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ECONOMIC REFORM ORDER OF 1972

ECONOMIC REFORM ORDER OF 1972 On 1 January 1972, only two weeks after assuming political power, President Zulfikar Ali Bhutto issued a presidential order entitled “The Economic Reform Order of 1972” The Order gave the government the authority to nationalize 31 large industrial units belonging to 10 categories of “baic industries” Its implementation brought about a major shift in the approach of the government toward industrialization The Industrial Policy of 1948 and the policies pursued by the government of President Ayub Khan had assigned only a supportive role to the public sector The Bhutto administration now required the public sector to scale the commanding heights of the economy The impact of the 1972 nationalization and those that were to follow-the takeover of the vegetable oil industry in 1974 and of the rice husking, cotton ginning, and wheat flour industries in 1976-were to completely reorder the industrial sector Private initiative, cultivated assiduously since the country’s independence, was discouraged to the extent that a number of prominent industrial families left Pakistan Industrial efficiency suffered under state control

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