Economical Crises in Pakistan

1. Five year plan Lecture #7 Ms SalmaShaheen

2. Pakistan Development plans There are total 8 Development plans have been presented in the history of Pakistan which are listed below: 1. First Five Year Plan (1955-60)-An Erratic Beginning to planned Development.

3. 2. Second Five Year Plan (1960-65)- An Experiment In ‘Functional Inequality’3. Third Five year Plan (1965-70)- A Prisoner of Extraordinary Events4. Fourth Five year Plan (1970-75)- A non-starter from the beginning

4. 5. Fifth Five Year Plan (1978-83)-A Return of the Medium Term Planning 6. Sixth Five year Plan (1983-88)- Development of the people, By the people, For the people 7. Seventh Five Year Plan (1988-93)-Precursor of a long Term vision 8. Eighth Five year Plan (1993-98)- An exercise in better macro-economic Management.

5. First Five Year Plan (1955-60)-An Erratic Beginning to planned Development The revised total size of the First Plan was Rs. 1,080 crores with the public sector expenditures of Rs. 750 crores and private sector expenditures of Rs. 330 crores. The First Plan was implemented within certain obvious handicaps and limitations and its release was delayed by two Years.

6. The GNP recoded a growth of 13% instead of 15% as targeted in the Plan. Industry together with fuels and minerals received another 31% of the total resources which exceeds the target of 28% provided in the Plan.

7. Second Five Year Plan (1960-65)- An Experiment In ‘Functional Inequality. The revised total size of the second Plan was fixed at Rs. 2300 crores in April, 1961. As regards sector distribution, the size of the private sector expenditure was fixed at Rs. 1240 crores, while public sector was allocated Rs. 680 crores and the newly introduced semi-public sector consisting of autonomous corporations was allocated the remaining sum of Rs. 380 crores.

8. The strategy paid off very well as the actual growth rate surpassed the projected growth rate. The GNP registered a growth of 30% over the plan period compared to 24% proposed in the plan and per capita income grew 15% instead of 12% projected in the plan. The large scale industrial production exhibited nearly 161% increases in production compared to only 60% increase proposed in the Plan. The share of the manufacturing industry in GNP as a whole rose from 9.3% in 1960 to 11.5% in 1965.

9. Third Five year Plan (1965-70)- A Prisoner of Extraordinary Events. The revised total size of the second Plan was fixed at Rs. 5200 crores as compared to Rs. 2300 crores in (1960-1965). In this Plan there was a great visible investment shift from consumer goods to capital goods industry. If we talk about the achievement of this Plan, the performance in the industrial sector was also far from satisfactory particularly in the large-scale industrial sector. The large-scale industrial sector exhibited a growth rate of

10. 10% as against 13% targeted in the Plan. The industrial sector as a whole expanded at an annual growth rate of 7.8% instead of 10% targeted in the Plan. The small-scale industry also performed well.

11. Fourth Five year Plan (1970-75)- A non-starter from the beginning. The revised total size of the second Plan was fixed at Rs. 7500 crores, an increase in 44% over the Third Plan size. The increase 6.5% annual growth rate as compared to 5.5% targeted in the Plan. The share of the industrial sector that had 10% growth rate in the last Plan was drastically slashed from 26% in the Third Plan to 10.2% in the Fourth.

12. Fifth Five Year Plan (1978-83)-A Return of the Medium Term Planning. The total size of the Plan was targeted at Rs. 21000 crores out of which Rs. 14820 crores were proposed to be spent in the public sector and Rs. 6200 crores were proposed for the private sector. No major new industrial projects was planned for the public sector however it was emphasized the completion of the under construction Pakistan steel mills and fertilizers and cement factories.

13. Private sector was expected to pay a vital role in the development of few industries which is good for the well-being of the country. As a whole, the growth rate projected for the industrial sector was almost fulfilled (growth rate was 9.7% as compared to 10% targeted in the Plan).

14. Sixth Five year Plan (1983-88)- Development of the people, By the people, For the people. The total size of the Plan was fixed at Rs. 49,500 crores which was more than twice the size of the fifth Plan. Out of which Rs. 29,500 crores and Rs. 20,000 crores were allocated to public and private sector respectively.

15. The share of the private investment in industrial development was to go up from 53.6% in 1982/83 to 91% in 1987/88 and in total investment from 32.9% to 44% during the same period. The share of the public sector industries in public sector development program was therefore expected to decline from 15.6% to 5.1% as compared to forth Plan. The industrial sector as a whole exhibited a growth rate of 7.7% per annum against the Plan targeted of 9.3% per annum.

16. Seventh Five Year Plan (1988-93)-Precursor of a long Term vision. The total size of the Plan was fixed at Rs. 66,020 crores which was more than fifth Plan. Out of which Rs. 29240 crores and Rs. 36,780 crores were allocated to public and private sector respectively. The share of industry decreased from 5.1% in the sixth Plan to 2.0% in the seventh sector Plan.

17. Eighth Five year Plan (1993-98)- An exercise in better macro-economic Management The total size of the Plan was fixed at Rs. 1700.5 billion. The size of public sector investment is estimated at Rs. 752.1 billion while private expenditure is placed at Rs. 984.4 billion. Overall GDP growth rate increases from 4% in 1993/94 to 7% in 1997/98. The target set for improvement of industrial sector was to achieve 9.4%