P-ISSN: 2790-6795 Annals of Human and Social Sciences April-Jun 2023, Vol. 4, No.

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O-ISSN:2790-6809 http://doi.org/10.35484/ahss.2023(4-II)06 [46-58]

Annals of Human and Social Sciences

www.ahss.org.pk
RESEARCH PAPER
The Changing of Guards: Domestic Policies of General Ayub Khan Era
During 1958-69
1Muhammad Arif* 2Dr. Imran Ali 3 Zubair Hussain
1. Ph.D. Scholar, Department of Pakistan Studies, The Islamia University of Bahawalpur, Punjab,
Pakistan
2. Assistant Professor, Department of Pakistan Studies, The Islamia University of Bahawalpur,
Punjab, Pakistan
3. M.Phil. Scholar, Department of Sociology, Riphah International University, Faisalabad, Punjab,
Pakistan
*Corresponding Author [email protected]
ABSTRACT
Since the emergence of Pakistan, the state faces number of political and economic
instabilities, however, in the 1960s, Pakistan was moving towards modernization under the
leadership of General Ayub Khan, who adhered to a progressive-liberal and modernist
interpretation of Islam. The key objective of the study is to explore the domestic policies as
well as reforms during Ayub Khan era that showed the various positive consequences of the
country. During 1958 and 1965, Ayub government followed authoritarian Islamic policy,
which demonstrated his openness and liberalism toward Islam as well as public policies
actively supported constitutional, legal, and social reform that moved the country towards
modernization. Primary and secondary sources have been consulted through the descriptive
research approaches.

Keywords: Ayub Khan, Developments, Economy, Modernization

Introduction

After gained its independence, Pakistan was ruled by military administrations.

Pakistan had a total of four military regimes (1958-69, 1969-71, 1977-88 and 1999-2008).
The reason for this is because Pakistan was unable to successfully construct a democratic
and stable political system. Prior to the imposition of the Martial Law in 1958, the political
and social climate in Pakistan was deplorable. To secure their positions in power, politicians
openly plotted against one another and violated the Constitution of 1956. Iskandar Mirza,
who served as president at the time, was responsible for political intrigue and instability
(Rabbani & Sayyid, 1992).

Important officials have always had a clear point of view on how national matters
should be handled. They consisted of individuals such as Malik Ghulam Muhammad,
Sikandar Mirza, and Sir Ikram Ullah, amongst others. They played important roles and were
able to exert significant influence over national policies. In contrast to Quaid-e-Azam, he
advocated for democracy and secularism in public life. As long as Liaquat Ali Khan was in
charge of this group, he directed their activities in a prudent manner. In the days leading up
to his death, he counselled Malik Ghulam Muhammad to tell the truth, but his death
ultimately led to him being appointed Governor General. In order to exert pressure on
politicians and bureaucrats, he first abolished the First Constituent Assembly, then he
organised a kitchen cabinet to "remotely control" a system, and last he pressured politicians.
Sikandar Mirza, who served as his right-hand man, was the one who initiated the
"Republican Party" (Rafique & Asim, 2008).

Despite the fact that he signed the first constitution, he thought it was impractical.
The opposition voiced their concerns about the "palace conspiracies" in 1958, and on
 Annals of Human and Social Sciences (AHSS) April-June 2023, Vol. 4, No. 2

October 7 of that year, Sikandar Mirza declared that he had "tried unity after unity." In the
end, "convinced that a great majority of the people no longer had faith in the old form of
governance" and "the Constitution of 23 March 1956 was untenable, " the government
decided to draught a new constitution "It was revoked by him (Khan, 1967). Pakistan's
former president, General Iskandar Mirza, handed over all of his power to me when he
stepped down. Therefore, effective immediately, I will assume all relevant authorities, as
well as the presidency (Haider, 2016). The troops gave their approval to the implementation
of martial law and direct military rule. The Constitution of 1956 was thrown out by Pakistan.
He initiated the formation of planning commissions and organisations (Aslam, 1991).

At midnight on October 7-8, 1958, the president of Pakistan announced a state of

martial law. The Constitution of 1956 was thrown out as a result of this. Ministers were
removed from their positions, the Central and Provincial Assemblies were dissolved, and
political activity was made illegal. General Muhammad Ayub Khan, who was the commander
of the Pakistan Armed Forces, served as Chief Martial Law Administrator. The parliamentary
system in Pakistan has come to an end. This administration didn't last very long. On October
27, 1958, General Muhammad Ayub Khan led an army coup that resulted in the overthrow
and ascension of President Iskandar Mirza (Bhatti, 2006).

Literature Review

It have been seen that number of author and researchers worked on the said title
with different perspective W. M. Dobell talked about the Ayub Khan’s tenure and his
approaches in his article "Ayub Khan as President of Pakistan" and featured the authentic
basis of General Ayub Khan and his measures. He further shed light on the Iranian
government's applause and his foreign strategies towards Iran and India as well. In this
article, the author investigated Ayub's measures toward politicians of Pakistan and
furthermore described how to utilize tactics to control the politicians. He characterized
Ayub's Basic Democratic framework and furthermore the electing of President, primary and
finally in the constitutional history of Pakistan. In the meantime, he expounded on the
changes and approaches of the Ayub during his eleven years of power (Dobell, 1969).

Further, Klaus H. Pringsheim enlightened Ayub’s decisions during the Indo-Pak war
in this research article "China's Role in the Indo-Pakistani Conflict", and further emphasized
China's pretend in the Indo-Pakistani Conflict (1965). He discussed the part of General Ayub
in the 1965 conflict and before the visit of China and its transnational strategy. In this article,
he examined thoroughly the context of the Indo-Pak War and its ramifications and
furthermore the role of China and the U.N.O. He recounted the tale of the SEATO and CENTO
arrangements of Pakistan against the communist’s animosity. He expounded the Ayub's
tactics to make great relations with his neighbor China and furthermore signed pacts
(Pringsheim, 1965).).

Mansoor Akbar Kundi shed light on the military role-play in politics in his article
“Militarism in Politics: A Case Study of Pakistan” and defined the system of military inference
in politics and described it into four levels. He sketched the military-political system in a
detail and also the failure of the Muslim League and political structure. In this article, he
expressed the story of the first military intervention and its role and policies. Further, he
explained the 1962 constitution and General Ayub’s B.D. system. He also considered the step
down of General Ayub and also give power to General Yahya Khan (Kundi, 2003).

In her article titled "Ayub Khan and modern Islam: Transforming citizens and the
nation in Pakistan," which was published by Arizona State University, Yasmin Saikia
discusses the Islamic State and the breakup of East Pakistan. In her paper, she examined
several Islamic efforts taken by Ayub, including as the BD system and educational reforms,
as well as the perspectives of a variety of academics. The generals Ayub Khan and Zia-ul-
Haq were the primary subjects of this article. For the oral history of the military mess, she
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conducted interviews with a number of veterans from the year 1971. The endeavour by
General Ayub Khan to "re-write Pakistan's history" is the aspect of this article's subject
matter that most piques the reader's interest. Ayub was promoted to the position of army
commander in the same year that Prime Minister Liaquat Ali Khan was killed. The political
climate in Pakistan became more unstable. With the replacement of nearly six prime
ministers, Ayub made an effort to restore order to the political system. She talked on the
relationship between the Pakistani army and the government. Ayub instilled in his students
a sense of patriotism and emphasized the "true" role of the army in protecting Islam and the
country (Saikia, 2014).

Although numerous scholars explained with different perspectives however this

article is discussed under the overall policies of the Ayub Khan era through which Pakistan
moved towards modernism.

Material and Methods

For the completion of this study, the methodology used is of descriptive-cum-

historical nature with an analysis of the existing sources. Further, during this study, I have
consulted a wide variety of sources both primary and secondary. For primary sources,
government original documents, historical data, libraries and public and personal
information have been approached. For secondary sources, I have consulted with
different books, articles and some other published information that have to allow me to
do justice to the very complex.

Domestic Policies / Reforms during General Ayub Khan’s Regime

After becoming president of Pakistan, General Muhammad Ayub Khan established

many Commissions comprised of industry experts to recommend social and economic
reforms for the country. The improvements that were recommended by these commissions
to various government departments were carried out (Bhatti, 2006).

Basic Democratic System

Ayub Khan was able to maintain direct control over the bureaucracy even though he
established Basic Democracies and delegated power to local administrations (Hussain,
1993). BD was initially created on October 26, 1959, by the Basic Democracies Order. Ayub
Khan made this method more recognizable in an effort to clean up Pakistan's political
system, which was contaminated by the dishonest behaviour of politicians. He desired an
approach that was "people-friendly." The concept of "Basic Democracies" was expanded to
include four levels. A brand new political order was formed by these bodies. The four-tiered
structure would consist of the village council, the sub-district council, the district council,
and the divisional council. Local organisations would be presided over by district
magistrates and divisional commissioners. The BD system partitioned the nation into
80,000 wards, each of which had a single representative from the constitution and between
1000 and 1200 people (Rabbani & Sayyid, 1992). Ayub Khan issued a warning to
parliamentarians about the "chaotic inner situation" of the state and accused them of selling
the state "for selfish gain." He advocated for the incarceration of both East and West
Pakistani leaders. Despots in the military who followed him shared his contempt for
politicians (Haider, 2014).

The decision to introduce the system of Basic Democracies in Pakistan was taken at
a conference of Governors held in Karachi on 1st May 1959. A formal declaration of this
outcome was issued on 26 October 1959. “In view of this sensation, in 1959, General Ayub
Khan decided to introduce a system of four-level basic democracies. This four-tier system

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included Union Council, Tehsil Council, District Council and Division Council (Mirza, Haider
& Chaudary, 2022).

Constitutional Reforms

Ayub Khan did not immediately begin to court public opinion after the end of
martial law. On February 17, 1960, Ayub Khan established a Constitution Commission to
draught Pakistan's new constitution. The Constitution Commission was directed by Justice
Shahab-ud-Din. On May 6, 1961, the commission delivered its findings to the President of
the United States. The constitution was initially drafted by Justice Manzoor Qadir. The
commission supported a presidential system, adult suffrage, the revitalization of political
parties, and the establishment of a robust legislature. On March 1, 1962, a subcommittee
comprised of five individuals put the finishing touches on the draught constitution that Ayub
Khan had drafted based on the recommendations of the commission. On June 8, 1962, it
went into effect. On June 8, 1962, the state of martial law was lifted (Ullah & Hayat, 2018).

The president was granted extensive legislative and executive powers when the
constitution was revised in 1962. The National Assembly was under the President's
exclusive power. In accordance with the constitution, the President as well as the Provincial
and National parliament were indirectly elected by the BDs (Rabbani & Sayyid, 1992). The
new constitution called for a powerful President to be in charge. Under this arrangement,
ministers are permitted to take seats in Parliament and participate, but they are not eligible
for membership. In the 156-person National Assembly, women held only six seats, while
members of minority groups held none. The Provincial Assemblies each contained 155
seats, five of which were set aside specifically for women. Members of the B.D. voted to
choose the President and the rest of the assembly members. The constitution allowed for
elections to be held indirectly. A measure passed by the Assembly could be accepted,
rejected, or sent back by the President. The Assembly may be called to order, adjourned, or
dissolved at his discretion. The purpose of these clauses was to provide the nation with a
powerful and reliable governing structure (Rafique & Asim, 2008).

Family Laws Ordinance

In March of 1961, Pakistan passed the Muslim Family Laws Ordinance, which
required marriage registration and outlawed polygamy (Feroze, 1962). The following are
the key aspects of this Ordinance:

1. No man can take a second wife without the prior permission of the Arbitration
Council.

2. The first wife’s consent before contracting a second marriage is a prerequisite.

3. If a second marriage is contracted without the permission of the Arbitration Council,

the defaulter will be asked to pay the prompt or deferred mahr to his first wife
immediately, or it will be realized by the Government receiver for payment to his
wife, or the defaulter may be sentenced to one year's simple imprisonment or a fine
which may extend to Rs. 5,000, or both.

4. The registration of marriages is compulsory.

5. The rights of succession of the children of a predeceased son or daughter have been
restored.

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Rehabilitation of Refugees and Settlement of Properties

After eleven years, Pakistan was unable to provide permanent homes for a
significant number of Indian refugees. Within a year, he dealt with a multitude of issues
pertaining to abandoned property and appointed General Muhammad Azam Khan as the
Minister of Rehabilitation (Rabbani & Sayyid, 1992). Without strong administrative
authority, there was a decline in law and order across the country. As a result, the objective
of the military administration was to reduce criminal activity within the limits of the state.
Additionally, specialized military cells were established in order to assist the population in
times of crisis and to prevent social unrest (Mahmood, 2023).

It was extremely difficult to integrate and rehabilitate Muhajirs into society. A

significant number of people who had moved to Pakistan after selling their assets in India
were now living in abject poverty, whereas others who had retained ownership of their
holdings in India had risen to positions of wealth and influence. The property records of all
Indian migrants who had arrived in Pakistan more than a decade earlier could not be
obtained by Pakistan. As a result of this handicap, many claims have been exaggerated. The
performance of General Azam Khan was satisfactory (Rafique & Asim, 2008). People were
compelled to voluntarily submit their exaggerated claims using registered posters under the
new laws imposed by the Martial Law. Additionally, the authorities demanded that illegal
occupants of evacuee dwellings register themselves with them. As a result, the task that
normally takes years was completed by the police and rehabilitation personnel in just a few
days. Despite this, a few individuals continued to make false assertions. After then, an
explanation of the claims process was provided. There were claims for fewer than 1500
productive units that were accepted. Those that requested 4,000 units were given a total of
21,500. 10% of the total units asserted were really included (Khan, 1967).

The distribution of properties was harder, but it was solved efficiently. Everything
was judged promptly. Muhajirs received their occupied properties. They were able to
provide an explanation for their statements as well as those of others. Two or three Muhajirs
shared most urban houses. Claimants split these houses. The properties that did not fit any
of the foregoing criteria were drawn by chance and handed to claimants who had never
obtained property. Claimants who did not receive property received monetary settlements
at fixed rates. While General Azam Khan led the Department, rehabilitation was efficient and
active. General Azam's selection as East Pakistan's governor eased rehabilitation staff
(Rafique & Asim, 2008). (Rafique & Asim, 2008). Rehabilitating and settling homeless
Muhajirs was a priority. President Ayub placed the Korangi Colony foundation stone in
December 1958. 15,000 homes were constructed there over the course of five months.
Muhammad Pura Colony was established in Dacca, with plans to create additional on similar
lines (Rafique & Asim, 2008).

Decimal Systems of Coin

On January 1, 1961, Pakistan launched its "Decimal System of Coins," and the
country's legislature underwent a period of adjustment. A commission was established to
make recommendations about the modification of different statutory requirements. In an
effort to make working conditions and wages in the workplace more favorable, regulations
and reconciliatory courts were established (Bhatti, 2006).

The Restoration of Fundamental Rights

The people's fundamental rights were included in the guiding principles of the
constitution written in 1962, but these rights could not be enforced in court. As a result, the
populace formed the impression that genuine democracy had not yet been established. The
Jamaat-e-Islami organization presented the National Assembly with a memorial containing
nine miles' worth of signatures calling for fundamental rights. The party in power worked
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to reestablish fundamental rights. The government caved into public demand and changed
the country's name to the Islamic Republic of Pakistan (Rafique & Asim, 2008).

Medical Reforms

After Pakistan gained its independence, the country saw a rise in the number of
medical students. There were two medical colleges in West Pakistan. This number was
raised to six by Ayub Khan. Additionally, nursing schools were established in the cities of
Quetta, Hyderabad, and Lahore. In the past, our medical students would travel to England,
the United States, or other countries to further their education. The postgraduate Medical
Centre in Karachi was responsible for teaching fundamental subjects. However, eligible
medical professionals continued to pursue their education overseas using funding from the
WHO, CENTO, and the Colombo Plan (Bhatti, 2006).

Mineral Development

In order to facilitate mineral exploration and development, the Ayub Government

appointed provincial directors. There was research done on Pakistan's mineral resources.
The search for oil was given first priority. In October 1962, Karachi became home to its first
oil refinery. The Mineral Development Corporation was responsible for mineral exploration
and extraction (Bhatti, 2006).

Educational Reforms and Institutions

On the 30th of December in 1958, Ayub Khan appointed an education commission

in order to assess the educational system that had been in place in Pakistan since the time
of the British. The group advocated for a complete curriculum overhaul as well as the
provision of free and required elementary education up through the eighth grade. In
addition to that, it suggested a degree that is earned in three years, the establishment of
vocational institutions, and the teaching of religion (Rabbani & Sayyid, 1992).

Civil, mechanical, electrical, and automotive engineering are some of the subjects
that are taught in polytechnic institutes, which were also established by the government in
both of provinces. These institutions provided instruction in leather tanning as well as other
technical topics. For the purpose of imparting technical knowledge, universities of
engineering and agriculture were established in Dacca and Lahore, respectively, as well as
Mymensingh and Faisalabad (Bhatti, 2006).

People from quite different backgrounds were generated by the three separate
education systems. Schools and colleges that taught in English were more likely to produce
rulers and administrators, whereas schools run by the government and religious
institutions were more likely to generate clerks and maulvis. There is not a single
autonomous nation on earth that has succeeded in producing citizens of responsible
character. The commission failed to address this crucial concern (Rafique & Asim, 2008).

Agricultural and Land Reforms

The Ayub Government made land reforms a top priority, and on October 18, 1958,
it established a Commission with the mandate to report its findings within the following
three months. On January 24, 1959, the conclusions of the Commission appointed by West
Pakistan Governor Akhtar Hussain were presented to the government of Pakistan. The
reform package was presented to the public the following day by the cabinet (Rafique &
Asim, 2008). The recommendations of the panel were followed by land reforms (Rabbani &
Sayyid, 1992). The country's agricultural industry and the economy benefited from reforms
in a variety of sectors, including land capacity, ownership, tenancy, and others (Rabbani &
Sayyid, 1992). Small plots were required to be consolidated by order of the Agriculture
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Commission. A preliminary attempt at land consolidation was made. After a period of three
years, land consolidation proceeded. Ayub Khan asserts that nine million acres were
brought back to their previous state (Khan, 1967).

Price Control

The previous governments had no control over the essentials of daily living, which
is why the administration of Ayub formed cells and bodies to oversee cost control. There
was a lot of storing going on. These factors contributed to inflation. The problem was made
worse by the benefits that retailers received. To provide evidence that customers were not
being taken advantage of in any way, the military administration printed cost records
(Sayeed, 1959).

The government has established rates for a limited time to assist individuals in
coping with the effects of rising prices. On November 1, 1958, President Ayub used the radio
to announce the declaration of "Price Control" rules under Martial Law. A price was assigned
to several items, including fabric, grain, cooking oil, books, spices, typewriters, machinery,
spare parts, crockery, and glassware. The proprietors of shops were required to
prominently advertise other pricing options as well. During the period of Martial Law,
squads would police the markets to make sure that stores were charging the appropriate
prices. Under Martial Law, mill owners, retailers, and distributors all made the same amount
of profit. Hoarding, profiteering, and black marketing were all severely punished by the
military's summary trial courts. It's possible that this system will last a few months (Rafique
& Asim, 2008).

Smuggling

The economic expansion was hampered by smuggling. Both Chittagong and Karachi
have a history of having significant problems with smuggling. Politicians were complicit in
the birth of this atrocity. After the military took control of the government, anyone involved
in smuggling was punished. It was intended to conduct a raid in order to capture such
notorious offenders (Sayeed, 1959).

The first round of changes enacted during Martial Law concentrated on

straightening out the economy. The Ayub regime took a harsh stance against the illegal trade
of goods. Along Karachi's maritime channels, the Ayub team put an end to smuggling
activities and then sealed off the borders. At the beginning of November 1958, tones of gold
that had been obtained illegally were discovered at sea. It came to almost six million rupees
in total cost. Smugglers from West Pakistan were among those killed on the spot. When
Martial Law was in effect, there was hardly little smuggling. It was beneficial to the economy
(Rafique & Asim, 2008).

Tax on Black Money

There were a significant number of merchants and manufacturers who had never
paid income taxes. Black money owners who voluntarily reported their holdings by
December 1 and paid income tax at the rate of 31% would not be subject to prosecution,
according to President Ayub's statement. If not promptly, the 33 percent income tax could
be paid within 20 days of the due date. The delay was extended by three months. Initially,
merchants laughed off this formal warning in the hopes that they would not be punished for
their behavior. As of the 1st of December, the majority had already submitted the amended
income index. This unearthed Rs. 1.34 billion in previously concealed wealth (Feldman,
1967). The wealth tax amounted to 24 crores of rupees. It resulted in the government
receiving additional revenue. This policy change by the government boosted overall
economic activity and resulted in considerable increases in tax income (Rafique & Asim,
2008).
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The Return of Foreign Exchange from Abroad

Another thing that was attempted was the return of illegally held foreign currency.
Under rule 45 of the Martial Law, businesspeople were required to inform the government
about their holdings of foreign currency. They might be able to get Pakistani currency to
cover the gap. They were warned that they would face harsh consequences if they did not
comply. Several traders began engaging in consulting. They generally took the position of
opposing the military regime. Four prominent Karachi merchants were taken into custody.
After viewing their confiscated correspondence, they were given a warning. The
government received forty-four million rupees worth of foreign exchange as a result of
successful projects (Rafique & Asim, 2008).

Labour Policy and Reforms

During President Ayub's industrialization, there was an upsurge in the number of

laborer difficulties. Prices of consumer goods increased, and wealth became more
concentrated. Workers were put in their place by unemployment. The reason the Labor
Officers favored capitalists over laborers was that they sought to benefit from the capitalists'
riches and influence. The military took care of the concerns of the laborers. According to
international standards, these efforts were not sufficient, although they were more
advanced than those made by previous governments (Rafique & Asim, 2008).

Legal Reforms

Our judicial system has always been marred by a number of deficiencies. President
Ayub also considered the state's judicial system was too difficult for most people. He was
under the impression that the judicial system in Pakistan was cumbersome, expensive,
inefficient, and unfair. Because everyone had to lie to support his claim and then lie again to
explain the first lying, he knew that the country's court system had destroyed morals. He
knew this because everyone had to lie to support his claim. As a result, he created a
committee for legal reform and implemented a wide variety of changes in order to enhance
Pakistan's judicial system. The Ayub government started conducting risky interviews with
potential candidates for judgeships on the High Court. This practise, which was intended to
demonstrate the superiority of the Executive, could endanger the independence of the
Judiciary (Rafique & Asim, 2008).

PODO and EBDO

Following the passage of Ayub Khan's Political Parties Act and the Elective Bodies
Disqualification Order (EBDO), several prominent political figures were disqualified from
running in assembly elections for a period of five years. Khan took control of the government
and severely restricted journalistic freedom. On March 28, 1963, the press ordinance
prohibited any journalism that was critical to him. In August of 1959, a law was passed that
made it illegal for any top politician to participate in politics. It led to the disqualification of
98 politicians. The majority of Pakistan's founding fathers were taken out and executed.

On the basis of this argument, the government of Ayub enacted new laws to remove
senior politicians from office. Their names were PODOs and EDOs respectively (EBDO).
Investigations were conducted by martial law courts into members of the ministries and the
Assembly. They were recognized in 1947. Bribery, dishonesty, nepotism, and corruption
might result in a 15-year ban on a politician's ability to run for office as well as a hefty
financial penalty. After a period of six years, the prosecution of a politician was put on hold
if they voluntarily retired. This "Concession" was beneficial to a large number of politicians,
including Hussain Shaheed Makhdoom Zada Hasan Mahmood, Suhrawardy, and Nawab
Iftikhar Hussain Mamdot, among many others. Their positions were taken over by newly

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elected politicians, particularly those who were eager to collaborate with the Martial Law
authorities and President Ayub (Rafique & Asim, 2008).

Restoration of Democracy

The implementation of Martial Law got off to a good start. People are happier as a
result of both the reduction in the cost of food and the improvement in law and order. On
the other hand, poor management allowed it to regain control. Both nepotism and bribery
were reinstated. Illegal trade set new benchmarks. The departure of politicians put an end
to constructive criticism. Consequently, officials in the government started taking arbitrary
actions, and the general public realized that the democratic system was the only thing that
could hold the ruling forces in check. As a result, many people called for democratic elections
and a new constitution (Rafique & Asim, 2008).

Improvement in Education and Social Sector

Education and society were both areas that General Ayub Khan worked to improve.
A brand new educational program. There was printing done on the textbooks. Textbook
boards were initially established by the provinces. Family planning was put into effect to
slow the rise of the population in order to advance social sector development. The time of
economic success that General Ayub Khan presided over is still held in high favor today
(Mirza, Haider & Choudhary, 2022).

The Industrial Policy

In the beginning, the Ayub government was somewhat harsh towards the capitalists
and industrialists in order to acquire foreign exchange. Very soon, however, the government
established amicable ties with the industrialists and began patronizing them with a view to
encouraging the industrial sector. The following features figure prominently in the new
industrial policy:

Encouragement of the Private Sector

Ayub's Finance Minister, Mr. Shoaib was responsible for the major economic
policies of the Ayub Regime. He declared time and again that, "We have provided maximum
scope for the private initiative within the framework of national interest". This policy was
just the reverse of the policy being adopted in other progressing countries. The role of
private sector went on increasing during this regime e.g. the third Five Year Plan allocated
2,200 crore rupees for private sector which was almost double the amount allocated in
Second Five Year Plan. In the Third Plan amount allocated to public sector was 447 crore.
The ratio of the development expenditure in the industrial field between the private and the
public sector was 65:35 (Rafique & Asim, 2008).

For the development of Industry, the Government depended only on big

industrialists. They were given loans from the banks. Government agencies like Pakistan
Investment and Industrial Corporation (PIIC) and National Investment Trust (NIT) were
busy in supporting the private sector. Even the commercial banks were supplying resources
to big industrialists. "According to Credit Inquiry Commission, 60% of their credit was
locked up in 222 accounts and the number of families operating these accounts was still
smaller.

The Role of Public Sector

The Public Sector worked on the project where the private capitalist was shy of
investment because of uncertain results, low rate of profit, or lack of available capital. Only
key industries like machine tools, fertilizers and ship repairing were developed by the public

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sector. Rather the role of the public sector was aimed at removing the deficiencies of the
infrastructure and at developing, industrial complexes like engineering and chemical
industries for creating external economies to foster the private sector". After the completion
of a project, PIDC was ready to sell it out to the private sector. PIDC projects with a capital
cost of over 30 crores were transferred to private management. Anyhow in East Pakistan
where private capital was available in adequate quantity, PIDC was running industries like
sugar, jute, hardboard, chemicals and steel etc. Ayub Khan while inaugurating a newly built
ship 'Al-Abbas' declared, "Shipbuilding had to be located in the public sector because no
private party was forthcoming to undertake it. If somebody wants to buy this shipyard, we
can come to a settlement today" (Ayub’s Speech, 1966).

Protection of Local Industries

The protection of local industry was one of the principles of the new industrial
policy. For this purpose, the import of a large number of things which were also produced
locally was banned. The idea was to check the decline of indigenous products which were in
fierce competition with foreign products. Heavy import duties were also imposed to safe the
local industry (Rafique & Asim, 2008).

The Encouragement of Foreign Investment

For the encouragement of foreign investment. The Investment Promotion Bureau

(I.P.B) was set up. Thanks to the efforts of the Bureau that foreign capital worth millions of
rupees was invested into industries that were set up in Pakistan (Rafique & Asim, 2008).

Industrial States

Industrial states were established in every mentionable city. Telephone, Water

supply, Electricity and other facilities were provided to these industrial states on a priority
basis. The industrial states generally lay on the roadside, otherwise link roads were
constructed to provide raw materials and convey the production to the markets. The step
resulted in thee rise of new industrial cities like Gujranwala, Sialkot, Gujrat and Sukkur
(Rafique & Asim, 2008).

Autonomous or Semi-Autonomous Bodies

The Government was determined to get rid of the responsibilities of the economic
sphere and created many autonomous and semi-autonomous organizations to manage the
different services and Financing Institutions (Rafique & Asim, 2008). The following bodies
are some examples:

i. Water and Power Authority (WAPDA)

ii. Pakistan Industrial Development Corporation (PIDC)

iii. Agricultural Development Corporation (ADC)

iv. Pakistan International Air Lines Corporation (PIA)

v. Karachi Electric Supply Corporation (KESC)

vi. Karachi Development Authority (KDA)

vii. Industrial Development Bank of Pakistan (IDB)

viii. Pakistan Investment Industrial Corporation (PIIC)

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ix. National Investment Trust (NIT)

x. House Building Finance Corporation (HBFC)

Out of these bodies, PIDC was the organization that installed industries in the public
sector. Many Jute, Sugar, Paper and Woolen mills, Cement factories, Chemical and Fertilizer
plants were established by PIDC. PIDC and other autonomous organizations were run by
government officers who were given free hand to manage their field. It was hoped that the
local initiative and free hand will produce better results (Rafique & Asim, 2008).

Tax Concessions

In order to encourage the industries, the government announced a number of tax

rebates. For instance, no tax was imposed for the first few years on the new factories.
Besides this tax holiday, the income and super taxes were also reduced. For the
concentration of wealth, the rebate was announced on undivided profit. The money which
was spent on research works was also nominally taxed (Rafique & Asim, 2008).

Indo-Pakistan War 1965

Indo-Pakistan War of 1965 was an important event of Ayub’s regime. Soon after his
re-election as the President of Pakistan, Ayub’s regime was pushed into a full-scale war with
India in September 1965. The situation in Kashmir had deteriorated. India had acquired
massive arms supply from the western countries after its defeat against China in 1962. The
arms supply to India on a large scale heavily tilted the balance of power in favor of India.
Pakistan protested against the imbalance in the region caused by the massive military
buildup by India. In the meanwhile, on December 27, 1963, the sacred Hair of the Holy
Prophet (PBUH) was stolen from the shrine of Hazrat Bal in Srinagar which fueled the
situation (Rabbani & Sayyid, 1992). The Indian army kept on violating the cease-fire line in
Kashmir. A large number of Kashmiris crossed into Indian-held Kashmir. The infiltrators
were fully backed by Kashmir and occupied the passage of Kargil. In order to stop Pakistan’s
swift advance in Kashmir, the Indian army on 6th September 1965 launched a massive
three-pronged attack in Punjab. The Indian attack was concentrated against Lahore. There
was a severe and full-scale war that lasted for 17 days. The war came to an end on 23rd
September 1965 when UN sponsored cease-fire was accepted by India and Pakistan
(Rabbani & Sayyid, 1992).

In January 1966, President Ayub Khan and Indian Prime Minister Lal Bahadur
Shastri visited Tashkent at the invitation of Russian Prime Minister Kosygin. After a week of
negotiations, Ayub Khan and Lal Bahadur Shastri signed the agreement. Kosygin bluntly
pressured Ayub Khan to sign the infamous Tashkent Agreement. Ayub and Shastri repeated
their promises to refrain from armed conflict. They also agreed to settle the dispute through
peaceful mediation and withdraw their forces to their positions on 5 August 1965 (Rabbani
& Sayyid, 1992).

Conclusion

This article talks about General Ayub's government ran and how he managed to
keep control while still expanding Pakistan. He provided authority to the various local
governments and formed what is known as the Basic Democracies System (BD System). BD
provided a framework for administrative responsibilities. Following that, he revised the
constitution, drafted a brand new one in 1962, and revised family regulations such as the
"Family Law Ordinance." According to the findings of the study, Pakistan benefited from
Ayub's actions. The reforms that General Ayub implemented in the fields of medicine,
agriculture, manufacturing, education, administration, and a great many other fields
deserve praise. Therefore, his reforms in agriculture, education, and other areas helped the
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people and the state, demonstrating that he was a leader who was both practical and
effective. The majority of people adored his progressive ideals, notwithstanding the family
rules he enacted.

Recommendations

This study thoroughly investigates the actions, policies and reforms made by the
Ayub Khan government and found the valuable new information, however, still need to
explore its negative and positive consequences of these policies on the government as well
as on the public.

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