Economic Planning In Pakistan Case Study

HISTORY OF ECONOMIC PLANNING IN PAKISTAN:
COLOMBO PLAN:
In January, 1950 a meeting of the common wealth ministers was held at Colombo. In this meeting a common wealth consultative committee was set up and it was decided that common wealth countries would formulate their development plan for six years, in response to his decision, national plans were prepared by Pakistan. Ceylon, Malaysia, India, Singapore, North Boronoes and Saranak. These plans were integrated into Colombo plan. This plan covered a period of six years from 1st July, 1951 to 30th June, 1957. It was estimated that Rs. 260crore would be spent on development programs of Pakistan during this plan period 32% of this was to be incurred on agriculture, 20% on transport and communication,

The actual development expenditure over the plan period was below the size of the plan. The development expenditure was Rs. 1080crore.
SECOND FIVE YEAR PLAN (1960-65):
The second five year plan was launched on July 1, 1960. It was completed on 30th June 1965. Keeping in view the weakness of the first plan during its implementation the planners attempted to make the 2nd plan more realistic and effective. Thus, the main underlying aim of the second five year plan was to accelerate the pace of economic development in the country as far as possible. It was therefore decided to set a stage for desired objective.
SIZE OF THE PLAN:
The second five year plan was approved by the National Economic Council by 21st June, 1960. In the beginning it was decided that Rs. 1900crore would be spent during this plan period. Soon after it was realized that development cost of the projects have been under estimated and it was felt that targets to be achieved in certain sectors should be enlarged. The plan was revised in April, 1961. The size of the plan was increased from Rs. 19900crore to Rs.2300crore. Out of Rs.2300crore Rs. 1240crore were to be spent in the public sector, Rs.380crore in the semi-public sector, Rs. 680crore in the private sector. It was decided that Rs. 1205crore would be obtained from internal sources and Rs.1095crore from external

The plan could not achieve the targets due to many factors such as war with India in 1965, suspension of U.S. Aids, flood and cyclones in East Pakistan. However, the achievements of the plan are as under:
1. Annual increase in national income during 1965-70 was estimated at 5.8%.
2. The increase in G.N.P was 22% over the plan period compared to the plan target of 37%.
3. Growth rate in large scale manufacturing was 8.9% as against the plan’s target of 12%.
4. The per capita income rose to the level of Rs. 423 in 1969-70 as compared to Rs.365
5. In 1694-65.
6. Satisfactory progress was made in the field of road transport in both wings. A super highway of 90 miles between Karachi and Hyderabad was completed.
7. There was significant progress in the development of inland water transport in East Pakistan. The strength of the merchant fleet which had 55 ships at end of the second plan, had risen to 70 ships by the end of the third plan.
8. The plan target of 2500 new post offices was achieved during the plan.
9. Growth rate in the agricultural sector was 6.1% while the goal of the plan was a growth rate of 5%. The average annual growth rate in this sector was 3.2% in East Pakistan and 5.9%in West