Nationalization is the term used when the government takes the control of anything that was ownned private previously. Nationalization was the policy that was implemented by Zulfiqar Ali Bhutto. Bhutto according to his promise restored the economic order that was badly shaken by the war, attracted towards it.
In the Ayub regime wealth was concentrated in few hands that led to a visible class difference in the society. It created hatred for the upper class among the masses Bhutto tried to overcome the situation by Nationalization.
The party had programed in their manifesto to nationalize the industries gradually. After two months of Bhutto’s resuming office, under the Economic Reforms order that was passed in January 1972, the government took over 32 industries from the private sector. The industries were put under to basic categories 1) Iron and steel industries 2) Basic Metal industries 3) Heavy Engineering industries 4) Heavy Electrical Industries 5) Assembly and Manufacture of Motor vehicles 6) Tractor Plant Assembly and Manufactures 7) Heavy and Basic chemicals 8) Petrol chemical industries 9) Cement industries 10) Electricity, gas and oil refining.
It was first step towards the policy of nationalization in September 1973, 26 vegetable ghee units were nationalized.
Banks were also nationalized in 1974. They were in placed the hands of government on the financing of Banks.
In 1976 the 300 small units of cotton ginning, rice husking, flour milling were also taken in control. The exports and imports were also taken under the control of government through trading corporation. They wanted to ensure the distribution of wealth and the prosperity of lay man. However the policy of nationalization started by Bhutto had many defects. It caused a great damage to the private sector. Investment in the private sector was almost finished. After the military coup in 1988 Chief Marshal Law administrator denationalized the industries.