Ayub Khan

PAKISTAN STUDIES REPORT SUBMITTED BY: MUHAMMAD SAMEER ANSER (GRP LEADER) M GHAZANFAR ALI NIMRA BATOOL MADIHA KHAN AHMED NASIR UMER FAROOQ

General Ayub Khan (1958-1969)

Mohammad Ayub Khan was the second president of Pakistan and a military dictator who imposed martial law and removed first President of Pakistan Sir Iskander Mirza in 1958. It was the first successful martial law of the country. The Economy of Pakistan performed really well under Ayub era and Pakistan witnessed a huge growth in their industrial and agriculture sector due to great reforms of General Ayub Khan. Muhammad Ayub Khan became the first armed ruler who served the nation as president. The Year 1960 stands as the best year of the decade as Pakistan witnessed huge growth and great performance in different sectors. It all happened in Ayub’s era. His era was from (1958-1969) . In Ayub period first time in Pakistan there were automobile industry, a cement industry and couple of other overwhelming present day ventures. There was quick modern advancement (fundamentally in the western wing of the nation) with two five-year financial advancement designs in this period. We likewise came to realize that "advancement decade really turned into a time of misuse and intentional help of divergence among classes and locales with the 22 major mechanical families hoarding the vast majority of the wealth. Industrialization that took place during his era is termed as “Great Decade” as before his era, Pakistan was a struggling national and it wasn’t working with stability but after his arrival Pakistan faced stability. General Ayub Khan initiated development programs that highlighted the importance of the industrial and agriculture sector in the development of a country. The private sector companies were motivated to start industries in Pakistan. These plans opened new job opportunities in Pakistan and Pakistan witnessed an economic growth too . He also introduced farming reforms in Pakistan .He prohibited the acquiring of land more than 12 acres . he said that no one can occupy farming land more than 12 acres. In simpler words , 500 acres irrigated land and 1000 unirrigated. An oil processing plan was also set up in Karachi and this reform lead to 15 percent increase in the GNP of

Pakistan which was greater than three times than that of India. But this increase didn’t changed the things much because the total profit and revenue was controlled by only 22 families as they owned 66 percent of the industries and land of Pakistan. Agriculture Reforms: The first ever agriculture reform that was initiated in our country Pakistan was done by the second president of Pakistan Ayub Khan and that was done on 24th Jan 1959. The reforms initiated by Ayub Khan indicated that each and every person could keep only 1000 unirrigated land and 500 irrigated and the land left was handed over to farmers having no land free of cost and without any surcharge or extra cost . Other Reforms he initiated includes: Utilization of the area that was recovered Pools were created Jagir system was removed Security of Tenants Fulfilling basic needs of Tenants and giving them their rights 3 dams were established in different areas of Pakistan A Development Bank for agriculture was established Financial Support for Farmers

The land owners were forced to find tents and the use of fertilizers was encouraged . He encouraged mechanization by availability of tractors and harvesters on installments , tube wells were installed , irrigation facilities got improved as a result of three dams built due to Indus Water Treaty in 1960.These all policies brought a Green Revolution in Pakistan and the crop

yields reached an all time record. Be that as it may, it lead to substantial scale joblessness and these equipments couldn't be utilized by poor laborers who discovered them excessively costly. So they made rich more extravagant and poor less fortunate.

Policies of Ayub Khan in the Agriculture Sector: Agriculture sector was highly neglected in Pakistan before Ayub Khan’s era . The first feature of Ayub Khan’s work in the agriculture sector was the reversal of the neglect in the agriculture sector. Gen Muhammad Ayub Khan brought various changes in the policies and new reforms that strengthened agriculture sector of our country. He initiated policies for improving the rural infrastructure to increase the availability of cultivated land and irrigated water. Two of his major reforms that played an important role in the revival of agriculture sector of Pakistan were: Green Revolution , introduced high yielding variety of rice and wheat. Introduction of new machineries and diffusion of technology in the agriculture sector The agriculture sector of Pakistan showed an upward trend and between 1959-64 it grew at rate of 3.7 percent and and it grew even more between 1965-69 , it grew by 6.3 percent. In the West Pakistan , the politics was dominated by a sall number of wealthier landowner families. The big landowners were on one side and the other side had people with small holdings. The cultivation process was handled by tenant farmers on big landowners land . The landlord used to live in a lavishing way. He used to receive a large amount of wealth even without doing cultivation himself and they used to spend a large amount of money in his useless political activities. They visited their lands very rarely and they were not even interested in increasing the productivity of their land by bringing

new machinery and mechanizing the farm. These landlords were famous as “absentee landlords” .They used to treat poor cultivators really badly because they don’t had much wealth or incentive to buy the new mechanization. There was another class of cultivators and that was the peasant proprietors and they had small land holding. As they didn’t had much holding of the land so despite of putting large amount of labour , they still were not able to get more surplus yield because their small farmland didn’t meet the basic requirements. The most exploited class among them was tenants as they didn’t had much resources and they were not able to make large investments too so the landlords could easily remove them at the end of the year and hire a new tenant on new terms and conditions. Therefore the tenant cultivators knew that the land was not their permanent mean of livelihood. This system was highly stressful and oppressing for the tenant cultivators. The fragmented land unites were another main factor that was adversely effecting the agriculture sector and the productivity as well. The land was distributed in the owners in small units which affected the fertility of the land and its production. The main problem was that small pieces of lands were owned by owners of a family who live if different places. When the land got distributed the pieces of land distributed became so small and they became uncultivable to bear the expenses of modern machinery. It decreased productivity. Ayub Khan took an important step to finish such influence by big landlords and to improve the economy conditions of the people. He appointed a Land Reforms Comission in October 1958. From the time of independence their was always felt that the country needs land reforms but still no step was taken ever before that. The Commission was said to see the problems regarding the ownership of the land ts tenancy and they were assigned a task to give steps that can be followed to increase productivity and security for the people in cultivation

The report by the commission was submitted within three weeks of time and General Ayub Khan announced the land reforms for West Pakistan. The salient features of the reforms announced by Ayub Khan include:

 A ceiling was recommended of 1000 unirrigated land and 500 acres irrigated land.  Tenants who already cultivated the land, land was redistributed among them.  Permanent ownership rights to tenants  An idea was proposed by the commission of the “subsistence holdings” of an area not less then 50 acres  Ghulam Ishaq Khan didn’t showed consent to the idea proposed by the commission and he gave another idea, according to him the allowed land for individual should be 150 irrigated and 400 unirrigated land and the allowed land for families should be 300 irrigated and 900 unirrigated land.

Effect of These Reforms:

The Recommendations proposed were forcefully implemented by Martial Law rule number 64 and were implemented on 7th February 1959.  Land recovered was 2.5 million acres  Land distributed among 183,271 small owners and tenants was 2.3 million acre .  The recovered land was almost 4.5 percent of the total arable land of Pakistan  The government of Pakistan took only 35 percent of the holding

 Land distributed to the people who had land less than normal/living level that was 12.5 acres was 0.65 million acres  After partition it was observed that less than 1 percent of the farms owners owner 25 percent of the land but after the reforms introduced by Gen Ayub Khan approximately 8.5 percent owners controlled 42 percent of land.

Despite being an agricultural country, Pakistan experienced a food shortage, in some areas famine like situation arose. Ayub Khan designed land reforms in attempt to enhance the status of tenants. Tenants could not be expelled without appropriate payment to the landowners and the landowners were not allowed to illegally raise the rent or demand fees not secured by a contract. Consolidation of fragmented holding was Ayub Khan’s another admirable step in order to raise farm productivity. Consolidation policy enabled the farmers to exchange fragmented pieces of land for the land adjoining their holdings. To improve productivity, He introduced 4 policies regarding land reforms and that are Claiming the land back, irrigation process , introduction of machineries and automatic devices and he encouraged for using tested inputs. To improve the irrigation system of Pakistan, the ML regime of Ayub Khan took different measures. In order to re-design the irrigation system government took an excellent programme of long term investment. On September 19, 1960 an agreement was concluded between the Pakistan and India that is famous by Indus Water Treaty. On this occasion Pakistan was represented by our president Gen Ayub Khan and India was represented by their prime minister Jawahar Lal Nehru. In accordance with this agreement the water service of our three rivers river Beas, the river Ravi and the river Sutlej will be used by India whereas the water services of the other 3 rivers, river Chenab, the river Jhelum, and the river Indus will be used by Pakistan. A decision was made by mutual consent that two dam 5 barrages and 7 canals would be built in different areas. India also agreed to give compensation money to Pakistan to

build its irrigation system while the remaining amount would be paid by friendly countries and World Bank. Pakistan was able to erect three major and huge dams at Mangla, Warsak and Tarbela with the support of friendly countries, Indian compensation and World Bank. These dams are huge reservoirs of water and sufficiently feed the network of canals. They are source of productivity of hydro-electric power. To remove the problem of shortage of water and to supplement the canal water supply an extensive programme of installing tube wells was worked out. The government was to provide electricity to rural areas for this purpose so they provided load on east teams and conditions to the farmers so that they could buy tube wells for installations. Salinity and water logging damaged a large portion of cultivable land so the government launched an effective programme of Salinity Control and Reclamation Projects known as SCARP and that was launched to control the menace of salinity and the issue of water logging. Another thing that was done was that tube wells were installed to suck excessive water from the logged land. The transfer of modern technology of farming and cultivation was one the most important step taken by Ayub’s regime. The use of scientifically tested and controlled inputs and mechanical power was encouraged by the government. For ploughing purposes, Locomotive machinery was introduced. Tractors replaced bullocks for ploughing the fields. Farmers were given education on modern methods of cultivation. For the purchase of modern technology of cultivation, lavish loans were given on easy teams and conditions of repayments. Government established financial institutions like Agricultural Development Corporation and an Agricultural Bank, in order to facilitate rural financing. Later on these institutions were merged into Agricultural Development Banks. These banks assisted farmers in buying tractors, installing tube wells and using superior quality seeds, fertilizers and insecticides.

Industrial reforms in AYUB KHAN ERA: Ayub khan was one of that leader who did one of the finest revolution in industrialization of our country Pakistan. Pakistan experienced one of the best profits during 1958-68 as during this era major changes were brought in the industrial strategies of Pakistan that were obviously very advantageous for Pakistan economy. Following are some major steps that were brought in Pakistan regarding industrialization during Ayub khan era. 

Gradual liberation of economy:

Gradual liberation of economy means giving freedom and proper policies and measures to enhance country economy and industrial status. Other then this the major reason for this was  Improved economy  GDP growth  National economy Starting: This was started and applied in early 1980s this was first implemented by Pakistan Muslim league. This was one of the most important and fruitful policy of the history of Pakistan. As it gradually but really enhanced the economic structure of Pakistan, because at the time of independence Pakistan existing industrial unit were devastated and majority was given to india. General Ayub Khan implemented many important policies for the gradual liberation of the economy and successfully handled the system of the 1962 Constitution that resulted great level of economic liberalisation of the economy of Pakistan. 

PAKISTAN INDUSTRIAL DEVELPOMENT COORPORATION:

Pakistan industrial development corporation was settled and established in the era of Gen Ayub Khan era in Pakistan with an investment of 1 billion rupees of that time. During establishment of this corporation many industries were promoted too. Pakistan industrialial development were given charge of following industries,

 Heavy industries.  Engineering industries.  Sugar industries.  Cements industries.  Textile industries.  Jute industries. FACILITIES PROVIDED FOR INDUSTRIAL REFORM: Ayub khan gave many good and fruitful facilities in order to enhance industrialization in es Pakistan.  Tax reduction: Taxes were reduced in order to give more feasible environment for industries as taking or earning a lot of profits from the capitalists act as a barrier between the countries economy and the industries, as people always prefer settling their business in countries where taxes applied in minimum quantity. Ayub khan very carefully looked on this and as a result many taxes were reduced or fully diminished. This gave a smooth platform for the industrialist to settle their businesses.  Labor availability: Ayub khan for the sake of easy availability of labors made easy availability of labors by pre hireing or reducing the wages while giving more facilities. This enhanced the motivation of the labors to work for the industries and the capitalists to hire the labors for their industries to work for. This gave benefits to both the country economy as well as the industries.  Adequate market facility: During this time period Ayub khan tried his level best to provide all the adequate facilities to the industrial owners the industries for an appropriate function of the industries that definitely played a very essential role in the enhancement of the industrialization of Pakistan at that time. This also increased the satisfaction of the industries owner as everything was almost perfect that was required for sufficient working of a industry.  Raw material and industrialization:

Ayub khan initially promoted those businesses of whom raw materials were in adequate amount in Pakistan so this increased the proper utilization of the resourses available in Pakistan so this made the adequate utilization of the already existing raw material in Pakistan.  Check list of facilities needed in and near by an industrial area by Ayub khan:  Food availability  Transport services  Hospitals with proper facilities  Schools and other educational institutes  Residential facilities  Departments of: Traders Whole seller 

AYUB KHAN INDUTRIALIZATION AND FOREIGN RELATION SHIPS:

Ayub khan had a very critical approach regarding the economic status of Pakistan and this was very clear at that time that Pakistan can enhance and aggravate its economicstatus by increasing its export and this was very possible if Pakistan succeed to establish friendly relationships among other countries so that they can as well establish a system of trade in Pakistan.  Reducing industrial good rates: Rates of industrial good were really reduced as they could be stabilized through investments and profits though the industries.  Reduced labor wages.  Reduced taxes.  Traders and whole seller: During the era of ayub khan the traders and the wholesaler were offered huge incentives and reward that made sure that a impressive trading is going on in Pakistan. Pakistan faced one of the golden era of industrialization and economic growth during 1958-1963 this era was the one which was ruled and supervised by the great AYUB KHAN.

Increasing the incentives for whole sellers and the traders resulted in the increase in the intrest of them in the more establishment of industries and buying and selling of products from there. So this also resulted in a very positive and fruitful impact on industrialization and economic status of Pakistan.  Simplified investment procedures: In the era of Ayub khan very simplified investment procedures were introduced on both imports and exports in order to take the overall trade system of Pakistan to maximum. During this era restriction on imports and exports were removed this allowed a free flow of different good in different countries. Through this no import license was required for any sort of imports. 

BONUS VOUCHER SCHEME: And along with this the exporter of certain raw material and manufactured goods were permitted to receive 10% to 40% of imports of the value of exported good. These vouchers were given in only these types of circumstances and these were highly demandable as these were attracting a majority of merchant as these vouchers were transferable and these vouchers were sold in open market. Other reasons of these vouchers were:  Importers use to ask prices of these vouchers.  Enhanced rate of exports  Boost to earnings  Better foreign polices  Better foreign exchange



SUPPLY OF CREDITS FOR LOANS FOR INDUSTRIES: As the economic conditions were not very much favorable so not a huge population was able of settling a approporiate business or industryso loans were started to given to the people through private or specified loan giving banks. This helped a lot people in maintaining or establishing their new business.

 More steps taken for better industrialization: During the era of Ayub khan many more steps regarding the industrialization were taken that were consisting of:  Tax holidays to new industries.  PIDC was established.  Control over surplus and enterprises  NIT was settled to attract small saving in industries.  Up to RS 3000/- were given as tax holidays.  Control over surplus from west india was given to east india. 

RCD UNION:

A RCD union was formed to settle a economic trade between  Pakistan  Turkey  Iran This union was formed to enhancing the trade between these three countries. 

ESTABLISHMENT OF 4 NEW STATES FOR INDUSTRIES: Ayub khan established four new states for the better industries these four estates included.  Larkana  Peshawar  Bahawalpur

 Gujarat  GROWTH TRENDS IN THE ERA OF AYUB KHAN:

ERA

GDP

AGRICULTUARL

INDUSTRIAL

SECTOR

SECTOR

So from this trend

1950s

3.1

1.6

7.7

we

1960s

6.8

5.1

9.9

easily

1970s

4.8

2.4

5.5

determin

1980s

6.5

5.4

8.2

e that a

1990s

5

4.4

5.5

can

major industrial revolution was brought in the era of AYUB KHAN.



IMPACTS OF INDUSTRIAL AND AGRICULTURAL REFORMS ON THE SOCIETY DURING THE ERA OF AYUB KHAN.

Impact of agricultural reforms on society: The agricultural reform Commission was started in 1958, and in 1959 the govt. mandated a ceiling of two hundred hectares of irrigated land and four hundred hectares of non irrigated land within the West for one holding. and with in the East side, the landholding was upgraded from xxxiii hectares to 48 hectares. Landholders maintained their dominant positions within the social position and their political effect

however Ayub Khan's warning for the

political status. Along with this, some 4000000 hectares area of land in West of Pakistan, More cultivation: As land were allotted to many of the farmer so a certain increase in the cultivation was observed and that was in fact a very nice decision of that time as this is serving till today as we are still having a variety of cultivations now from those lands. These lands are even producing such good quality products that are being exported to many other countries as well. So it can be inferred that this was indeed having a very positive impact on our society as this proved very profitable. Decline in poverty: During the era of Ayub Khan a great decline in poverty as many people were engaged in farming that was ultimately really profitable for both the people and the nation as well.

Impact of industrial reforms during Ayub khan era: Ayub khan being a great leader one of the main focus was increase in the industrial establishment.

This was one of the golden key towards success of Pakistan and its economic growth due to the following reasons.  Economic structure of Pakistan was enhanced.  A great decline in the un employment rate was observed  Foreign relations were made friendly.  Private organizations were promoted to increase their capital in Pakistan.  Trading was enhanced both nationally and internationally.  Schooling was made of more standards due to industrialization.  More health facilities was given.

Conclusion

General Ayub Khan’s era was one of the most productive times in the history of Pakistan. Almost all sectors of Pakistan including health, education, defence, industrial and agriculture showed an upward trend and witnessed growth. Ayub ‘ era is known for the industrialization as his industrial and agricultural reforms brought vast changes in those sectors and before his era ,

agriculture sector never got the attention it deserved and was badly ignored but his industrial and agricultural reforms improved those sectors and Pakistan showed a big growth in those sectors and hence the economic conditions of Pakistan got better. So it wont be wrong to say that General Ayub Khan’s era was one of the finest political eras of Pakistan and Pakistan improved a lot in all the sectors.

REFERENCES

1) Book “ Pakistan Affairs” Author: Ikram Rabbani

2) https://www.slideshare.net/naeemiub/land-reform-in-pakistan

3) http://bilalmahmoodch.blogspot.com/2013/02/reformation-of-economicpolicies-during.html 4) https://www.researchgate.net/publication/278727792_Economic_develo pment_in_the_era_of_AyubZia_Musharraf_in_Pakistan 5) https://www.slideshare.net/slailajaffri/ayub-khan-economic-regime 6) https://www.britannica.com/biography/Mohammad-Ayub-Khan 7) https://historypak.com/reforms-introduced-by-ayub-khan/ 8) https://www.shahidhussainraja.com/political-economy-of-pakistanunder-general-ayub-1958-68 9) http://olevelelearning.blogspot.com/2015/03/ayub-khansreforms-from1958-to-1969.html 10)

https://www.coursehero.com/file/29325316/GREEN-

REVOLUTION-AND-LAND-REFORMS-AYUB-KHANS-ERAdocx/ 11)

http://countrystudies.us/pakistan/18.html

12)

https://puics.blogspot.com/2012/06/ayub-khan-complete.html

13)

https://blogs.tribune.com.pk/story/11584/how-golden-was-ayub-

khans-era/ 14)

http://insider.pk/national/politics/times-ayub-khan/

15)

https://www.pdfcoke.com/document/92473317/Ayub-Khan-

Agricultural-Reforms 16)

http://pu.edu.pk/images/journal/pols/pdf-

files/Forced_Modernization%20-%204.pdf 17) https://www.academia.edu/37742502/958_Martial_Law_And_Ayub_Kha n_Reforms_Submitted_By