this slide help to you about the economy system of Pakistan and make it easier to identified the what is economy of Pakistan ..

2. EconomicEconomic
planning inplanning in
PakistanPakistan

4. CentralizedCentralized DecentralizedDecentralized
I. The entire planning
process is under a
centralized planning
authority.
II. The authority
formulates a central
plan, fixes objectives,
targets and priorities of
every sector of
economy.
III. It takes all decision in
accordance with the
goals and target of the
plan.
I. Refers to the execution
of plan grass roots.
II. A plan is formulated by
the central planning
authority in
consultation with the
different administrative
units of the country.
III. It provides freedom and
flexibility to the
economy.
&

5. By DirectionBy Direction
By
-Inducement
By
-Inducement
I. Planning by direction is
an integral part of
socialist society.
II. There is one central
authority which plans,
directs and order the
execution of the plan in
accordance with
predetermined targets
and priorities.
III. Through it Price control
concept is introduced.
I. Planning by inducement
is a democratic
planning.
II. There is freedom of
production and
consumption. But these
freedom are subject to
state control and
regulation.
III. Production is encouraged
by subsidizing the firm.
&

6. FinancialFinancial PhysicalPhysical
I. It is the main key to
economic planning.
II. Financial planning
refers to the technique
of planning in which
resources are allocated
in term of money.
I. Physical planning refers
to allocation of
resources in terms of
men, material and
machinery.
&

7. PerspectivePerspective AnnualAnnual
I. Perspective planning
refers to long term
planning.
II. Long range targets are
set in advance for a
period 15, 20 or 25 years.
III. It does not imply one
plan for the entire period.
IV. In reality broader
objectives are to be
achieved by dividing the
perspective plan into
several short period plans
I. The period for annual
planning is only for one
year.
&

8. IndicativeIndicative ImperativeImperative
I. Indicative planning is a
peculiar to the mixed
economy of France.
II. The public and private
sectors work together .
III. The state controls the
private sector in a number
of ways to fulfill the
priorities of plan.
IV. The usual methods to
control are licenses,
quotas, price and quantity
determination of products
financial aids etc.
I. Under imperative
planning all economic
activities and resources
operate under the
direction of the state.
II. There is complete
control over the factors
of production by state.
III. There is no consumer
sovereignty in such plan.
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Prepared by: Jamshaid JEEMI

9. DemocraticDemocratic
Totalitaria
n
Totalitaria
n
I. In democratic planning
the philosophy of
democratic government is
accepted as the ideological
basis.
I. In totalitarian planning
there is central and
direction of all economic
activities in accordance
with a single plan.
II. The planning authority
is the supreme body.
III. It decides about the
targets, schemes,
allocation, methods &
procedure of
implementation of plan.
&

10. Planning an a
Mixed Economy
I. It is a system which is free from the evils of both
Capitalism and Socialism but integrates the good
features of both.
II. It divides economy into public and private sectors.
III. To protect both consumer and producer the state
passes labor laws and fixes minimum wages,
working hours etc.
IV. And provides social security in the form of life
insurance, unemployment insurance, pension
provident fund, recreational facilities etc.

18. Need or RoleNeed or Role
ofof
EconomicEconomic
planningplanning

19. Need or Role
planning is required to initiate and speed up the process of economic
development.
Only with proper planning we can accelerate the tempo of our
economic development.
Rapid Development:
Allocation of Resources:
The private enterprise cannot easily mobilize sufficient financial
resources needed for development purposes.
Government is in better far position to find the necessary resources
through taxation, borrowing and deficit financing.

20. Need or Role
The Government intervention is necessary to solve the problems of
unequal distribution of wealth.
It is necessary to ensure the distribution of fruits of economic growth
equally.
Reduction of inequalities:
Balanced Growth:
There must be balanced growth between consumer goods industries
and capital goods industries.
Only by means of economic planning, balanced growth of al sectors
and all industries can be ensured.

21. Need or Role
To overcome the price fluctuation the Government has to intervene.
In the years of prosperity, Government should accumulate buffer
stock which will be used in the period of starvation.
In Pakistan this objective is taken by PASSCO.
Price stability:
Avoiding Business Cycles:
The private enterprises, if left free, would produce trade cycles,
unemployment and misery.
Economic planning helps largely to make business cycles less
severe.

22. Need or Role
The main task of Government in under developed countries is to
increase the rate domestic savings and investment to set up the rate
of capital formation.
It can be ensured through proper planning.
Capital formation:
Super decision:
Planning is advocated on the ground that the decisions of the state
are superior to that of the citizen.
Therefore planning by collective action is required if a country is to
develop economically on the right lines.

23. Need or Role
Only a planned economy provides proper coordination between all
sectors of economy.
And avoids unnecessary duplication of staff and equipment.
Proper coordination:
To Prevent Artificial
Shortage:
A planed economy prevents artificial shortages being created by
profit-greedy businessmen.
The planning authority can smash the bad designs (agreements,
market sharing etc.) by positive action in favor of the community.

24. Need or Role
It is the planning alone which can ensure that the terms of trade
remains favorable to a country.
This aspect has been paid special attention by planners every where.
To Correct the Terms of
Trade:
To Remove Regional
Disparity:
The economic planning is the only solution to the problems of
regional disparity which can reallocate the resources efficiently
among different sectors of economy.

25. Need or Role
To Eliminate Social
Costs:
By proper planning it is possible to eliminate social costs
which usually take the farm of industrial diseases,
accidents, overcrowding.
Through a solid planning we can eliminate this factor.

26. Planning
M
achinery
in
Pakistan

27. Development Board
Economic planning in Pakistan started in
early 1948 with the establishment
Development Board.
The functions of the Board were to
coordinate and make the periodical report
to central cabinet.
The Development Board in pursuance of
the recommendations of Colombo Plan
compiled a six year plan (1951-57) with
expenditure of Rs.260 Crore.

28. Planning Board
The creation of planning board in 1953
marked the beginning of the next phase
economic planning.
Mr. Zahid Husain Ex-Governor State
Bank of Pakistan was appointed as
Chairman of planning board.
Its implementations suffered due to rapid
changes in Government and a lack of
political support.

29. Planning Commission
The planning board was named as
planning commission in 1957.
In 1958 when the military government
came into power Ayub Khan himself
assumed the chairmanship of the planning
commission.
In 1972 planning commission was placed
directly under the control of Ministry of
Finance as a division.
In early 80s, the Zia government took
steps to revive the planning commission as
an effective and authoritative economic
decisions making body.

30. National Economic Council (NEC)
NEC is the supreme policy making body
in the economic sphere.
It has the president as Chairman,
Federal Ministers as Incharge of economic
affairs and Governors and Chief Ministers
of the provinces, as members.
NEC reviews the overall economic
situation in the country.

31. Executive Committee of NEC (ECNEC)
It is headed by the Federal Minister of
Finance.
Its members are all Federal Ministers,
Provincial Governors or their nominees.
Its functions are:
1.To set up development schemes and
submit to NEC.
2.To supervise the implementation of
economic policies lay down by Cabinet
and the NEC.

32. Annual Plan Coordination Committee
(APCC)
It is purely advisory body responsible for
advising the cabinet and NEC regarding
the coordination of policies.
It is headed by secretary general
Finance planning and economic
coordination.
All federal secretaries of development
ministries, heads of provincial planning
development departments, heads of State
Bank of Pakistan and the board of
industrial management are its members.

33. TThhaannkk
yyoouu
Prepared by: Jamshaid JEEMI