Ans: Impact of Nationalization on Industry. Education, Commerce and
Trade:
(a) Industry:
Here are the positive and negative impacts of nationalization of industry
Positive impact:
i Due to the Labour Reforms of 1972, the exploitation of the labourers was
ended. Their salaries and other benefits were increased.
ii The industrial institutions began to pay all duties and taxes to the
government, which increased the national income, and the country advanced
towards progress.
iii The mill owners showed better attitude with the labourers. Strikes were
gradually decreased.
iv The hold of 22 families in the industrial circle ended and the capitalist class
was discouraged.
v The control over the industrial units helped the government to maintain the
prices of the industrial goods.
Negative impact:
i Since the industries came under government control, the capitalists set up
only few industries in Pakistan, due to which the industrial development
slowed down. By taking the control of industrial units, the government
expenditure increased tremendously.
ii The labour unions took advantage of the political freedom and went on
strikes and demonstrations frequently for seeking increase in benefits, which
affected greatly the performance of the units.
iii Political appointments of the labourers were made in the industrial units for
nothing who were interested more in benefits than in work. So the speed of
work became slow gradually.
iv The salaried staff did not shoulder their responsibility seriously which
promoted corruption in the country.
v Due to government control, many low-production units were also running
which increased the burden on the national treasury.
Education:
Here are the positive and negative impacts of nationalization on education.
Positive impacts:
i The government of Mr. Bhutto nationalized many of the private educational
institutions in the country in 1971. The salaries of the educational staff
working in these institutions were very meager. Due to nationalization, the
financial benefits of the employees were brought on a par with those of the
government educational institutions.
iiStudents were given special concessions in transport fares which
encouraged the poor parents for sending their children to the government
schools. The student scholarships were also increased four times.
iii Many medical, engineering and professional universities were established
for the better development of the country, Schools and colleges were
upgraded which opened the door for higher education.
iv Training institutions for the school teachers were established in the entire
country, and thousands of untrained teachers were given employment
v Approval was given to set up Allama Iqbal Open University, which provided
the students an opportunity to study through correspondence and electronic
media. Centres for adult education were also opened.
Negative impacts:
i By nationalization of the private educational institutions the government ha
to pay the salaries of the staff from the national treasury. This financia
burden increased the difficulties of the government.
ii The owners of the institutions were unhappy for this nationalization and
started struggle to get back their educational institutions.
iii By providing concession to the students in transport farès, tension
developed between the transport owners and students.
iv The unlimited liberty made the students negligent in their educationa
activities which was a great concern for the parents.
v The student unions were organized in the institutions through the politica
parties which were a great threat to peace and security.
Commerce and trade:
Here are the positive and negative impacts of nationalization on commerce
and trade:
Positive impact:
i The nationalization of industrial units increased the production of the state
industries.
ii The Bhutto government encouraged the import of machinery and raw
material for industrial expansion. The trade balance of Pakistan improved
and the country was marching to the progress. Economic growth started in
the country.
iii The export was increased. Even the vegetables and onions began to be
exported.
iv Agricultural reforms increased farm produce which enhanced national and
foreign trade.
Negative impact:
i Inflation affected the salaried class the most. Devaluation of currency though
increased export, but also increased the price of commodities.
ii The import of luxury goods increased. There was an increase in the import
expense of machinery which affected the balance of payment.
iii Due to the burden on the national treasury, the secure reserves of foreign
exchange started decreasing.
iv The increase in oil prices tumbled the trade balance of Pakistan in 1973.