Nawaz Sharif 1990-1993 & 1997-1999

Q: Was the collapse of the Bank of Credit and Commerce International (BCCI) the main reason for the
government ending in 1993? Explain your answer. (June 2020, 14 marks)
Q: Was the Co-operative Societies scandal the most important reason why Nawaz Sharif fell from office in
1993? Explain your answer. (June 2016, 14 marks & June 2014, 4 marks)
Q: Why did Nazwaz Sharif fell from office in 1993? (Nov 2013, 7 marks)
Q: What problems did Nawaz Sharif faced as Prime Minister during the 1990s? (June 2011, 4 marks)
BCCI
 First elected in 1990 from the platform of Islami Jamhuri Ittehad (IJI).
 Introduced many new schemes but overshadowed by different scandals.
 The BCCI (Bank of Credit and Commerce International), the 7th largest bank, founded by Mr. Agha
Hasan Abedi in 1972.
 There were concerns about bank’s lending practices.
 A British team investigated the bank and detected widespread fraud, embezzlement and manipulation in the
bank.
 The bank was closed and was required to pay fines.
 Sharif Family and Ittefaq industries were their major customers.
 The bank operated for several months even after its closer that raised doubts of government’s involvement with
the bank.

Co-operative Societies

 He set up Co-operative societies where many people invested their life savings.
 Over 700,00 people in Punjab, mostly poor lost their savings the societies went bankrupt.
 It was discovered later that the societies had granted billions of loans to Sharif Family business, the
Ittefaq Group.
 It severely damaged Nawaz’s reputation.
Other problems

 The failure of the National Industrial Cooperative Credit Company was the biggest financial collapse.
 Introduced ‘Yellow Cab’ scheme to promote employment but failed as most of the borrowers were
unable to pay the loans.
 Announced national reconstruction program to industrialize Pakistan.
 His economic policies were undermined due to the shortage capital for investment as the USA stopped
its $564 million aid.
 He opened Pakistan’s Stock market for foreign capital but still lacked funds.
 Reduction in overseas aid, high spendings, and decrease in foreign remittances increased his problems.
 Supporting afghan warlords led to the culture of drug trafficking, use of illegal arms.
 Problems like rampant crime, terrorism, drug addiction in Karachi.
 12th amendment for ‘speedy trial courts’ to control crime but criticized by the opposition.
 Passed Shariat Bill that was welcomed by the religious parties but criticized by the opposition.
President Ghulam Ishaq Khan suspended him over the allegations of corruption and mismanagement of the
economy.
Q: Why did being a nuclear power create difficulties for Pakistan in the 1980s and 1990s? June 2017, 7
marks)

 Kahuta laboratories were established in 1974 during Bhutto’s rule to make nuclear bomb and weapons
under the expertise of Dr. Abdula Qadir Khan and Dr. Abdu-s-Salam.
 Concerns about the India’s status of as nuclear state.
 India had their nuclear tests in 1974 in Rajhastan.
 Pakistani people supported this program but USA imposed sanctions.
 Neither India nor Pakistan signed Non-Proliferation (NPT) treaty.
 If Pakistan got nuclear weapons it would not get the US aid.
 Pressler amendment.
 Later on, William Perry pressler amendment was unfair for Pakistan.
 They reimbursed the amount of 28 F16 and signed defense agreements.
 Pakistan did nuclear experiments at Chaghi in 1998 and became the first 1 st Muslim and 7th world
nuclear state.
 But still, US and many other countries imposed embargo on trade and aid.

Q: What has been the importance of Siachen Glacier to both India and Pakistan? June 2015, 4 marks)
Indian Colonel Kumar, first climbed the Siachen Glaciers in 1977 and returned in 1981.
Pakistan discovered the presence of India over there after this and decided to defend its interest before India
claimed the Glacier as the borders on that part of Kashmir has never been properly drawn.
Pakistani soldiers climbed up there and found the Indian troops there.
Pakistan has tried multiple time to remove the Indian troops from there but failed.
In 1989, Bhutto visited the Glaciers to claim it.
Death toll on the glaciers has been estimated between 3000 & 5000 but many of these due to avalanches and
falls.
No settlement has been made regardless of several meetings between the two countries.
Q: What was the Kargil conflict? (June 2014, 4 marks)
In 1999, Muslim Kashmiri guerrillas crossed the Line of Control (LOC) and captured Indian occupied towns of
Kargil and Drass.
Pakistani government denied any involvement but later admitted.
In retaliation, 2 of Indian aircrafts crossed in Pakistani airspace.
Pakistani forces were pushed back and persuaded by the USA to withdraw behind LOC.
Q: Describe General Musharraf’s rise to power in 1999. (Nov 2016, 4 marks / June 2015, 7 marks/ Nov 2011,
7 marks)
General Pervaiz Musharraf was the Chief of Army Staff in 1999.
Nawaz Sharif was allegedly supporting the Taliban’s in Afghanistan which was damaging the Pakistan’s relation
with USA as they refused to hand over Osama Bin Laden who was suspected of bombing US embassy in Kenya.
Pakistan’s government was further criticized by various states due to the nuclear experiments in 1998.
Nawaz blamed Musharraf for Kargil conflict.
Army refused to accept the criticism on Army and how General Karamat was being treated by the
government.
Sharif feared a coup by General Pervaiz Musharraf and decided to replace him with the ISI Chief as COAS. This
appointment was rejected by the army.
Sharif ordered the Civil Aviation Authority to give permission for the Musharraf’s plane to land in Karachi over
his return from Sri Lanka.
Army took over Karachi Airpor and once landed, Musharraf took control in his hands.
Five government officials including Nawaz were charged and found guilty on charges of attempted murder,
hijacking and kidnapping.