Zulfikar Ali Bhutto, 1971-77

This handout covers Bhutto's government after the loss of East Pakistan: the Simla Agreement, the 1973 constitution, his reforms, the 1977 elections and the reasons for his fall. It belongs to Section 3 of the syllabus: nationhood 1947-99.

Key dates

Date	Event
20 December 1971	Bhutto becomes President and Chief Martial Law Administrator
January 1972	First nationalisation of major industries
March 1972	Land reforms announced
2 July 1972	Simla Agreement signed with India
14 August 1973	New constitution comes into force; Bhutto becomes Prime Minister
1974	Banks nationalised; Islamic Summit in Lahore; Pakistan recognises Bangladesh
1976	General Zia-ul-Haq appointed Chief of Army Staff
7 March 1977	General election: the PPP wins a large majority
March to July 1977	Protests led by the Pakistan National Alliance (PNA)
5 July 1977	The army under General Zia-ul-Haq takes power

Background: Pakistan in December 1971

Bhutto's Pakistan People's Party (PPP) had won most of the West Pakistan seats in the 1970 election with the slogan "roti, kapra aur makan" (food, clothing and shelter) and a programme called Islamic socialism. When Yahya Khan resigned after the defeat of 1971, Bhutto took over a country that had lost its eastern wing. About 90,000 prisoners of war were in India, Indian troops held Pakistani territory and the army's reputation was damaged.

The Simla Agreement, 1972

Bhutto met the Indian Prime Minister, Indira Gandhi, at Simla in July 1972. The main terms were:

• Both countries would settle their disputes peacefully through direct (bilateral) talks.
• Both would respect the Line of Control in Kashmir, the ceasefire line of December 1971, and not try to change it by force.
• Troops would withdraw to their own side of the international border, so Pakistan recovered the territory India had taken in the West.
• The return of prisoners of war was left for later talks. They came home after a further agreement in 1973.

Importance: Bhutto recovered land and, in time, the prisoners without formally giving up Pakistan's position on Kashmir, and this raised his popularity. India gained Pakistan's promise to treat Kashmir as a matter between the two countries, which made it harder to take the dispute to the United Nations.

The 1973 constitution

Martial law was lifted in 1972. A committee from all the parties in the National Assembly prepared a new constitution, which was passed with the agreement of the opposition and came into force on 14 August 1973.

• Pakistan would be a federal, parliamentary state. The Prime Minister, as leader of the majority in the National Assembly, held real power; the President was a ceremonial head of state.
• Parliament had two houses. The National Assembly was elected by adult vote on the basis of population. The Senate gave each province equal representation, to protect the smaller provinces.
• Islam was the state religion. The President and Prime Minister had to be Muslims, and a Council of Islamic Ideology would advise on laws.
• Fundamental rights such as freedom of speech and religion were guaranteed, and the courts could protect them.

Bhutto became Prime Minister and Chaudhry Fazal Elahi became President. The constitution is still, with amendments, the basis of government in Pakistan. In practice Bhutto soon amended it to increase his own powers and limit those of the courts.

Reforms

Industry: nationalisation

• In January 1972 the government took over major industries, including iron and steel, heavy engineering, chemicals, cement and public utilities. Later it took over life insurance, the vegetable oil (ghee) industry, the banks (1974), and in 1976 flour, rice and cotton-ginning mills.
• Aims: to break the hold of the "22 families", to use profits for the public good, to direct investment and to improve workers' conditions.
• Results: the power of the big industrial families was reduced. But the civil servants put in charge often lacked business experience, private investors lost confidence and moved money abroad, and the world oil price rise of 1973 pushed up costs. Industrial growth slowed.

Agriculture

• The 1972 land reforms cut the ceiling on holdings to 150 acres of irrigated or 300 acres of unirrigated land.
• Tenants were given more security: they could not be evicted without good reason and had the first right to buy the land they farmed.
• Results: some land was given to tenants, but many landlords had already transferred land to family members or used influence with officials to avoid the law.

Education

• Private schools and colleges were nationalised from 1972. The aim was free primary education for all and a higher literacy rate, which was then about one in four of the population.
• Results: there were too few teachers and buildings, classes were overcrowded and standards in many nationalised schools fell. Many poor families still kept children at work.

Health

• Rural Health Centres and Basic Health Units were planned so that villagers had a clinic within reach.
• Medicines were to be sold under their chemical (generic) names and not brand names, to cut prices.
• Results: access improved, but there were never enough doctors willing to work in villages. The generic medicines scheme lowered prices but reduced the profits of drug companies, some of which left Pakistan, and there were complaints about quality.

Administration

• The civil service was reorganised in 1973. The old elite cadre lost its privileged position, a single system of grades was introduced and outsiders could be brought in at senior levels. Critics said this allowed appointments on the basis of loyalty to the PPP.
• The Federal Security Force (FSF) was formed in 1972 to help the police. It was accused of being used against his opponents.
• The elected provincial government in Balochistan was dismissed in 1973 and the government of the North-West Frontier Province resigned in protest. The army was then used against an uprising in Balochistan for several years.

The 1977 elections

Bhutto called a general election for 7 March 1977. Nine opposition parties, ranging from religious to left-wing groups, joined together as the Pakistan National Alliance (PNA). It called for Islamic rule (Nizam-e-Mustafa).

The official result gave the PPP 155 of the 200 National Assembly seats and the PNA 36. The PNA said the result had been rigged, boycotted the provincial elections held a few days later and demanded fresh elections.

Why did Bhutto fall from power in 1977?

1. The disputed election. The size of the PPP's win was not believed. Strikes and demonstrations spread through the cities and many people were killed in clashes with the police and the FSF.
2. His style of government. Opponents had been arrested, newspapers controlled and provincial governments removed. This united very different parties against him.
3. Economic discontent. Nationalisation had turned industrialists, traders and shopkeepers against the government, especially after the 1976 takeover of small mills. Rising prices hurt the urban middle class, who were the strength of the PNA protests.
4. Religious opposition. Religious parties rejected Islamic socialism. In April 1977 Bhutto tried to win them over by banning alcohol and gambling and making Friday the weekly holiday, but this did not end the protests.
5. The role of the army. Bhutto declared martial law in Karachi, Lahore and Hyderabad, which drew the army into the crisis. Talks with the PNA dragged on into July. On 5 July 1977 the Chief of Army Staff, General Zia-ul-Haq, whom Bhutto had promoted over more senior generals, arrested the leaders of both sides and took power, saying that the country was close to civil war.

How successful was Bhutto's government?

Successes: he restored confidence after 1971; the Simla Agreement recovered territory and prisoners; the 1973 constitution was agreed by all parties and has lasted; land and labour reforms and new schools and clinics were aimed at the poor for the first time; Pakistan hosted the Islamic Summit of 1974.

Failures: nationalisation damaged investment and growth; land reform was evaded; education and health reforms lacked money and staff; he governed in an authoritarian way, using the FSF and emergency powers; the Balochistan conflict and the handling of the 1977 election destroyed trust.

Judgement: Bhutto's foreign policy and constitution were real achievements, and his reforms changed what ordinary people expected from government. His domestic reforms, however, achieved less than they promised, and his treatment of opponents left him without allies when the 1977 crisis came. He was more successful in rebuilding the state than in running it.

Key terms and people

• Nationalisation: the state taking ownership of private businesses.
• Islamic socialism: the PPP's programme of social equality presented in Islamic terms.
• Federal Security Force: a government force created in 1972.
• Pakistan National Alliance: the nine-party opposition alliance of 1977.
• General Zia-ul-Haq: Chief of Army Staff who removed Bhutto.

Exam practice

1. Describe the terms of the Simla Agreement of 1972. [4]
2. Why did Zulfikar Ali Bhutto nationalise industries and banks? [7]
3. "The disputed election of 1977 was the main reason for Bhutto's fall from power." How far do you agree? Explain your answer. [14]

Outline answers

1. Signed in July 1972 by Bhutto and Indira Gandhi; disputes to be settled peacefully by bilateral talks; the Line of Control in Kashmir to be respected; forces to withdraw from territory taken across the international border; prisoners of war to be discussed later.

2. Three explained reasons: (a) to reduce the wealth and power of the 22 families who had controlled industry and banking under Ayub Khan; (b) to carry out the PPP's election promise of Islamic socialism, using profits and bank credit for the benefit of ordinary people and improving workers' rights; (c) to let the government plan the economy and direct investment into heavy industry that private owners had neglected.

3. Agree: the result was widely thought to be rigged; the PNA refused to accept it; months of violent protest followed; martial law in three cities brought in the army. Other reasons: authoritarian rule, the FSF and arrests; anger over nationalisation and inflation; religious opposition; Balochistan; the army's readiness to act. Judgement: the election was the trigger, but it caused such a strong reaction only because of resentment built up since 1972; without that, a disputed result might have been settled by talks.