Public Planning in

Pakistan
By; Engr.Dr. Attaullah Shah
BSc Engg ( Gold Medlaist), MSc Engg ( Strs), MBA, MA ( Eco)
MSc Envir Design, PGD Computer Sc,
Tel: 051-9250100
E-mail: pdaiou@yahoo.com.

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

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 longrun 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.
#7: Liberty makes all the difference in the world.

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 CommissionOn 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

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 rollon 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

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 of
onePC-II.
Preparation/Processing

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".

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,

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

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 (20012011): 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

e
ur
ult
ric
Ag

(PM and his team

Integratedassisted
System
by With
Checks Planning
& Balances
Commission)

(All

Associate
Ministries)Stakeholders
in Prov
Decision
making
.
Govts

(Concerned
Support
Ministries and
Infrastructure
organizations)

Manufacturing

N
R
&

Complete
National
Planning Commission
Roadmap
in consultation
all stake
for with
seamless
holders development

M
in
in
g

Technological Base

Technology

(All Ministries)
Planning Commission
Policy
to assist
for avoiding
Instruments
No
conflicts
conflicts

Se
rv
ic
es

-Presidents Long
Term
Vision
-Integrated
Approach
-Result
Orientation
(PM and
-Team Work

(MOST &
Innovative Expansion
of
Hec)

HRD

(HEC + MOE + Prov.

Human Resource
Govt.)

Development

his Team)

National Vocational
Training Authority)

(All
Ministries)
Input
from Technical
Prov .
& Professional
Orgns.
Govts

The MTDF Size

200405
Total
Investment
Fixed
Investment

Private

200910

200510

1102.6 1257.4 1967.5 7951.9

999.3 1145.6 1815.7 7298.5

Public 286.2
(PSDP)

200506

Rs Billion

356.2

712.1 2536.7

(202)

(272)

(597)

713.1

789.5 1103.6 4761.8

(2042)

Overall PSDP by
Objectives

Rs Billion

Objective
Upgrading physical
infrastructure
Achieving Millennium
Development Goals
Balanced Development
Accelerating output
growth
Others
Total

MTDF
Allocation
993.2

%
share
48.6

681.5

33.4

270.1
66.3

13.2
3.2

30.9
1.5
2,042.0 100.0

Employment Generation (200510)

Employment
2004-05
Benchma
rk

200506

200607

200708

200809

200910

Total
(6) (1)

18.59

18.74

18.90

19.07

19.24

19.42

0.84

Manufacturin
g

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 Trade

6.39

6.72

7.09

7.48

7.91

8.36

1.97

Transport &
Communicatio
n

2.47

2.55

2.62

2.70

2.79

2.89

0.41

Finance &
Insurance

0.46

0.46

0.47

0.48

0.48

0.49

0.03

Sector

Agriculture

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

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 NorthSouth 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

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