What were the key economic reforms in Pakistan under Zia-ul-Haq?

Under Zia-ul-Haq, key economic reforms in Pakistan included deregulation, privatisation, and the promotion of Islamic banking.

General Muhammad Zia-ul-Haq, who seized power in a military coup in 1977, introduced a series of economic reforms aimed at liberalising Pakistan's economy and aligning it more closely with Islamic principles. One of the most significant changes was the deregulation of the economy, which involved reducing the role of the state in economic affairs and encouraging private sector activity. This was a marked shift from the socialist-oriented policies of Zia's predecessor, Zulfikar Ali Bhutto, who had nationalised key industries and pursued a policy of state-led development.

Privatisation was another key aspect of Zia's economic reforms. The government sold off state-owned enterprises to private investors, both domestic and foreign. This was intended to increase efficiency and productivity, as it was believed that private owners would be more motivated to run businesses profitably than the state. The privatisation drive was particularly focused on industries such as banking, telecommunications, and energy.

Zia also sought to bring Pakistan's financial system in line with Islamic principles, which prohibit interest (riba) and speculative trading (gharar). He introduced a parallel Islamic banking system, which operates on the basis of profit and loss sharing rather than interest. This was a significant departure from conventional banking practices and was intended to promote economic justice and equity.

In addition, Zia implemented a number of agricultural reforms aimed at boosting productivity and improving the livelihoods of rural farmers. These included measures to improve access to credit, promote the use of modern farming techniques, and provide better infrastructure in rural areas.

Overall, Zia's economic reforms represented a significant shift in Pakistan's economic policy, moving away from state-led development towards a more market-oriented approach. However, the effectiveness of these reforms is a subject of ongoing debate, with some arguing that they led to increased inequality and failed to deliver the promised economic growth.