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Chapter 15 - Governments in the final decade of 20th Century

Benazir Bhutto (1988-90):

Benazir Bhutto was elected as the first woman Prime Minister of Pakistan in 1988 and served in office till 1990. She had a mix of successes and failures.

  • Policies:

    • She highlighted her image as the first woman PM of the Muslim World both before the people of Pakistan and the West.

    • She ended a ban on the making of trade unions and students’ unions in order win the confidence of industrial workers and students.

    • Also many political prisoners of PPP were released that had been arrested by the Zia’s regime.

    • Moreover, she declared a general pardon for many other political prisoners.

    • She also initiated the rural electrification programme.

    • Welfare of Women:

      • First Women’s Bank was opened in 1989.

      • She recruited women in police and civil services under a special scheme and appointed for the first time women judges of the High Courts.

      • She tried to make Pakistan a democratic Islamic republic while abandoning the strict Islamic policies of Zia but this was hard to achieve.

        • She couldn’t make any legislation in this regard because the opposition dominated the Senate and the largest province Punjab was under her rival Mr. Nawaz Sharif.

      • He was able to table a no confidence motion against Benazir by the end of 1989 in the National Assembly.

        • Though the motion was defeated by just twelve votes, it was a serious blow to her government.

        • Therefore, no new laws were made to improve the status of women despite all her claims mainly because the Hudood Ordinance could not be repealed.

    • Problems:

      • She gradually lost support as her government could not fulfill the promises of reducing unemployment, making economic progress and controlling inflation and a high population growth.

      • The drug abuse problem also worsened mainly due to the presence of several Afghan refugees in Pakistan.

      • Benazir faced serious opposition by her party in Sindh.

        • She made a coalition with the MQM, a party of Urdu speaking migrants from India but the PPP stalwarts in Sindh opposed her.

        • The MQM wanted due rights at par with the Sindhi speaking population but this led to growing conflict between MQM and PPP.

        • Violence erupted in Karachi and other cities between September 1988 and May 1990 when the Pucca Qila Massacre against the MQM in Hyderabad became a reason of dismissal of her government.

    • Foreign Policies:

      • Pakistan rejoined the Commonwealth in October 1989 as Pakistan had been recognized as a country with a democratically elected government.

      • She paid a successful visit to the USA in June 1989 and the Bush administration promised an aid of over $400 million.

      • In December 1988, the Indian PM, Mr. Rajiv Gandhi visited Pakistan.

        • It was a big success because for the first time an Indian Prime Minister had visited Pakistan.

        • Both countries signed two agreements in 1989 to promote mutual peace and cooperation.

      • A hotline telephone link was set up between the two countries to be used in times of crisis.

      • The SAARC platform was also used to promote mutual ties.

      • However, the massive Kashmiri uprising since 1989 damaged the efforts of the two PM’s.

  • Reasons for Dismissal (1990):

    • Benazir Bhutto won a marginal majority in the 1988 elections.

    • She was able to form a coalition government in the Centre, but failed to do so in the largest province, Punjab.

    • Mr Sharif emerged as her most powerful rival from the platform of the IJI, a coalition of the PML and various religious parties.

      • She provoked her rival by appointing Mr Ghulam Mustafa Khar, a senior member of the PPP, as the governor of Punjab.

      • The provincial government of Mr Sharif arrested three FIA (Federal Investigation Agency) agents.

      • They were sent by the central/ federal government to investigate the case of tax evasion by a factory, Riaz Bottlers, owned by a minister of the Punjab.

      • Mr Sharif established the Bank of Punjab in 1989, but Ms Bhutto opposed it.

      • She termed it “treason against the federation “, though the 1973 constitution allowed such steps under the autonomy given to the provinces.

      • He gradually organised a “No Confidence “motion in the National Assembly in October 1989.

    • Opposition against Ms Bhutto was so great that 107 members of the Assembly voted against her while 119 were needed to disqualify her as PM.

      • Thus her government survived by a shortage of only 12 votes.

    • Benazir made an alliance with the MQM under the ‘Charter of Peace, Love and Rights’ in December 1988.

      • Both parties were diametrically opposed to each other in the political views.

    • Benazir had promised to protect the interest of the Sindhis and stamp out violence.

      • However, she failed in her mission, and there was a large scale violence in many cities of Sindh.

      • On 30 September 1988, militant Sindhis opened fire on a crowd in Hyderabad, causing 250 deaths, mostly Muhajirs/Urdu speaking people in Sindh.

      • Later, there were more incidents of riots in Karachi.

      • The most tragic event was the Pucca Qila massacre of May 1989.

      • Several workers of the MQM, alongwith women and children were killed in a shootout by police in a fort in Hyderabad.

      • Newspapers reported that the women held copies of the Quran over their heads as they cried out to the police stop shooting.

      • Demonstrations and strikes were observed at several places in Hyderabad and Karachi.

    • Finally, in August 1989, the MQM ended its alliance with the PPP and sided with Nawaz Sharif.

      • This added to her troubles as her government in the Centre as well as Sindh got weaker.

    • Benazir Bhutto failed to have comfortable relations with President Ghulam Ishaq Khan, and sometimes she openly clashed with him.

      • A major area of disagreement was over the key appointments in the military and the judiciary.

      • Ishaq Khan considered that he had the right to make such appointments as the 8th constitutional amendment had empowered him to nominate and dismiss the PM and the assemblies.

      • Both had disputes over many such appointments.

    • She faced accusations of corruption, and her husband Mr Zardari was soon arrested on charges of corruption and blackmail.

      • He was jailed for two years while Ms Bhutto defended him by saying that such charges were politically motivated.

      • Her government became unpopular as it failed to fulfill its promise of economic development and employment.

    • Inflation and unemployment remained high with a high population growth rate.

    • The government also failed in controlling the menace of drug abuse in Pakistan.

    • Due to a lack of majority in the Parliament, Benazir’s government could not make any legislation regarding the rights of women and changes in the Islamic laws introduced by General Zia-ul-Haq.

      • Therefore, President Ghulam Ishaq Khan used his power to dismiss her government on 6th August 1990 on the charges of incompetence, corruption and misgovernance of the country.

Nawaz Sharif (1990-93):

  • Policies:

    • Nawaz Sharif was first elected in 1990 from the platform of the IJI (Islami Jamhuri Ittehad).

    • He announced a national reconstruction program to industrialize Pakistan.

    • He introduced a policy of privatizing the SOU’s (State Owned Units) under which a number of important industries, such as shipping, electricity supply, airlines and telecommunications were opened up to the private sector under the Privatization Commission.

    • He introduced several large scale projects to simulate the economy, such as the Ghazi Barotha Hydro Power Project and the Gwadar Miniport in Balochistan.

    • He introduced the “yellow cab” scheme by giving loans to the unemployed youth to buy taxis.

      • This however was a failed scheme as most of the borrowers became defaulters as they were unable to repay the loans.

    • Another major project was to build the Motorway.

      • The aim was to provide a fast transportation network to the newly independent Central Asian Republics that needed access to seaports.

      • Although its first phase, the M2 (between Islamabad and Lahore) was completed in Nov 1997, the project suffered from continual delays.

    • Aids:

      • Nawaz Sharif’s economic policies were undermined by a lack of capital for investment, specially after the stoppage of the US aid of $ 564 million.

      • Foreign capital increased when he loosened foreign exchange restrictions and opened Pakistan’s stock market to foreign capital but the government still faced a shortage of funds for investment.

      • The US aid dropped significantly after the Soviet withdrawal from Afghanistan in 1988.

      • The reduction in overseas aid, high spendings by the government and a decrease in foreign remittances added to his difficulties.

    • Scandals:

      • The closure of the Bank of Credit and Commerce International (BCCI) in 1991 was linked with questionable lending practices and fraud, and blame was put on the government.

      • Sharif also lost popularity because of the ‘Co-operative Societies scandal’.

        • Cooperative societies accepted deposits from members and gave loans to them for investment schemes.

        • However, mismanagement of these societies led to their collapse in which millions of Pakistanis lost money.

        • It was soon discovered that these societies had, granted large loans to Sharifs family business, the Ittefaq Group.

        • Although Sharif hurriedly repaid the loans, his unpopularity increased.

    • Klashinkov culture:

      • There was also the problem of drug trafficking and illegal arms (the Klashinkov culture) as a result of the Soviet-Afghan war.

      • The govt. had to deal with rampant crime, terrorism and drug addiction especially in major cities like Karachi.

      • The police and military tried to maintain law and order but were unsuccessful.

    • 12th Amendment:

      • The govt. passed the 12th amendment to the constitution which provided “Speedy Trail Courts” to dispense summary justice.

      • The aim of this was to control the crime rate but was criticized by the Opposition as it suppressed fundamental human rights.

    • Shariat Bill:

      • Nawaz Sharif passed the Shariat Bill in May 1991, making the Quran and Sunnah the law of the land as long as it did not challenge the existing system of government.

        • It was welcomed by the religious parties but they wanted its immediate implementation.

        • It became unpopular as the Opposition criticized the increased role of Islam in government.

    • Nawaz Sharif’s first term ended in 1993 when Ghulam Ishaq Khan dismissed his government on the allegations of corruption and mismanagement of the economy.

  • Reasons For Dismissal (1993):

    • Nawaz Sharif gained fame for starting many new schemes but they were overshadowed by various scandals.

    • BCCI (Bank of Credit and Commerce International):

      • The BCCI (Bank of Credit and Commerce International) was the world’s 7th largest bank operating in Pakistan.

      • It was founded by Mr. Agha Hasan Abedi in 1972.

      • There were concerns about the bank’s lending practices and an investigation was conducted by a team of British accountants in 1991.

      • The team detected widespread fraud, embezzlement and manipulation in the bank.

      • Following this, the bank was closed and was required to pay huge fines.

      • Ittefaq Industries of the Sharif family was its major customer.

      • Despite its closure, the bank was allowed to operate for several months in Pakistan, raising doubts about the links of the Sharif’s government with the bank.

    • Cooperative Societies:

      • The Cooperative Societies accepted deposits from members and extended loans only to members for purposes that were beneficial for the Society.

      • Two of such societies were controlled by the relatives of Mr. Sharif.

      • In 1991, four societies in the Punjab suddenly collapsed as a result of which more than two million people lost their life- long savings.

      • The failure of the National Industrial Cooperative Credit Company was the biggest financial collapse in Pakistan.

      • Mr. Sharif’s family had borrowed huge loans from these societies, and this increased unpopularity of his government.

    • Yellow Cab Scheme:

      • Nawaz Sharif introduced the “yellow cab” scheme by giving loans to the unemployed youth to buy taxis.

      • This however was a failed scheme as most of the borrowers became defaulters as they were unable to repay the loans.

    • Economic Policies:

      • He announced a national reconstruction program to industrialize Pakistan.

      • His economic policies were undermined by a lack of capital for investment, especially after the stoppage of the US aid of $ 564 million.

      • Foreign capital increased when he loosened foreign exchange restrictions and opened Pakistan’s stock market to foreign capital but the government still faced a shortage of funds for investment.

      • The US aid dropped significantly after the Soviet withdrawal from Afghanistan in 1988.

      • The reduction in overseas aid, high spendings by the government and a decrease in foreign remittances added to his difficulties.

      • Sharif’s policy of supporting the Afghan warlords also created problems for him.

        • This led to a culture of drug trafficking and use of illegal arms (the Klashinkov culture) as a result of the Soviet-Afghan war.

        • The government had to deal with rampant crime, terrorism and drug addiction especially in major cities like Karachi.

        • The police and military tried to maintain law and order but were unsuccessful.

    • 12th Amendment:

      • The government passed the 12th amendment to the constitution which provided “Speedy Trail Courts” to dispense summary justice.

      • The aim of this was to control the crime rate but was criticized by the Opposition as it suppressed fundamental human rights.

    • Shariat Bill:

      • Nawaz Sharif passed the Shariat Bill in May 1991, making the Quran and Sunnah the law of the land as long as it did not challenge the existing system of government.

      • It was welcomed by the religious parties but they wanted its immediate implementation.

      • It became unpopular as the Opposition criticized the increased role of Islam in government.

Benazir Bhutto (1993-96):

Benazir returned to power in 1993 and formed a coalition govt. with some independent parties. MQM had boycotted the elections and performance of PPP was better in all provinces.

With her efforts Farooq Leghari of PPP was elected as the new President.

  • Policies:

    • Once again she tried to improve the socio-economic status of women.

      • She planned to establish women’s police stations, courts and banks but failed to make any legislation in this regard.

      • So her ‘Agenda of Change’ did not work.

    • Nawaz Sharif launched an aggressive campaign against her.

      • He started that train march from Karachi to Peshawar while attracting huge crowds.

      • Benazir arrested several opposition leaders but in vain.

    • She also faced many family feuds regarding her mother Nusrat Bhutto and brother Murtaza Bhutto.

      • Though she sidelined her mother, mysterious killing of Murtaza Bhutto by police in 1996 greatly damaged her repute.

      • Her husband Mr. Zardari also earned a bad repute for his wife as he was involved in many corruption cases and misuse of money.

    • Economic Policies:

      • She failed to privatize the UBL (United Bank Limited) by selling it to a Saudi-based company.

        • The attempt was halted due to serious doubts about the transitions.

      • In 1995, she took a heavy loan from the IMF but the economic situation worsened.

        • Due to the Kashmir issue military spending increased by 14% in 1995-96.

        • The result was inflation, unemployment, unrest and violence.

      • She had a confrontation with the Supreme Court by refusing to dismiss 20 judges appointed by the government.

    • Dismissal of the Punjab CM, Mr. Wattoo:

      • Wattoo began to exploit her weak position and start working more independently ignoring the PPP and its allies.

      • This made matters worse for her government as she had opposite expectations from the Chief Minister of the largest province of Pakistan.

    • Dismissal:

      • Some officers were arrested in this regard, and this prepared the ground for the end of her government.

      • Much to her surprise, President Leghari dismissed her government on 5th November 1996 on the charges of misgovernance and corruption.

      • Before this, army had taken control of all key points in Islamabad, and had arrested Asif Zardari.

Nawaz Sharif (1997-99):

  • Policies:

    • Nawaz Sharif was again elected as the Prime Minister in 1997.

    • This time he had a decisive majority in the parliament.

    • 13th Amendment:

      • So, his first acts was to pass the 13th Amendment which repealed the 8th Amendment that authorized the President to dismiss the Prime Minister and the assemblies.

      • This measure was supported by all political parties.

    • Anti-defection Bill:

      • To cutail instability in the country, Sharif also passed the Anti-defection Bill under the 14th amendment.

      • This prevented politicians from switching parties (political turncoats) so that they could not exploit any weak and vulnerable government.

    • Conflicts:

      • Using his powers fully, Sharif arrested journalists who wrote critical articles against him.

      • Unexpected tax inspections of the selected newspaper editors were carried out.

      • In 1997, Sharif had to defend himself in the Supreme Court on charges of corruption.

        • He, using the Parliament’s support asked the President to dismiss the Chief Justice Sajjad Ali Shah, and this led to a tussle between the government and the Supreme Court.

        • Sharif’s supporters stormed the building and proceedings had to be suspended.

    • Nuclear Testing:

      • In May 1998, Pakistan conducted nuclear explosions.

      • This increased Sharif’s popularity as people felt strengthened due to Pakistan becoming a nuclear power but it caused loss of foreign aid from the US, Japan and other countries putting Pakistan in serious economic difficulties.

    • The Sharif government had to freeze the FCA’s (Foreign Currency Accounts) of Pakistani depositors.

    • Sharif had to raise the price of fuel and negotiate bank loans to keep the government from bankruptcy.

    • He also introduced a state of emergency, curtailing all civil rights.

    • 15th Amendment:

      • Sharif tried to strengthen his position by passing the 15th Amendment which made Sharia the supreme law of Pakistan and empowered the PM to enforce the Sharia the full authority.

      • He did not ask the Senate to ratify the measure as he was uncertain about the depth of his support.

    • Perwez Musharraf:

      • Sharif’s rule went into serious trouble during the Kargil crisis during May 1999.

      • He developed differences with General Pervez Musharraf over the withdrawal of Pak Army from Kargil, Kashmir.

      • Sharif tried to replace him with his cousin Gen. Butt, but found his govt. toppled by the army on 12th Oct. 1999.

  • Reasons for Dismissal:

    • Conflicts with Media:

      • Sharif’s government became oppressive towards the opposition parties and the media.

      • The Opposition felt insecure in the parliament.

      • Journalists who wrote against his government were threatened or jailed.

      • Heavy taxes were imposed on some newspapers.

      • Sharif’s secret police kidnapped a famous editor, Mr Najam Sethi, in May 1996, but had to release him on international protests.

    • Supreme Court:

      • Sajjad Ali Shah had been appointed as Chief Justice by Benazir Bhutto.

      • He summoned Nawaz Sharif to defend charges of corruption against him.

      • Sharif wanted to reduce the number of the Supreme Court judges from 17 to 12.

      • Sajjad Ali asked the President to reinstate the 5 judges, Sharif got a motion passed from the National Assembly asking the President to dismiss the Chief Justice.

      • President Leghari, however, refused to obey Sharif’s unfair demand.

      • In November 1997, hundreds of Sharif’s supporters attacked the Supreme Court building during the proceedings of a “contempt of court case”.

      • Sajjad Ali had to leave the court with other judges. In December 1997, both the President and the Chief Justice resigned in protest.

      • After some days, Rafiq Tarar, a retired judge, loyal to the Sharif family, became the new President, and Sajjad Ali Shah was replaced by Justice Ajmal Mian as the permanent Chief Justice in a mysterious way.

      • These developments affected Sharif’s popularity and opposition grew against him.

    • Foreign Policy:

      • In May 1998, Pakistan conducted nuclear blasts in response to the Indian nuclear testing the same month.

      • Though it strengthened Sharif’s political position, his government faced serious economic challenges.

      • Japan, the US and many other countries stopped aid to Pakistan.

      • Sharif declared emergency in the country, raised fuel prices and ordered freezing of the FCAs (Foreign Currency Accounts) of all Pakistanis.

    • Relations with Army:

      • Army had been instrumental in Pakistani politics for a long time, and Sharif made a desperate attempt to exclude army from political affairs.

      • He removed the army chief, General Jahangir Karamat when he demanded a position in the National Security Council.

        • Sharif appointed Pervez Musharraf as the next chief thinking he would cooperate with the government.

        • Soon, however, Musharraf would prove more problematic than Sharif had imagined.

      • Only months after the Lahore Declaration of peace between India and Pakistan, both countries were once again on the brink of a third war.

        • The Kashmiri guerrillas crossed the LoC (Line of Control) and occupied the strategic Indian towns of Kargil and Drass in April 1999.

        • India retaliated in May 1999 and bombarded Pakistani territories heavily.

        • Sharif initially denied, but soon India provided evidence of Pakistani involvement in Kargil.

        • After failing to seek the US intervention, Sharif ordered withdrawal of Pakistan army, and this brought him in clash with Musharraf as both Sharif and army blamed each other for the failure in Kargil.

        • People, in general, also opposed Sharif’s decision.

      • Sharif feared a coup, and decided to replace Musharraf with one of his close relatives, General Zia ud Din Butt.

        • While Musharraf was on a tour to Sri Lanka, Sharif ordered the CAA (Civil Aviation Authority) not to let Musharraf’s plane land on any airport on his return.

        • This unified top army officials against Sharif, and on Musharraf’s safe landing, his government was toppled on 12th October 1999.

        • Musharraf declared military rule, not martial law, in Pakistan.

Chapter 15 - Governments in the final decade of 20th Century

Benazir Bhutto (1988-90):

Benazir Bhutto was elected as the first woman Prime Minister of Pakistan in 1988 and served in office till 1990. She had a mix of successes and failures.

  • Policies:

    • She highlighted her image as the first woman PM of the Muslim World both before the people of Pakistan and the West.

    • She ended a ban on the making of trade unions and students’ unions in order win the confidence of industrial workers and students.

    • Also many political prisoners of PPP were released that had been arrested by the Zia’s regime.

    • Moreover, she declared a general pardon for many other political prisoners.

    • She also initiated the rural electrification programme.

    • Welfare of Women:

      • First Women’s Bank was opened in 1989.

      • She recruited women in police and civil services under a special scheme and appointed for the first time women judges of the High Courts.

      • She tried to make Pakistan a democratic Islamic republic while abandoning the strict Islamic policies of Zia but this was hard to achieve.

        • She couldn’t make any legislation in this regard because the opposition dominated the Senate and the largest province Punjab was under her rival Mr. Nawaz Sharif.

      • He was able to table a no confidence motion against Benazir by the end of 1989 in the National Assembly.

        • Though the motion was defeated by just twelve votes, it was a serious blow to her government.

        • Therefore, no new laws were made to improve the status of women despite all her claims mainly because the Hudood Ordinance could not be repealed.

    • Problems:

      • She gradually lost support as her government could not fulfill the promises of reducing unemployment, making economic progress and controlling inflation and a high population growth.

      • The drug abuse problem also worsened mainly due to the presence of several Afghan refugees in Pakistan.

      • Benazir faced serious opposition by her party in Sindh.

        • She made a coalition with the MQM, a party of Urdu speaking migrants from India but the PPP stalwarts in Sindh opposed her.

        • The MQM wanted due rights at par with the Sindhi speaking population but this led to growing conflict between MQM and PPP.

        • Violence erupted in Karachi and other cities between September 1988 and May 1990 when the Pucca Qila Massacre against the MQM in Hyderabad became a reason of dismissal of her government.

    • Foreign Policies:

      • Pakistan rejoined the Commonwealth in October 1989 as Pakistan had been recognized as a country with a democratically elected government.

      • She paid a successful visit to the USA in June 1989 and the Bush administration promised an aid of over $400 million.

      • In December 1988, the Indian PM, Mr. Rajiv Gandhi visited Pakistan.

        • It was a big success because for the first time an Indian Prime Minister had visited Pakistan.

        • Both countries signed two agreements in 1989 to promote mutual peace and cooperation.

      • A hotline telephone link was set up between the two countries to be used in times of crisis.

      • The SAARC platform was also used to promote mutual ties.

      • However, the massive Kashmiri uprising since 1989 damaged the efforts of the two PM’s.

  • Reasons for Dismissal (1990):

    • Benazir Bhutto won a marginal majority in the 1988 elections.

    • She was able to form a coalition government in the Centre, but failed to do so in the largest province, Punjab.

    • Mr Sharif emerged as her most powerful rival from the platform of the IJI, a coalition of the PML and various religious parties.

      • She provoked her rival by appointing Mr Ghulam Mustafa Khar, a senior member of the PPP, as the governor of Punjab.

      • The provincial government of Mr Sharif arrested three FIA (Federal Investigation Agency) agents.

      • They were sent by the central/ federal government to investigate the case of tax evasion by a factory, Riaz Bottlers, owned by a minister of the Punjab.

      • Mr Sharif established the Bank of Punjab in 1989, but Ms Bhutto opposed it.

      • She termed it “treason against the federation “, though the 1973 constitution allowed such steps under the autonomy given to the provinces.

      • He gradually organised a “No Confidence “motion in the National Assembly in October 1989.

    • Opposition against Ms Bhutto was so great that 107 members of the Assembly voted against her while 119 were needed to disqualify her as PM.

      • Thus her government survived by a shortage of only 12 votes.

    • Benazir made an alliance with the MQM under the ‘Charter of Peace, Love and Rights’ in December 1988.

      • Both parties were diametrically opposed to each other in the political views.

    • Benazir had promised to protect the interest of the Sindhis and stamp out violence.

      • However, she failed in her mission, and there was a large scale violence in many cities of Sindh.

      • On 30 September 1988, militant Sindhis opened fire on a crowd in Hyderabad, causing 250 deaths, mostly Muhajirs/Urdu speaking people in Sindh.

      • Later, there were more incidents of riots in Karachi.

      • The most tragic event was the Pucca Qila massacre of May 1989.

      • Several workers of the MQM, alongwith women and children were killed in a shootout by police in a fort in Hyderabad.

      • Newspapers reported that the women held copies of the Quran over their heads as they cried out to the police stop shooting.

      • Demonstrations and strikes were observed at several places in Hyderabad and Karachi.

    • Finally, in August 1989, the MQM ended its alliance with the PPP and sided with Nawaz Sharif.

      • This added to her troubles as her government in the Centre as well as Sindh got weaker.

    • Benazir Bhutto failed to have comfortable relations with President Ghulam Ishaq Khan, and sometimes she openly clashed with him.

      • A major area of disagreement was over the key appointments in the military and the judiciary.

      • Ishaq Khan considered that he had the right to make such appointments as the 8th constitutional amendment had empowered him to nominate and dismiss the PM and the assemblies.

      • Both had disputes over many such appointments.

    • She faced accusations of corruption, and her husband Mr Zardari was soon arrested on charges of corruption and blackmail.

      • He was jailed for two years while Ms Bhutto defended him by saying that such charges were politically motivated.

      • Her government became unpopular as it failed to fulfill its promise of economic development and employment.

    • Inflation and unemployment remained high with a high population growth rate.

    • The government also failed in controlling the menace of drug abuse in Pakistan.

    • Due to a lack of majority in the Parliament, Benazir’s government could not make any legislation regarding the rights of women and changes in the Islamic laws introduced by General Zia-ul-Haq.

      • Therefore, President Ghulam Ishaq Khan used his power to dismiss her government on 6th August 1990 on the charges of incompetence, corruption and misgovernance of the country.

Nawaz Sharif (1990-93):

  • Policies:

    • Nawaz Sharif was first elected in 1990 from the platform of the IJI (Islami Jamhuri Ittehad).

    • He announced a national reconstruction program to industrialize Pakistan.

    • He introduced a policy of privatizing the SOU’s (State Owned Units) under which a number of important industries, such as shipping, electricity supply, airlines and telecommunications were opened up to the private sector under the Privatization Commission.

    • He introduced several large scale projects to simulate the economy, such as the Ghazi Barotha Hydro Power Project and the Gwadar Miniport in Balochistan.

    • He introduced the “yellow cab” scheme by giving loans to the unemployed youth to buy taxis.

      • This however was a failed scheme as most of the borrowers became defaulters as they were unable to repay the loans.

    • Another major project was to build the Motorway.

      • The aim was to provide a fast transportation network to the newly independent Central Asian Republics that needed access to seaports.

      • Although its first phase, the M2 (between Islamabad and Lahore) was completed in Nov 1997, the project suffered from continual delays.

    • Aids:

      • Nawaz Sharif’s economic policies were undermined by a lack of capital for investment, specially after the stoppage of the US aid of $ 564 million.

      • Foreign capital increased when he loosened foreign exchange restrictions and opened Pakistan’s stock market to foreign capital but the government still faced a shortage of funds for investment.

      • The US aid dropped significantly after the Soviet withdrawal from Afghanistan in 1988.

      • The reduction in overseas aid, high spendings by the government and a decrease in foreign remittances added to his difficulties.

    • Scandals:

      • The closure of the Bank of Credit and Commerce International (BCCI) in 1991 was linked with questionable lending practices and fraud, and blame was put on the government.

      • Sharif also lost popularity because of the ‘Co-operative Societies scandal’.

        • Cooperative societies accepted deposits from members and gave loans to them for investment schemes.

        • However, mismanagement of these societies led to their collapse in which millions of Pakistanis lost money.

        • It was soon discovered that these societies had, granted large loans to Sharifs family business, the Ittefaq Group.

        • Although Sharif hurriedly repaid the loans, his unpopularity increased.

    • Klashinkov culture:

      • There was also the problem of drug trafficking and illegal arms (the Klashinkov culture) as a result of the Soviet-Afghan war.

      • The govt. had to deal with rampant crime, terrorism and drug addiction especially in major cities like Karachi.

      • The police and military tried to maintain law and order but were unsuccessful.

    • 12th Amendment:

      • The govt. passed the 12th amendment to the constitution which provided “Speedy Trail Courts” to dispense summary justice.

      • The aim of this was to control the crime rate but was criticized by the Opposition as it suppressed fundamental human rights.

    • Shariat Bill:

      • Nawaz Sharif passed the Shariat Bill in May 1991, making the Quran and Sunnah the law of the land as long as it did not challenge the existing system of government.

        • It was welcomed by the religious parties but they wanted its immediate implementation.

        • It became unpopular as the Opposition criticized the increased role of Islam in government.

    • Nawaz Sharif’s first term ended in 1993 when Ghulam Ishaq Khan dismissed his government on the allegations of corruption and mismanagement of the economy.

  • Reasons For Dismissal (1993):

    • Nawaz Sharif gained fame for starting many new schemes but they were overshadowed by various scandals.

    • BCCI (Bank of Credit and Commerce International):

      • The BCCI (Bank of Credit and Commerce International) was the world’s 7th largest bank operating in Pakistan.

      • It was founded by Mr. Agha Hasan Abedi in 1972.

      • There were concerns about the bank’s lending practices and an investigation was conducted by a team of British accountants in 1991.

      • The team detected widespread fraud, embezzlement and manipulation in the bank.

      • Following this, the bank was closed and was required to pay huge fines.

      • Ittefaq Industries of the Sharif family was its major customer.

      • Despite its closure, the bank was allowed to operate for several months in Pakistan, raising doubts about the links of the Sharif’s government with the bank.

    • Cooperative Societies:

      • The Cooperative Societies accepted deposits from members and extended loans only to members for purposes that were beneficial for the Society.

      • Two of such societies were controlled by the relatives of Mr. Sharif.

      • In 1991, four societies in the Punjab suddenly collapsed as a result of which more than two million people lost their life- long savings.

      • The failure of the National Industrial Cooperative Credit Company was the biggest financial collapse in Pakistan.

      • Mr. Sharif’s family had borrowed huge loans from these societies, and this increased unpopularity of his government.

    • Yellow Cab Scheme:

      • Nawaz Sharif introduced the “yellow cab” scheme by giving loans to the unemployed youth to buy taxis.

      • This however was a failed scheme as most of the borrowers became defaulters as they were unable to repay the loans.

    • Economic Policies:

      • He announced a national reconstruction program to industrialize Pakistan.

      • His economic policies were undermined by a lack of capital for investment, especially after the stoppage of the US aid of $ 564 million.

      • Foreign capital increased when he loosened foreign exchange restrictions and opened Pakistan’s stock market to foreign capital but the government still faced a shortage of funds for investment.

      • The US aid dropped significantly after the Soviet withdrawal from Afghanistan in 1988.

      • The reduction in overseas aid, high spendings by the government and a decrease in foreign remittances added to his difficulties.

      • Sharif’s policy of supporting the Afghan warlords also created problems for him.

        • This led to a culture of drug trafficking and use of illegal arms (the Klashinkov culture) as a result of the Soviet-Afghan war.

        • The government had to deal with rampant crime, terrorism and drug addiction especially in major cities like Karachi.

        • The police and military tried to maintain law and order but were unsuccessful.

    • 12th Amendment:

      • The government passed the 12th amendment to the constitution which provided “Speedy Trail Courts” to dispense summary justice.

      • The aim of this was to control the crime rate but was criticized by the Opposition as it suppressed fundamental human rights.

    • Shariat Bill:

      • Nawaz Sharif passed the Shariat Bill in May 1991, making the Quran and Sunnah the law of the land as long as it did not challenge the existing system of government.

      • It was welcomed by the religious parties but they wanted its immediate implementation.

      • It became unpopular as the Opposition criticized the increased role of Islam in government.

Benazir Bhutto (1993-96):

Benazir returned to power in 1993 and formed a coalition govt. with some independent parties. MQM had boycotted the elections and performance of PPP was better in all provinces.

With her efforts Farooq Leghari of PPP was elected as the new President.

  • Policies:

    • Once again she tried to improve the socio-economic status of women.

      • She planned to establish women’s police stations, courts and banks but failed to make any legislation in this regard.

      • So her ‘Agenda of Change’ did not work.

    • Nawaz Sharif launched an aggressive campaign against her.

      • He started that train march from Karachi to Peshawar while attracting huge crowds.

      • Benazir arrested several opposition leaders but in vain.

    • She also faced many family feuds regarding her mother Nusrat Bhutto and brother Murtaza Bhutto.

      • Though she sidelined her mother, mysterious killing of Murtaza Bhutto by police in 1996 greatly damaged her repute.

      • Her husband Mr. Zardari also earned a bad repute for his wife as he was involved in many corruption cases and misuse of money.

    • Economic Policies:

      • She failed to privatize the UBL (United Bank Limited) by selling it to a Saudi-based company.

        • The attempt was halted due to serious doubts about the transitions.

      • In 1995, she took a heavy loan from the IMF but the economic situation worsened.

        • Due to the Kashmir issue military spending increased by 14% in 1995-96.

        • The result was inflation, unemployment, unrest and violence.

      • She had a confrontation with the Supreme Court by refusing to dismiss 20 judges appointed by the government.

    • Dismissal of the Punjab CM, Mr. Wattoo:

      • Wattoo began to exploit her weak position and start working more independently ignoring the PPP and its allies.

      • This made matters worse for her government as she had opposite expectations from the Chief Minister of the largest province of Pakistan.

    • Dismissal:

      • Some officers were arrested in this regard, and this prepared the ground for the end of her government.

      • Much to her surprise, President Leghari dismissed her government on 5th November 1996 on the charges of misgovernance and corruption.

      • Before this, army had taken control of all key points in Islamabad, and had arrested Asif Zardari.

Nawaz Sharif (1997-99):

  • Policies:

    • Nawaz Sharif was again elected as the Prime Minister in 1997.

    • This time he had a decisive majority in the parliament.

    • 13th Amendment:

      • So, his first acts was to pass the 13th Amendment which repealed the 8th Amendment that authorized the President to dismiss the Prime Minister and the assemblies.

      • This measure was supported by all political parties.

    • Anti-defection Bill:

      • To cutail instability in the country, Sharif also passed the Anti-defection Bill under the 14th amendment.

      • This prevented politicians from switching parties (political turncoats) so that they could not exploit any weak and vulnerable government.

    • Conflicts:

      • Using his powers fully, Sharif arrested journalists who wrote critical articles against him.

      • Unexpected tax inspections of the selected newspaper editors were carried out.

      • In 1997, Sharif had to defend himself in the Supreme Court on charges of corruption.

        • He, using the Parliament’s support asked the President to dismiss the Chief Justice Sajjad Ali Shah, and this led to a tussle between the government and the Supreme Court.

        • Sharif’s supporters stormed the building and proceedings had to be suspended.

    • Nuclear Testing:

      • In May 1998, Pakistan conducted nuclear explosions.

      • This increased Sharif’s popularity as people felt strengthened due to Pakistan becoming a nuclear power but it caused loss of foreign aid from the US, Japan and other countries putting Pakistan in serious economic difficulties.

    • The Sharif government had to freeze the FCA’s (Foreign Currency Accounts) of Pakistani depositors.

    • Sharif had to raise the price of fuel and negotiate bank loans to keep the government from bankruptcy.

    • He also introduced a state of emergency, curtailing all civil rights.

    • 15th Amendment:

      • Sharif tried to strengthen his position by passing the 15th Amendment which made Sharia the supreme law of Pakistan and empowered the PM to enforce the Sharia the full authority.

      • He did not ask the Senate to ratify the measure as he was uncertain about the depth of his support.

    • Perwez Musharraf:

      • Sharif’s rule went into serious trouble during the Kargil crisis during May 1999.

      • He developed differences with General Pervez Musharraf over the withdrawal of Pak Army from Kargil, Kashmir.

      • Sharif tried to replace him with his cousin Gen. Butt, but found his govt. toppled by the army on 12th Oct. 1999.

  • Reasons for Dismissal:

    • Conflicts with Media:

      • Sharif’s government became oppressive towards the opposition parties and the media.

      • The Opposition felt insecure in the parliament.

      • Journalists who wrote against his government were threatened or jailed.

      • Heavy taxes were imposed on some newspapers.

      • Sharif’s secret police kidnapped a famous editor, Mr Najam Sethi, in May 1996, but had to release him on international protests.

    • Supreme Court:

      • Sajjad Ali Shah had been appointed as Chief Justice by Benazir Bhutto.

      • He summoned Nawaz Sharif to defend charges of corruption against him.

      • Sharif wanted to reduce the number of the Supreme Court judges from 17 to 12.

      • Sajjad Ali asked the President to reinstate the 5 judges, Sharif got a motion passed from the National Assembly asking the President to dismiss the Chief Justice.

      • President Leghari, however, refused to obey Sharif’s unfair demand.

      • In November 1997, hundreds of Sharif’s supporters attacked the Supreme Court building during the proceedings of a “contempt of court case”.

      • Sajjad Ali had to leave the court with other judges. In December 1997, both the President and the Chief Justice resigned in protest.

      • After some days, Rafiq Tarar, a retired judge, loyal to the Sharif family, became the new President, and Sajjad Ali Shah was replaced by Justice Ajmal Mian as the permanent Chief Justice in a mysterious way.

      • These developments affected Sharif’s popularity and opposition grew against him.

    • Foreign Policy:

      • In May 1998, Pakistan conducted nuclear blasts in response to the Indian nuclear testing the same month.

      • Though it strengthened Sharif’s political position, his government faced serious economic challenges.

      • Japan, the US and many other countries stopped aid to Pakistan.

      • Sharif declared emergency in the country, raised fuel prices and ordered freezing of the FCAs (Foreign Currency Accounts) of all Pakistanis.

    • Relations with Army:

      • Army had been instrumental in Pakistani politics for a long time, and Sharif made a desperate attempt to exclude army from political affairs.

      • He removed the army chief, General Jahangir Karamat when he demanded a position in the National Security Council.

        • Sharif appointed Pervez Musharraf as the next chief thinking he would cooperate with the government.

        • Soon, however, Musharraf would prove more problematic than Sharif had imagined.

      • Only months after the Lahore Declaration of peace between India and Pakistan, both countries were once again on the brink of a third war.

        • The Kashmiri guerrillas crossed the LoC (Line of Control) and occupied the strategic Indian towns of Kargil and Drass in April 1999.

        • India retaliated in May 1999 and bombarded Pakistani territories heavily.

        • Sharif initially denied, but soon India provided evidence of Pakistani involvement in Kargil.

        • After failing to seek the US intervention, Sharif ordered withdrawal of Pakistan army, and this brought him in clash with Musharraf as both Sharif and army blamed each other for the failure in Kargil.

        • People, in general, also opposed Sharif’s decision.

      • Sharif feared a coup, and decided to replace Musharraf with one of his close relatives, General Zia ud Din Butt.

        • While Musharraf was on a tour to Sri Lanka, Sharif ordered the CAA (Civil Aviation Authority) not to let Musharraf’s plane land on any airport on his return.

        • This unified top army officials against Sharif, and on Musharraf’s safe landing, his government was toppled on 12th October 1999.

        • Musharraf declared military rule, not martial law, in Pakistan.

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