Pakistan's planning process aims to reduce poverty through economic growth but has struggled with fiscal deficits and declining long-term growth. Strategic environmental assessment is not legally required but is being informally used to incorporate environmental concerns into economic policies and plans. The planning process involves formulation of long, medium, and short-term national plans by working groups consisting of government stakeholders. Projects are then developed and subjected to lengthy approval processes before implementation, but civil society engagement is limited. While regulations for environmental protection have been made, implementation and enforcement have been lax.

1. SEA and Planning Process of Pakistan
SEA and Planning Process of Pakistan
Abstract
A developing country, Pakistan considers environment a lesser priority than economic growth. However due to
greater awareness, a number of regulations, policies and programmes for environmental protection and conservation
have been formulated. The implementation and enforcement of these were found to be lax. The programmes that
aim to achieve country’s developmental targets fail to factor in the weightage of environmental concerns and
pressures. They also lack orientation towards environmental sustainability and instead incorporate the imperatives of
specific development sectors. Detailed consultative processes involving myriad of state and private institutions is
followed at various stages. Their effectiveness, however, leaves much to be desired as only conventional tools are
used to engage the stakeholders. Although Strategic Environmental Assessment (SEA) is not a legal requirement,
however, SEA tools are being informally employed at various levels of national planning for the past two decades.
Therefore, there is an emerging need for formal introduction of SEA so that the strategic issues can be addressed in
a systematic fashion. This paper shall focus on the following: institutional framework of the planning process, detailed
analysis of the failures in implementation and the opportunities and limitations that might arise after the integration of
SEA principles. After conducting the three tiered scrutiny, the paper would try to suggest systemic improvements
which would help the decision makers by providing a platform and a set of parameters to facilitate the dialogue
amongst the varied actors involved in environmental protection and economic development.
Author: Nazia Zakir Ahmed
1.1 Introduction
Soon after independence in 1947, a development board was established at Economic Affairs Division to foresee the
economic development of Pakistan. Subsequently the Government decided to set up a Planning Board in 1953 to
prepare a more comprehensive national plan of development. In 1958, the National Planning Board was re-
designated as the Planning Commission under the patronage of the President. The Commission transformed through
series of phases and is now composed of technical and economic sections that operate on the basis of Rules of
Business 1973, a constitutional provision. The word ‘strategic’ appeared in the functions of Planning Commission as;
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“Assisting in defining the national vision and undertaking strategic planning” but nothing appeared on environment.
Borrowing a thought from the Soviet command planners, the country devised various ‘Five-Year plans’, which were
augmented by annual reviews. Environment unfortunately featured only in the Eighth Five Year Plan (1993-98) after
the iconic Earth Summit at Rio De Janiero 1992.
Like most of the developing countries, planning in Pakistan aims at poverty reduction through quick growth. Its
growth experience of the last four decades has been volatile with declining trend in long run growth patterns. For the
last four years per-capita incomes have not increased in real terms while double-digit inflation has prevailed (FEG).
Recent ‘Framework for Economic Growth Framework' concentrates on competitive and inclusive markets. It
illustrates a strategy that seeks accelerated and sustained growth and development based on economic reform with
an emphasis on productivity. Sustained growth is proportional to balance among environmental, social and economic
gains. Planning system has to play an active role in guiding development to sustainable solutions. Strategic
Environmental Assessment (SEA) of policies and plans allows incorporating environmental and social concerns in
economic growth. It also helps in achieving sustainable growth with lesser effects on environment and providing
support to strong, vibrant and healthy communities. Efforts are being made by the key players of environment sector
with the support of the Dutch Government to introduce SEA in Pakistan. It is likely to help policy makers and planners
to explore a wide range of opportunities and ideas before deciding on the best solution.
1.2 Planning Framework
Pakistan has struggled with a chronic problem fiscal deficit often sacrificing growth for short-term stabilization while
ignoring strategic growth initiatives. Planning occurs within a centralized decision-making structure with the
involvement government stakeholders including ministries and associated departments. Main instruments of
development planning are policies and plans that spawn into projects/programmes.
Rules of Business Cabinet Division as amended 20th April, 2006
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2. SEA and Planning Process of Pakistan
Policies
In Pakistan, the policies are formulated by the relevant ministries where required assistance is taken from the
planning commission. Policies set objects of each sector and provides guideline for development.
Plans
Plans are prepared to achieve the development targets and international obligations of the country. In accordance
with the time factor, plans are divided into three categories - short, medium and long term that emerge as follows:
1. Perspective Plan 10-25 Years (Long term)
2. Mid Term Plan 04-07 Years (Medium term)
3. Rolling Plan 03 Years (Short term)
4. Annual Plan 01 Year(Short term)
Annual plans review the progress of previous year and discuss the initiatives for upcoming year. Each section of the
Planning Commission provides input in annual plan formulation however the line ministries and departments are not
engaged. The medium term plans that are five year plans go through detailed consultative process where
government stakeholders are engaged from the beginning. The process starts with the formulation of working groups
of each sector that have representation from planning commission and federal and provincial departments. However
the civil society, general public and private sector are not engaged in the process. Once the working groups draft the
plan it is shared with all the ministries and departments for their comments and input. The final plan includes
addresses the comments and is distributed among implementing agencies (line departments of ministries) for
implementation. The implementation of the plan emerges in the form of projects and programmes. Planning process
of Pakistan is in included as Exhibit 1.
Projects and Programmes
Plans are financed through the country’s development budget through Ministry of Finance manifestation of which is
the Public Sector Development Programmes (PSDP) that includes the number of projects/ programmes for each
sector alongwith their allocated budget. The process initiates at the start of the fiscal year and the
projects/programmes are developed by departments of each sector based on the objectives of Five Year Plans.
General populations’ interests are articulated by the political representatives at various levels of public discourse. At
times, the demands of the populace do not coincide with country development objectives. Therefore, central planners
drive certain projects due to their benefits in derivation of political mileage. After formulation by the respective
departments they are subjected to a lengthy appraisal process leading up to implementation and a comprehensive
monitoring methodology. The project/ programme operation cycle is illustrated as Exhibit 1.
Development planning in Pakistan has followed a similar pattern of growth since mid-1950s that are as follows:
 Focus on the arbitrarily set growth and investment rates
 Detailed projections for investment by the public sector with some rather general indications of that by the private
sector, even though the latter was described as the major engine of growth;
 Reliance on the government playing a lead role through sector picking and market controls.
It is perhaps not surprising that the plans have had only limited success. Of the nine Plans that have been prepared
so far, only the Second Five-year Plan (1960–65) managed to meet a significant number of its macroeconomic
targets (Framework for Economic Growth). The earlier planning approach relied heavily on public investment to
develop much needed physical infrastructure. Even to this date the budget each year allocates somewhat ambitiously
for public sector development only to substantially cut it later in the year as the fiscal gap begins to spin out of
control. Continued cuts in the PSDP have brought it down to about 1 per cent of GDP. Several factors are at work to
rapidly increase the demand for projects far beyond the supply of resources. Over time the PSDP project selection
has become politicised. The hunger for projects is also fuelled by the incentives for project governance which allow
the government ministries to control and misuse limited public resources largely beyond scrutiny. The current stock of
projects in hand is worth around Rs 3 trillion while the size of the PSDP for 2010-11 was Rs 180 billion. In short, the
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3. SEA and Planning Process of Pakistan
macroeconomic goals and structure of the plans were not anchored in sound microeconomic understanding and
analysis (MU Haq, Seven Sins of Economic Planners, 1973).
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4. SEA and Planning Process of Pakistan
Exhibit 1: Planning Process
* With 100% self-financing with no govt. guarantee and involving less than 25% foreign exchange / foreign assistance.
Note: PC =Performa for development projects, DDWP=Departmental Development Working Party, CDWP=Central Development Working Party,
ECNEC=Executive Committee of National Economic Council, PDWP=Provincial Development Working Party, M=Million
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Finance Division
(Resource Availability)
Economic Affairs Division
(Foreign aid availability)
Project/Programmes Identification
Project /Programmes Formulation
Appraisal and Approval by PC/ECNEC
Implementation and progress
Completion and Closure
Political Input
Ex-post Evaluation
Federal and Provincial Ministries,
Departments and Donors in the form of
PC I & Project Document based on plan
and policies. PC II/Feasibility is prepared
for projects > 500 M (to be confirmed)
DDWP= Up to Rs. 60 M
CDWP= Up to Rs. 1000 M
ECNEC = More than Rs. 1000 M
PDWP =Up to Rs. 500 M (to be confirmed)
Corporations and Autonomous Bodies =No
Limit*
Progress is monitored on
quarterly basis and reported
in the form of PC III
Project History (Physical
Completion of Project) is
monitored and reported in
the form of PC IV Post project operations are reported as
PC-V on annual basis for a period of five
years by operating agency
Political Input
Formulation of technical working groups in all sectors
Preparation of sectoral chapters by working groups
Presentation President/Prime Minister
Medium Term/Long Term Plan
Initiation at Federal Level by Planning Commission
Preparation of approach paper (road map)
Draft Medium
Term/ Long
Term Plan
Approval by National Economic Council (NEC)
Members from
Provincial Governments
Member from
Federal Ministries
Shared with Federal Ministries and
Development Partners (NGOs and
CSOs)
Shared provincial governments
Approved Plan Sent to Provincial Government and
Federal Ministries for implementation
Transformation of plan into projects/programmes

5. SEA and Planning Process of Pakistan
1.3 Gaps
After conducting the analysis, we can identify several gaps in the process. These gaps can be categorised in three
areas:
Information
1. The process is top driven where a certain set of experts decide on the needs of the general public with
possible impact on economic growth.
2. There is no set of formal guidelines available for plan formulation.
3. Key take outs from implemented plans are not incorporated in the preparation of future/newer plans
Integration
1. Plans are not evaluated at the time of their formulation e.g. plan initiative by energy sector may have
adverse impact on agriculture sector.
2. The plans lean towards rigidity, not investigating the inherent flexibility of the economic system.
3. Each sector work in isolation with sharing their goals and requirements only when the plan has been
drafted.
4. Issues are not prioritized in consultation with the varied group of stakeholders only specific stakeholders are
involved.
Implementation
1. Planning tends to be ineffective as policies lack consistency.
2. The projects and programmes are influenced by politicians and the implementation faces delays and
corruption.
3. Technical errors exist in programme/ project formulation that impact implementation. Sectoral Guidelines
are not available for programme/ project formulation.
1.4 Potential for SEA
The SEA enhances the planning process and helps improve policy formulation. Potential for SEA exist within the
planning process with use of tools as follows:
 Through analysis of baseline data of each sector, SEA may build meaningful economic arguments to
decision-makers, by presenting links to sustainable development concerns.
 SEA engages the varied group of stakeholders at the initial stage making the planning process more
inclusive and acceptable among the implementers;
 With a detailed analysis of plan initiatives, contradictions between different policies, plans and programmes
can be minimized;
 SEA will consider alternatives to achieve sustainable growth where social, environmental and economic
benefits reach equilibrium;
 SEA involves the planners of each sector during the process that will help improve in inter-sectoral
cooperation and coordination;
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6. SEA and Planning Process of Pakistan
 Revised plans and policies with SEA recommendations will decrease pressure on project level EIA;
 With the involvement of stakeholder at various levels of SEA, there will be more acceptance of government
policies, plans and programmes among people; and
 SEA identifies risks at an earlier stage that can lead to more economically viable and cost effective planning
in the long run.
1.5 SEA Regime
In Pakistan, steps have been taken to understand and explore SEA. Government of Pakistan (GoP) seeks to build on
the participatory model, to advocate the formal introduction of SEA in Pakistan’s planning process. Medium Term
Development Framework 2006-10 identifies SEA as an important tool, which needs to be explored for inclusion in the
country’s development planning process. With the support of Embassy of Kingdome of Netherlands (EKN),GoP also
seeks to further strengthen the EIA process in the country by addressing key concerns at the policy level (through
SEA), which at times are difficult to address at the project level. Following initiatives have been carried out:
 SEA task force has been created at Planning Commission with the members from federal and provincial
Planning and development and environmental protection departments, Ministry of disaster management,
IUCN, experts and civil society.
 SEA planning process study has been conducted to identify the application of SEA.
 Sectors for Pilot SEAs have been selected through the task force.
 Awareness raising activities are being carried out to build understanding among the stakeholder.
1.6 Conclusion and Recommendations
Economic development shall always remain the bedrock of public policy in Pakistan as it enables the state to
accomplish its stated social goals. However, the benefits of growth have to be analysed in concert with the costs to
the environment. The Pakistani experience has shown that prolonged environmental degradation has
metamorphosed the country from an environmental trouble spot to a political flashpoint. Hence, any new initiative
with potential of development must incorporate maximum input from environmental regulators.
Meagre benefits have accrued to various actors who have dabbled in implementing SEA however; we can safely
conclude that once policy makers are fully cognizant and committed then the payback would be substantial. The
gaps identified can be addressed by amending the Planning processes and make engagement with all possible
stakeholders in a systemic modus operandi rather than auxiliary activity. A direct proportionality can be deduced
between broadening the scope of the dialogue and more robustness of the plans.
1.7 References
1. Ahmed, K. and Sanchez-Triana, E. (2008). Strategic Environmental Assessment for Policies: An
Instrument for Good Governance. Washington, DC: The World Bank.
2. Aslam, F. (2006), Environmental Impact Assessment in Pakistan – Overview, Implementation and
Effectiveness (Master Thesis), Kungl Tekniska Högskolan (KTH) Royal Institute of Technology,
Stockhomes.
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7. SEA and Planning Process of Pakistan
3. Organization for Economic Co-operation and Development (OECD). (2006), Applying Strategic
Environmental Assessment: Good Practice Guidance for Development Co-operation,
Development Assistance Committee (DAC) Guidelines and Reference Series, Paris: OECD.
4. World Bank. (2007), Strategic Environmental Assessment and Integrated Water Resources
Management and Development. Washington, DC: The World Bank.
5. IUCN Pakistan.(2009), National Impact Assessment Programme, Pakistan: Ministry of
Environment, Planning Commission of Pakistan and IUCN-Pakistan.
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