Introduction

Pakistan's economic development planning began in 1948. By 1950 a six-year plan had been drafted to guide government investment in developing infrastructure. But the initial effort was unsystematic, partly because of inadequate staffing. More formal planningincorporating overall targets, assessing resource availability, and assigning prioritiesstarted in 1953 with the drafting of the First Five-Year Plan (1955-60). In practice, this plan was not implemented, however, mainly 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 fourth five year plan is also concerned with long term perspective plan (1965-1985). The fourth plan document was published in November 1968. The tentative objectives were issued for the sake of public opinion. Its final draft came to light in July 1970. 2nd and 3rd plan strategy also aimed at rapid growth in GNP, while the distributional aspects of GNP were ignored in the sphere of national planning. And it was observed that income disparities between East and West Pakistan increased from 36.5% to 47.4%. As a result, polarization developed in the society. There was a small group of families (commonly known as 22 families) which had captured the 60 to 80% of total assets and wealth of the nation. On the other hand there were millions of people who were forced to live on the left-over of 40% of national income. In this situation, a sense of deprivaiation developed amongst various section of society like workers and small farmers who started demanding due share in the benefits which rose due to the growth attained in 1960s. Development strategy for the future had to be changed, to increase GNP it was decided to stress upon concept of social justice by creating a regional and social balance in the composition of GNP. The objectives of 4th plan as mentioned in the plan document entitled Socio Economic objectives of the Fourth Plan

OBJECTIVES OF FOURTH PLAN

To maintain the tempo of development in the country through a determined effort to secure the maximum and most efficient utilization of our material and human resources. TO REDUCE INTER-REGIONAL AND INTRA-REGIONAL disparity in per capita income To make the economy increasingly self-reliant in per capita income. To move towards a viable synthesis between the claims of economic growth and social justice through the pursuit of pragmatic policies. To direct the forces of economic and social change towards the establishment of a just society.

To achieve these objectives the planning commission has specified certain targets for the 4th plan period .They are as: To attain an annual growth rate of at least 6.5 % of the GNP 3.5% in per capita income To reduce inter-regional disparities in income. To provide 7.5 million new jobs. To increase exports at an annual rate of at least 8.5%. To reduce the countries dependence on foreign aid .Foreign aid will only finance 16%of plan expenditures. To increase power generation capacity by 1740 MW and electrify 1150 additional villages. To increase telephone connections by 160000 and to link the two wings of the country through a satellite system. To provide television coverage to 90% of the population. To improve the percentage of literacy from 18% in 1969-70 to at least 28% by the end of the plan period. To eradicate Malaria and small pox and provide 24000 additional hospital beds. To prevent 9.6 million birth through family planning techniques. To construct half a million housing units for low incomes groups. To move towards a more equitable distribution of income and wealth by limiting the concentration of wealth by increasing the taxation of upper income groups by fixing the minimum wages and salaries by narrow down present differentials in the salary structure by greater emphasis on social security schemes and through the provision of more equal opportunities in the economic and social fields. To evolve such an income and price policy which could protect real incomes from a rise in prices. To improve Pakistans domestic contribution towards financing of the total development expenditures by saving and reinvesting one-fifth of additional income generated during the plan period. To mobilize the maximum possible financial human and administrative effort for a decisive change in the education system ;by increasing the outlay on education to two and a half times the level of 3rd plan and by increasing the enrolment in primary schools by 5 million ;in secondary schools by 1 million and in institutes for technical by 280% to move towards universal enrolment up to class 5 by 1980 and to improve the percentage of literacy in the country from 18%to 28% in 1974-75 to at least 42%by the end of decade. To launch the urban works programmed to improve the environmental conditions in the big cities and to cater to the community needs of the neglected areas To ensure major increase in other items of essential consumption through a special consumption plan; for instance an increase in per capita income consumption of 24%in cotton textiles 23%in sugar and 20% in edible oils. To increase per capita consumption of food-grains from 15.5to 16.8 ounces per day by increasing the total food grain production by 8.5 million tons.

SIZE OF 4TH PLAN

The plan envisaged the total development outlay of Rs 7500 crore of which 4900 crore will be spent in public sector and Rs 2600 crore in private sector. In East Pakistan Rs 2900 core will be spent in public sector and Rs 1000 will be allocated in public sector and Rs 1600 corore will be allocated in private sector.

Public Sector Allocation

In 4 plan greater emphasis was laid upon social sectors like education, health, housing, social welfare, manpower, family planning and works programmes. For Agriculture sector Rs 6695 million, for Water Rs 10105 million, for power Rs 5840 million, for Transport and Communication Rs 7905 million and for rd Education Rs 3665 million. The allocation in the social sector was increased from 21% in 3 plan to 27% th in 4 plan.
th

Private sector allocation

The allocation in the private sector is indicative and national. Allocation made in this sector reveal that government has exercised a minor control over the private sector with the exception of large scale industry which is completely controlled by her. Details of private investment in 4th plan is Agriculture Rs 800 Manufacturing Rs 11000 million Construction, Electricity and Gas Rs 1500 million Transport and Communication Rs 3500 million

Financing of the plan

In 4th plan it was decided that domestic resource mobilization will be carried through reforming the tax structure and administrative and institutional improvement in capital market. It has been projected that the proportion of investment to GNP will increase from 13.5% in 1969-70 to 15.5% in 1974-75. Inflow of foreign resources to decline from 3.1% in 1969-70 to 2.6% in 197475. The target market for marginal rate of savings is roughly projected at 20% in 4 th plan as against in 3rd plan. The proportion of domestic services in 4th plan will be 76%. The detail of financing of 4th plan is as: Revenue surplus Rs 14550 million Net capital receipts Rs 3500 million Domestic services Rs 23200 million Foreign resources Rs 18000 million

UNHAPPY ENDING OF 4TH PLAN

There was a social, economic and political turmoil in the country even before the commencement of 4th plan. The Military Janta headed by Yahya Khan ruled over the country but it failed to control political unrest prevailing in East Pakistan. The general election of 1970 provided over whelming majority to Awami League of Mujib-ur-Rehman but he was not given the opportunity to rule over the country there was a military action in East Pakistan which resulted in separation of East Pakistan on 16th December 1971. During 1970-71 heavy funds had to be diverted to defense. Meanwhile the aid giving countries to Pakistan suspended their aid because of uncertainty in the country. The growth rate which was 9.8% in 1969-70 fell to 0.1% in 1970-71. The per capita income fell from Rs 542 million to Rs 519. The agriculture and industrial production suffered badly. The actual expenditures during 1970-72 were Agriculture sector Rs 459.83 million Industry sector Rs 289.49 Water and Power sector Rs 1283.75 million Education sector Rs 291.25 million Social welfare Rs 15.46 million Transport and communication Rs 993.7 million Health Rs 206.53 million

After separation of East Pakistan, PPP which took over the rule abandoned the 4th plan. Then the era of Annual Planning started in the country. Accordingly, from 1972 to 1977, the annual development plans were formulated. The economist accord this period as Non Plan Period.