Zia-ul-Haq's Islamization: Encyclopedia II - Zia-ul-Haq's Islamization - Zia's Islamization of Economy

Zia-ul-Haq's Islamization - Zia's Islamization of Economy

Within the framework of Islamization of economy, the National Investment Trust and the Investment Corporation of Pakistan were asked to operate on equity basis instead of interest as of July 1, 1979. Interest-free counters were opened at all the 7,000 branches of the nationalized commercial banks on January 1, 1980. But interest-bearing National Savings Schemes were allowed to operate in parallel.

Zia-ul-Haq's Islamization - Zakat and Ushr Ordinance

The Zakat and Ushr Ordinance was promulgated on June 20, 1980 to empower the government to deduct 2.5% Zakat annually from mainly interest-bearing savings and shares held in the National Investment Trust, the Investment Corporation of Pakistan and other companies of which the majority of shares are owned by the Muslims. Foreign Exchange Bearer Certificate scheme that offered fixed interest was exempted from the compulsory Zakat deduction. This ordinance drew sharp criticism from the Shia sect which was later exempted from the compulsory deduction of Zakat. Even Sunnis were critical of the compulsory deduction and the way Zakat was distributed.

Zia-ul-Haq's Islamization - Land Reforms

On December 13, 1980, to the surprise of General Zia, the Federal Shariah Court declared the land reforms of 1972 and 1977 as eminently in consonance with Islamic injunctions. Then the so-called Ulema were brought in who traditionally supported the landlord class. Three Ulema were inducted into the Federal Shariah Court and two into the Shariah Appellate Bench of the Supreme Court which reversed the FSC judgment in 1990. After the imposition of martial law, many landlords were reported to have told their tenants to seek the protection of their benefactor, namely, Bhutto. Thousands of tenants were forcibly evicted from the land in various districts. The martial law regime made it clear that it was not committed to redistributive agrarian policies and described the land reforms as ordinary politics to reward supporters and punish enemies.

General Zia's advice to the deprived and the dispossessed was that "It is not for the employers to provide roti (bread), kapra (clothes) aur (and)makan (homes). It was for God Almighty who is the provider of livelihood to his people. Any increase or decrease in your sustenance comes from Him. Trust in God and He will bestow upon you an abundance of good things in life."

Demands for higher wages, better working conditions, social security, old age benefits and compensation for accidents, were no justification for protests and strikes. Industrialists were assured that any kind of industrial unrest resulting from strikes or any other trade union activity would be suppressed. Maximum punishment to the offenders was three years rigorous imprisonment and/or whipping. On January 2, 1978 police mercilessly killed 19 workers as the management of the Colony Textile Mill in Multan sought assistance from the police in its dispute with the striking workers.

Adapted from the Wikipedia article "Zia's Islamization of Economy", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki