THE PROCESS OF INDUSTRIALIZATION IN PAKISTAN

1977-1988

Baseer AhmedSanaullah 08-0120

Aman Iqbal 08-0180Mehmood jawaid

The Zia Years: 1977-88

The Nature and Extent of Growth Pakistan(1980-88) average GDP growth rate:

6.5% Manufacturing GDP grew at an annual average

rate of 9.5% between 1977-1986 Investment in medium and large scale

industry grew at an average of 18.2% per annum.

Total private industrial investment expanded at 15.6% per annum

Industrial Policy

Zia regime consist of three sub-periods 1977-81: Cautious attempts at dismantling existing

government policies and restoring confidence in the private sector while simultaneously trying to gain political legitimacy.

1982-85: a more forceful drive towards islamization which followed the regime’s consolidation of power.

1985-88: the attempt to disengage the government from direct control of the economy.

New Zia Regime

Main Concern: To restore business confidence particularly of the private sector.

Early steps: the denationalization of the number of agro-based industries and small engineering units.

Basic and heavy chemical and cement industries were opened up to the private sector

Fifth Five Year Plan

Highest priority was given to investment programs.

Growth in large scale manufacturing was projected at the highly ambitious rate of 12% per annum a target which was surprisingly achieved.

Islamization

Islamic laws were enacted and commissions formed.

Economy was brought under the influence of Islamic laws and principles.

Critics:

It was a ploy on the part of the military government in order to legitimize and perpetuate its hold on power.

Islamic economic system could act as substitute for specific aspects of capitalist industrial culture

The Public/Private Sector

Very little denationalization took place in comparison to what was anticipated.

Instead private sector was given incentives such as opening up sectors and areas previously

exclusive to the public sector.

Zia regime clever move

Government portrayed a very favorable incline towards the private sector and blamed Bhutto’s economic policies.

At the same time it retained all powerful and important financial sectors.

Prove: No denationalization or privatization of banks took place when General Zia was around.

Reason for this behavior

Government did not want to alienate those groups and classes which had benefitted from nationalization.

This group comprised of urban lower middle class.

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