Public Planning in Pakistan

What is Planning?
What needs to be done by whom and when
Setting of objectives for an organization and
establishing the policies, procedures, programs
necessary to achieve them.

Why?
To reduce uncertainty
Improve efficiency
Better understanding of objectives
Provide Base for Monitoring and Controlling.
Types:
Strategic Planning: Five years or more-
Tactical Planning: One to two years.
Operational Planning: One day to few months
 Component of Planning
Objectives: Goals and targets.
Program: Strategy and Major actions.
Schedule: Plan of start and finish of individual and group
activities.
Budget: Planned Expenditures required to achieve or exceed
objectives.
Forecast: Projection that what will happen at some future
date?
Organization: Design , NO. and kinds of positions along with
corresponding duties and responsibilities to achieve or
exceed organizational objectives.
Policy: General guidelines for decision making.
Procedure: A detailed Method of carrying out a policy.
Standard: A level of individual or group performance
defined as acceptable and adequate.
WHAT IS VISION?
Seven Principles of Sound Public Policy
#1: Free people are not equal, and equal people are not
free.
#2: What belongs to you, you tend to take care of; what
belongs
# to no one or everyone tends to fall into disrepair.
#3: Sound policy requires that we consider long-run effects
and all people, not simply short-run effects and a few
people.
#4: If you encourage something, you get more of it; if you
discourage something, you get less of it
#5: Nobody spends somebody else's money as carefully as
he spends his own.
#6: Government has nothing to give anybody except what
it first takes from somebody, and a government that's big
enough to give you everything you want is big enough to
take away everything you've got.
Major challenges to Developing Nations
Achievement of economic independence,
Overcoming backwardness and Poverty Alleviation
Implementation of socio-economic transformation.
Sustainable development.

Planning is a dynamic process, a method of analysis and

thinking which may or may not involve the preparation of
comprehensive legally binding blueprint for socio-
economic development.

In essence, a plan is a package of economic and social

policies expressed with quantified targets and objectives
to be achieved during a laid-down period
 History of Planning Bodies in Pakistan
Development Board was established early in 1948
In 1950 a Six-Year Development Plan was formulated and embodied
in the Colombo Plan for Cooperative Economic Development in
South and South East Asia..
Planning Board: 18th July, 1953,
To develop the resources of the country as rapidly as possible so as
to promote the welfare of the people, provide adequate living
standards, and social services, secure social justice and equality of
opportunity to all and aim at the widest and most equitable
distribution of national wealth.
Planning Commission On 22nd October 1958, the President was
pleased to re-designate the National Planning Board as the Planning
Commission.
Federal Ministries/Divisions
The Federal Ministries
are responsible for the preparation of programmes and projects in
their respective fields of interest including autonomous
organizations under their control
 Conceptual Plans.
Perspective Plan-Vision Plan ( Ex: 2030 Vision)
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.
Five Year Plan:
A five year plan is a general statement of objectives and targets
relating to the economy as a whole and its various component
sectors.
Roll-On Plan
In order to bring flexibility into the Five Year, a roll-on plan of
medium term is designed in which the sectoral and project-wise
position is adjusted according to the foregoing year
Annual Plan
It is regarded as the implementation side of the five year plan.
The annual plan includes an evaluation of past performance, a
presentation of the main targets, an assessment of the resource
 Public Sector Development Program PSDP
The Public Sector Development Programme (PSDP) is an
annual document which lists all the public sector projects/
programmes with specific allocations made for each one of
them in that particular financial year. ( 1920 Projects in
2006-07)
Federal Vs Provincial Projects
Major share of the total Development Programme is
allocated to Federal projects
While the remainder is allocated to the Provincial
Development Programme.
FEASIBILITY STUDY
Pre-requisite for preparation of a major development project on sound lines,
and is not ruled out even for a minor one

Preparation/Processing of PC-II.
For Large projects of cost 500 Million or more
Consultants are appointed for pre-feasibility.
The consultancy charges should not exceed 10%

PC-I/Project Feasibility:
Part 'A' is the "Project Digest", containing eight questions which are
more or less common to all sectoral PC-Is forms.
Part 'B' entitled "Project Description and Financing",
Part 'C' deals with "Project Requirements".
Part 'D' deals with environmental aspects.
 PC-III Proforma
Designed to furnish information on the progress of on-going
projects on quarterly basis

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.
 Project Appraisal.
Technical Analysis
The analysis for determining the technical viability of the development project is based on
the technical data and information given in the PC-I form as well as the earlier experience of
carrying out similar projects.

Institutional/Organizational/Managerial Analysis
A whole range of issues in project preparation revolves around the overlapping institutional,
organizational and managerial aspects of the project.

Social Analysis
Social analysis is undertaken to examine the aspects like employment
opportunities and income distribution.

Commercial Analysis
The commercial aspects of a project include the arrangements for marketing the
output produced by the project and the arrangement for the supply of inputs
needed to build and operate the project
Financial Analysis
Financial analysis involves assessment of financial impact, judgment of efficient
 Economic Analysis
Analysis from the economic aspect assesses the
desirability of an investment proposal in terms of its
effect on the economy.
Remarks:
The planning process in Pakistan starts with the PC1.
This is a document, which by its very nature excludes
any public discussion and debate and in fact, makes it
redundant. To avoid the disasters we have
experienced in the name of development, it is
imperative that discussions and consultations
between citizens and government agencies take place
at the conceptual level of the project.
Director Urban Resource Center Karachi
 PROJECT APPROVING BODIES
National Economic Council (NEC) CEO/PM as Chief
( No limit)
Executive Committee of National Economic Council (ECNEC)
Above 500 M
Headed by the Federal Minister of Finance/ Adviser to the
Prime Minister for Finance and Economic and Planning.
Economic Coordination Committee of the Cabinet (ECC)
Headed by the Federal Minister for Finance and Federal
Ministers of economic ministries as its members. It attends to
all urgent day-to-day economic matters and coordinates the
economic policies initiated by the various Divisions of the
Government
 Central Development Working Party (CDWP)
Headed by the Deputy Chairman, Planning Commission and
which includes as its members the Secretaries of the Federal
Ministries concerned with the development and the heads
of the Planning Departments of the Provincial Governments.
Departmental Development Working Party (DDWP/DSC)
Headed by the respective Secretary/ Head of Department
and includes representatives of Finance Division and
concerned Technical Section in the Planning and
Development Division.
Provincial Working Party (PDWP):
headed by the Chairman, Development Board/Additional
Chief Secretary (Development) and includes Secretaries of
the Provincial Departments concerned with development,
as its members
Planning History of Pakistan
By 1950 a six-year plan drafted. But the initial effort was
unsystematic.

First Five-Year Plan (1955-60). Not implemented,

because political instability led to a neglect of economic policy,
but in 1958 the government renewed its commitment to planning
by establishing the Planning Commission.

The Second Five-Year Plan (1960-65) surpassed its major goals

when all sectors showed substantial growth.

Third Five-Year Plan (1965-70), designed along the lines of its

immediate predecessor, produced only modest growth.
The Fourth Five-Year Plan (1970-75) was abandoned as East
Pakistan became independent Bangladesh.
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.

The Sixth Five-Year Plan (1983-88) represented a significant shift

toward the private sector.
The Seventh Five-Year Plan (1988-93) provided for total public-
sector spending of Rs350 billion.

Eighth Five-Year Plan (1993-98): The Plan, which ended up in

achieving far less than proposed development targets, dealt with the
issues of sustainable environment and management of water
resources.
 Ninth Five-Year Plan (1998-2003): Could not materialize due
to change of Government.

Ten-Year Perspective Development Plan (2001-2011): By

adopting strategies to reach the Millennium Development
Goals (MDGs), the Ten-Year Perspective Development Plan
was launched into operation on 1st July, 2001. Its total size
has been fixed at Rs.11,287 billion in current prices out of
which Rs.8,747 billion have been envisaged as the
investment of private sector and Rs.2,540 billion as Public
Sector Development Program (PSDP).
 Millennium Development Goals.
Goal 1: Eradicating Extreme Poverty and Hunger

Goal 2: Achieving Universal Primary Education.

Goal 3: Promoting Gender Equality and Women Empowerment.

Goal 4: Reducing Child Mortality.

Goal 5: Improving Maternal Health.

Goal 6: Combating HIV/AIDS, Malaria and other Diseases.

Goal 7: Ensuring Environmental Sustainability.

MTDF 2005-10 is to Eventually Realize the Long
Term Vision 2030

Developed, industrialized, just and prosperous Pakistan

through rapid and sustainable development in a

resource constrained economy by deploying knowledge

inputs.
 MTDF 2005-10: Objectives
Establishing a just and sustainable economic system
for reducing poverty and achieving Millennium Development Goals

Organised and disciplined movement towards an efficient, balanced,

internationally competitive, environment friendly, and technologically
driven knowledge economy for rapid and sustainable growth to
become an industrialized nation in 25 years

Evolving a mature, tolerant, democratic society which is developed

economically, culturally, ethically and imbibed with Islamic values of
moderation and enlightenment, and at peace with itself and with the
rest of the world
 (PM and his team
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 The MTDF Size Rs Billion

2004-05 2005-06 2009-10 2005-10

Total Investment 1102.6 1257.4 1967.5 7951.9

Fixed
999.3 1145.6 1815.7 7298.5
Investment
Public 286.2 356.2 712.1 2536.7

(PSDP) (202) (272) (597) (2042)

Private 713.1 789.5 1103.6 4761.8

 Overall PSDP by Objectives
Rs Billion
Objective MTDF % share
Allocation
Upgrading physical 993.2 48.6
infrastructure
Achieving Millennium 681.5 33.4
Development Goals
Balanced Development 270.1 13.2
Accelerating output growth 66.3 3.2
Others 30.9 1.5
Total 2,042.0 100.0
 Employment Generation (2005-10)

Employment
2004-05 Total
Sector 2005-06 2006-07 2007-08 2008-09 2009-10
Benchmark (6) (1)
1 2 3 4 5 6 7
Agriculture 18.59 18.74 18.90 19.07 19.24 19.42 0.84
Manufacturing 5.92 6.11 6.30 6.51 6.72 6.95 1.03
Electricity & Gas 0.29 0.29 0.29 0.29 0.30 0.30 0.01
Construction 2.52 2.62 2.73 2.85 2.98 3.11 0.59
Wholesale & Retail
6.39 6.72 7.09 7.48 7.91 8.36 1.97
Trade
Transport &
2.47 2.55 2.62 2.70 2.79 2.89 0.41
Communication
Finance &
0.46 0.46 0.47 0.48 0.48 0.49 0.03
Insurance
Community and
6.48 6.83 7.21 7.63 8.08 8.57 2.09
Social Services
Total 43.15 44.36 45.66 47.04 48.53 50.12 6.97
 PAKISTAN- Vision 2030

Developed, industrialized, just and

prosperous Pakistan through rapid and
sustainable development in a resource
constrained economy by deploying
knowledge inputs
The Global Paradigm for Pakistan
Only those countries would grow rich and powerful in
the 21st century who:
Position Themselves for Competitive Advantage
Generate Knowledge and Innovate for High Growth
Use Globalization to Attract Relocation of
Manufacturing , Design , and Services
Attract and Retain Foreign Funds including Foreign
Private Investment
Move Rapidly into Regional and Global Hubs
FAILURE WILL LEAD TO MARGINALISATION
Critical Challenges and Opportunities
Dispersion of information and technology
Climatic change
Depleting natural resources of water, land,
and usable energy making Pakistan vulnerable
Urban concentrations and growth of large
cities with completely different dynamics
affecting all spheres of human activities
Major demographic transitions
 Many Challenges for 2030: Take Just Four
Energy
Water and Agriculture
Demographics
Urbanization
Energy for Growth:
Energy security plan 2030 already approved (MTDF)
Total primary energy consumption to rise 7 fold
(55 to 360 MTOE by 2030)
Power generation : from 19,540 MW to 162,590 MW
Major shift planned: to coal, nuclear, and renewable
Pakistan is running out of useable, affordable energy
more efficient use absolutely vital
 Water and Agriculture
High growth rates in agriculture unrealizable with:
Present technology, practice and attitude
Low water storage, high wastage
Sub-optimal cropping pattern

Demographics: 218 million in 2030

(over 60 % urban)
To realize the dividend of demographic transition
investment in HRD is of critical importance:
Employment opportunities
Productivity increase
 Urbanization 2030
Global Urban Dwellers exceeded those in rural areas for
the first time in human history in 2005 [Shenzhen, a small
town, now has reached a higher population than London in
only 20 years]
In Pakistan, too, more and more settlements will grow
into their equilibrium size optimal and functional
hierarchies of settlements.
Pakistans urban population is projected to increase from
the current 55 million to about 130 m by 2030
another 70-80 million people in only 25 years!
Housing? Services? Slums? Unemployment? Social
cohesion?
 The Changing Face of Competition

Competitive advantage will be achieved through:

Excellence of public institutions
Knowledge, information, skill levels and competence in
technology .. and its assimilation
Macroeconomic environment restructuring and reform of
the educational system
Enablers of the knowledge economy
Legal and regulatory infrastructure for IPR and resolution of
commercial disputes
Salient Features of Vision 2030
Fulfill the promise of a gifted nation by using
knowledge and all its manifestations to become
an affluent and progressive society
Raise quality of life for all citizens and regions
of Pakistan
Achieve competence in technology
Evolve a mature democratic and just society
Be an effective global player, not a target
Achieve all this within one generation
 Pakistan Society 2030
Development measured by the quality of life
A prosperous society:
GDP to rise to USD 700 billion
High per capita incomes : rising to USD 3,000
Alleviation of poverty
Higher indices for health, education and life expectancy
Social safety nets
An equitable society:
Common and shared destiny and vision
Respect for the rule of law
Equal opportunities for all
Protection of every citizen irrespective of ethnicity,
creed, gender or age
 Pakistan Economy 2030
Availability and quality of physical infrastructure
Excellence of public institutions
Internationally competitive, innovative, environment
friendly and technology driven
Higher levels of investment
Improvement in productivity through higher skills,
knowledge inputs, better governance structures, improved
quality and encouraging brand names
Many more regional hubs and centers
Major reduction in wastage
Preserving inter-generational equity while exploiting the
natural resources
25 Years Quest for Excellence (Examples)
Education:
At least 10 universities would be among the top 200 globally
recognized.
Communications
Would be at the centre of major North-South and East-West
transport corridors.
Technology Centers
Known for its competitiveness, innovation, and productivity
 What should Karachi look like in 2030?
One of the great cities of the world, noted for its quality of
life.
A diverse yet socially cohesive population of around
30 million pulsing with commerce and industry with creative
ideas
Schools and universities eagerly sought for their
educationally stimulating environments, with excellent and
affordable healthcare facilities.
A regional hub for electronics, pharmaceuticals and
biotechnology, as well as financial services
A major hub for travel sitting at the southern end of a major
transport corridor
All major cities and urban centers will define such visions
Essence of Survival
Every morning in Africa, a Gazelle wakes up,
it knows it must run faster than the fastest Lion or it
will be killed. Every morning a Lion wakes
up, it knows it must outrun the slowest Gazelle or
it will starve to death. It does not matter whether
you are a Lion or a Gazelle when the sun comes up;
Youd better be running.
Your Comments about the Planning
in Pakistan