ABSTRACT
The 1965 war was a crushing blow to Pakistan's ambitions and brought in its wake a host of destabilizing political developments. In order to stimulate exports and to increase foreign exchange earnings, a bonus voucher scheme was introduced on January 1, 1959. In 1967-1968, exports declined, weakening Pakistan's foreign exchange position, while the rising cost of living diminished the domestic buying power of the rupee. The floating value of the bonus voucher, which reflected the economic factors, provided a cushion for exporters. In January 1967, relations between East and West Pakistan were further estranged by the Agartala conspiracy. One of the most consistent and certainly the most consistently disruptive political forces in Pakistan has been students. The Awami Muslim League, founded in Dacca, East Pakistan, in June 1949, grew up in opposition to the Muslim League. In April 1967, opposition to the Ayub regime was broadened and strengthened by the formation of the Pakistan Democratic Movement.
