General Ayub's Economic Policy

General Ayub Khan (1958-68)
Army takeover by General Ayub Khan in Oct 1958 brought about a fresh era for progress in Pakistan. The decline in the economic condition and political uncertainty had made them wary of legislators. Economic and social improvements were high on Ayub’s agenda. These modifications included economic development and facilitating basic needs such as food to the general public of Pakistan. A number of contracts, including land reforms and education were set up to examine the policies and give recommendations. Even though the Planning Commission was recognized in the public mind mostly with the preparation and execution of the 5 Year Plans, under Ayub’s era it had much wider role in the economic policy directions. The Planning

Like many emerging countries, Pakistan did not give special significance to its exports during early period. As a result the national reserves were not used according to the capacity they had. In the first half of the 1960’s, sufficient availability of foreign exchange meant that the private area was not constrained by plan allocations, but after 1965, with reserve scarcities emerging, the plan allocations became more obligatory. It was because of war with India which led to some limitations on

Oil price blow of the 1970s as well as deficiencies, floods and the withdrawal of outside support did not help the circumstances either. The growth rate in the 1970s fell to 3.7% per annum as compared to 60s.
Financial Crises:
Long period of conflicts, catastrophes and war with India resulting in loss of half of the country had created severe financial crises for the country. These were made serious by adverse effects of Ayub Khan’s economic policies had created. The 1973 OPEC (Oil Producing and Exporting Countries) price raises played chaos with Pakistan’s import bill and the BOP declined. This was a serious issue for the government since state treasury did not hold much reserve.
Massive Floods:
In August 1973, floods of intense measure removed the extent of the country. The instant result was in the form of skyrocketing price walks in consumer goods. Cotton crop sustained to be precious by pests and floods. OPEC oil price amplified in 1973 and world recession thereafter compressed badly on trade. Continuing cotton crops failure and floods in 1973 and 1974 (with pest attack) and 1976 posh exports and agriculture