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PAKISTAN
BRIEF OVERVIEW
1988-98
1955 -1998
BRIEF OVERVIEW ON
1988-1998 ECONOMIC PLANING IN
PAKISTAN
S.M MOHSIN
DEPARTMENT OF PUBLIC ADMINISTRATION UNIVERSITY OF KARACHI
ACKNOWLEDGEMENT
All the praises are attributed to the sole creator of the universe” The almighty
ALLAH” The compassionate, the merciful, the source of all knowledge and
wisdom, who bestowed, the health , thought, talented teachers, caring
parents and mutual understandings among us gave us the strength and
courage to complete this assignment entitled “Five year’s economic planning
in pakistan1955-98, an special brief overview on during the years 1988-
98.We express our deepest gratitude to our course instructor Lecturer SIR
SHAHID ZAHEER ZAIDI for his inspiring guidance for this assignment.
DEPARTMENT OF PUBLIC ADMINISTRATION UNIVERSITY OF KARACHI
01. Introduction
11. Conclusion
Reform:
The government started pursuing market-based economic reform policies in the early 1980s.
These reforms began to take hold in 1988, when the government launched an ambitious IMF-
assisted structural adjustment program in response to chronic and unsustainable fiscal and
external account deficits. The government began to remove barriers to foreign trade and
investment, reform the financial system, ease foreign exchange controls, and privatize dozens
of state-owned enterprises.
Although the economy became more structurally sound, it remained vulnerable to external
and internal shocks, such as in 1992-93, when devastating floods and political uncertainty
combined to depress economic growth sharply. The Asian financial crisis seriously affected
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Pakistan's major markets for its textile exports. For example, average real GDP growth from
1992 to 1998 dipped to 4.1% annually. Economic reform also was set back by Pakistan's
nu66666666666644444clear tests in May 1998, and the subsequent economic sanctions
imposed by the G-7. International default was narrowly averted by the partial waiver of
sanctions and the subsequent reinstatement of Pakistan's IMF enhanced structural adjustment
facility/extended fund facility in early 1999, followed by Paris Club and London Club re-
scheduling. After taking power in late 1999, President Musharraf instituted policies to
stabilize Pakistan's macroeconomic situation. Pakistan continues to struggle with these
reforms, having mixed success, especially in reducing its budget and current account deficits.
The economic importance of agriculture has declined since independence, when its share of
GDP was around 53%. Following the poor harvest of 1993, the government introduced
agriculture assistance policies, including increased support prices for many agricultural
commodities and expanded availability of agricultural credit. From 1993 to 1997, real growth
in the agricultural sector averaged 5.7% but has since declined to less than 3% in 2005.
Agricultural reforms, including increased wheat and oilseed production, play a central role in
the government's economic reform package. Heavy rains in 2005 provided the benefit of
larger than average cotton, wheat, and rice crops, but also caused damage due to flooding and
avalanches.
Pakistan has extensive energy resources, including fairly sizable natural gas reserves, some
proven oil reserves, coal, and large hydropower potential. However, exploitation of energy
resources has been slow due to a shortage of capital and domestic and international political
constraints. For instance, domestic gas and petroleum production totals only about half the
country's energy needs, and dependence on imported oil contributes to Pakistan's persistent
trade deficits and shortage of foreign exchange. The government announced that privatization
in the oil and gas sector is a priority.
Industry:
Pakistan's manufacturing sector accounts for about 25% of GDP. Cotton textile production
and apparel manufacturing are Pakistan's largest industries, accounting for about 70% of total
exports. Other major industries include food processing, beverages, construction materials,
clothing, and paper products. As technology improves in the industrial sector, it continues to
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grow. In 2005/2006, the manufacturing sector grew by 8.6%. Despite government efforts to
privatize large-scale parasitical units, the public sector continues to account for a significant
proportion of industry. In the face of an increasing trade deficit, the government seeks to
diversify the country's industrial base and bolster export industries. Net foreign investment in
Pakistani industries is only 0.5% of GDP.
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provincial governments can legislate on the subjects included in the concurrent list, but in the
case of any dispute between them on any subject borne on that list, federal law takes
precedence over provincial law.
Under the Constitution, the provincial government can also create a system of local
government, both in urban and rural areas, as well as frame laws, rules and regulations for its
administration.
At the federal level, annual and five-year economic and social development plans are
prepared by the Planning and Development Division of the National Planning Commission.
The other functions of the Planning and Development Division include monitoring the
implementation of major development projects and programmes, evaluation of ongoing and
completed projects, and the development of appropriate costs and physical standards for
effective technical and economic appraisals of projects.
The federal ministries (to the extent of subjects allocated to them under the rules of business)
are responsible for the preparation of programmes and projects in their respective fields of
interest including autonomous organizations under their control. The programmes prepared
by the federal ministries are submitted to the Planning Commission which coordinates all
development programmes in Pakistan.
The Planning and Development Department is the principal planning organization at the
provincial level. It is headed by the Additional Chief Secretary (Development) in each
province, including NWFP, who is assisted by professional staff from various fields including
economists. The Department coordinates the programmes prepared by the provincial
departments concerned with development and prepares the overall Provincial Five-Year Plan
and Annual Development Programmes (ADP).
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(a) National Economic Council :
NEC is the supreme policy-making body in the economic field in Pakistan. It is headed by
the Prime Minister and its members include the federal ministers in charge of economic
ministries, the deputy chairman of the Planning Commission and the Chief Ministers of the
provinces. NEC has overall control of the planning machinery and approves all plans and
policies relating to development.
ECNEC is headed by the Federal Minister of Finance. Its members include the federal
ministers of economic ministries, provincial governors/Chief Ministers or their nominees and
the provincial ministers concerned. The functions of ECNEC are:
The Cabinet ECC is headed by the Federal Minister for Finance, with the federal ministers of
economic ministries as its members. It attends to all urgent day-to-day economic matters and
it coordinates the economic policies initiated by the various divisions of the government. It
monitors the monetary and credit situation and makes proposals for the regulation of credit,
in order to maximize production and exports and to prevent inflation. It also gives approval
to projects in the private sector.
Those development projects which exceed a certain financial limit prescribed by the central
sectoral ministries, provincial governments, autonomous organizations etc. are submitted to
CDWP for processing and approval. CDWP is headed by the deputy chairman of the
Planning Commission and which includes as its member the Secretaries of the federal
ministries concerned with the development and the heads of the Planning Departments of the
provincial governments. The schemes approved by the Central Development Party are
submitted to ECNEC for final approval.
CDWP is competent to sanction federal schemes (non-recurring) that cost between PRs 20
million and PRs 100 million, subject to the condition that Ministry of Finance does not
disagree.
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(e) Federal Ministries Departmental Development Working Party:
Each province has a Provincial Development Working Party which is headed by the
Chairman, Planning and Development Board/Additional Chief Secretary (Development) and
includes among its members the Secretaries of the provincial departments concerned with
development. The Provincial Development Working Party scrutinizes various projects for
inclusion in the Annual and Five-Year Plans. It is competent to approve all provincial
projects costing up to and including PRs 100 million (non-recurring) in each case. Projects
exceeding that limit are submitted to CDWP/ECNEC for processing and approval.
All federal public sector development schemes are compiled in the Public Sector
Development Programme (PSDP) of the Federal Government. Likewise, all provincial public
sector developments are compiled as PSDP of the respective provincial governments. Federal
and provincial PSDP are the operational side of the Five-Year Plans and ADPs. In fact, they
are part of the national (federal and provincial) annual budget for the financial year (July-
June), and are approved by the federal and provincial legislatures. The development schemes
of the local government institutions and the commercial organizations are not reflected in
PSDP or annual plans.
At present, a major share of the total development programme is allocated to federal projects
which relate to major infrastructural sectors, such as transport and communications, and
energy, while the remainder is allocated to the Provincial Development Programme. Of the
total Provincial Development Programme, 10 per cent is allocated as a special allocation to
NWFP and Balochistan; the remaining 90 per cent is allocated among the four provinces on a
population basis. In addition, the federal government allocates funds to the provinces to
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cover essential provincial projects under the Special Development Programme, which cannot
be included in the provincial ADPs as a result of resource constraints.
In accordance with the priorities set out in the five-year plan and the availability of resources,
tentative sectoral allocations to the federal ministries and provincial governments for the next
ADP are worked out. They are then communicated to the federal ministries and provincial
governments. At the provincial level the preparation of ADP is initiated and coordinated by
the Planning, Environment and Development Department in consultation with the Finance
Departments, executing line departments, autonomous bodies and corporations. The planning
agencies, both at the federal and provincial levels, remain in close contact horizontally with
the concerned ministries and vertically with each other on a continuous basis during the
formation of ADP.
The Annual Plan Coordination Committee (APCC), chaired by the Finance Minister,
discusses the national and provincial ADPs before obtaining NEC approval. APCC meets
three to four weeks after the deliberations by the Federal and Provincial Priorities
Committee. Provincial governments are represented in the meetings by the Additional Chief
Secretaries of the Planning, Environment and Development Department /Boards and the
provincial finance Secretaries. That forum enables provincial governments to present their
problems and observations, or suggestions and demands, to the federal government. If the
provinces are not satisfied with the decisions taken in APCC they get a further opportunity to
plead their case in the meeting of NEC where each ADP is finally approved.
The seventh Five-Year Plan and the 15-Year Perspective Plan (1988-2003) came together.
The two Plans gave full recognition to the interrelationship between population, resources,
environment and development. The Environmental Protection Ordinance (EPO) (1983),
which was promulgated on 31 December 1983, made it compulsory to carry out EIA/IEE
under its Section Eight. The Environmental Protection Council and the Pakistan
Environmental Protection Agency were made responsible for the implementation of EPO. An
environment profile of Pakistan was prepared in 1987 and subsequently the National
Conservation Strategy (NCS) emerged as a policy document on environment.
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For the first time, in the eighth (current) Five-Year Plan a full chapter on the environment
was included. The government started implementing the NCS by incorporating its
recommendations in the Plan into each development sector, in addition to a separate section
on the environment. An NCS Unit has been set up in the Ministry of Environment, Urban
Affairs, Forestry, Wildlife, Fisheries, Local Government and Rural Development. An
Environmental Section was also set up in the Planning Commission with similar cells in the
Provincial Planning Departments, while Provincial Environmental Protection Agencies were
established.
to identify actions with significant economic and social impacts that would not otherwise
occur by themselves because of a failure to act in the marketplace or institutions. A second
key finding was the importance of community-based management of resources. From the
Aga Khan Rural Support Programme in the Northern Areas to the Orangi Pilot Project in
Karachi, participatory organizations have proved to be effective agents of change in efforts
by society to move towards sustainable development.
The NCS document is divided into three parts. The first contains a survey of the state of the
environment in the general sense: the quality of land, water and air; the use of energy; the
health of the population; and the institutions and policies that deal with those concerns. Part
two provides detailed recommendations for policies and measures in agriculture, forestry,
range-land and livestock management, water supplies, marine and coastal resources, wildlife,
mining, energy supplies, industrialization, the growth of cities, pollution, tourism and a host
of supporting programme areas such as communications, education and research. The final
section looks at the arrangements for implementing all the recommendations in part two. A
total of 68 specific programmes are identified in the 14 core areas, each with a long-term
goal and with expected results and resource investments within the next decade (Pakistan
National Conservation Strategy, 1995). The core areas are:
o Maintaining soils in croplands;
o Increasing irrigation efficiency;
o Protecting watersheds;
o Supporting forestry and plantations;
o Restoring range-land and improving livestock;
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o Protecting water bodies and sustainable fisheries;
o Conserving biodiversity;
o Increasing energy efficiency;
o Developing and deploying renewable resources;
o Preventing/abating pollution;
o Managing urban waste;
o Supporting institutions for dealing with common resources;
o Integrating population and environmental programmes;
o Preserving cultural heritage.
Although the NCS recommendations are organized into 14 sections above, which cover key
areas, one of its most important messages is the interconnected nature of sustainable
development problems and their solutions. Efforts to protect watersheds, for example, reduce
flooding and thus improve agricultural productivity in downstream areas. Increasing energy
efficiency and developing renewable energy sources can lower national dependence on fossil
fuels and thus help alleviate air pollution problems.
The NCS was approved as the official policy by the federal Cabinet on 1 March 1992. The
Ministry of Environment, Urban Affairs, Forestry, Wildlife, Fisheries, Local Government and
Rural Development has open a special provincial NCS cell for the implementation of the
NCS. Pakistan was one of the few countries to participate in the Earth Summit in Rio in 1992
with a fully developed NCS. Despite becoming a signatory to various international
Conventions, protocols and agreements, Pakistan finds itself alone in battling the enormous
pressure resulting from a difficult process for change. Therefore, like other plans, policies
and programmes, NCS remains just a good document and has yet to be implemented in its
true sense because of financial constraints and the weakness of those institutions dealing with
the environment. However, more emphasis is given to the Social Action Plan (SAP) to
compensate for the past neglect by the development process; that is also an important
component of Agenda 21. In fact, SAP is also an environmental improvement initiative. It
seeks to increase literacy, expand health care, provide clean drinking water and sanitation,
and reduce population growth and pursue a community participation approach. Each of those
initiatives form an integral part of the environmental programme. Both SAP and NCS require
the active participation of the population during implementation. If implemented properly,
the NCS would generate approximately 800,000 jobs over a 10-year period as it is a labor-
intensive strategy. An projected 40 per cent of the public sector component of NCS projects
could be raised from aid contribution, while the balance could be raised through domestic
taxation.
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At the provincial level, the Additional Chief Secretary has overall charge of the Planning,
Environment and Development Department. He is assisted by the Chief Economist, the
Secretary, Additional Secretaries and other section chiefs. Under the Planning, Environment
and Development Department there are different sections headed by Additional Secretaries
and section chiefs who liaise with sectoral departments. The functions of the Planning,
Environment and Development Department are:
Each district in the province has a District Development Advisory Committee (DDAC)
comprising representatives of the departments at the district level. The chairman of DDAC is
elected by popular vote in the district as a member of the Provincial Assembly. In the middle
of the year at each district headquarters the DDAC holds meetings with all heads of district
line departments in order to identify projects and development schemes for the next ADP.
Each department is required to identify projects (both ongoing and new) and complete a
Performa PC-I for submission to the Planning, Environment and Development Department
for the ADP by the end of December each year. The schemes are prepared by the field staff of
the district line departments in consultation with the district MPAs. The schemes are
scrutinized and given priorities and then sent through the Administrative Secretaries of the
departments in the province to the Planning, Environment and Development Department for
further processing. The Planning, Environment and Development Department holds meetings
with the representative secretaries of the individual line departments also discuss the projects
in all sectors for the next ADP. Based on those meetings a draft consolidated ADP is prepared
for the province. Approximately 80 per cent of the funds are allocated for ongoing projects
and the remaining 20 per cent for new schemes. The Chief Minister/Governor holds a
meeting with the Planning, Environment and Development Department officials,
Commissioners, and other heads/ secretaries of the line departments. Subsequently, the
provincial ADP is approved and it is sent to the federal government for final approval.
The approval of the ADP is conveyed to all the line departments/implementing agencies in
April each year. Following approval of the projects by the Provincial Development Working
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Party, the line departments/ implementing agencies prepare schemes for recruiting staff and
initiating action. DDAC has the authority to approve projects up to PRs 100 million
(although that limits changes from time to time). Projects with costs above that limit are sent
to CDWP, ECNEC and then NEC. The resources are then released by the Finance
Department for project implementation after 1 July each year.
The whole planning process of the Planning, Environment and Development Department is
related to the sanctioning of financial resources for ADP. ADP formulation and planning is
directed by the political heads and other influential people. Public participation at large is not
part of the planning process. The line departments do not follow the planning criteria or
planning standards, which results in irrational and unsustainable planning. Each department
pursues its tasks independently, without any coordination with the other departments. For
example, the Communication and Works Department constructs roads without consulting
other line departments to enable them to develop their own projects accordingly. Roads are
built away from resources and human settlements. Schools and health facilities such as Basic
Health Units are built away from population points. Line departments do not prepare long- or
medium-term development plans. The result is delays in projects; for example, the Basic
Health Units are constructed but water and electricity supplies and roads are provided, so
they do not become operative for some time after completion.
At the same time, the planning offices are adversely affected by: (a) a lack of manpower and
other resources for the planning offices; (b) a lack of institutional capacity as well as training
in the principles of development planning, particularly at the regional/district level; (c) an
inadequate data base for the identification and analysis of problems, and the determination of
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the resource base for the solution of those problems; and (d) a lack of understanding of new
approaches and techniques such as geographic information systems (GIS), remote sensing
and EIA among officials dealing with planning. The results are duplication of effort, wastage
of resources and unsustainable development.
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need for imports; increase employment; provide more social services; and increase the rate of
development. The Board expected the plan to increase national income by 20% by 1960, and
per-capita income by 12% The board acknowledged that the plan was “as large as is feasible,
and perhaps larger. Very serious difficulties will have to be faced and overcome, and even
then the rate of development is not likely to increase by 1960 as much as we should like.
Despite these words of caution, the Board published a Plan with ambitious goals for
increasing agriculture production and industrial output, and reducing dependence on imports.
By publishing the draft of the Plan a full year after it was to have begun, the Board was
already limiting the possible effect of the Plan. The Board was allowed to make
recommendations on the 1955-56 and 1956-57 budgets, even though the Plan had
yet to be completed or approved. After further revisions, the Plan was submitted to the
Economic Council in early 1957. After being considered at two separate Council meetings, it
was approved on April 15th 1957—two years after it was to have taken effect. Despite this
approval, the Plan never received official support from the highest
levels of the Pakistani government.
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Assessing Failures:
While non-economic factors contributed to the failure of the FFYP to spur an
increase in the rate of economic growth, there were also major economic stumbling blocks
that prevented full realization of the FFYP. Government expenditures were higher than
predicted in the Plan—non-development expenditures ran a deficit of Rs. 280million, versus
the surplus of Rs. 1,000 million that the Plan had estimated. Earningsfrom exports were Rs.
946 million less than the Plan had projected. This decrease inexport earnings was due to a
decrease in products available for export, as well as price fluctuations. Due to the stagnation
in the agricultural sector, imports had to be increased by Rs. 2,165 million over the
projections in the Plan.33 This drained funds from other projects, resulting in shortfalls in
other areas of the Plan.
Conclusion
Partially because of an initial lack of industry, Pakistan’s economy made large
percentage gains and modest real gains in its industrial and manufacturing sectors in the early
years after partition. Although economic planning had been built into the government from
the beginning, it did not reach a highly organized state until the Planning Board was
convened to compose the First Five-Year Plan. Even at that point, because of inexperience
and poor government structure, arranging a plan for economic development was an inexact
science. While expectations for the plan were very high (and
the plan’s goals very ambitious), the Plan was plagued by setbacks from the earliest days of
the planning process. Due to a lack of specific data in many sectors of the economy, some
projects submitted to the Board were missing key information, and the Board had to make
estimates in many areas of the Plan. Because of the late approval of the plan, it was difficult
to fully implement it. Additionally, price fluctuations and disappointing
food grain production led to fewer exports and more imports than the plan had predicted.
When these factors combined, the Plan under performed and missed most of its key
economic targets. Even though the Planning Board kcknowledged in its draft of the FFYP
that it would be difficult to reach the goals in the plan, the failure of the plan was still a
disappointment considering the relatively high levels of growth prior to implementation of
the Plan. The failure of the First Five-Year Plan provided a lesson to the Pakistan
government, and the experience of putting the plan together established a government system
for planning that would prove useful in the composition of future Five-YearPlans.
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SECOND FIVE YEAR PLAN (1960 –
65)
In marked contrast to the First Five Year Plan, Pakistan’s Second Five Year Plan was
launched under propitious conditions. The revolutionary regime, which took over in October
1958, had restored political stability in the country, for lack or which the First Five Year Plan
had failed to command wide political or public support. Continuous increase in prices was
brought under control and financial discipline was imposed. The administrative structure and
the institutional arrangements were improved. The Second Five Year Plan was approved and
put into operation in June 1960 just before the Second Five Year Plan period began. It was
revised after only one year of its operation as more detailed investigations and firmer cost
estimates became available. The revised plan was published in November 1961.
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b) Employment Operation: it was decided that 2.5 million people would be given jobs within
the country and overseas.
c) Agriculture Sector: it was expected that agriculture production would increase by 21 per
cent during the Second Five Year Plan
Industrial Production: It was decided that industrial production would increase by 60 per cent
and much emphasis was given to heavy industries and inducements were given to private
investors to invest more in this sector.
a) Balance of Disparities: foreign exchange earnings would increase by 3 per cent per annum.
b) Regional Disparities: In order to reduce regional disparity between two parts of the
country, it was decided to invest more in East Pakistan.
c) Income, Investment Saving and Consumption: The fundamental objective of the Plan was
to increase GNP by 24 per cent. Since the population was expected to increase at the rate of 2
per cent, this would ensure an annual increase of at least 2.5 per cent in the per capital
income.
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Evaluation:
Pakistan’s Second Five Year Plan was fairly realistic in aiming at an increase of 24 per cent
in the national income. If the proposed investment had taken place, the
Plan’s target might have been exceeded.
The implementation of the Plan was fairly satisfactory. Several Problems arose, however,
which deserved the attention of the planners in the future. These include lack of basic
information on private investment, domestic saving, foreign exchange component and
income distribution; distortion of plan priorities in the course of actual implementation; an
inordinate rise in the cost of various projects above the original estimates; increase in the
general price-level affecting the cost of development; executive dependence on project-type
assistance which conflicts with the sanctity of national planning; and the lack of
consumption.
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9 Objectives/Targets and Achievements
__________________________________________________________________
No Objectives/Targets Achievements/Position
1 GNP 24 percent increase 30 per cent increase
2 Per capita income 12 percent 15 per cent increase
increase
3 Economic Growth rate A rate of 5.5 per cent increase
47 percent
4 Industry Large-scale 161.4 per cent increase
manufacturing sector 60 percent
increase in production
5 Food –grains 21 percent 27 per cent increase
increase imports to be for
Rs.22200 million
6 Foreign Exchange earnings 15 18 per cent above the Plan
per cent increase imports to be target imports of Rs.20680
for Rs.22200 million million, or 6 per cent less
than be ceiling
7 Foreign exchange gap Actual was Rs.7594 million
Estimated at Rs.10250 million or 32 per cent less than the
Plan estimates
8 Savings 10 per cent increase in Increased from 6.5 per cent
average saving rate in 1959-60 to 10.5 per cent
by the end of the plan period
9 Employment Creation of 3 3.6 million jobs actually
million new jobs created
10 Regional Development Creation 3.6 million jobs actually
of 3 million new jobs created
11 Education and health Most of the targets were
achieved or exceeded
12 Housing and urban 150000 new plots water
development 300000 new supplied to only 23 urban
residential plots water supply to areas
38 urban areas
13 Cash crops Large-scale shortfall in the
targets for the production of
jute, cotton, tobacco and
sugar cane
14 Irrigation Extension to 2.44 2.05 million acres 8.55
million acres of new land million acres
improved irrigation to 7.11
million acres
15 Installed power capacity 533700 KWs increase
508300 KWs increase
16 Communications 1300 new post 1546 new post offices 53300
offices 45700 new telephone new telephone connection
connections
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Consequence:
In spite of the success of the Plan in achieving and or
exceeding the Plan targets in many important fields,
there was great discontent amongst the masses resulting
from income inequalities generated by the development
strategy of the Plan. This discontent was one of the
important causes for the removal of President Ayub khan
in the late sixties.
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Third Five Year Plan (1965-70)
The Planning Commission started preparation for the Third Five Year Plan before the
completion of Second Five Year Plan. It was approved by the NEC in May 1965 and
was revised in 1966 because of the following reasons:
1. Pakistan went to war with India in 1965 and had to divert its resources from
development to defense.
2. In 1966, the climatic conditions adversely affected the agricultural production.
Plan Objectives:
The objectives of the Third Plan were formulated within the rate work of the 20-
years Perspective Plan (1965-85) and in the light of the achievements and shortfalls
of the previous two Plans. The principal objectives set for the Third Plan were:
1. To attain rapid growth of the national economy, to ensure a breakthrough to
sustainable development in the shortest possible time, it was proposed to aim
at a minimum increase of 37 per cent in the GNP at constant prices over the
Third Plan as compared to 29 per cent in the Second Plan. The annual rate of
increase was projected at 6.5 per cent per annum in the Third Plan as against
5.2 per cent in the Second Plan.
2. to reduce the degree of inter-regional and intra-regional disparity, it was
proposed to reduce the existing level of disparity in income per head between
East and West Pakistan by increasing total income by 40 per cent and 35 per
cent respectively in the two regions.
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3. to provide at least 5.5 million new job opportunities to absorb the entire
increase in the labor force during the existing level of unemployment by over
one-sixth.
Rs.4800 millions by 1970 compared with about Rs.3050 million at the end of the
Second Five Year Plan.
5. To arrest the growth of population by taking decisive steps towards population
control.
6. To provide better housing, more health services and greater facilities for
education, especially for the low income groups.
Strategy:
The strategy for the Third Five Year Plan grew from the lessons learnt from planned
development during the past 15 years and the targets set for the next 20 years under
the Perspective Plan. The past 15 years had witnessed a rapid rate of economic
development and building up of an infrastructure but there were certain imbalances,
especially in agriculture, education and social services, which had to be removed. The
framework of the perspective Plan defined the general direction in which the
economy was expected to move in the next two decades. The basic rationale of the
Third Five Year Plan was formulated both in relation to past experience and future
targets.
Priorities:
The top priority was given to reduce regional disparity
b. Second priority was given to the agriculture and industrial sectors. Almost 13
per cent of the total expenditure was allocated to each sector.
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Evolution:
The Third Five Year Plan was formulated in the framework of a Perspective Plan
(1995-85) witch had also contained the long-term objectives of development, which
was committed to double the existing level of national income in the Fourth Five Year
Plan and to make it four fold in the Sixth Five Year Plan.
a. There were certain sectors lime heavy industry, mining, transport and finance
etc. where extension of social control on the means of
c. .In the third five year plan external aid was expected to finance 45 percent of
the plan expectation.
Targets:
1. To increase GDP by 6.5 percent per annum.
2. To increase family income by RS 900 per annum
3. To increase agriculture production by 5% per annum.
4. To increase industrial production by 9% per annum.
5. To provide jobs to 4 million people during the plan period.
6. To provide electricity to 85% of the village of population.
7. To increase export from US$2.43 billion to UIS$4.91 billion by the end of the
plan.
8. To construct 15000 kms new roads from village to cities.
9. To lower dependence on foreign aid from 20 to 19% by the end of the plan.
10. 10. To increase the efficiency of private sector, certain effective measure s would
be taken so that the private sector may play its role effectively in the
development of the economy.
11. .To makes 3 million acres of land fit for cultivation which had been destroyed by
water logging and salinity?
12. It was decided to allocate 18.1 percent of the total expenditure to agriculture and
water sector, 20 percent to power to transportation, 15.6 percent to industry, 1.2
percent to minerals and 11.5 percent to social institutions.
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Sector-wise Division of expenditure
Sectors Total Expenditure Percentage of
Total
Agriculture and water 89.72
18.1
Sources of power 100.00
20.0
Transportation 89.62
18.1
Industry 76.91
15.6
Minerals 6.05 1.2
Social institutions - -
(Health, education, etc) 59.91
11.5
Others Sectors 75.79
15.5
Total 498.00
100.0
Strategy:
1. (1)High Growth Momentum: high GDP growth rates and other related
macroeconomic variables are to be maintained.
i) Emphasis on increased efficiency in agriculture, particularly self-
sufficiency in oilseeds, expanding the exports of rice, cotton and fruits,
etc.
ii) Balanced development of service industries especially public services for
basic human needs.
iii) Balanced development of service industries, especially of private services
for government servants and private employees.
2. Rural Transformation: Increased opportunities for small farmers and provision of an
infrastructure.
3. Employment and Income Publics: Creation of about 4 million new jobs for emphasis
on small scale production in agriculture and industry, rural works program, vocational
training with a combination of income policy which related wages to productivity,
indicated salaries from fixed income growth.
4. Decentralization: To increase the share of provincial governments in the development
program of the public sector and also encouraging local bodies to participate in the
investment pans.
5. Backward Regions: Recognition of the tribal and Balochistan as economically
backward regions and provision of special funds for specific development program
in these regions.
2
5
2
6
“Forth five year plan (1970-75)”
By the end of the third year plan. Pakistan had two decades of development. The economy
had diversified significantly and size national product had expanded substantially. Its
structure had developed .the practice and technique of production had been modernized
although inflow of foreign assistance helps financing the ascending development
expenditure. The burden was also born by a size able domestic saving effort, especially in
relation the low level of percapita income. This development phase had its limitation as well.
The population growth rate rose substantially.
Objectives:
The principle objective of the plan were spelt out clearly in the document entitled “ socio
economic objectives of the fourth five year plan” which was approved by the NEC in
Nov 1968. These were
1. To maintain the tempo of the development in the country through a determined effort
to secure maximum and most efficient utilization of our material and human
resources.
2. To reduce inter regional and intra regional disparity in percapita income.
3. To make the economy increasingly self reliant in most essential field.
4. To direct the forces of social and economic change in society.
Targets:
1. To attain a annual growth rate of at least 6.5% in the GNP which would permit the per
capita income.
2. To reduce the disparity in percapita income b/w various region at the fastest possible
rate.
3.
2
7
4. To increase percapita consumption of food grains from 15.5 to 16.8 ounce per day by
increasing rise production.
5. To reduce the extent of unemployment and underemployment in the country
providing 7.5 million new jobs opportunities.
6. To evolve an income and price policy through which in increase in percapita income
from price erosion.
7. To increase export at annual rate of at least 8.5%.
Etc…..
Strategy:
1. The growth strategy of the forth five year plan based on agriculture.
2. West Pakistan development was given due to consideration were given priority to West
Pakistan.
3. Detailed production targets had been spelt out in each sector to realized the over all and
regional growth targets.
Priorities:
1. Water and power sector given highest priority 31 % investment were expected to be
allocated to this sector.
2. Communication and transport sector were given second priority 16.6% of total
investment was to be spent on this sector.
3. Agriculture sector were given third priority by allocating 11.22% of investment.
2
8
2
9
Objectives:
a. Development of rural areas would receive priority. That would be attaining
through various program and policies. Provision of critical inputs
b. Improvement of extension services offered to the farmers would lead to
increase in productivity, incomes and living standard.
c. Easing of urban problems would continue to receive due attention. In
particularly water supply, drainage, housing and transport facilities would be
expanded in cities and towns.
d. Development of backward region would be stressed. To this end the wide
spread extension of social services.
e. Meeting of the basic need of the population and promotion of equity would be
by the objectives of the plan.
f. Laying down the formation of long term economic growth will be an
important objective of the plan.
Targets:
1. To increase the national income 7.2 % per annum and per capita income by 4.2%
per annum.
2. It was decided that 3.8 million people will get job inside and 0.4 out side the
country.
3. The agricultural sector increases by 6% per annum while the industrial
production will increase by the 10%.
4. National saving as a percentage of GNP was expected to increase from 12.6% to
10.6 percent.
5. US$ 22billion was the export earnings target.
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0
Achievement and failure:
The Zia government accorded more importance to planning. The Fifth Five-
Year Plan (1978-83) was an attempt to stabilize the economy and improve the
standard of living of the poorest segment of the population. Increased defense
expenditures and a flood of refugees to Pakistan after the Soviet invasion of
Afghanistan in December 1979, as well as the sharp increase in international
oil prices in 1979-80, drew resources away from planned investments (see
Pakistan Becomes a Frontline State ),. Nevertheless, some of the plan's goals
were attained. Many of
the controls on industry were liberalized or abolished, the balance of payments
deficit was kept under control, and Pakistan became self-sufficient in all basic
foodstuffs with the exception of edible oils. Yet the plan failed to stimulate
substantial private industrial investment and to raise significantly the
expenditure on rural infrastructure development. The need to educate its
disabled population has gained increasing recognition in Pakistan in the last
two decades. Interest in the field was aroused by the International Year for
Disabled Persons (1981), and by the United Nations Declaration of 1983-92 as
the Decade of the Disabled. In the 1980s, the Government of Pakistan
undertook a crash program of expansion of special educational provision, thus
improving both the quantity and quality of existing facilities. However, the
continuing absence of any form of legislation for the education of children
with special educational needs, continues to deny the great majority of these
children the right to education. The Development of Education, and Special
Education in Pakistan
3
1
In the 1980s, due to the efforts of the late President Zia-ul-Haq, much greater
government involvement was witnessed and increased budgetary provision for
special education (though still inadequate) was made. During the Sixth Plan
(1983-1988), the social welfare programme concentrated on strengthening
existing institutions of social welfare and of special education, both
government and non-government.
Objectives:
A reduction in the population growth rate was one of the objectives
Of the Government of Pakistan’s Sixth Five-Year Plan (1985-1988) because
it will serve the twin objectives of increasing the country’s capacity to save
and invest while improving the per capita availability of goods and social services.
A multi-sect oral, multi-dimensional approach to family planning has
been adopted which implies (a) replacement of the traditional narrow concept
of family planning by a comprehensive programme dealing with family health
(Especially that of children and mothers), responsible parenthood, individual
Well-being and family planning, (b) community involvement including that
of non-governmental organizations and (c) involvement of government line
3
2
departments, especially those having health outlets for providing family planning
services. The present family welfare programme has been split up into
about 30 projects, such as the Family Welfare Centre Project, the Reproductive
Health Project (for contraceptive surgery) and the Communication Project.
Although mass media such as the radio, newspapers and cinema are being
Used to popularize the use of contraceptives, some religious leaders are opposed
to family planning and the advertisement of contraceptives. Nonetheless, constant
efforts are being made to enroll the support of community leaders and
others in the social marketing of contraceptives on a commission basis.
While there is no incentive system in Pakistan’s family planning programme,
a small amount of money is given to couples undergoing sterilization
as compensation for the work-time lost in the process of sterilization.
The per capita income in 1990-91 was Rs. 9,000 (US$ 360). An estimated third of
the, Population live below the poverty line. Nearly
three-fourths live in rural areas and more than half, are employed in
agriculture. The high rate of population growth places an additional
burden on the economy as well as the social structure of the country .
Literacy/Education:
At 31 per cent, the country's literacy rate ranks among the world's
lowest. A 1985 estimate showed that the female literacy was 18 versus
43 for males. In the province of Baluchistan, the 1981 census showed,
only four percent female literacy. Primary school enrolment is
estimated at 50 per cent overall and 32 per cent for females.
Status of women:
Female participation in society outside the family is constrained by
social, political and religious factors. Labour force participation
for women outside the home and for wages is extremely limited. Females
on average have 6.8 births and 600 per 100,000 women having live
births die of childbirth-related problems. Female enrolment in primary
school is 32 per cent. Investment in human resources has considerable
room for improvement. In terms of relative ranking among all
countries, Pakistan has one of the highest fertility rates; one of the
highest maternal mortality rates; the fourth highest ranking for
percentage of low birth weights (28 per cent in 1984); and the
world's, sixth lowest female to male primary school enrolment ratio.
3
3
Population:
Pakistan has increased to four times its population at the time of
Independence (1947): from 32.5 to an estimated 118 million by 1991. At
the last census in 1981, the population was 84.3 million [4]. The 1961
census, including West and East Pakistan showed an annual population
increase of 2.3 per cent during the preceding decade. The Population
Growth Estimation project placed it at 3.3 per cent for 1962-65. The
growth rate since independence was estimated at 2.9 per cent per year. The present
population growth rate is about 3.1 per cent which
means about 3.5 million more births than deaths per year. The high
growth rate also reflects a substantial decline in the death rate
since Independence.
The need to educate its disabled population has gained increasing recognition in Pakistan in
the last two decades. Interest in the field was aroused by the International Year for Disabled
Persons (1981), and by the United Nations Declaration of 1983-92 as the Decade of the
Disabled. In the 1980s, the Government of Pakistan undertook a crash programme of
expansion of special educational provision, thus improving both the quantity and quality of
existing facilities. However, the continuing absence of any form of legislation for the
education of children with special educational needs, continues to deny the great majority of
these children the right to education.
3
4
An experience of this kind is not unique to Pakistan. Haddad (1990) cites evidence to show
that this situation is found to prevail in other developing nations. Writing on the proceedings
of the World Conference on Education for All, he states that the phenomenal expansion of the
national educational systems since the 1950s has continually increased the number and
proportion of children in school. However, the absolute number of out-of-school children has
at the same time increased dramatically.
The seventh five year plan performance has been include in the Eighth five year plan
(1993-98) on pages 3-16 for quick reference, it is reproduced below.
The seventh five year plan was prepared with in a broad based Scio-economic
framework of a 15 years perspective (1988-2003), emphasizing efficient growth in
output on one hand and improving the quality of life on the other. Of the perspective
plan total incremental targets, about 23.6 per cent of GDP, 22 per cent of investment,
23.8 per cent of exports, 26.2 per cent of import and 21 per cent of revenue, were
envisaged to be attained during the seventh plan. It attempted to address the
deficiencies in social sectors, education, health, women welfare development etc, as
well as economic problems like fiscal and current account deficits, inflation and
unemployment. Many policy reforms were launched during the plan period and a new
economic edifice on free enterprise, open market privatization deregulation and
liberalization has been raised.
The tempo of growth was effected by unforeseen events of domestic and international
fronts including the economic construction of Eastern Europe and the framework
Soviet Union, recession in Pakistan’s export markets, the Gulf War, delay in the
settlement of the Afghan Issue, political uncertainties on the domestic front, frequent
changes of government, civil disturbances in 1989-90 and floods of 1988-89 and
1992-93. However, the overall performance has been satisfactory.
Growth Performance:
The growth performance, though below the plan target, was in line with the historical
trends and satisfactory in the context of internal and externals constraints. GDP grew
by 5.0 per cent (target 6.5 percent), agriculture 3.8 percent (target4.7 percent),
manufacturing 5.9 percent (target 8.4 percent) and other sectors 5.3 percent (target of
6.7 percent). In aggregate terms, over 74 percent of the incremental outputs target was
achieved. However, self-reliance in the production of wheat, edible oils, iron-core,
crude oil and capital goods did not show a significant improvement.
35
Macroeconomic Framework:
The fiscal scenario conceived in the plan did not materialize. Targets relating to
additional resources and control of current expenditure were not achieved. As a
consequence of deficits, the domestic debt more than double during the plan period,
rising from Rs.290 billion in 1987-88 to Rs. 605 billion in 1992-93.
The annual growth in monetary assets at 15.2 percent was higher than the plan target
of 12.5 percent but close to the nominal growth of GNP at 14.9 percent. Domestic
credit increased to 179.9 billion. The government credit expanded to Rs.190.6 billion
against the target of RS. 64.2 billion. This was due mainly to an increase in budgetary
support, which reached Rs. 175.6 billion against the plan target of Rs. 51.7 billion.
GDPYear Percentage
1988-89 7.4
1989-90 6.5
1990-91 8.7
1991-92 7.5
1992-93 7.9
Fortunately, the ‘crowding out’ effect in credit allocation was restrained reflecting the
emphasis on private investment. Credit utilization was Rs. 155.5 billion against the
plan allocation of Rs. 115.2 billion.
On the external side the current account deficit rose from US$1.68 billion in 87-88 to
US$ 3.69 billion in 1992-93. This was mainly a result of deterioration in the
invisible, i.e., fall in remittances and increase in service payments. As a corrective
measure rupee exchange rate was brought close to market value. The dollar-rupee
exchange rates went up from Rs. 18.12 per dollar in July 1998 to Rs. 27.15 per dollar
in June 1993.
For the Public sector development program, the seventh Five Year Plan had provided
an outlays of Rs. 350 billion at 1987-88 prices. The actual expenditure is estimated to
amount to Rs. 321.4 billion, showing an achievement of 91.8 percent.
Economic Structure:
The plan marks a distinct change in economic structure, spurred by a steady growth
in line with the earlier plans; the industrial sector increased its share of total out put
steadily, surpassing agriculture for first time. Since the First Five Year Plan, the share
of industrial sector in GDP has gone up from 15 percent to 26.7 percent and
36
that of services sector from 38 percent to 49.5 percent while agriculture has gone
sown from 46.6 percent to 24.5 percent.
Sectoral Picture:
Agriculture:
The trust of the plan was on the achievement of self-sufficiently in basic food items
and improvement in productivity through efficient use of inputs and credit. The
farmers were to be provided remunerative support prices. Research and extensions
were to be strengthened financial outlay of agriculture was 7.552 billion at 1987-88
prices against the PSDP allocation of RS. 8.167 billion Indicating 92.5 percent
utilization. The subsidy on fertilizer was RS.4.971 billion against the plan allocation
of Rs3.3 billion. Besides the Public sector development outlay, the private sector
invested RS. 51.6 billion at 1987-88 prices in agriculture.
The growth was 3.8 percent against the Plan target of 4.7 percent. The shortfall
mainly due to setback on account of devastating floods in 1988-89 and 1992-93.
There was a remarkable increase in cotton production during the plan period. Its
production increase to 12.8 million bales in 1992-93 due to floods and leaf curl virus.
However, on the basis of Five Year Plan, total output targets of cotton, sugarcane,
potato and onion were Exceeded while those of wheat, maize and rice were achieved
to the extent of 99 percent, 90.5 percent and 83.9 percent respectively. On the other
hand a substantial shortfall was experienced in the output of non-traditional oilseeds,
gram, rape seeds and mustard. The overall growth performance of the livestock sub-
sector was 5.8 percent against the target of 5.3 percent.
Manufacturing:
The value added in manufacturing increased by 5.9 percent against the target of 8.1
percent a year. The entire shortfall from the target is attributed to the large scale
manufacturing sector which could only attain a growth rate of 4.9 percent against the
target of 8.0 percent. The shortfall can be attributed to the law and order situation,
infrastructural constraints, and delay in the commissioning of new projects, non
availability of raw material and a world wide recession.The production targets of
motor cycles, soda , ash, caustic soda, cotton yarn cloth, trucks and busses were
achieved and in a few cases exceeded, while a short fall was experienced in the
production of vegetable ghee, cement, nitrogenous fertilizer, steel billets, rolled
sheets, cigarettes, tractors, papers, bicycles and petroleum products. Growth of
bicycles and petroleum products. Growth of engineering and capital goods industries
was far below the expectations.
37
A sum of Rs. 10.07 billion was allocated to the various public corporations in the
manufacturing sectors for BMR and creation of new capacities. Most of the planned
projects were completed by the end of seventh Plan.
Against the investment target of Rs. 87.5 billions in the manufacturing sec torn (at
constant prices of 1987-88), the private industrial investment amounted to Rs. 14.3
billion at 1987-88 prices. Foreign private investment in the manufacturing sector was
Rs. 27 billion against the target of Rs. 26 billion at 1987-88 prices.
Mineral:
The Seventh Five Year Plan places great emphasis on larging the production base
of the mineral sector through rapid expansion of local and foreign investment.
During the Seventh Five Year Plan, period different collaborative development
projects were started. These projects have helped in the training of GSP, PMDC and
RDC personnel.
The seventh Five Year Plan allocated Rs. 7.012 billion (Rs.3.122 billion from the
budget and Rs. 3.89 billion from the corporations program) for the development of
the mineral sector. An amount of Rs. 1.597 billion (at constant prices of 1987-88) has
been utilized against the budgetary provision of RS. 3.12 billion. Rs 0.625 billion has
been utilized
against the target of Rs. 3.89 billion in the public corporations program. Besides the
public sector, Private sector invested Rs. 0.903 billion in the mineral sector.
Energy:
Expeditious development of indigenous resources, comprehensives energy prizing policy
and conservation of energy were the main ingredients of the energy strategy.
Oil extraction in the country has increased from 44.684 barrels per day during 1987-88 to
60,000 barrels per day in 1992-93 against the target of 76,000 barrels per day, showing 79
percent achievement. About 217 wells were drilled during the plan period against the target
of 375, showing 57.9 percent achievement of the target.
Total installed capacity for power increased from 6,794 MW to 9,786 MW. The number of
additional villages electrified was 17,447 against the plan target of 10,336 showing 169
percent achievements. A total of 2.7 million new electric connections was provided during
the Seventh Five Year Plan Period.
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8
Rural Development:
For the development of rural areas, a comprehensive program involving and outlay of rays
112.2 billion was envisaged in the plan. For this purpose about 9,000 kms roads were
constructed under the rural slash formed to market roads program against the plan target of
8,500 Kms.
Regional Development:
The areas which are included in the regional plan are Azad Kashmir, Northern Areas, Chitral
and the Federal Administrated Tribal Area which share certain common physical location and
economic characteristics. During the plan period the amount of Rs. 13 .2 billion at 1987-88
prices was allocated for the special areas and out of this Rs. 8.75 billion at 1987-88 prices
were utilized, showing utilization of 66.3 percent Rs. 5.2 billion were allocated for Azad
Kashmir against which an amount of Rs. 3.5 billion was utilized. Northern Areas were
provided Rs. 2.7 billion out of which Rs. 2, 05 billion were utilized. Against an allocation of
Rs. 5.3 billion for Fata and Fata/dc, and amount of Rs. 3.2 billion was utilized.
4
0
schools and 20,000 mosque schools. Buildings were constructed for 16,500 shelters less
schools against the target of 20,075. About 13,000 class rooms were added in the existing
primary schools against the target of 8,750. About 3.1 million additional children (including
1.5million girls) were enrolled at the primary level against the plan target of 4.6 million
(including 2.7 million girls).
During the Plan Period, about 4,201 primary and 2,600 middle Schools were upgraded to
middle and secondary level against the target of 6,500 primary and 3,700 middle schools
respectively. Besides 110 new High schools were established and intermediate classes were
added in more than368 secondary school respectively. 2 million additional students were
enrolled at secondary level in class VI-X against the target of 1.88 million. In quantitative
terms, about 100 percent of the enrolment target has been achieved but much remain to be
done for improving the quality and relevance of secondary education.
The Seventh Plan Period also a witnessed a number of initiatives of managerial nature for the
acceleration of educational development, these include:
1. Education foundation were established for encouraging the private sector's participation in
the establishment of new institutions on non- commercial basis, particularly in the rural
areas.
2. The 'Tameer-e-Watan Program was launched. Under this program the legislators identify
the immediate needs of the people at the grass root level and develop projects for
implementation through normal channel under this supervision.
3. Foreign assistance for the education sectors was made available to the provinces over and
their normal ADP shares.
4. The pay scales of school teachers were upgraded one steps and the upper age limit for the
appointment of primary schools teachers was relaxed.
Health:
Against the plan target of 1,882 Basic Health Units, 1,660 units were established reflecting
88.2 percent achievements.106 Rural health Centers were set up against the target of 121
reflecting 87.6 percent achievement. Only 50 Urban Health Centers were established against
the target of 227.
Against the target of 16,252 hospital beds, and 17528 doctors against the target of
17,535were added. Against the target of 800 dentists and 10,240 nurses, 775 dentists and
8,786 nurses were hired. Similarly, 21,259 per-medics against the target of 35,950 and 26,635
TBAs against the target of 27,150 were trained.16.8 million Children were immunized
against a target of 18.8 million and approximately 43.3 million packets of ORS against the
target of 50.4 million packets were distributed.Financial utilization of Rs. 10.0 billion under
PSDP against the allocation of Rs. 12.8 billion for health sector is about 78.1 percent.
4
1
Women Development:
The Ministry of Women development sponsored a variety of small projects for the welfare of
women in collaboration with Federal and Provincial line Departments and NGOs. These
project included community/ welfare centre, working women hostels, industrial homes,
training centers, water supply schemes, women cooperatives, darul falah/amans, legal and
centers, libraries, strengthening of females educational/technical institutions, grant-in-aid for
women programs and NGOs. Special credit facilities for women were arranged through the
First women Bank.
Against the allocation of Rs. 900.0 million, the total utilization is estimated to be Rs. 648.493
million (at 1987-88 prices), indicating 72 percent utilization rate.
4
2
Mass media:
The seventh Plan aimed at expanding the coverage to the entire population through Radio
and T.V. major project was the second T.V channel under Japanese grand of RS.507 million
and Government support of Rs.119 million. Be side, thenical and production facilities at
Karachi. Lahore and Islamabad T.V centers were also provided. Only one three hundred
KWMW transmitter at Khuzdar brought at size able more over two new small power
transmitter at Gilgit, Chitral and Abbott Abad were added.
Social welfare:
The seventh plan emphasizing expanding national production through the development of
physical resources, ensured various polices measure and necessary programs in order to
promote and enhance a social welfare services for the betterment of physically and socially
handicapped population in the country. The Social Action Programs have been designed to
harmonize the forces of social change and offset their advice repercussions caused by the
total development processes. Zakat and Usher system for helping the indigent and poor
remained in operation, A policy was enforced to follow a collaborative effort of the
government and the non- government organizations (NGOs) in the implementation of Social
Welfare sector was provided an amount of Rs.0.794 billion against which RS. 0.602 Billion
were utilized.
4
3
Achievements
While the growth targets were not achieved, the overall performance was satisfactory. GDP
growths at 5 per cent a year, agriculture 3.8 per cent and manufacturing 5.9 per cent.
Investment in fixed assets amounting to Rs. 660 billion due to a surge in private investment,
which exceeded the target by 19.6 per cent. Substantial advances were made in the physical
infrastructure. Gas production and power generation increased by 34 per cent and 44 per cent
respectively.
The structure of public expenditure depicted a shift to the corporate sector. The investment by
public corporations went up from Rs. 49.0 billion to Rs. 69.8 billion in 1992-93 in response
to a large autonomy and deleing from the budgetary process.The economy went through a
process of deregulation and liberalization. Foreign exchange regulation, sanctioning
procedures for industrial units and trade policy were deregulated and liberalized.
The Eighth five Year Plans was released by the Government of Pakistan in June 1994. It
consists of four parts namely; Perspective and Basic Framework, Main Agenda, Sect oral
Policies and Programs and Statistical Appendix Tables.
The govt.of Pakistan, planning commission, Islamabad, released a pamphlet including the
landmark of the Eighth five year plan in June 1994.
(1992-93 price)(Billion Rupees)
(Billion Rupees)
4
4
Growth Target:
GDP 7.0%
Agriculture 4.9%
Manufacturing 9.9%
Services 6.7%
Good Governance:
1. Reduce imbalances of region, gender, groups and class.
2. Measure for poverty alleviation:
(Long term through social action programme & employment generation.)
(Short term through Zakat, BaitulMaal and social welfare system)
Greater self – reliance in financial resources.
3. Promote:
-Public- private partnership.
- Devolution & decentralization particularly in district level.
Private investment:
1.improve enabling environment through:
- Physical infrastructure
- Education & training
- Better health coverage
- Strengthening of capital market.
- Deregulation and privatization.
2.Supportive policies in the fiscal, monetary, foreign exchange and trade regimes.
3.Ensure a minimum investment of Rs 949b Billion against Rs.596 billion in the seventh five year plan.
45
Sectoral target:
Social sectors:
Education and training:
1.break through in primary participation rate
2boys from85% to 95%
3girls from54% to 82%
2.Increase in literacy rate from 35% to 48%.
3.output of technicians to increase by 50 %
4.Qualities improvement in education system.
Health:
1.Engage 33,000 village health workers- first major effort for health extension at village level.
2.Full immunization of child and mother.
3.Life expectancy up from 61.5 years to 63.5 years.
4.Reduction of incidence of low birth babies from 25% to 15%.
5.Universal access to iodized salt for edible purpose.
Population:
1.Population planning coverage programmme increase from 20% to 80%-urban 54% to 100 % and
rural 5% to 70%.
2.Population growth rate decline from 2.9% to 2.7%.
Physical infrastrucre:
Water:
1.Complete chashma right bank canal.
2.Complete Pet Feeder canal.
3.Complete left out fall drain.
4.Visible progress on right bank out fall drain.
1.Water logging in disaster hits areas be eliminated.(1.40million hectares).
46
Energy:
∗ Construction of ghazi broth-a hydral power project
∗ Thermal generation in private sector-estimated capacity 2,500 MW.
∗ competition of ongoing hub power project in the private sector (1,290MWs)
∗ Privatization of thermal plant of wapada.
∗ oil production up by 106 percent with major investment expected from the private sector.
∗ gas production up by 38 %
∗ Refining capacity up by 183 %( from 6 million to 17 million tons per annum_.
∗ .electrification of 19700 villages.
Production Sectors:
Agriculture:
1. Integrated management of agricultre, irrigation and drainage.
2. Better soil management and improved response to fertilizer use.
3. Introduction of sprinkler and trickle irrigation.
4. Break through oil seeds and pulse.
5. Integrated pest management.
6. Establishment of kisaan bank.
7. Wheat production up by 22%from 15.0 million to 18.25 million.
8. Cotton production up by 61 percent from 9.3 million bales to 15 million bales.
9. Rice production up by 31 percent from3.25 million tons to 4.25 million tons.
10. Sugar cane production up by 28 % from 36 million to 46 million tons.
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7
Production Target:
1. Fertilizer up by 60%.
2. Cement up by 66% from 8.56 million tons to 13 million tons.
3. Sugar production up by 54 % from 2.4 million tons to 3.7 million tons.
4. Petroleum production up by 50 % from 2.4 billion liters to 11.4 billion litretrucks and
buses production up by 100% from 4000 to 8000.
5. Steel billets up by 124 percent.
ECONOMY OF PAKISTAN:
With a per capita GDP of about PPP $2,400, the World Bank considers Pakistan a low-
income country. No more than 48.7% of adults are literate, and life expectancy is about 63
years. The population, currently about 165.8 million, is growing at 2.09% annually.
4
9
bilateral debt was granted. Consumer price inflation eased slightly to an average of 8% in
2005/06 from 9.3% in 2004/05.
Low levels of spending in the social services and high population growth have contributed to
persistent poverty and unequal income distribution. The trends of resources being devoted to
socioeconomic development and infrastructure projects have been improving since 2002,
although expenditures remain below global averages. Pakistan's extreme poverty and
underdevelopment are key concerns, especially in rural areas. The government has reined in
the fiscal mismanagement that produced massive foreign debt, and officials have committed
to using international assistance--including a major part of the $3 billion five-year U.S.
assistance package--to address Pakistan's long-term needs in the health and education sectors.
Population Currency
162,420,000 Pakistani rupee
Capital Life Expectancy
Islamabad; 698,000 60
Area GDP per Capita
796,095 square kilometers U.S. $2,000
(307,374 square miles) Literacy Percent
Language 46
Punjabi, Sindhi, Siraiki, Pashto, Urdu,
Shinaki,Khowar,Hindko
Religion
Sunni and Shiite Muslim, Christian, Hindu,
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REFRENCES FROM:
1. Planning and development in Pakistan (1947 -1982).By Mohd Qureshi
2. Planning commission for sixth five year plan. By planning commission of Pakistan
3. The strategy of economic planning. By Mehboob ul Haq
4. The economy of Pakistan By Ali Anza
5. Economic Planning ... By Walter P. Falcon.
6. Economic analysis of Pakistan By Dr Akbar zaidi
7. Economy of Pakistan elitist state By Dr Ishrat Hussain