Development means ''improvement in a country's economic and social conditions''. More specifically, it refers to improvements in ways of managing an area's natural and human resources in order to create wealth and improve people's lives
In addition to this, the spill over benefits and costs are not taken into consideration.
There is also lack of information and rapid changes in the economy. This leads to excessive uncertainties about the economic events in the future. Considering all these conditions, it is increasingly felt that price mechanism con not be fully relied upon to maximise growth in the economy. The developing nations must adopt development planning to overcome poverty.
Organizational Chart of Planning Commission Prime Minister Chairman Deputy Chairman Planning Commission Chief Economist Member (I&M) Member (Energy) Member (SS) Secretary/ Member Member (S&T) Member (Infra) Member (F&A) Member / VC PIDE
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, the 'a' year is ousted and 'd' year entered, so that the plan still remains for the three years. For the 'b' and 'c' years, adjustments are made according to the implementation of 'a' year. This process continues.
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 whol e 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.
The first five year plan was launched in 1955 while the 10 th five year plan will be launched next year.
During the period 1972-77, medium-term planning was abandoned but was revived again with the Fifth Five Year Plan in 1978.
The 9 th five year plan was from 1998-2003. Between 2003 and 09 we were out of any five year plan for development.
A perspective plan is a long term plan (15-25 years).
Its main purpose 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.
The preparation of perspective plan reflects the growing confidence of the country in its future. To permit a meaningful structural, social, and attitudinal change in the society, a perspective plan can be more helpful then a five year plan.
Pakistan had her first perspective plan in 1965 for the period 1965-85, which became redundant after the separation of its Eastern Wing in 1971 and was abandoned consequently.
A fifteen years perspective plan was announced alongwith the launching of the 7th Five Year Plan, which covers the period from 1988 to 2003.
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.
It is the operational side of the Five Year and Annual Plans . In other words, it is that part of the country's annual budget which deals with development expenditure, that is, it indicates the total cost of the project, foreign exchange component of the total cost, expenditure incurred upto the end of last financial year, PSDP allocation for the current financial year together with its foreign aid component.