Planning Commission

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Planning Commission Of Pakistan

Made by: Syeda Mahrukh Fatima

Contents:
Introduction History Compositions Function Organizational Chart Sections Power sector reform Economic Growth Strategy National Plans

Planning Commission Of Pakistan
From Wikipedia, the free encyclopedia

Introduction:
Planning Commission of Pakistan is a government institution in charge of managing the economy of the country in tandem with the Ministry of Finance. Its main function is to prepare five-year plans of economic and social development. The Public Sector Development Programmes (PSDPs) also fall under domain of the commission.

History
Development Board
In-spite of the grave economic and financial problems which beset the Government of Pakistan soon after independence,a Development Board was established early in 1948 in Economic Affairs Division to deal with questions of rapid economic development of the country. 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. This was essentially an outline plan and delineated only a broad pattern of development.

Planning Board
To prepare a more comprehensive national plan of development, the Government of Pakistan decided to set up a Planning Board on 18th July, 1953, with Mr. Zahid Hussain, exGovernor of State Bank of Pakistan as its first Chairman and two other members. The purpose and terms of reference of the Board were set forth as below:-

Purpose:
The economic and social objectives of Government's Policy are 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.

Terms of Reference:
i. ii.

To review the development that has taken place since independence. To assess the resources - material and human, which can be made available for development during the next 5 years beginning from April, 1954 (later changed to April, 1955).

iii.

iv. v. vi.

To prepare a national plan of development based on the fullest possible utilisation of these resources for implementation in a period of 5 years from Ist April, 1955 as a step towards the attainment of the economic and social objectives of Government's policy. To make proposals regarding the administrative machinery best calculated to assure the successful implementation of the plan. To make proposals regarding the administrative machinery best calculated to assure the successful implementation of the plan. To make any other recommendations which in the opinion of the Board will contribute towards the successful implementation of the plan.

Composition
The Prime Minister is the Chairman of Planning Commission which apart from the Deputy Chairman, comprises of nine Members including Secretary, Planning & Development Division/ Member Coordination; Chief Economist; Director, Pakistan Institute of Development Economics; Executive Director, Implementation and Monitoring; and Members for Social Sectors; Science and Technology; Energy; Infrastructure; and Food and Agriculture :-



Chairman Finance Minister

Syed Yousaf Raza Gillani

Dr. Abdul Hafeez Shaikh

  

Deputy Chairman Advisor Members
Mr. Ashraf M.Hayat

Dr. Nadeem Ul Haque

Dr. Ishfaq Ahmed

Secretary Planning and Development Division / Member (Co-ordination)

Lt. Gen. (R) Shahid Niaz Member Implementation and Monitoring Ghulam Mohayuddin Marri Member Infrastructure Dr. Samar Mubarakmand

Member Science & Technology Member Food & Agriculture (Vacant)

Member Energy (Vacant) Dr. Jaffer Qamar Member/Chief Economist/Vice Chancellor PIDE Dr. Ms. Saba Gul Khattak Member Social Sectors

Functions
1.
To prepare future five year plans of economic and social development. To make additions and alterations in the existing five year plan consistent with the changing economic conditions of the country.

2.

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:

3.

1. 1. 2. 3. 4. 5. 6.

i. ii. iii. iv. v. vi.

Preparing the National Plan and review and evaluating its implementation; Formulating annual plan and ADP; Monitoring and evaluating implementation of major development projects and programmes; Stimulating preparation of sound projects in regions and sectors lacking adequate portfolio; Continuously evaluating the economic situation and coordinate economic policies; and Organizing research and analytical studies for economic decision making.

4.

The Planning Commission also discharges the following functions:

1. 1.
 ii.

i.

1. 2. 3.

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;

1. 4. 1.

iii. iv.

Facilitating capacity building of agencies involved in development; and Any other functions assigned by the Prime Minister

Sections

Technical Sections
Agriculture and Food Culture, Sports, Tourism and Youth Devolution & Area Development Education Environment Governance Health Industries, Commerce and Mineral Mass Media Nutrition Physical Planning & Housing Population and Social Planning Printing and Publication Science and Technology Social Welfare Transport & Communications Water Resources Women Development and Manpower

Economic Sections
Economic Appraisal Employment & Research

International Trade and Finance Macro-Economic Money, Prices and Fiscal Policy Plan Coordination Poverty Alleviation Public Investment Authorization Public Investment Programme (PIP)

Admin Wing
Deputy Secretary-I Deputy Secretary-II Deputy Secretary-III

Projects/Wings
Jawaid Azfar Computer Centre (JACC) Flood Reconstruction Unit (Organizational Chart) Projects Wing Energy Wing National Fertilizer Development Centre Mechanized Construction of Pakistan (pvt.) Limited National Logistic Cell (NLC) National Construction Company (Pakistan) Limited Federal Drought Emergency Relief Assistance (DERA) Unit Pakistan Planning and Management Institute (PPMI) Pakistan Institute of Development Economics

Planning Commission's Power Sector Reforms Article

Tuesday 12, Oct 2010

Economic Growth Strategy
New Development Approach
New Development Approach (NDA): The two key factors that have determined economic growth in the past are external resource inflow and public sector projects. The latter used to be mainly financed by the former. In the old model, Pakistan has excessively focused on public sector investment and producing labour with low-end technical skills. The NDA should now be based on endogenous growth, where the quantity of investment should be complemented by efforts to improve the quality of investments – i.e., their productivity and efficiency. The private sector must drive economic growth with timely implementation of market reforms, which should promote competitiveness. Pakistani cities presently are configured as suburban clusters instead of as creative cities which are locomotives of growth. It is essential for Pakistan to step up its efforts to produce high-end human capital. Promoting innovation and entrepreneurship should be the cornerstone of our government’s facilitation to private sector. Productivity-led growth: Pakistan’s economic history has witnessed many episodes of high growth but these could not be sustained for longer periods due to the absence of the software of growth. Productivity takes central place in the New Development Approach (NDA) which is ensured through innovative and entrepreneurial practices. Creative Ideas translate into innovations while, entrepreneurship blends innovative ideas and the risk-taking streak to increase productivity and in turn enhance the growth of an economy. Innovation and ideas drive growth and not just infrastructure development and investment promotion. Despite the low cost of doing business in comparison to the regional economies, Pakistan ranked 103 out of 125 countries in the global innovation index. Pakistani exports have long suffered due to a lack of product and regional diversification. Manufacturing supply chain is skewed towards production and assembly of goods that use imported inputs, intensively. Components of the supply chain, such as: research and development, design, distribution and marketing, have long been ignored. Reforms for Productivity: First, competitive markets are the starting point towards sustained economic growth. Free and flexible markets should allow businesses, which have run their course, to exit and be replaced by more efficient firms. Instead of providing incentives and subsidies to different sectors, markets should be allowed to determine optimal allocation of resources. Second, it is imperative that there are deep reforms, which limit the effectiveness of rent-seeking mechanisms. Third, a sound judicial system that ensures property rights and contract enforcement can go a long way in sustaining inclusive growth. Fourth, the triple helix system of promoting innovation should require universities, industry and government to collaborate for the promotion of new and marketable ideas. Finally, entrepreneurship should be incorporated in school curriculums at all levels of education. Institutions having practical facilities for young entrepreneurs need to be strengthened. Reforming internal markets: Pakistan’s growth strategy has traditionally followed a mercantilist approach with a skewed focus on import substitution and at times export promotion. Our policies have supported this approach through high tariff walls for consumer goods imports and by giving subsidies to chosen sectors for export promotion. With our focus on choosing sectors to promote, be it agriculture or industry, one area has remained ignored

throughout: domestic commerce. This is despite having a share of over 30% in Pakistan’s GDP and employing about 20% of the country’s work force (Economic Survey of Pakistan, 2009-10). Domestic commerce includes wholesale and retail trade, warehousing and transport. Desired Reforms for Internal Markets Urban management and land use reforms for encouraging the development of mixed use areas, city centers and commercial development. Government land in prime city center areas should be privatized and made available for mega commercial projects. Taxes, legislation and regulations should not penalize commercial development as is currently the case. Clarity in zoning and building regulations needs to be provided to allow for more and bigger warehouses and cold chain services. Focus on improving transport efficiency, while prioritizing freight transport efficiency considering its role in linking up the entire supply chain network. Promote openness and competition, e.g. bringing goods of international quality to consumers will promote innovation. Furthermore, competition in value chain development needs to be promoted. Free entry and exit of participants in the market (without special privileges or licenses) as well as a more liberal policy allows for mobility with greater fairness and competition for wholesalers thus, encouraging private investment. Creative cities as engines of growth: Cities such as Paris, London and New York have been the birthplace of modernization and inspiring vision. Creative cities enhance individual and collective productivity through the exchange of ideas and easy access to information. Cities that prosper economically have a mix of three T’s; talent, technology and tolerance. Cities not only have the hardware (e.g., infrastructure) but also require the software (e.g., talent and technology). Current state of cities in Pakistan is abysmal. Pakistan’s population has increased rapidly over the last 5 decades with urban population escalating at a rapid rate of 3 percent.City-dwellers and city administrators do not have much say in running a city. But, a great deal of involvement by government agencies is apparent in managerial and administrative decisions. There is confusion regarding how the cities are governed and controlled. Lack of availability of land/space and convoluted commercial laws have hindered the growth of our cities. Desired Reforms for Urban Management Focus of policy, research and thinking on the role of cities as engines of growth. There is a need to move towards the development approach while focusing on the software (talent, technology and tolerance) of cities. Development of city centers for dense mixed use. ‘Government ownership of city-centre land needs to be reduced if it is retarding downtown development’. Involve the community in decision-making regarding city planning and its openness.

While places for the elite are preserved due to revealed preferences of rich, places for cultural and educational activities (for poor) need immediate attention. Decentralization needs to be strengthened to allow city planners adequate control over their land and resources Commercialization policy should be reviewed to remove the bias against engaging in business. Zoning laws should be improved and made transparent. Vertical expansion of cities should be promoted to reduce property costs, thus allowing the low income group affordable living space. Community and youth development: It is universally accepted and advocated that without community involvement and youth participation, development processes have little chances of success, as has been proven by international experiences. Youth and community development go hand in hand. The essence of the NDA recognizes the need to develop communities focusing more on utilizing the youth in line with the best international and local practices. Moreover, the provision of community infrastructure and social capital are equally important for the success of community development. Networking plays an important role for increasing awareness in the communities as elaborated by Fukuyama. Networking reduces transaction costs and promotes associational life, which are both necessary for the success of limited government and modern democracy. Thus, while awareness of social capital is often critical for understanding development, it is usually difficult to generate through public policy or through intervention. However, government policy alignment may be critical to establish a stable environment for inclusive interaction between the multiple stakeholders. Issues and Reforms The NDA focuses on increased community development and social networking by increased access and ownership and systems for strengthening neighbourhoods. Collective asset creation helps in reducing health hazards and increasing awareness via improved education, mass action plans through consensusbuilding and adaptability to new modes of development, improving social networking through connectivity and outsourcing, prioritizing and respecting ethical and cultural diversification. The increased role of the private sector is necessary for bringing fast paced development and employment opportunities and promoting youth entrepreneurship through the extension of platforms like the youth parliament in the political sphere to more broader social, economic and cultural areas as well.

National Plans
Annual Plans:
Annual Plan 2010-11

Pakistan’s economy has not only regained macroeconomic stability but has also shown clear signs of revival of economic growth during 2009-10. Despite electricity shortages, difficult security situation, much lower than expected foreign resource inflows, the economy grew by 4.1% against 1.2% achieved in the previous year 2008-09. Large scale manufacturing and exports have shown respectable growth while workers remittances and foreign exchange reserves improved substantively. Acceleration in inflation has also been checked. Complete Plan
Annual Plan 2009-10

The strategic thrust of the Annual Plan 2009-10 has been derived from Nine Points Economic Agenda of the government. Major elements of the strategy are to 1) Ensure economic recovery consistent with stabilization 2) Maintain momentum of agriculture growth together with support policies for revival of industries 3) Address critical infrastructure gaps in water, power and transport for enhancing competitiveness 4) Achieve Millennium Development Goals and reduce poverty through a comprehensive social protection system with an exit strategy 5) Facilitate balanced development in the country by reducing regional disparities; and 6) Rehabilitation and reconstruction of conflict affected areas.
Complete Plan Annual Plan 2008-09

GDP growth has been envisaged at 5.5% to be contributed by growth rates of agriculture (3.5%, manufacturing (6.1%) and services (6.1%). To attain the projected growth target, total required investment is projected at Rs 2638.8 billion, about 17% higher than last year's level. As a ratio to GDP, total investment is expected to stay around last year's level (21.5% of GDP). For financing the required investment, national savings as a ratio to GDP is projected to increase to 14.3% in 2008-09. The inflation rate (CPI) for next year has been projected at 11.0%. However, the inflation scenario would remain sensitive to international price movements.

Five Year Plans:
A single year is too short a period to accomplish anything. A five year plan on the contrary has the advantage of reasonable time frame for manoeuvering and achievement of solid results. A five year plan is a general statement of objectives and targets relating to the economy as a whole and its various component sectors. It is not an authorising document in the sense that it does not authorise expenditure to the relevant operating agencies. It provides a broad framework for formulation of the plan. MTDF (2005-10) The future of Pakistan is linked with its present and its past. The country has inherited a rich civilization and a centuries old history, marked by outstanding achievements reflected in cultural enrichment, intellectual maturity and spread of knowledge. The dawn of Islam in the geographical area now constituting Pakistan served as a catalyst for the people living here to develop their innate qualities of intelligence, diligence and competence. Given the natural endowment of a welldeveloped mind and habits of industry of the people, the present orientation towards enlightenment and technological advancement augurs well for the future of Pakistan in economic, social and cultural spheres.

Complete Plan
Eighth Five Year Plan 1993-98 The framework of the Eighth Five Year Plan was prepared in consultation with the federal agencies and the provincial governments. The findings and recommendations of 28 Technical Committees comprising over 2500 experts from pubic and private sectors setup in connection with the preparation of the Eighth Plan have been taken into consideration in formulating the plan. It reflects the initiatives and incorporates the policies of the government geared to a dynamic and equitable economic system

Complete Plan Seventh Five Year Plan 1988-93

The Seventh Plan has been prepared in the light of the experience gained from the implementation of the Sixth Plan and within the socioeconomic framework available now for the second Perspective Plan (1988-2003). The major thrust of the Seventh Plan is on the twin objectives of achieving efficient growth of output on the one hand and improving the quality of life on the other. This has to be achieved within an overall economic framework which encourages the private sector and maximizes employment generation. The quality of life during the Seventh Plan will be further improved by providing infrastructure in the rural areas, public services, like education and health to ail sections of the society, and employment opportunities and special provisions for the weakest groups of the population.

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