Nationalisation in Pakistan
The process was first introduced, promulgated and implemented by Zulfikar Ali Bhutto and Pakistan Peoples Party to lay the foundation of socialist economics reforms to improve the growth of the national economy.
[4] The nationalisation programme began on 2 January 1972, with a vision to promote economic democracy, liberalisation, and an initial mainstream goal to put Pakistan in line with state progressivism.
[3] Ended effectively in 1977, the nationalisation programme was again put forward by Prime Minister Benazir Bhutto in 1996,[5] and most recently by then-current Prime minister Yousaf Raza Gillani in 2012 who activated the programme to bring three major megacorporations (Steel Mills, Railways and International Airlines) under government ownership in an attempt to improve its structure and to alleviate its profitable process.
On 1 January 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 nationalised all major metal industries, including iron and steel, heavy engineering, heavy electricals, petrochemicals, cement and public utilities except textiles industry and lands.
In September 1973, the Pakistani government nationalized the vegetable ghee industry, which at the time was a minor consumer goods sector with a total capital investment of Rs200 million.
"[9] Banks ...which till (Monday) were the private property of a group are now public property.... All our big industries in the private sector were set up largely on the basis of financial accommodation provided by the banks and the financial institutions..... Because of the previous governments obsessions with GNP growth, (...)... industrial power was concentrated in the hands of few robbers baronsOn 1 April 1973, Bhutto held a meeting with members of Lahore Chamber of Commerce and Industry and maintained: Activity of public sector prevents the concentration of economic power in few hands and protects the small and medium entrepreneurs from the clutches of giant enterprises and vested interestsThe third phase soon launched on 1 July 1976, small agro-based industries were privatized to facilitate the simple processing of agricultural products in rural areas.
[3][10] In July 1976, the government nationalized major industries, including cotton ginning, rice husking, and large flour mills across Pakistan, excluding those with foreign direct investments.
[10] Properties under construction, residential houses with machinery, and even livestock facilities within industrial premises were also nationalized, adding to the uncertainty and administrative challenges.
[10] Similarly, the Cotton Trading Corporation managed fewer than half of the nationalized ginning units and was criticized for doubling its workforce within a year, contributing to its inefficiency.
[10] However, this approach shifted in August 1973 when regulations were amended to allow for the acquisition of a majority share ownership in these units, offering financial compensation to the former owners.
[5] During the election campaign in 1988, Benazir Bhutto promised to the industrial sector to end nationalisation programme and to carry out the industrialisation by means other than state intervention.
In 1998, Prime minister Nawaz Sharif imposed economic emergency after performing nuclear deterrence in a direct response to India.
The nationalisation programme was again promulgated by Prime Minister Yousaf Raza Gillani on 15 December 2011, in order secure and rescue the former state-owned enterprises.
After 1976, Bhutto's aggressive authoritarian personal style and often high-handed way of dealing with political rivals, dissidents, and opponents had also alienated many....The Pakistan Peoples Party's intellectuals on the other hand, vigorously defended the nationalisation programme.
