THE MUDDLING NINETIES:

Benazir Bhutto and Nawaz

Sharif (1993-1999)
PAKISTAN STUDIES
SAADIA TOOR
 CARETAKER GOVERNMENT OF 1993
• Though he served only a few months, Moeenuddin Qureshi undertook
important reforms.
• He took measures for fiscal discipline; to reduce trade deficit he
devalued the currency.
• He cut farm subsidies and public service expenditures to reduce
government budget deficit. He slashed public sector expenditures.
• New and stricter taxes were imposed- taxes on agriculture were
imposed for the first time.
• Qureshi also published the names of 5000 individuals with unpaid loans
from state banks totalling some $2 billion.
 CARETAKER GOVERNMENT OF 1993
• Elections were to be held in October 1993.
• Pakistan Muslim League (PML) led by Nawaz Sharif won 72 seats. The
PPP won a plurality, with 86 seats in the National Assembly but
formed a coalition government with 121 seats.
• Her position was further strengthened when a PPP member, Farooq
Leghari won the presidential elections in November 1993.
• He also supported weakening the power of religious courts and
expanding women’s rights.
SECOND BENZAIR GOVERNMENT
(1993-1996)
• Benazir's second government promised to strengthen democratic
Institutions and pursue her reform program.
• Her program addressed ethnic problems, strengthening the national
treasury, reconstructing the financial system, enhancing social
services and women's rights.
• In 1994, Benazir announced to continue policies for deregulation and
liberalization carried out by the Sharif government, and tighter fiscal
policies by the caretaker government.
• They also increased budget towards health and education.
 FAILURE IN BENAZIR’S POLICIES
• Pakistan also received a $1.4 billion Structural Adjustment Loan from
the IMF.
• These measures were expected to increase GDP to 6.5% and inflation
down to 5%.
• Moreover, problems of inefficient bureaucracy, weak infrastructure
widespread tax evasion and corruption, neglect of social development
and high population growth continued to plague the economy.
• One of the major problems was the widespread violence in Sindh.
• Pakistan also became one of the leading sources of drug supply to the
US and Europe.
 BENAZIR’S CENTRAL ASIA POLICY
• Bhutto had accompanied her father to Simla when he signed the
agreement with India in 1972.
• Bhutto backed the Taliban, who she saw as a force that would provide
security to protect the proposed pipeline and give stability to their
country.
• Her policy was influenced by the ISI. Using bribery, guerrilla tactics,
and military support, the ISI helped install the Taliban as rulers in
Kabul in 1996.
 BENAZIR’S CENTRAL ASIA POLICY
• During the same time she welcomed the party (JUI) into her ruling coalition.
• In a 1998 address Bhutto said that these policies had created a strategic
threat to Pakistan and led to Islamic militancy, suicide bombings,
weaponization of the population, the drug trade, and increased poverty and
unemployment.
“I remember when the Taliban first came up in neighbouring Afghanistan.
Many of us, including our friends from the U.S., initially thought they would
bring peace to that war-torn country. And that was a critical, fatal mistake we
made. If I had to do things again, that’s certainly not a decision that I would
have taken”
(Bhutto 2007)
 PRESIDENT DISMISSES BENAZIRS
GOVERNMENT
• Throughout the first half of the 1990s relations between Bhutto and
Leghari deteriorated.
• On November 5, 1996, Leghari dismissed the Benazir Bhutto government,
alleging crimes including corruption, mismanagement, and murder.
• The National Assembly was also dissolved.
• After Bhutto’s dismissal, Malik Meraj Khalid was named caretaker prime
minister.
• In the February 1997 elections the PML won a two-thirds majority in the
National Assembly and Nawaz Sharif was re-elected prime minister
 NAWAZ SHARIF’S SECOND
GOVERNMENT (1997-1999)
• In April 1997,the Thirteenth Amendment to the constitution was
adopted by the National Assembly which again gave Prime minister
authority over the president.
• No longer concerned about dismissal from his position, Nawaz Sharif
let his relationship with President Leghari deteriorate.
• Sharif had party enforcers storm the Supreme Court in November and
remove Chief Justice Ali Shah from office and President Leghari
resigned on December 2, 1997.
• On December 31, 1997, the PML candidate, Muhammad Rafiq Tarar,
became Pakistan's ninth President.
 NAWAZ SHARIF’S POLICIES
• Nawaz Sharif’s management of the economy made it extremely
vulnerable.
• Despite Pakistan foreign debt of $32 billion, Sharif pushed for
expensive public works projects.
• Economic growth rates fell, inflation peaked, debt escalated, poverty
increased and Pakistan's credibility with international financial
institutions reached an all time low.
 NUCLEAR TESTS AND THE
ECONOMY
• On May 28, Pakistan conducted its own tests of five nuclear devices
• The United Nations passed a unanimous resolution calling on both
Pakistan and India to end their nuclear weapons programs, and urged
both countries to sign the Comprehensive Test Ban Treaty.
• Pakistan expressed willingness to sign the treaty if India did the same,
but India declined.
 NUCLEAR TESTS AND THE
ECONOMY
• Following Pakistan’s nuclear tests of late May and early June 1998, the
United States reimposed sanctions included a ban on aid , financing,
restrictions on exports and ban on loans from US banks.
• Japan joined the United States, freezing most of its development aid
to Pakistan and withdrawing support for new loans.
• The Sharif government had to negotiate bank loans in July 1998 to
cover the budgetary shortfall caused by the sanctions.
 THE COUP AGAINST SHARIF
• Sharif, worried about the potential for a coup, planned to replace
Musharraf.
• On October 12, 1999, General Musharraf was on a commercial flight
to Karachi, returning from a visit from Sri Lanka, Nawaz Sharif ordered
the Civil Aviation Authority to deny the flight permission to land
anywhere in Pakistan.
• The plane ultimately landed with only minutes of fuel left onboard.
• This became known as the “Plane Conspiracy” case.
 THE COUP AGAINST SHARIF
• Musharraf proclaimed himself the chief executive of Pakistan and
Pakistan was once more under military rule.
• No tanks rolled in, no shots were fired nor there were any troops on the
streets. People were happy to see Sharif go.
• The Times wrote:
“Musharraf and his men are not responsible for ruining the countries
decade of democracy. That honour goes to Bhutto and Sharif.”
• Imran khan described the system as:
”status quo of thieves safeguarding the interest of thieves from the other
divide.”