DEPARTMENT OF ECCONOMICS

LAHORE COLLEGE FOR WOMEN UNIVERSITY

PLANNING MACHINERY IN PAKISTAN

PLANNING

CONTENTS

• Planning concept

• . Objectives of Economic Planning

• History

• Development Board

• Planning Board

• Chronology of Planning Machinery

• Functions of planning commission

CONTENTS

• Main Instruments of National Planning

• Plan Periods in Pakistan

PLANNING CONCEPT

Planning has been defined by various economists in different manners.

Generally it is understood to be a dynamic process

achievement of economic independence

• overcoming backwardness

• implementation of socio-economic

• Transformation

a method of analysis.

• In essence, a plan is a package of economic and social policies expressed with quantified targets and objectives to be achieved during a laid-down period

OBJECTIVES OF ECONOMIC PLANNING

• To increase per capita and national income

• Higher level of employment

• Price stability

• Reduction of inequalities in income distribution

• Redressing imbalances in the economy

• Reducing poverty levels

• Provision of social services

• Long term economic growth

HISTORY

Development Board:• Establishment of development board in 1948

• 1st development plan (1950)

Planning board: • Establishment of Planning Board

• Purposes of establishment

• Terms of reference of the board

CHRONOLOGY OF PLANNING MACHINERY

• Development Board established in 1948

• Planning Board set up in 1953

• First 5 year plan prepared for 1955-60

• National Planning Board established in1957

• Planning Commission setup under the Chairmanship of President in 1959

• Second five year plan prepared for 1960-65 followed by the third five year plan for 1965-70

• Fourth Five Year Plan (1970-75) prepared but remained dormant due to separation of East Pakistan

• 1970-77 non plan period : Development on basis of Annual Plans

CHRONOLOGY OF PLANNING MACHINERY

• Fifth Five Year Plan 1978-83

• Sixth Five Year Plan 1983-88

• Seventh Five Year Plan 1988-93

• Eighth Five Year Plan 1993-98

• Ninth Five Year Plan (halted due to changed in government)

• 10 Years Perspective Development Plan 2001-11

• Planning Commission restructured on 20 April 2006 with P.M. as Chairman

• Vision 2030 launched in August, 2007

PURPOSES

• to develop the resources of the country,

• to promote the welfare of the people,

• provide adequate living standards,

• meeting the social needs of people

• giving opportunity to all and aim at the widest and most equitable distribution of national income

TERMS OF REFERENCE:

i) To review the development that has taken place since independence.

ii) To assess the resources - material and human, which can be made available for d

beginning from April, 1954

iii) To prepare a national plan of development based on the fullest possible utilisation

in a period of 5 years from Ist April, 1955 as a step towards the attainment of the

Government's policy.

iv) To make proposals regarding the administrative machinery.

v) To make any other recommendations which in the opinion of the Board will can not suitable for the implementation of the plan.

FUNCTIONS

• To prepare future five year plans of economic and social development.

• To make additions and alterations in the existing five year plan.

To tender such technical advice and offer such comments on financial matters be

• be requested by the Ministries of Government.• To stimulate and, where necessary, to initiate the

preparation of schemes required in economic and social fields.

FUNCTIONS

To maintain a continuous and constant review of the progress of development,

To maintain a continuous review of the economic conditions of the country so fadevelopment plans.

To submit such periodic reports as the Government may desire from time to time

To encourage the improvement and expansion of research in particular economic investigations and evaluation needed to support effective planning and development.

• Generally to advise the Government on economic policies and problems in various development plans

PLANNING COMMISION OF PAKISTAN

FUNCTIONS OF PLANNING COMMISSION

• Consultation with: Federal Ministries / Provincial Governments Donors Civil SocietyFormulation of National Plan Annual Plan Five Year Plan Rolling Plan Perspective Plan (15-25 Years)Project Management : Approval of Development Projects Monitoring of Major Projects

FUNCTIONS OF PLANNING COMMISSION

Evaluation of on-going and completed projects Association with EAD in matters of Foreign

Assistance

MAIN INSTRUMENTS OF NATIONAL PLANNING

1. Policies

2. Plans Perspective Plan 10-25 Years Mid Term Plan 04-07 Years Rolling Plan 03 Years Annual Plan 01 Year

3. Transformation of plans into projects/programmes

PLAN PERIODS IN PAKISTAN

Colombo Plan (Six Year Plan) 1951-57

1st Five year Plan 1955-60

2nd Five year Plan 1960-65

3rd Five year Plan 1965-70

4th Five year Plan 1970-75

5th Five year Plan 1978-83

6th Five year Plan 1983-88

7th Five year Plan 1988-93

PLAN PERIODS IN PAKISTAN

8th Five year Plan 1993-98 9th Five year Plan 1998-2003 10 Year Perspective Development Plan 2001-11 Medium Term Development Framework (MTDF) 2005-

10Vision 2030 10 th Five year Plan (under construction) 2010-15

ANNUAL PLAN

• The principal instrument for adjusting the five year plan to current realities.

• regarded as the implementation side of the five year plan.

Includes evaluation of:• past performance• presentation of the main targets, • of the investment programme in the public and private

sectors • Economic policies necessary to achieve the target

ROLL ON PLAN

• To bring flexibility with five year plan.• a roll-on plan of medium term is designed in

which the sectoral and project-wise position is adjusted according to the foregoing year.

• For initial 3 years plan prepared for a, b, c years.• For next 3 years a replaced with d in order to let

it remain for 3 years

FIVE YEAR PLAN

• Advantage of achieving solid results

• is a general statement of objectives and targets relating to the economy as a whole and its various component sectors.

• does not authorise expenditure to the relevant operating agencies

PERSPECTIVE PLAN

• to provide a long-term (15-25 years) economic and social policy framework to achieve long term objectives.

• Pakistan’s 1st perspective plan was abandoned after east Bengal separation.

• The third five year plan justified the Perspective Plan

• Confidence of country in future

• Realistic statement of goals to be achieved.

PUBLIC SECTOR DEVELOPMENT PROGRAMME(PSDP)

• Document enlisting public sector projects with specific allocations

• Part of country’s annual budget

• Due to constraint which exists on government funds, projects are competing for a limited amount of funds available for development.

PREPARATION OF PSDP

• co-ordinated by the Programming Section of the Planning and Development Division.

• The procedure starts in oct / nov each year

STRATEGIES TO BE ADOPTED:FEDERAL VS. PROVINCIAL PROJECTS

• Major share of the development programme is allocated to federal projects

• 10% allocated to NWFP and balochistan and 90% to other provinces

• Federal government gives funds for projects under PSDP.

ON-GOING VS NEW PROJECTS

Preference is accorded to on-going projects for their early completion

. At present some 80% of the total development expenditure is allocated to on-going projects and the remainder to new projects.

FOREIGN-AIDED PROJECTS

• Aided projects are duly funded in accordance with the agreement signed with the donor agencies.

• The allocation of funds is done in the light of the PSDP call letter issued annually by the Programming Section.

DEFINITION OF PROJECT AND ITS CONTRIBUTION TOWARD ACHIEVEMENT OF OVERALL PLANGOALS/OBJECTIVES.

• Projects are defined in different ways

• From the stand point of economics, a project is;

• the minimum investment which is economically and technically feasible

• .an activity on which we spend money in expectation of returns and which logically seems to lend itself to planning, financing and implementation as a unit.

• Careful project preparation requires efficient economic use of capital funds .

• Only the technically, financially and economically sound projects/ programmes, with support of concerned departments can provide successful implementation of the plan.

PC-I, II, III, IV & V PROFORMAE

• to laying down an effective organization for planning, five proformae were prescribed for preparation and implementation of development schemes.

• PC-I and PC-II deal with submission of project proposal

• PCIII is concerned with the progress of ongoing projects

• PC-IV and PC-V are to be filled in after completion of a project.

PC-I PROFORMA

• PC-I is the basic form on which all projects/schemes are required to be drawn up. It was used for all sectors.

• for bigger and complex projects which required quite detailed information PC-I form, was elaborated and 12 separate forms suitable for particular sectors were introduced in July, 1974.

PC I'S FOUR PARTS :

• Part 'A' is the "Project Digest",

• Part 'B' entitled "Project Description and Financing",

• Part 'C' deals with "Project Requirements",

• Part 'D' deals with “Enviroumental Aspects”. Low cost PC I :used for low cost projects costing 1 million.

PC-II PROFORMA

• PC-II is required for:

• conducting surveys and feasibility studies

• Used in respect of larger projects, intended to get full justification for undertaking the project before large resources are tied up with them.

PC-III PROFORMA

• PC-III performa is:

• to furnish information on going projects

• done on quarterly basis with agencies required to submit report within 20 days

• provides information on physical as well as financial progress of projects with all hindrances.

PC-IV & V PROFORMAE

• PC-IV form is required:

• to be submitted at the time when the project is adjudged to be complete

• PC-V form is:

• to be furnished on an annual basis for a period of five years by the agencies responsible for operation and maintenance of the projects.

RECENT PROJECTS IN PAKISTAN:METRO BUS SERVICE:

LAPTOP DISTRIBUTION:

SOLAR PROJECT:

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