Industrialization and privatisation Nawaz Sharif

shortly after assuming office of prime minister, sharif announced economic policy under programme called, national economic reconstruction programme (nerp). programme introduced extreme level of western-styled capitalist economic system.

acknowledged since unemployment had become pakistan s greatest disadvantage in economic growth , industrial , privatisation growth solve economic slow down. intensified privatization programme commenced, embarked , presided sharif, in vision turning pakistan (south) korea encouraging greater private saving , investment accelerate economic growth. . in 1990, sharif announced nuclear policy , aimed continue peaceful atomic programme benefit country s economic infrastructure. sharif expanded , industrialised nuclear energy program in entire country , peaceful , economic infrastructure extensively built him 1990s. many of nuclear medicine , nuclear engineering projects completed under government part of sharif s atoms peace program.

the privatisation programme came direct response zulfikar ali bhutto , peoples party led benazir and, instance, sharif s spontaneous privatisation programme swift nationalisation programme of peoples party in 1970s. prime minister sharif lacked charisma , personality of zulfikar ali bhutto countered bhutto s ideology full force, imitating him. during period of 1990–93, around 115 nationalised industries put under private-ownership management programme came highest surrounding controversies lacked competition programme largely controlled favoured insider. recklessness , favouritism shown in privatisation of industrial , banking units prime minister nawaz sharif become hallmark , rise of strong business oligarch have concentrated enormous assets, further increasing wealth gap in pakistan , contributing political instability.

privatization programme reached gdp growth rate 7.57% (1992) dropped @ 4.37% (1993; 1998).

sharif upgraded islamic laws such shariat ordinance , bait-ul-maal (to poor orphans , widows) drive country on model of islamic welfare state. sharif family affectee of zulfikar ali bhutto s nationalisation policy. number of important industries, such pakistan national shipping corporation, national electric power regulatory authority, pakistan international airlines, pakistan telecommunication corporation, , pakistan state oil opened private sector. in 1990, prime minister sharif privatised national development finance corporation

he introduced , inaugurated several large-scale projects stimulate economy, such ghazie-barotah hydropower plant. however, unemployment remained challenge, therefore sharif imported thousands of privatised yellow-cab taxis many young pakistanis, program came @ cost. few of loans repaid government , sharif found difficult privatise these taxis @ low rate, since young , poor not afford @ higher price. however, sharif indeed privatised these taxis @ low rate , steel industry forced pay remaining cost. during first , second term, sharif intensified policies of industrialisation , privatisation of major industries nationalised former prime minister zulfikar ali bhutto. undoing done in 1970s remained challenge sharif but, despite economical slow down, sharif reverted major policies of bhutto , under short span of time, 90% of industries industrialised , privatised him. radical move had positive impact on country s economy , economy progressed @ appropriate level. sharif policies continued benazir bhutto, nationalised industries needed government bail out plan, , pervez musharraf , shaukat aziz in 2000s managed privatised of major industries end term in 2008.

in second term, prime minister sharif built pakistan s first major motorway known m2 motorway (3mm), called autobahn of south asia. semi-government , semi-private mega-project completed in november 1997 @ cost of us$989.12 million. critics questioned layout of highway, criticizing excessive length, being away important cities, , absence of link roads important towns. furthermore, funds allocated construction of indus highway linking peshawar karachi shifted m2 motorway benefiting native punjab , kashmir provinces @ cost of other provinces. when true nature of sharif s motives exposed, people of other provinces extremely displeased, leading discordance , disharmony among provinces. welfare of other provinces, notable sindh , balochistan province, not taken sharif , ruling chief ministers , people of these provinces disenchanted him. after completion of mega project, sharif s policies undermined lack of capital investments. there influx of foreign capital when loosened foreign exchange restrictions , opened karachi stock exchange foreign capital, government remained short of funds investments.

during first term, sharif focused industrialisation on punjab , kashmir provinces, mild , few projects completed in khyber , balochistan provinces. while, sindh province did not benefit industrialisation. after receiving intense criticism pakistan peoples party , liberal-secular mutahidda qaumi movement (mqm), sharif launched orangi cottage industrial zone completed , inaugurated him. however, prime minister s reputation in sindh damaged because of focused on beautifying lahore , kashmir while neglected other provinces. sharif s industrialisation targeted opponents focused , circled on punjab , kashmir, sharif s native provinces. opponents argued sharif, prime minister, obtained permits building factories himself , business. sharif blamed expanding , finance armed forces secretive industrial conglomerate and, blamed bribing generals protect himself. sharif gave strong , vehement criticism former prime minister zulfikar ali bhutto s socialist economics policies, citing lamentable state of pakistan . privatisation policies staunchly criticised former science advisor dr. mubashir hassan, calling sharif s privatisation unconstitutional . other ppp members stood fact nationalisation measures protected parliament gave policy constitutional picture , status. peoples party felt privatisation policies illegal, had taken place without parliamentary approval , parliament not taken in confidence.

by end of sharif government s second term, economy in turmoil. government faced serious structural issues , financial problems; inflation , foreign debt stood @ all-time high, , unemployment in pakistan had reached highest-ever point. pakistan had debts of $32bn against reserves of little more $1bn. international monetary fund (imf) had suspended aid, demanding country s finances sorted out. sharif attempted put stock exchanges under government control, move backfired brutally on him; time deposed, country heading financial default.