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Background: Constitutional Provision Federation Federating Units Concurrent List Rules of Busniess-1973 Planning Commission Inception/History Organogram Functions & Roles & Responsibility
Planning Levels
Vision 2030 PRSP 2004-2012 5-Year Plan 2009-2014 MTDF (3 Years) PSDP (1 Year) Roll-Over Plan (1 Year)
Background
A Development Board was established early in 1948 in Economic Affairs Division to deal with the questions of rapid economic development of the country in the face of grave economic and financial problems which beset the Government of Pakistan soon after independence. The Government of Pakistan decided to set up a Planning Board on 18th July, 1953 to prepare a more comprehensive National Plan of Development. Main functions assigned to the Planning Board, inter-alia, were to prepare the five-year plans of economic and social development; examine development schemes, programmes and proposals for their inclusion in the plans and development; and advise the Government on economic policies and problems having a bearing on the development plans. The Planning Board prepared first Five Years Plan (1955-60). In order to further promote economic and social development of the country, a permanent National Planning Board was established in April, 1957. The Board was to consist of a Chairman and at least two members one of whom was designated as Deputy Chairman. The Prime Minister was to assume the office of the Chairman of the Board.
The Planning Commission works under the overall direction of a Policy Board chaired by the Prime Minister and including the Deputy Chairman, 10 Federal Ministers and Members of the Planning Commission. The Planning Commission is responsible to perform the functions as indicated in Schedule II of the Rules of Business 1973 under the heading of Planning and Development Division, which inter-alia include:
Assisting in defining the national vision, and undertaking strategic planning; Assessing the material, capital and human resources of the country and formulating proposals for augmenting such resources; Facilitating capacity building of agencies involved in development; and Any other functions assigned by the Prime Minister
Member/Chief Economist
Member Energy
Secretary/Minister Coordination
Member (S&T)
JCE (MACRO)
JCE (Ops)
Add. Secretary
Director General
JACC
Chief Macro
Chief PIP
Chief Education
Chief (T&C)
Chief
(Water Resources)
Chief
(Food & Agriculture)
Chief MP&FP
Chief
Eco. Appraisals
Chief Health
Chief Pop. &
Social Planning
J.S (Admn)
Chief I.T
Chief (NFDC)
Chief
Chief EF&ES
Governance
Chief IT & F
Chief
PIA
Director General
Project Wing (SS)
Chief EISC
D. G. PPMI
Chief Women
Dev. & Manpower
Chief E&R
Chief
Poverty Alleviation
Chief Devolution & Area Dev Chief Mass Media & CSTY
Chief Nutrition
Organizing Research & Analytical Studies for economic Decision Making. I n Addition PIDE Functions as degree awarding institution
Economic Sections
1.1 Macro Economic Section 1.2 Money, Price and Fiscal Policy Section 1.3 International Trade and Finance Section 1.4 Employment & Research Section
Technical Sections
2.1 2.2 2.3 2.4 2.5 Agriculture and Food Section Devolution & Area Development Section Environment Section Education and Training Section Governance Section a) Research/Statistics & Planning and Governance/Institutional Development b) Human Resource Development 2.6 2.7 2.8 Health Section Information and Communication Technologies (ICT) Section Jawaid Azfar Computer Centre (JACC)
2.9
2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19
Wings
Energy Wing
Power Section Fuel section Energy Information Systems and Computer Section Energy Finance and Economic Section
Project Wing
Administration Wing Deputy Secretary Administration-I
Administration Section I
Administration Section-II
Administration Section-VI Protocol Section General Section Accounts & Budget Section Finance & Accounts Section
ATTACHED DEPARTMENTS i. ii. iii. iv. v. vi. Pakistan Planning and Management Institute (PPMI) National Logistic Cell (NLC) National Fertilizer Development Centre (NFDC) Federal Drought Emergency Relief Assistance (DERA) Unit Centre for Poverty Reduction and Social Policy Development Infrastructure Management Unit (IMU)
The Institute has also been mandated to carry out research in project evaluation and
offer project evaluation training courses for public officials and programme for exchange of students and teachers between the institute and other universities, educational institutions and research organizations.
Project Management: Identification, formulation, planning, appraisal, implementation, monitoring and evaluation of the development
programmes/projects.
2.
Social development, participatory planning, Gender & Development and community development and Environmental Management. Application of computer software / Information Technology in Project
3.
Management.
4.
To impary post-entry training to new recruits in the Economists Group and Technical Sections of Planning and Development Division.
Inputs for preparation of long term (perspective), medium term (Five & Three Year) and short term (Annual) plans.
1.
Technical appraisal of the development projects / programmes pertaining to Roads & Road Transport, Railways, Ports & Shipping and Air Transport sub-sectors and process these through DDWP / CDWP and ECNEC.
1.
Monitoring/Evaluation of existing programmes / institutions with respect to Roads & Road Transport, Railways, Ports & Shipping and recommend measures for improvement.
Short and long term fertilizer demand forecasting. Monitoring supply/demand and price situation. Studying options for fertilizers manufacturing. Studies on crop response. Conducting fertilizer use surveys. Applied research on balance fertilizer management. Formulation of economical fertilizer recommendations.
Planning Wing Implementation & Coordination Wing Finance and Accounts Wing Management and Information Wing Monitoring and Evaluation Wing Administration Wing
Functions: To act as Secretariat of the Federal Steering Committee the apex body to finalize policies and determine modus operandi for the implementation of the programme on drought. The meeting of FSC is chaired by Deputy Chairman, Planning Commission. Secrtary Planning & Development Division acts as Federal Coordinator for DRAPP/DERA-II who is assisted fully time National Project Director (NPD).
To develop scheme digest and Operational Manual. To develop Financial management System. Allocation/release of funds and Reconciliation of accounts. To prepare briefs, working papers and summaries on drought related issues and to recommend suitable policy measures for proper implementation of DRAPP/DERA-II. To liaise with prospective donor(s) and other stakeholders and process SOEs for reimbursement. To monitor and evaluate physical and financial progress of the programme, identify bottlenecks hampering the performance of the schemes, suggest timely remedial measures and ensure its follow up. To carry out impact assessment for DERA. To ensure timely submission of audit reports on expenditures relating to DERA Unit.
Poverty Reduction and Social Policy Development was set up in 2002 for a period of five years (2002-07)
with the objectives to conduct independent research on poverty related issues to provide inputs based on evidence to Planning Commission to influence public policy.
During the first five years , the CRPRID prepared a number of policy papers on poverty related issues and provided the professional inputs to the Planning Commission for the preparation of Pakistans Medium term Development Framework (MTDF) 2005-10 which contained poverty reduction strategy as the corner stone of the overall policy framework. The CRPRID also produced progress reports on the Pakistan Millennium development Goals (PMDGR) for each of the years from 2004-06. The reports provided the
status of achieving the MDGs, issues, challenges and the road map to achieve the MDGs by 2015. Given
the utility, relevance and nature of challenges that Pakistan face to reduce poverty and promote sustainable human development, Planning Commission has decided to extend the tenure of the CRPRID for another five years 2008-12.
There is a Coordination Committee with representation from Ministries of Water and Power,
Railways, Ports and Shipping, Local Government, National Highway Authority, and the relevant sectoral Chiefs of Planning Commission.
IMU monitors the progress of the individual subprojects in the infrastructure sectors, and
assist in timely preparations of PC-I and PC-II, as well as development of Request for Proposals (RFP) documents and consultation selections.
2.
3. 4. 5. 6. 7. 8.
To assess material and human resources and promoting capacity development for optimum
utilization. To make substantive contribution to polices in all sectors. To provide high quality advice to the Government to determine sectoral priorities. To identify initiatives to accelerate development in respective sectors. To periodically review national development plans. To encourage foreign investment in critical sectors of development. To develop, improve and strengthen planning machinery for improved governance commensurate with sectoral plans/vision.
9.
To play facilitatory role for promoting public-private partnership to carry forward the
development agenda.
10. To promote inter-province harmony through equitable allocation of resources for public sector development plans in liaison with the Provincial Governments.
2.
3. 4. 5.
PC-II Form
PC-III Form PC-IV Form PC-V Form
6.
PC-I Proforma
PC-I is the basic form on which all projects/schemes are required to be drawn up. It was introduced in its simple form in 1952 and substantially revised in July, 1961. This was a composite form and was used for all sectors. But as the time passed on, bigger and complex projects had to be prepared which required quite detailed information for pre-investment appraisal. PC-I form, therefore, was continuously made more elaborate and 12 separate forms suitable for particular sectors were introduced in July, 1974. In 1995, a Task Force headed by Deputy Chairman, Planning Commission was set-up to review the project planning
process from identification to approval as well as PC-I and II proformae to improve project quality.
The Task Force reviewed existing 12 PC-Is and observed that formats of existing PC-Is are though quite comprehensive but still require some improvements. Accordingly, the Task Force agreed that existing PC-Is should continue with some modifications/improvements to cover environmental aspect, social sector benefits, risk analysis and incorporation of detailed financial statements. As many as 14 forms, in all, were designed for various sectors. The guide-lines devised by the Task Force for filling in PC-Is and II proformae. These guide-lines should be strictly followed while preparing PC-Is/II projects.
PC I (continued..)
The PC-I form comprises four parts.
PC I (continued..)
Part 'B' entitled "Project Description and Financing", forms the core of the PC-I. The precise nature and form of the questions varies from sector to sector. The principal information asked for includes:
location, market analysis, general description and justification, operating or recurrent cost estimates, technical description, capital cost estimates, unit costs, sectoral benefits, cash flow,
financing arrangements,
foreign exchange component, risk analysis, beneficiaries participation etc.
PC I (continued..)
Part 'C' deals with "Project Requirements". The information sought in this part includes: (i) manpower requirements during implementation, (ii) physical and other facilities required and (iii) materials, supplies and equipment. Part 'D' deals with Environmental aspects. It includes information required in respect of (i) impact assessment undertaken separately in case of water, sewerage and solid waste and (ii) recommendations alongwith the measures to be taken to control environmental pollution.
PC I (continued..)
Low Cost PC-I Proforma
A separate PC-I form for the small development projects costing upto Rs 1.00 million (nonrecurring) should be used in respect of all the sectors, instead of comprehensive PC-I form for each sector.
PC-II Proforma
PC-II is required for conducting surveys and feasibility studies, 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 form is designed to furnish information on the progress of on-going projects on quarterly
basis and is required to be submitted by the executing agencies/departments within 20 days of the closing of each quarter. This form gives financial as well as physical progress of the schemes with information on any bottlenecks experienced during the execution of a project.
PC I (continued..)
PC-IV & V Proformae
PC-IV form is required to be submitted at the time when the project is adjudged to be complete while the 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.
Umbrella PC-I
Some times a Federal Ministry is required to prepare a PC-I having provincial components to be financed through a joint loan by a donor agency. Such a PC-I is called an Umbrella PC-I and could fall in any one sector of the economy. If Federal Ministry finds it difficult to prepare the Umbrella PC-I, then the matter is to be reported to the CDWP in which the provincial representatives participate and can be advised to expedite. Moreover, efforts should be made to negotiate aid separately for each province particularly in social sectors like primary education, population and rural health projects etc., where project implementation is exclusively the responsibility of the Provincial Governments.
Stages
Agencies Involved
Federal Ministries/Organization, Provincial Depts.
Identification / Formulation
Donors
Project Document
PPDDs/PPDB
Donors
PC-I
DDWP
Approval
timeframe.
4. Recruitment of consultants.
equipment.
6. Budgetary allocation.
Monitoring is conducted at two levels: internal & external. Internal monitoring is carried out by the sponsoring Ministries/Divisions and executing agencies, departments and project authorities and serves the objectives of the project management. External Monitoring is undertaken by an outside agency such as M&E units of PPDDs/PPDB, Project Wing, concerned Ministries and Donors.
Planning Commission, P&DDD, as per Rules of Business, has been entrusted to carry out evaluation of completed and on-going projects. M&E Units/Cells established in PP&DD/PP&DB are responsible for evaluation of projects. Donors usually carry out both on-going and ex-post evaluation of their programs/ projects and the findings are documented and circulated.
Monitoring & Evaluation System for Development Projects Stages Agencies Involved
Federal Ministries/ Organization,
Documents Prepared/Used
Implementation
PMUs/Departments
Quarterly, Annual Reports/PMES-I & II Quarterly, Annual Reports/PMES-I & II Periodical Review Reports/Annual Reports
Monitoring
Project Wing, Ministries, Organizations/Departments
Donors
PMUs/M&E Units
Evaluation Reports
Evaluation
Evaluation Reports
Source of financing of development project by the Federal and Provincial Government are the domestic
resources and financing from donors and development Bank i.e. Asian Development Bank, World Bank and Islamic Development Bank.
Rs. In Million
Year
PSDP (Federal )
90.00 113.00 148.00
Foreign Financing
2005-06
2006-07 2007-8
204.00
268.00 335.00
41.20
36.514 32.514
20.20
13.60 9.70
Approval Process
Following are the project approving authorities working at various levels:
1. Executive Committee of National Economic Council 2.Central Development Working Party 3.Departmental Development Working Party 4.Provincial Development Working Party
scheme has been seen and approved by the Secretary of the Ministry concerned.
Similarly, a scheme sent by the Provincial Government should carry a certificate that it has been seen and approved by the respective Chairman/ACS (Dev)/Development Commissioner of the Provincial Government. Processing of Schemes
As soon as a copy of PC-I/PC-II is received by a member of the CDWP/PDWP/DDWP, its examination should be
conducted expeditiously so that same is approved /rejected in accordance with the time schedule. The Planning Commission has to ensure that the instructions issued by Planning Commission for preparation of PC-I/PC-II. In case, the PC-I is found sketchy and deficient it is returned to the sponsors with the approval of
Anticipatory Approval
The Chairman, ECNEC, where he is satisfied, has the powers to allow the execution of a scheme in anticipation of its formal approval by ECNEC.
Administrative Approval
Project Approval is followed by administrative approval and sanction for incurring expenditure. Composition and Functions of Approving Forum Executive Committee of the national Economic Council (ECNEC) Composition Federation The Prime Minister Minister for Commerce Minister for Communication Minister for Education Minister for Environment Minister for Food, Agriculture and Livestock Minister for Health Minister for Housing & Works Minister for Industries and Production Minister for Information Technology & Telecommunication Minister for Local Govt. and Rural Development Minister for Labour, Manpower, and Overseas Pakistanis Minister for Petroleum and Natural Resources Minister for Planning & Development Minister for Ports and Shipping Minister for Privatization and Investment Minister for Railways Minister for Science and Technology Social Welfare & Special Education Minister for Textile Industry Minister for Water & Power Advisor to the Prime Minister on Finance and Revenue Chairman Higher Education Commission Minister for State for Finance Deputy Chairman, Planning Commission Provinces
i. ii. iii.
Chairman Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member
Provincial Finance Ministers Provincial Planning Ministers Chairman, Planning and Development Board/ Additional Chief Secretaries (Development) of the Provinces
Functions: To sanction development schemes (in the Public Sector) pending their submission to the National Economic Council To allow moderate changes in the plan and sectoral re-adjustments within the over-all plan allocation. To supervise the implementation of the Economic policies laid down by the Cabinet and the National Economic Council. Reports asked for by the Committee in pursuance of its earlier decisions. Any other matter referred to the Committee by the Prime Minister. The Secretariat of ECNEC is located in the Cabinet Division .
Sanctioned Powers
All Schemes costing Rs. 500.00 million and above All Federal Schemes costing upto Rs. 500.00 million and provincial schemes costing above Upto Rs. 500.00 million Upto Rs. 400.00 million
with the time factor, plans are divided into three categories;
i. ii. Short Tem Plan Medium Term Plan
iii.
A short term plan has a very brief and limited horizon. It is formulated with only one fiscal year in view. It is also called Annual Development Plan or Annual Plan. A
medium-term plan covers four to seven years period with five years being the most
popular choice. A long-term plan, more often called a Perspective Plan, may have a 15-25 years tenure.
1.
2. 3. 4. 5. 6.
Annual Plan
The principal instrument for adjusting the five year plan to current
realities is the annual plan, which has proved a dependable method for
translating plan objectives into an operational programme. The Annual Plan includes
an evaluation of past performance, a presentation of the main targets, an assessment of the resource position for the year, an
sectors and
a
allocation for the current financial year together with its foreign aid
component.
Roll on Plan
In order to bring flexibility into the Five Year Plan and to relate the sectoral and project-wise allocation with (a) the financial position, and (b) project implementation, 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 the initial three years, a roll-on plan is prepared for a, b, c years.
Next year, theh a year is ousted and b year entered, so that the plan still remains for the three years. This process continues.
Long Term/Perspective Plan The main purpose of the Perspective Plan is to provide a long-term (15-25 years) economic and social policy framework so that the objectives to be achieved over a much longer period can be incorporated in a medium-term Framework.
4.
5.
6. 7.
1978-83
1983-88 1988-93 & 1988-2003 1993-1998 2001-2011 2001-04 2005-10 2007-2030
8. 9.
10. 11.
Infrastructure %
64.0
Social Sector %
23.1
Others %
12.9
61.2
25.37
13.3
59.2
25.4
15.4
58.9
27.4
13.7
73.5
18.9
7.6
76.2
18.75
15.4
67.2
28.2
4.4
75.16
23.84
0.75
PSDP/GDP RATIO
6 5 4 3 2 1 0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
PSDP/GDP Ratio
Millennium Development Goals (MDGs) Pakistan has set forth following MDGS:
1.
2. 3. 4. 5.
6.
7.
Challenges & Strategy To meet challenges of 21st Century following planning strategy will be adopted:
Challenges i. ii. PC must have expertise and best practice comparable to those of World Bank and ADB Traditional Model of Establishment Controls and Micromanagement of Line Ministries is an out-dated model. Instructions / Methodology
Better HR strategy, better work culture, more Knowledge Products and Services (KPS) 1. 2. 3. Delegation Devolution Constitutional provisions, relating to demands for for grants and accountability
iii.
Institutional deficit of the Line Ministries should be made by good by Establishment, Finance & PC Increased focus on economic growth, development effectiveness and performance outcomes Development has to be conceptualized by All PC should be enabler and facilitors and should be steering has to be and not rowing
1. 2. 3.
iv.
Knowledge management and better knowledge products and services 1. Annual Developemnt Strategy and Programme (ADSP) Both Current Budget and Development Budget 1. Concept Papers to precede PC-I through ADSP. Follow-up on the Macro-economic Framework on quarterly basis.
v.
Vi
Development is not restricted to projects. It is economy and it has to be thematic and not linear
SPECIAL ASSIGNMENTS
Export Plan of Pakistan 2007-13 Enabling Policy Environment Human Resource Development Physical, Scientific and Technological Infrastructure Logistic Chain Trade Facilitation Production of Quality Products Marketing
Though macroeconomic stability was gradually restored and this contributed significantly to the
revival of strong economic growth, there are significant challenges in term of both maintaining macroeconomic stability and sustaining the growth momentum in a medium to long term perspective.
reaching consequences for growth, equity and structural change in the economy. Yet, increase in
domestic prices can only be undertaken with effectives Safety nets to protect wages and income especially of landless rural laborers and low-income urban worker scoping with these challenges would require a coherent strategy to maintain macroeconomic stability that is essential for sustaining high growth in the future.
Achieve and sustain high rates of economic growth largely through modernizing all sectors of the economy, attracting both domestic and foreign investment, and stimulating high value-added exports. Attain macroeconomic stability with emphasis on fiscal discipline, efficient debt management, efficient tax administration, and enlarged tax base with equity. Achieve monetary targets consistent with growth objective while maintaining price and exchange rate stability. Enhance competition and efficiency, and encourage soundness and improved risk management in the financial sector. Reduce external dependence by increasing reliance on those sources of external financing that are stable, sustainable, and have positive effect on growth. Themainelementsof thisstrategy are diversification ofexports,export competitiveness, tradeliberalizationand consistencyineconomic policies.