Nationalization

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  • Topic: Zulfikar Ali Bhutto, Benazir Bhutto, Pakistan
  • Pages : 12 (3668 words )
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  • Published : March 4, 2013
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The Nationalization process in Pakistan[1] (or historically simply regarded as the "Nationalization in Pakistan), was a policy measure programme in the economic history of Pakistan, first introduced, promulgated and implemented by people-elected Prime Minister Zulfikar Ali Bhutto and the Pakistan Peoples Party in order to lay foundation of socialist economics reforms to improve the growth of national economy of Pakistan.[2] Since 1950s, the country had a speedy industrialization and became an industrial paradise in Asia.[3] But, as time progresses, the labour trade unions and labor-working class had strained relations with the industrial business oligarch classes, completely neglected the work conditions and failed to provide healthy environment to the workers class in the industries.[4] The nationalization programme began on January 2, 1972 in a vision to promote economic democracy, liberalization, and a mainstream initial goal to put Pakistan in the line of state of progressivism.[3] Ended effectively in 1977, the nationalization programme was again put forward by Prime minister Benazir Bhutto in 1996,[5] and as of current Prime minister Yousaf Raza Gillani in 2012 who activated the programme in order to bring three major megacorporations (Steel Mills, Railways and International Airlines) under the government ownership to in an attempt to improve its structure and to alleviate its profitable process.[6] Despite its success in formative years, such policy measure programmes met with extreme level of spontaneous demonstration, international and national opposition that left the disastrous effects on Pakistan's national economy[7] until it was replaced with the privatization programme set forward by Prime minsiters Nawaz Sharif in 1990 until privatization programme's final execution in 2008 by Shaukat Aziz.[8] Nationalization phase (1971-1977)

Zulfikar Ali Bhutto (1928–1979) became President of Pakistan (1971–74) on December 21, 1971 after a disastrous end of 1971 war with India.[3] The nationalization programme was implemented for the first time in the history of Pakistan and it was promulgated through three different stages. On January 1, 1972, on a televised speech to the nation, Bhutto and the peoples party's government promulgated the three-staged programme, under "Nationalization and Economic Reforms Order (NERO)", which nationalized all major metal industries, including iron and steel, heavy engineering, heavy electricals, petrochemicals, cement and public utilities except textiles industry and lands.[3] The first stage of the nationalization programme integrated approximately 31 major industrial megacorporations, industrial units and enterprises, under direct management control of the government under 10 different categories of basic industries. The programme intended to assert public ownership over the industrial megacorporations, and to satisfied the labour unions in order to keep the industrialization peace in the country.[3] “I had made a pledge to the people of Pakistan to implement industrial reforms.... I am now beginning to redeem the pledge....!” —Zulfikar Ali Bhutto, 1971, Cited source[9]

Namely, the first stage of the nationalization programme integrated the selective industries approved by the peoples party's government and the nationalization programme provided the iron and steel, basic metal industries, heavy engineering industries, heavy electrical industries, assembly and manufacture of motor vehicles, tractor public utilities, including the electricity generation, transmission and distribution, gas and oil refineries, under the management of public sector.[3] After Bhutto becoming Prime Minister in 1974, the life insurance, vegetable oil industry, banks, shipping companies, oil companies and wheat, rice and cotton processing units were also nationalized forcefully.[3] After the success of the first stage, the nationalization programme stepped into the...
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