Bhutto Government

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Under Bhutto's leadership a diminished Pakistan began to rearrange its national life. Bhutto nationalized basic industries, insurance companies, domestically owned banks, and schools and colleges. He also instituted modest land reforms that benefited tenants and middle-class farmers. He removed the armed forces from the process of decision-making, but to placate the generals he allocated about 6 per cent of the gross national product to defense. In 1973 the National Assembly adopted the country's fifth constitution. Bhutto became Prime Minister, and Fazal Elahi Chaudhry replaced him as President. Although discontented, the military remained silent for some time. Bhutto's nationalization program and land reforms further earned him the enmity of the entrepreneurial and capitalist class, while religious leaders saw in his socialism an enemy of Islam. His decisive flaw, however, was his inability to deal constructively with the opposition. His rule grew heavy-handed. In general elections in March 1977 nine opposition parties united in the Pakistan National Alliance (PNA) to run against Bhutto's PPP. Losing in three of the four provinces, the PNA alleged that Bhutto had rigged the vote. It boycotted the provincial elections a few days later and organized demonstrations throughout the country that lasted for six weeks.

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