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Zulfiqar Ali Bhutto launched Pakistan Peoples Party after leaving Ayub's Cabinet. In the general elections held in December 1970, P. P. P. won a large majority in West Pakistan but failed to reach an agreement with Sheikh Mujib-ur-Rahman, the majority winner from East Pakistan. Following the 1971 War and the separation of East Pakistan, Yahya Khan resigned and Bhutto took over as President and Chief Martial Law Administrator on December 20, 1971.
In early 1972, Bhutto nationalized ten categories of major industries, and withdrew Pakistan from the Commonwealth of Nations and S. E. A. T. O. when Britain and other western countries recognized the new state of Bangladesh. On March 1, he introduced land reforms, and on July 2, 1972, signed the Simla Agreement with India, which paved the way for the return of occupied lands and the release of Pakistani prisoners captured in East Pakistan in the 1971 war.
After the National Assembly passed the 1973 Constitution, Bhutto was sworn-in as the Prime Minister of the country.
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