Ans Perivatisation and industrialization during the Musharraf era:
Before Pervez Musharraf, Benazir Bhutto and Mian Muhammad Nawaz Sharf
started privatization process. Its aim was to end poverty and the payment of
foreign loans. In Musharraf and Shaukat Anz’s government, the income from
privatization was spent on the payment of foreign loans and social welfare. The
Habib Bank was sold for only Rs. 22 billion and the UBL was sold for only 13
billion rupees in Dec. 2664. The Privatization Commission sold 26% shares of
the PTCL to Etisalaat, a Dubai company, Pak-Arab Fertilizer of Mirpur Mathelo
for 8 billion, the Pak-Arab Fertilizers of Multan for 13 billion, and Pak American
Fertilizers, the largest government factory, was sold for 16 billion rupees. The
Musharraf and Shaukat Aziz’s government earned 2.5 billion dollars in a year
through privatization.
Setting up of new industries:
During Musharraf’s government, many new industries were set up in the
country. Car assembly plant industry, motorcycle assembly plant industry,
sugar industry, chemical industries, industries for making goods of basió
needs, electrical equipment industries, cement industries and steel making
industry are worth mentioning
Impact of privatization:
Positive impacts:
The government income increases by privatization. The load on the
i Government to run the institutions is reduced or comes to zero.
ii Private institutions are encouraged and investment in the country increases
iii Quality goods are produced in factories and the work capacity of the
employees is increased
Negative impacts:
i Unemployment increases and employees lose their jobs
ii The country’s capital decreases and the personal capital increases.
iii The cost of goods increases.
iv Privatization creates unrest and insecurity among the employees working in
an institution.
b Economic Reforms Introduced by Pervez Musharraf and Shaukat
Aziz:
i Increase in GDP and setting up of new industries:
Pervez Musharraf and Shaukat Aziz paid special attention to Gross
Domestic Product (GDP). There was a 7% increase in it. They made
economic policies and set up new industries in the country.
ii Incentives of Investment:
The overseas Pakistanis were advised to make investment in different fields
of their country for future development. The foreign investors were also
advised to make investments in Pakistan. 22% increase in the investment
was achieved.
iii Reduction in country’s deficit:
Before the Musharraf period the country’s deficit was 7%, which was brought
down to 4.5%. He took many positive measures to reduce poverty from 32%
to 20%.
iv Obtaining energy:
In order to get continuous supply of electricity and obtain energy, plans were
made to increase hydel power production, and change thermal plants to gas
and coal plants,