provisions for education in five year plans ASIMA SHAHZADI COURSE CODE 6506 AIOU

1. Education in
Pakistan
Course Code 6506
Asima shahzadi
asimashahzadi7@gmail.com

3. After studying this unit students will be able;
 Describe the provision for education in five year plans
implemented so for.
 Point out deficiencies in the implementation of five-year plan.
 Describe advancement in the field of education since
independence.
 Compare the provision for education among all the five year
plans.

4.  Almost all five-year plans prepared during political or military rules
were shelved in the country’s history after government change and
none of them succeeded in getting the desired results.
 Pakistan has a semi-industrialized economy, which mainly
encompasses textiles, chemicals, food processing, agriculture and
other industries.
 The economy has suffered in the past from decades of internal
political disputes, a fast growing population and ongoing
confrontation with neighboring India.

5.  Pakistan's average economic growth rate since independence
has been higher than the average growth rate of the world
economy during the period.
 Average annual real GDP growth rates were 6.8% in the
1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Average
annual growth fell to 4.6% in the 1990s with significantly
lower growth in the second half of that decade.

6.  Two wars with India, in Second Kashmir War 1965 and
Bangladesh Liberation War 1971 and separation of Bangladesh
adversely affected economic growth. In particular, the latter war
brought the economy close to recession, although economic output
rebounded sharply until the nationalizations of the mid- 1970s.

7. 1. First Five Year Plan (1955-60)
2. Second Five Year Plan (1960-65)
3. Third Five year Plan (1965-70)
4. Fourth Five year Plan (1970-75)
5. Fifth Five Year Plan (1978-83)
6. Sixth Five year Plan (1983-88)
7. Seventh Five Year Plan (1988-93)
8. Eighth Five year Plan (1993-98)

8. Targets
 Emphasis mainly on achieving high national income.
 The First Plan was implemented within certain obvious handicaps and
limitations and its release was delayed by two Years.
 In practice, this plan was not implemented, however, mainly because
political instability led to a neglect of economic policy, but
government, Deputy Chairman Planning Board (Commission) Said
Hassan announces the plan in 1957.

9.  The development expenditures were regarded as the foundation
for rapid progress in the future and plans explicitly affirmed
that some sectors of the economy must be expanded much more
rapidly than others in order to secure maximum gains.
 The size of the First Plan initially was Rs. 11.5 billion which was
revised and decreased to 10.8 billion out of which Rs. 750 million
for the public sector and Rs. 3.3 billion for the private sector was
allocated. Of the total plan amount of Rs. 6.6 billion from the
internal sources and R.s 4.2 billion was to be achieve from the
foreign sources in the form of loans and aid.

10. Achievements/Failure
 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.

11. Targets
 The 2nd five year plan was approved by the Economic Council of
the Pakistan on June 21,1960.
 The 2nd plan aims at increasing national income by 20 %. In view
of the anticipated increase in population of about 9%, this will
mean an increase of about 10% in per capita income. The plan
assumes the rate of growth of population as 1.6% at the end of
the 1st plan and 1.8% at the end of the 2nd plan.

12. Three dominant strains run through the plan.
1. The stubborn problem of agriculture production- low productivity and
inability of the country to feed itself. Foreign exchange expenditure on
food imports has averaged Rs. 470 million a year during the 1st plan
period. An over all increase of 14per cent in agricultural output is
projected.
2. No industries are reserved for the public sector; public investments is
provided only in those activities that are ordinarily developed with
private capital. Private investments will not be forthcoming. Both
indigenous and foreign capital will receive positive encouragement.

13. 3.Education at all levels is to be expanded and advanced as fast
as the required institution and personnel san be provided.
 The revised total size of the second Plan was fixed at Rs. 2.3 billion
in April, 1961.
 As regards sector distribution, the size of the private sector
expenditure was fixed at Rs. 12.4 billion, while public sector was
allocated Rs. 6.8 billion and the newly introduced semi-public
sector consisting of autonomous corporations was allocated the
remaining sum of Rs. 3.8 billion.

14. Achievements/Failure
 During 1965-66 there is increase in the production of tea, salt, cotton cloth and
yarn, board, caustic soda, cement and cycle rubber tires and tubes. The increase
in the quantum index of manufacturing industries from 100 in 1959-60 to 201.7 in
1964-65. Growth in 68-69 was 7.4% that was previously 7.8%. And in 49-50 the
share go agriculture was standing 60% which came down to 46% in 68-69.
 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.

15. Targets
 The Third Plan was approved by National Economic Council in May 1965 and it was
revised in 1966 due to following two reasons:
a. Pakistan had to fight battle with India.
b. The seasonal conditions became worst for agriculture sector which affected
production.
 An amount of Rs.52000 million was allocated for the plan out of which Rs.30,000
million for the public sector and Rs.20,000 million for the private sector were
allocated. 66 percent of the total plan size was to invest from the local sources and
remaining 32 percent through the external sources.
 In this Plan there was a great visible investment shift from consumer goods to capital
goods industry

16.  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% 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 just performed well.
 During 1967-68, substantial gains were also recorded by cotton yarn and cloth
fertilizes and chemicals, writing and printing paper etc. The growth rate of
large scale industrial decline from 13.9% in 1969-70 to 2.8 in 1970-71 and
showed a negative growth rate of 5.6 percent in 1971-72.the negative growth in
this year was due to the war with India and separation from the Bangladesh
where exist the big industry of jute.

17. Targets
 When the government of Zulfiqar Ali Bhutto came to power in 1971, planning
was virtually bypassed. The Fourth Five-Year Plan (1970-75) was abandoned as
East Pakistan became independent Bangladesh. Under Bhutto, only annual
plans were prepared, and they were largelyignored.
 The revised total size of the second Plan was fixed at Rs. 75 billion, 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.

18. Achievements/Failure
 Industrial sector had all along been leading sector in terms of sustain growth.
Value added fell by 6.8% during 1971-72 compared to depress based of 1970-71
when the growth was only 1.2%.Steady growth in 1973-74. Different factor, like
war with India and tight credit polices and East Pakistan crisis growth decline
6.8% in 1971-72.
 Steady improvement or recovery in 1972-73. Manufacturing sector slow-down
during 1974-75 because low level of investment and shortage of raw material.
Textile has heavy weight in total industrial production. 1974-75 there was also
difficult when value added project to grow by 10% in the LSM sector recorded
negative growth of 1.7%. in 1976-77 During this time manufacturing sector
continue to remain under pressure due to various national and international
factors.

19.  The volume of national product had been increased
and the symptoms of construction were being reflected
from the basic structure of the economy.
 It was imperative that the development efforts were
concentrated on the higher income group and the
majority was deliberately neglected. The social needs
like housing, health, education etc were not paid due
attention in planning.

20. Targets
 The economic growth in Pakistan became stagnate due to the application of
Annual Planning in Pakistan by Peoples Party Government during the
period of 1970-78 therefore, the Marshall Law Government drafted the Fifth
Five Year Plan in 1977 and it was implemented in very difficult and
unfavorable condition because:
 Commodity Production sector had turned into completely a stagnant
sector.
 Imports increased fast.
 Foreign exchange reserves were decreasing very fast.

21.  The total size of the Plan was targeted at Rs. 210 billion out of which Rs.
148.2 billion were proposed to be spent in the public sector and Rs. 62
billion 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.
 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.

22. Achievements/Failure
 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).
 In July 1978, the interest rate on loans for fixed investment in
industry and agriculture was reduced from 12.5% to 11%.
 The Zia government accorded more importance to planning.
Fifth plan was an attempt to stabilize the economy and
improve the standard of living of the poorest segment of the
population.

23.  Nevertheless, some of the plan's goals were attained.
 Many of the controls on industry were liberalized or
abolished, the balance of payments deficit was kept
under control, and Pakistan became self-sufficient in
all basic foodstuffs with the exception of edible oils.
 Yet the plan failed to stimulate substantial private
industrial investment and to raise
 significantly the expenditure on rural infrastructure
development.

24. Targets
 The approval was given to this plan by the National Economic Council
at the proper time, it was implemented also at the right time.
 Represented a significant shift toward the private sector.
 Designed to tackle some of the major problems of the economy: low
investment and savings ratios; low agricultural productivity; heavy
reliance on imported energy; and low spending on health and
education.

25.  The total size of the Plan was fixed at Rs. 495 billion which was more
than twice the size of the fifth Plan. Out of which Rs. 295 billion and
Rs. 200 billion were allocated to public and private sector respectively.
 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.

26.  The economy grew at the targeted average of 6.5 % during the plan
period and would have exceeded the target if it had not been for severe
droughts in 1986 and 1987.
 The industrial sector as a whole exhibited a growth rate of 7.7% per
annum against the Plan targeted of 9.3% perannum.
 In 1984- 1985 manufacturing growth was about 8.6% after a slow down
last fiscal year which was 8.1%.During 1985-86, GDP for
manufacturing output has been 19.9%. During this year the
manufacturing is expected to grow by 8.2% as compared to 8.6% of
previous year. The manufacturing output has grown by 7.4% in 1986-
87 as compared to 7.8% in 1985-86. This year 1987-88 show that the
output has grown by 7.6%.The rate of growth in large-scale industries
during 1987-88 was7.4%.

27. Targets
 The Seventh Five Year Plan was prepared by semi-political government of
Muhammad Khan Junaejo which culminated in to the political government of
Mrs. Benazir Bhutto, therefore, the Seventh Five Year Plan was the First
Medium Term Plan after the Third Five Year Plan implemented in a political
environment.
 Provided for total public-sector spending of Rs350 billion. Of this total, 36.5 %
was designated for energy, 18 % for transportation and communications, 9 %
for water, 8 % for physical infrastructure and housing, 7 % for education, 5 %
for industry and minerals, 4 % for health, and 11% for other sectors.

28. Achievements/Failure
 The plan gave much greater emphasis than before to
private investment in all sectors of the economy.
 The share of industry decreased from 5.1% in the
sixth Plan to 2.0% in the seventh sector Plan.

29. Targets
The Planning Commission of Pakistan appointed a committee to make strategy
for the planning development during the period of 1993-98 which recommended
the following for the achievement of social welfare.
1. The national income, keeping the 20 years Perspective Plan in view, should
increased by double of present by the end of 2000.
2. Increase in the GNP by 8.1 %.
3. Reduction in the population growth to the extent of 2.6 % till 2000.
4. Maximum utilization of the available investment resources
through technological changes.

30.  Increase in the share of industry to the GNP more than share of
agriculture.
 Correlating industrial and agriculture development.
 Expanding tax structure to reduce budget deficit gradually.
 Implementation of agriculture taxation to make tax structure
wide, efficient & justice.
 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%

31. Achievements/Failure
 During 1993-94 policies of privatization, deregulation and market
friendly environment
 were reinforced.
 A new concept of public-private partnership was also introduced to
enable private sector to play a key role in social sector growth.
 Manufacturing during 1995-1996 grew 4.8%. That was previously
2.9% in 1994-1995.
 The large scale manufacturing grew by 3.13% during 95-96. . In 1996-
97 small scale manufacturing maintained its growth. But large scale
declining by 1.43% in value added. And over all growth of
manufacturing sector was 1.78% which was previously 4.4%.

32.  The Medium Term Development Framework (2005-10) relied on upgrading
physical infrastructure for accelerating output growth.
 Specific spheres were identified where support to private sector could be
extended and finally social sector policies were envisaged for timely
achievement of millennium development goals.
 It further states that never has there been a more pressing need in Pakistan’s
history to search for a new model; however, at the outset it should be said
that if there has to be a common vision on growth, it should by all means take
account of the damages caused by security and governance issues currently
facing the country.

33.  Except 2nd and 6th 5 year development program all were considered as a failure
in terms ofachievements.
 However 2nd and 6th 5 year plans had achieved somewhat as per set targets and
economic development were also observed.
 There is a need to look at the economic strategies society where foremost
objective is to provide opportunities for learning, increase potential of
communities by linking them in networks and ensure fair competition in trade
and investment. Malaysia’s New Economic Model launched in 2010 aims
towards a coherent ‘big push’ to boost transformation and growth through
developing quality workforce, competitive domestic economy and transparent
markets.