Industrialization in Pakistan: What We Can Learn from Ayub Khan’s Era

Introduction

Pakistan is currently experiencing various forms of pain due to the ongoing industrial downturns. Regardless of where the nation finds itself as of today, it is human nature to look forward. Then, there are crossroads where a person looks backward to hold on to hope (if possible). Such is the situation in Pakistan, where the road ahead appears hazy at first glance. The nationals have to look back through history at the gleaming folds of development Pakistan has ever seen. One such era was Ayub Khan’s, a military regime that shook the political stage yet kept on developing the country’s many sectors in unprecedented ways. President Iskander Mirza appointed Ayub Khan as chief martial law administrator in Pakistan in 1958, who swiftly ousted the former and assumed the role of president of Pakistan. Despite the flaws associated with that era or, more importantly, the manner in which Ayub Khan came into view, industrialization sparks elegantly in his time when one considers the history of Pakistan.

Leading Industrialization in Pakistan

Productions thrived in both East and West Pakistan, thanks to his 10-year development schemes. From large-scale industries to small-scale industries, what distinguishes that era’s development from the years that followed revolves around control over seemingly uncontrollable Pakistan’s issues, such as pressing mafias and blackmailing landlords. In other words, the positively etched rule of law, a problem Pakistan still faces today, was a game changer and motivator for the locals. An example of this is the fierce action against corrupt officials in government offices.

Ayub Khan addressed much more than just that gaping hole. Being quick enough to identify the patterns, he realized that lagging infrastructure has failed industrialization in Pakistan, just like tattered wings fail a bird traveling great distances. He developed infrastructure projects such as the construction of monumental buildings (Minar-e-Pakistan, for example), the establishment of new universities and new campuses for the older ones, and the preservation of historical and would-be historical places in Pakistan.

During his reign, the Ravi, Chenab, Jhelum, and Attock districts’ bridges, as well as the pillar-less steel bridge over the Indus River, were completed. He also developed the experimental electrical train on dedicated lines, which opened a hopeful door for the country’s ever-increasing fuel consumption. Thus, he steered Pakistan toward development by laying the groundwork for industries. The first automobile, cement, and fertilizer industries were established during his tenure. Tea processing plants, paper mills, and tank and railway engine manufacturing industries are also contributors.

This era is also marked by the construction of 17 jute mills, an annual increase in jute production of 15-18%, and in cotton textile production of 13-15%. The internationally supported industrialization, China’s assisted Heavy Mechanical Complex Taxila, for example, beckon the historians to pen the gleam of his times. The same is the pioneering era in regards to dam construction and power improvement. Numerous initiatives were started, including the construction of the Tarbela Dam and schemes for electricity. The era had the War of 1965 in it; regardless, the light behind the cloud was warm and bright for Pakistan.

Foreign aid and World Bank assistance were critical to industrialization growth in Pakistan during President Ayub Khan’s tenure. The World Bank provided large sums to the organizations PICIC, IDBP, and PIDC, which became actively involved in deepening the industrial roots in Pakistan. The state’s new policy went beyond the conventional ways to promote industries in Karachi, the industrial backbone of that time, and outside it. Licensing the medium-sized industries also welcomed the new day’s dawn for cotton production.

Tariff protection, factory subsidies, and incentivized investment policies provided brilliant direction to traditional industries, particularly textiles. What foreigners want to import is quality, which Pakistan had cultivated significantly at the time. Thus, the exports improved in both quality and quantity.

His administration was quick to assess Pakistan’s issues in terms of industries, funds, and direction. GDP increased from 3% to 6% annually, while the manufacturing sector grew by 9% annually. That is not all. The adoption of Green Revolution technologies resulted in a 4% growth rate in the agricultural sector. Pakistan’s exports were reported to exceed the combined exports of Malaysia, Thailand, and Indonesia by 1969.

How that happened is incomplete without mentioning the schemes, such as bonus schemes, and the fierce financial security of governments. When surrounded by such motivators, the private industries worked diligently, and exports increased.

The establishment of finance-focused organizations such as the Pakistan Industrial Credit and Investment Corporation (PICIC) and the Industrial Development Bank of Pakistan (IDBP) also put Ayub Khan’s regime in the spotlight. They were funded by the World Bank and promoted industrialization in the public sector. The Pakistan Industrial Development Corporation (PIDC), the All-Pakistan Textile Mills Association, and the Pakistan Industrial Finance Corporation (PIFC) secure the industrial direction for both government and private stakeholders. Privatization and the private-industry economy also flourished through them.

The analysts also note that the Pakistani state intervened to protect small-scale, local industrial work. The emphasis was on peaceful industrial growth. That is what most governments in Pakistan try to focus on. However, the difference is significant in terms of the consequences, owing in part to Khan’s stern take against radical groups in industrialization.

A Bird’s Eye View of His Industrial Approach

1. He established an atmosphere to bring home foreign investment in addition to making it safe for the public to invest in industries.
2. He addressed the intricate and deep issues of corruption and sabotaging employees, and locals in general, by helping the small and medium-scale industries to find a ground.
3. He established heavy industries and mills while also bringing home the innovative sectors such as test electrical trains, which improved the employment direction and offered vision to the young and experienced minds.
4. He established dams, fossil fuel and renewable energy-based projects to facilitate the water and energy sector, which, in turn, benefited the industrial sector.
5. It was in his era that Pakistan signed up for regional cooperation for development with Iran and Turkey to facilitate the development among each other.
6. Foreign aid, especially the assistance from China, helped Pakistan to build several large scale industries.
7. The GDP growth and lower inflation rate speak volumes about how he contributed via industrialization.

What Went Wrong Then?

At the time of industrialization in Pakistan, the state was reaping the benefits of its efforts in terms of investment from both domestic and foreign stakeholders. Raw materials and processing machinery, production and exports, and evolving industrial projects—everything was almost fine in West Pakistan. However, the situation in East Pakistan was less promising.

Foreign aid would land in Western industrial hubs, outperforming East Pakistan in annual growth. The 22 families with 66% industries and 80% banking also belonged to West Pakistan. The golden era of Ayub Khan is referred to as such, but the investment dividends and difference in growth that followed speak otherwise. It was natural for the people of East Pakistan to question the government’s intentions, whether as complaints or as an injury buried within.

Thus, the plus point of Ayub Khan’s regime revolves around the government’s focus. But the weakness also revolves around focus. West Pakistan has already had a solid ground for industrialization; for a pioneer like Ayub Khan, it was the safer place to bring about change. However, unbeknownst to him, the problems infuriated East Pakistan, resulting in a sense of missing out on what the state had to offer. On the whole, his industrialization approach was an asset to Pakistan but not an all-encompassing for he ignored the already impoverished Pakistan.

What Has Today’s Pakistan Yet to Learn from History?

“Those that fail to learn from history are doomed to repeat it.”

Winston Churchill

In today’s Pakistan, CPEC, being one of the biggest projects Asia’s history has ever witnessed, is the light at the end of a tunnel. However, Pakistan is lagging behind its targets, be it as pending dues or as unheeded CPEC projects. Despite the fact that the delayed progress of CPEC can be knitted to multifaceted factors, the response of Balochistan’s citizens has the position as one of the top issues. Analysts have found the missing sense of being involved in projects in locals. The result is impedance and a breach of the bond the federal government shares with that province.

Other Pakistani provinces might be able to contribute more to development than the current Baluchistan, but history begs us not to repeat what has happened in the past. Similarly, underappreciated and often overlooked, visibly smaller populations in remote locations have been waiting for ages to see the light of development from behind the clouds. Any project that excludes the satisfaction and consent of the entire country is doomed to failure. Thus, it is high time for the policy makers to consider the areas silently mourning their deprivations in today’s fast-paced world.

Conclusion

Industrialization during the reign of Ayub Khan included the establishment and development of small, medium-sized, and heavy industries in Pakistan. Instead of allocating funds in an ad hoc manner, he created an environment in which foreign and domestic stakeholders could steer the fog away from industries. The government exercised control by establishing central development organizations and cooperation and allocating funds to them. His era’s industrial growth was also due to well-planned development projects in other sectors, such as water, energy, and infrastructure.

However, the period is incomplete without addressing the major issues it engendered directly or indirectly. Because of the potential, the focus was primarily on West Pakistan. Thus, an already underdeveloped part was further overlooked, and it played a significant role in the insecurity that East Pakistan had been developing for the central government. Looking at the current situation, one can see a connection between the CPEC’s progress and the attitude of Balochistan nationals toward it. Thus, it is necessary to address their issues so that Pakistan can evolve as a whole.

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