of asymmetric warfare to achieve political goals.
• Pakistan suffered a lot in terms of economy
• Twice Pakistan went to IMF straight after war in 1965 and 1968 a financial institution which influences your internal
governance. Our love of IMF continues.
• Indian success in Punjab attracted defense focus. East Pakistan was left undefended. The Bhola Cyclone hit just
before elections of 1970 Pakistan didn’t have much resources to spend.
• India and USSR made full use discontent among Pakistanis and further selfishness of Bhutto and a drunkard Army
Chief Yahya who failed to transfer power due to pressure created by Bhutto
• Kashmiris suffered the most as their status which could have eventually sorted a there not been a full scale war.
There used to be 6 places where Kashmiris would cross to see the other side that ended. Issue gained interests of
external powers who saw this issue as a gateway to get defence, geopolitical goals, economic influence.