Assignment on
BY
IMRAN AHMAD SAJID M.Phil-2nd semester Date: January, 2010 Submitted To:
Dr. Zari Rafique Department of Social Work
Abstract Planning has become a craze of the modern world especially in underdeveloped or developing countries. The idea of planning acquired tremendous support after the end of World War-II when advanced but disrupted societies had to be rehabilitated and the underdeveloped societies were fired with the ambition of rapid economic and social development. A plan is a package of economic and social policies expressed with quantified targets and objectives to be achieved during a laid-down period. In Pakistan all the public sector planning is being carried out through planning commission of Pakistan Pakistan and its supporting supporting components. components. There is a very comprehensiv comprehensivee planning planning mechanism mechanism in the country for identification of the plan and approval and monitoring of the plan. Besides approval and monitoring there are five (5) proformae which were devised in 1952 for projects appraisal, feasibility, monitoring, completion and evaluation. This assignment report will outline the entire public sector planning structure in Pakistan and will also discuss PC-I, II, III, IV, & V.
Acknowledgements All praises to ALLAH, the most Merciful, Kind, and Beneficent, and source of all Knowledge, Wisdom within and beyond our comprehension. all respects and possible tributes goes to our Holly Profit MUHAMMAD (Swal Allaho Alaihy Wasallam), who is forever guidance and knowledge for all human beings on this earth. Rafique, the course instructor, who has contributed Thanks to Dr. Zari Rafique,
enthusiasm, support, sound advice, particularly her supportive attitude was always a source of motivation for me. She guided me in a polite and cooperative manner at every step. I am also in debt to Javed Azfar Computer Center (JACC), Planning Commission of Pakistan, who has developed such a comprehensive website for Planning Commission of Pakistan.
Imran Ahmad Sajid
Table of Contents INTRODUCTION:....... .............. .............. .............. .............. ............. .......... ........ ........ ........ ........ ........ ........ ........ ........ ........ .... 1 WHAT IS PLANNING?....... .............. .............. .............. ............... ............... .............. .............. .............. ........... ........ ........ ........ ....... ...1 DEFINITION OF PLANNING?....... .............. .............. .............. .............. ............. .......... ........ ........ ........ ........ ........ ........ ........ ....... ...2 PUBLIC SECTOR PLANNING IN PAKISTAN PAKI STAN....... .............. .............. .............. ........... ........ ........ ........ ...... ..3 HISTORY OF PLANNING COMMISSION
OF
PAKISTAN................................ .......................................... ................... ......... 3
THE NATIONAL/FEDERAL PLANNING AGENCY............. ......................... ......................... ........................................ ..................................... .......... 3 DEVELOPMENT BOARD........... ....................... ........................ ....................... ....................... ........................ ....................... ...................... ................ ......... .... 4 PLANNING BOARD............ ....................... ....................... ........................ ....................... ....................... ........................ ....................... ................ .......... ........ ... 4 PERMANENT PERMA NENT NATIONAL NATI ONAL PLANNING PLA NNING BOARD/ BO ARD/ PLANNIN PL ANNING G COMMISSION COMMIS SION ... ..... ....5 OBJECTIVES OF PLANNING COMMISSION:....... .............. .............. .............. ............ ......... ........ ........ ........ ........ ........ ........ ......6 MAJOR FUNCTIONS OF THE PLANNING COMMISSION....... .............. .............. .............. .............. .............. ............. ......... ...6 COMPONENTS OF THE PLANNING MACHINERY ........................................ .............................. .................... ................. ....... 7
FEDERAL MINISTRIES/DIVISIONS.......... ...................... ........................ ....................... ....................... ........................ ................. .......... .......... .......... .......8 PROVINCIAL PLANNING & DEVELOPMENT DEPARTMENTS............ ........................ ....................... ....................... ..................... .............. ....... ..8 PLAN APPROVAL
AND
IMPLEMENTATION ....... .............. .............. .............. .............. .............. .............. .............. .............. ....... 8
NATIONAL ECONOMIC COUNCIL (NEC): ............ ........................ ....................... ....................... ........................ ...................... ............... .......... ..... 9 EXECUTIVE COMMITTEE OF NATIONAL ECONOMIC COUNCIL (ECNEC): ............ .................. ........... .......... .......... .......... .......... ....... 9 CENTRAL DEVELOPMENT WORKING PARTY (CDWP):........... ....................... ........................ ....................... ................. .......... ......... ........ ... 9 FEDERAL LEVEL DEPARTMENTAL DEVELOPMENT WORKING PARTY (DDWP):........... ....................... ........................ ............... ... 9 PROVINCIAL DEVELOPMENT WORKING PARTY (PDWP):.......... ...................... ..................... .............. .......... .......... .......... .......... .......... ..... 9 PROVINCIAL DEPARTMENTAL DEVELOPMENT WORKING PARTY (DDWP):............ .................. ........... .......... .......... ......... ......... ..... 9 T YPES
OF
PLANS
FORMULATED IN
PUBLIC SECTOR.......................................... .................................................. ........ 10 10
ANNUAL PLAN............ ........................ ....................... ....................... ........................ ....................... ....................... .................... ............. .......... .......... ........ ... 10 ROLL-ON PLAN........... ....................... ........................ ....................... ....................... ........................ ....................... .................. ............ ......... ......... ......... .... 10 FIVE YEAR PLAN........... ....................... ........................ ....................... ....................... ........................ ....................... ................ .......... .......... .......... ......... .... 10 PERSPECTIVE PLAN........... ...................... ....................... ........................ ....................... ....................... ........................ ...................... ............... .......... ....... .. 11 PUBLIC SECTOR DEVELOPMENT PROGRAMME (PSDP)............ ....................... ....................... ........................ ................. .......... .......... ..... 12 INTRODUCTION TO ....... .............. .............. .............. .............. .............. .............. .............. ............. .......... ........ ........ ......12 PC-I, II, III, IV, AND V PROFORMAE....... .............. .............. .............. ............ ......... ........ ........ ........ ........ .... 12 PC-I PROFORMA (PROJECT APPRAISAL
AND
APPROVAL)....... .............. .............. .............. ........... ........ ........ ....... ... 13
LOW COST PC-I PROFORMA........... ....................... ........................ ....................... ....................... ........................ ................... ........... ......... .......... ..... 14 PC-II PROFORMA (FEASIBILITY REPORT)....... .............. .............. ............... ............... .............. ............ ......... ........ ....... ... 14 PC-III PROFORMA (PROJECT REVIEW AND MONITORING)...... .............. ............... .............. .............. ........... ....... ... 14 PC-IV PROFORMA (PROJECT COMPLETION REPORT)....... .............. .............. .............. .............. ........... ........ ........ .... 14
V PROFORMA (PROJECT EVALUATION)....... .............. .............. ............ ......... ........ ........ ........ ........ ........ ........ ........ ........ .... 15
UMBRELLA PC-I PC-I........... ....................... ....................... ....................... ........................ ....................... .................... .............. .......... .......... .......... .......... ....... .. 15 CONCLUSION...... ............. ............... ............... .............. .............. .............. .............. .............. ........... ........ ........ ........ ........ ......16 REFERENCES....... .............. .............. .............. .............. .............. .............. ........... ........ ........ ........ ........ ........ ........ ........ ....... ... 17 PRINTED SOURCES..................................... .................................................. ....................... .................... .................... ............. ...17 LECTURES & VERBAL SOURCES....................................... ...................................................................... ............................... 17 ONLINE AND ELECTRONIC SOURCES.................................... ............................................................. .............................. .....18
INTRODUCTION: From the very record human beings has deliberated for securing their future. Planning has been an inherent inherent quality of human beings. Animals Animals can not plan for their future. It is the exclusive exclusive individuality of human beings only. Planning has become a craze of the modern world especially in underdeveloped or developing countries. As mentioned by Abdul Haleem Khawaja, there was no concept of planning for the country before the 20th century all around the world. Soviet Union introduced the idea in 1928. It formulated its first five years plan with a view to achieving achieving the rapid transformat transformation ion of a backward agricultural agricultural state into a modern industrial power in 1928. It was strongly opposed by the developed Western Countries Countries and the capitalist capitalist world. world.1 But the idea of planning acquired tremendous support after the end of World War-II when advanced but disrupted societies had to be rehabilitated and the underdeveloped societies were fired with the ambition of rapid economic and social development. As mentioned above, this idea was not taken kindly in some countries by some people. It was perhaps due to the fact that planning came to be most actively associated with socialist economies. Hatred of socialism was transferred to planning too. But such unreasoned opposition to planning has now almost vanished. On the other hand, remarkable achievements of Nazi Germany and Soviet Russia popularized the idea of development planning.2 Although both advanced societies and the under developed societies have adopted planning but there is a difference between the two. In the former it is corrective planning to ensure stability, in the latter it is developmental planning to secure rapid growth. 3
What is planning? When I opened the dictionary to find out the literary meaning of the word ‘plan’ or ‘planning’ I got a list of synonyms. In the English to Urdu dictionary the following words have been found for plan •
تجویز،
•
نقشہ،
•
صوبہم،
•
•
انام بپروگر ، اب مپروگر ا سا پ ہل ے س ے وقت ای،
1
Abdul Haleem Khwaja. (2005). Economic Theory Part-II. Islamabad: Khwaja and Khwaja Publishing House. P. 280. 2 K.K. Davitt. (1996). Modern Economic Theory. [21st Revised Edition]. New Delhi: Shyani Lal Charitable Trust. P. 676. 3 Ibid.
pg. 1
Similarly in the English to English dictionary the following words can be found for plan •
•
A device,
•
A scheme,
•
A design,
• •
A drawing, Arrangement Arrangement beforehand, Method or procedure beforehand by which things are to be done.
These are the meanings of the word plan or planning which can easily be found in any dictionary. In February, 2007 the author asked Dr. Faizan Ahmad, Chief Instruction of National Institute of Public Administration (NIPA), for more conceptual clarification of the term plan or planning. He replied in only one sentence and the concept was clarified i.e. planning means, “Start thinking in advance.”4
A plan is a typically any procedure used to achieve an objective. It is a set of intended actions, through which one expects to achieve a goal. 5 Now it is easy to understand now that the planning means thinking and taking decisions about the coming future while living in the present. 6
(حمد ساجد۔ ن ۔ عمرں ھ ےک گ پ ل نہ ک و
ےن ر ک ص ے ف ا ے چ س و
ےس ےپ م ںہ ب
کے ) ے
ا
ےن ا
Definition of Planning? For a scholarly definition of the term planning we may resort to the Planning Commission of Pakistan. According to Planning Commission of Pakistan “A plan is a package of economic and social policies expressed with quantified targets and objectives
.”7 to be achieved during a laid-down period .” According to the today’s famous online encyclopedia, Wikipedia, 4
Faizan Anjum. (2007). Capital Planning and Budgeting Techniques. [Lecture Delivered in Participatory Rural Development Training]. Peshawar: Pakistan Academy for Rural Development (PARD). 5 Plan. (2009, December 19). In Wikipedia, The Free Encyclopedia. Retrieved 09:59, December 20, 2009, from http://en.wikipedia.org/w/index.php? title=Plan&oldid=332592680 6 Imran Ahmad Sajid. (Dec 18, 209 ). Public Sector Planning in Pakistan. [Presentation Delivered to M.Phil Scholars]. Peshawar: Institute of Social Development Studies (Social Work), University of Peshawar. 7 Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In Planning Commission of Pakistan. Retrieved December 16, 2009 from http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm
pg. 2
ٓے
Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. scale.8
Planning is essentially a way of organizing and utilizing resources to maximum advantage in terms of defined social ends. The two main constituents of the concept of planning are: i. A sys system tem of end endss to be purs pursue ued, d, and and
ii. Knowledge as to the available resources and their optimum allocations. Thus planning is a technique for achieving certain self-defined and pre-determined goals laid down by a central planning authority.
9
Dr. Zari Rafique, my course instructor, states in her book, Community Development, that planning is the conscious determination of future course of action to achieve the desired result in every walk of life. So according to this statement planning is the preparation for future action. 10
PUBLIC SECTOR PLANNING IN PAKISTAN In Pakistan all the public sector planning is being carried out through Planning Commission of Pakistan and its supporting bodies. From this point forward all the text will deal with planning commission, its machinery, and its planning methods in the country.
History of Planning Commission of Pakistan Soon after independence in 1947, the Government of Pakistan decided to adopt planning methodology for rapid development of the country’s resources leading to the economic and social well-being of the people. Immediate steps were, therefore, taken to establish necessary machinery for the preparation and implementation of plans. 11 The National/Federal Planning Agency
As a first step, a national planning agency was established which kept on developing with the passage of time. The importance and role of the planning agency in the overall development efforts for the country, however saw many ups and downs depending upon the prevailing socio-economic and 8
Planning. (2009, December 4). In Wikipedia, The Free Encyclopedia. Retrieved 09:57, December 20, 2009, from http://en.wikipedia.org/w/index.php? title=Planning&oldid=329640445 9 K.K. Davitt. (1996). Modern Economic Theory. [21st Revised Edition]. New Delhi: Shyani Lal Charitable Trust. P. 677. 10 Dr. Zari Rafique. (2003). Community Development: Concept and Practice. Peshawar. Saif Printing Press. P. 189. 11 Saeed Nasir. (2008-09). (2008-09). Economics of Pakistan. Lahore: New Fine Printing Press. P. 228
pg. 3
political situation and perception of the government in power about the usefulness of the planning mode of development. The evolution of the planning agency is given in the following lines. Development Board
In-spite of the grave economic and financial problems which beset the Government of Pakistan soon after independence, a Development Board was established early in 1948 in Economic Affairs Division to deal deal with with ques questio tions ns of rapi rapidd econ econom omic ic deve develo lopm pmen entt of the the coun countr try. y. In 1950 1950 a SixSix-Ye Year ar Development Plan was formulated and embodied in the Colombo Plan for Cooperative Economic Development in South and South East Asia. This was essentially an outline plan and delineated only a broad pattern of development. development .12 Planning Board
The Government of Pakistan set up a Planning Board on 18th July, 1953 to prepare a more comprehensive national plan of development,13 with Mr. Zahid Hussain, ex-Governor of State Bank of Pakistan as its first Chairman and two other members. The purpose and terms of reference of the Board were set forth as below:a) Purpose:
The economic and social objectives of Government's Policy are to develop the resources of the country as rapidly as possible so as to promote the welfare of the people, provide adequate living standards, standards, and social services, services, secure social social justice justice and equality of opportunity opportunity to all and aim at the widest and most equitable distribution of national wealth. b) Terms of Reference:
i)
To revi review ew the the deve develo lopm pmen entt that that has has take takenn pla place ce sin since ce inde indepe pend nden ence ce..
ii) ii)
To ass asses esss the the reso resour urce cess - mater materia iall and and huma human, n, whi which ch can can be be made made ava avail ilab able le for development during the next 5 years beginning from April, 1954 (later changed to April, 1955).
iii)
To prepare a national plan of development based on the fullest possible utilization of these resources for implementation in a period of 5 years from Ist April, 1955 as a step towards the attainment of the economic and social objectives of Government's policy.
iv) iv)
To make make pro propo posa sals ls reg regar ardin dingg the adm admini inist strat rativ ivee machi machine nery ry bes bestt calcu calculat lated ed to assure the successful implementation of the plan.
v)
To make make prop propos osal alss rega regard rdin ingg the the admi admini nist strat rativ ivee mach machin iner eryy bes bestt calcu calculat lated ed to to assure the successful implementation of the plan.
vi) vi)
To mak makee any any othe otherr reco recomm mmen enda datio tions ns whi which ch in in the the opin opinion ion of the the Boa Board rd wil willl contribute towards the successful implementation of the plan.
12
Planning Machinery in Pakistan. Op. Cit. Muhammad Khalid. (2003). Social Work Theory and Practice with Special Reference to Pakistan. [Revised Edition]. Lahore: Kifayat Academy. P. 47. 13
pg. 4
(c) Functions:
i)
To pre prepa pare re futu future re fiv fivee year year plan planss of of econ econom omic ic and and soci social al dev devel elop opme ment nt..
ii)
To mak makee addi additi tion onss and and alte altera ratio tions ns in in the the exis existi ting ng fiv fivee year year plan plan cons consis isten tentt with with the changing economic conditions of the country.
iii) iii)
To tend tender er suc suchh tech techni nica call advic advicee and and offe offerr such such com comme ment ntss on fin finan anci cial al mat matter terss bearing on the development plans as may be requested by the Ministries of Government.
iv)
To stimul stimulate ate and, and, wher wheree nece necessa ssary, ry, to initia initiate te the the prepar preparatio ationn of of sche schemes mes requir required ed to achieve national objectives in the economic and social fields.
v)
To exa exami mine ne dev devel elop opme ment nt sch schem emes es,, prog progra ramm mmes es and and pro propo posa sals ls wit withh a view view to their inclusion in the plans of development.
vi)
To maintain a continuous and constant review of the progress of development, the benefits realized, and the difficulties experienced
vii) vii)
To main maintain tain a conti continuo nuous us revi review ew of of the the econo economic mic condit condition ionss of the countr countryy so far as these have a bearing on the development plans.
viii) viii)
To submi submitt such such period periodic ic repor reports ts as the the Gove Governm rnment ent may may desir desiree from from time time to time. time.
ix)
To encour encourage age the improv improveme ement nt and expans expansion ion of resear research ch (in partic particula ularr econ economi omicc research), statistics, surveys, and investigations and evaluation needed to support effective planning and development in the country.
x)
Gener eneraally lly to adv advise ise the the Govern vernm ment ent on econ econoomic mic poli policcies ies and and probl roblem emss in various fields so far as these have a bearing on the development plans.
The Board accordingly prepared and submitted the first five year plan to the country for the period 1955-1960 in 1957 which was approved in principle by the National Economic Council. 14
PERMANENT NATIONAL PLANNING BOARD/ PLANNING COMMISSION In order to promote further socio-economic development of the country in accordance with the relevant provision of the constitution, a permanent National Planning Board was established in April, 1957. The Board consisted of a Chairman and two members one of whom was designated as Deputy Chairman. The Prime Minister assumed the office of the Chairman. Besides the usual plan formulation and implementation functions, the Board was required to promote research, statistics, surveys, investigation and evaluation as well as to advise the Government about policy and problems in various fields of national development. 14
Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In
Planning Commission of Pakistan. Retrieved December 16, 2009 from
http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm
pg. 5
The National Planning Board was subsequently re-designated as the Planning Commission in October, 1958 soon after the imposition of the First Martial Law. The status of the Planning Commission was further enhanced in August, 1958 when the President of Pakistan accepted the chairmanship of the Commission and its functions were further redefined to include progress, monitoring at implementation stage, besides planning. The Commission was to enjoy the status of a Division in Presidents Secretariat. In January 1982, the status of the Planning Commission was downgraded when the Minister for Finance and Economic Affairs was made ex-officio Chairman of the Commission with the Deputy Chairman having the status of a Federal Minister or Minister of State. The members’ ex-officio of the Commission included Secretaries Planning and Development, Economic Affairs and Finance Division, Additional Secretaries as well. 15
Objectives of Planning Commission: The objectives of the commission were to promote the welfare of the people and raise the standard of living of common man by i.
Deve De velo lopi ping ng the the utm utmos ostt res resou ourc rces es of the the cou count ntry ry
ii.
Making Making prov provisio isionn for the the basic basic neces necessit sities ies of life life,, educat education ional al and heal health th facili facilities ties,, and work under just and human conditions
iii. iii.
Ensu Ensurin ringg equita equitabl blee adju adjust stmen mentt of right rightss relatin relatingg to the the owner ownersh ship ip and use use of land land and between employers and employee
iv. iv.
Prev Preven entin tingg concen concentr trat atio ionn of wealth wealth and and mean meanss of prod produc uctio tionn and and distri distribu butio tionn in a few few hands
v.
Securing social justice and equal opportunity to all.16
Major Functions of the Planning Commission Besides the mentioned objectives the Commission was assigned with the following functions; i.
Prep Prepar arat atio ionn of peri period odic ic natio nationa nall plans plans for the econo economi micc and social social deve develo lopm pmen entt of the country;
ii. ii.
Form Formul ulat atio ionn of an Annua Annuall De Deve velo lopm pmen entt Prog Progra ramm mmee (ADP (ADP)) within within the frame framewo work rk of National Medium-term and Annual Plans;
iii. iii. 15 16
Reco Recomm mmen enda dati tion onss of adju adjust stme ment ntss in the the Nati Nation onal al Plan Plans; s;
Saeed Nasir. (2008-09). (2008-09). Opt. Cit. pp. 228-29 Planning Machinery in Pakistan. Opt. Cit.
pg. 6
iv. iv.
Moni Monito tori ring ng and imple impleme ment ntat atio ionn of the the plan planss and the major major deve develo lopm pmen entt proj projec ects ts and programmes, identification of bottlenecks and initiation of remedial actions;
v.
Eval Evalua uatio tionn of of onon-go goin ingg and and comp comple leted ted proj projec ects ts;;
vi.
Identi Identific ficati ation on of region regionss and sector sectors, s, lackin lackingg adequat adequatee portfol portfolio io of develo developme pment nt projec projects ts and to stimulate preparation of the required projects;
vii.
Evaluation of general socio-economic situation and coordination of policies; 17
viii.
National Logistics Cell;
ix. ix.
Admin dminis istr trat ativ ivee con contr trol ol of:f:-
(a) Economists and Planners Group; (b) Pakistan Institute of Development Economics; and (c) Overseas Construction Board. 18
These are the major functions of the Planning Commission in Pakistan. Now we move on to the planning machinery in the country.
Components of the Planning Machinery National Planning in any country is a cooperative and coordinated effort. In Pakistan the Planning Commission is being assisted by various national, provincial and departmental planning components. Therefore the planning organization has been established at all these levels.
17
Saeed Nasir. (2008-09). (2008-09). Opt. Cit. P. 229. Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In Planning Commission of Pakistan. Retrieved December 16, 2009 from http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm
18
pg. 7
Organizational Chart-Planning Commission of Pakistan
Source: www.planningcommission.gov.pk
Federal Ministries/Divisions
The Federal Ministries are responsible for the preparation of programmes and projects in their respective fields of interest including autonomous organizations under their control. The programmes prepared by the Federal Ministries are submitted to Planning Commission which coordinates all development programmes in the country.19 Provincial Planning & Development Departments
The Planning and Development Department is the principal planning organization at the provincial level. It is headed by the Chairman, Planning and Development Board, Punjab and Additional Chief Secretaries (Development) in the rest of the three provinces and Azad Jammu and Kashmir and is assisted by professional staff of economists and specialists in various fields. It coordinates the programmes prepared by the provincial departments concerned with development and prepares the overall provincial Five Year Plan and Annual Plans. Plan Approval and Implementation After its formulation, a pla n has to pass through the following process for its implementation. •
Approval of the plan &
•
Approval of the needed programmes, projects and policies for putting the plan into i nto operation.
For this purpose purpose competent bodies have been established established and designated designated which accord the required required approval. The main bodies and their t heir functions/process are as follows. 19
Ibid.
pg. 8
National Economic Council (NEC):
The NEC is headed by the Chief Executive of the country and is the supreme economic decision making body in the country. Its members include Deputy Chairman of the Planning Commission, Federal Ministries, in-charge of economic ministries and Governor/Chief Ministries of the Provinces. It approves all plans and policies for development. Executive Committee of National Economic Council (ECNEC):
The Committee is headed by the Federal Minister of Finance with Federal Ministries of economic affairs, Provincial Governors/Chief Ministers are their nominees and the Provincial Ministers of Planning and Development as members. The functions of ECNEC include; •
Approval of development schemes and
•
Supervision and implementation of plans and policies.
Central Development Working Party (CDWP):
The CDWP is headed by the Deputy Chairman Planning Commission and its membership includes secretaries of the Federal Ministries concerned including finances and the heads of the Provincial P&D departments. Its functions include scrutiny of the development projects beyond certain financial limits submitted by ministries, Provincial Governments and autonomous bodies etc, which are then submitted for final approval to ECNEC. Federal Level Departmental Development Working Party (DDWP):
The DDWP is headed by the respective secretary/head of the department with representative of Finance division and concerned technical section of P&D division as members. It is competent to approve projects upto certain approved financial limits (at present upto Rs. 6 million). Provincial Development Working Party (PDWP):
In each each Provin Province, ce, the PDWP PDWP works works under under Chairm Chairmans anship hip of Chairm Chairman/ an/Add Additi itiona onall Secret Secretary ary Development of P&D Department with secretaries of the finance and the concerned nation building department as members. This body is competent to approve provincial projects upto a certain approved financial limit (at present projects costing Rs. 6-100 million). Beyond the approved limit, the projects are scrutinized and cleared by the PDWP and then submitted to CDWP for approval of ECNEC. Provincial Departmental Development Working Party (DDWP):
The Provincial DDWP is headed by the secretary of the concerned nation building department with the representative of finance department and P&D department as members. The DDWP is competent to approve development project upto an approved financial limit (at present upto Rs. 6 million). 20 20
Saeed Nasir. (2008-09). (2008-09). Economics of Pakistan. Lahore: New Fine Printing Press. pp. 230-31
pg. 9
Types of Plans formulated in Public Sector Planning is usually classified in terms of time and organisational factor. In accordance with the time factor, plans are divided into three categories - short, medium and long. A short-term plan has a very brief and limited horizon. It is formulated with only one fiscal year in view. It is also called Annual Development Plan or simply Annual Plan. A medium-term plan covers four to seven years period with five years being the most popular choice. A long-term plan, more often called a "Pers "Perspe pecti ctive ve Plan Plan", ", may may have have a 15-2 15-255 year yearss tenur tenuree depe depend ndin ingg upon upon the the pecu peculi liar ar econ econom omic ic compulsions and needs of a country. The conceptual definitions in respect of different types of plans formulated in the country are indicated below: Annual Plan
The principal instrument for adjusting the five year plan to current realities is the annual plan, which has proved a dependable method for translating plan objectives into an operational programme. In other words, it is regarded as the implementation side of the five year plan. The annual plan includes an evaluation of past performance, a presentation of the main targets, an assessment of the resource position for the year, an outline of the investment programme in the public and private sectors and a broad outline of the economic policies that may be necessary to achieve the targets. In Pakistan, during the period 1972-77, medium-term planning was abandoned in favour of annual budgeting. Medium-term planning was revived again with the Fifth Five Year Plan in 1978, but the practice of annual plans was retained. Roll-On Plan
In order to bring flexibility into the Five Year Plan and to relate the sectoral and project-wise allocation with (a) the financial position, and (b) project implementation, a roll-on plan of medium term is designed in which the sectoral and project-wise position is adjusted according to the foregoing year. For the initial three years, a roll-on plan is prepared for 'a', 'b', 'c' years. Next year, the 'a' year is ousted and 'd' year entered, so that the plan still remains for the three years. For the 'b' and 'c' years, adjustments are made according to the implementation of 'a' year. This process continues. Five Year Plan
A single year is too short a period to accomplish anything. A five year plan on the contrary has the advantage of reasonable time frame for maneuvering and achievement of solid results. A five year plan is a general statement of objectives and targets relating to the economy as a whole and its various component sectors. It is not an authorizing document in the sense that it does
pg. 10
not authorize expenditure to the relevant operating agencies. It provides a broad framework for formulation of the plan. plan.21 Perspective Plan
Its main purpose is to provide a long-term (15-25 years) economic and social policy framework so that the objectives to be achieved over a much longer period can be incorporated in a medium-term framework. Pakistan had her first perspective plan in 1965 for the period 1965-85, which became redundant after the separation of its Eastern Wing in 1971 and was abandoned consequently. A fifteen years perspective plan was announced along with the launching of the 7th Five Year Plan, which covers the period from 1988 to 2003. The third five year plan justified the Perspective Plan in the following words: "The preparation of the perspective plan reflects in many ways the growing confidence of the country in its future. The plan is more than just a projection into the distant future; it is, in fact, a realistic statement of the goals to be achieved. It gives a sense of direction to the current economic policies. It establishes targets of massive improvement to be brought about in living standards by mobilizing the resources and energies of the nation".
The period is necessarily arbitrary and there is no profound reason for its determination but it seems to be, on the one hand, long enough to permit a meaningful structural change in the economy and, on the other, not so long as to be without direct interest to the present working generation. More specifically, five year plans are inadequate as a framework for targets and policies for other reasons. Many short term decisions have a bearing on long-term growth. If these decisions are taken without considering their implications for the years beyond the current five year plan, there is a danger of unexpected future imbalances. Economic growth is a continuous process so that planning for it calls for the integration and adjustment of short-term, intermediate and long-term programmes. programmes.22 The seventh five year plan puts the perspective plan in the following words: "Social change is a complex long-term process. It involves changes in values and ideas in social, political and economic spheres and innovations in the utilization of natural resources. It is useful to look from time to time at economic development in its wider context, and to prepare long term plans, more by way of setting distant guideposts than as a real effort to achieve specific targets. Obviously, given the uncertainties attaching to even nearer-term proje projectio ctions ns,, a perspe perspecti ctive ve plan plan cannot cannot be a speci specific fic bluepr blueprint int for action action.. The second second 21
Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In
Planning Commission of Pakistan. Retrieved December 16, 2009 from
http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In Planning Commission of Pakistan. Retrieved December 16, 2009 from http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm
22
pg. 11
perspective plan has been developed to visualize the desired profile of Pakistan in the year 2003, and outline a broad approach to key problems which may arise". Public Sector Development Programme (PSDP)
The Public Sector Development Programme (PSDP) is an annual document which lists all the public sector projects/ programmes with specific allocations made for each one of them in that particular financial year. It is the operational side of the Five Year and Annual Plans. In other words, it is that part of the country's annual budget which deals with development expenditure, that is, it indicates the total cost of the project, and foreign exchange component of the total cost, expenditure incurred upto the end of last financial year, PSDP allocation for the current financial year together with its foreign aid component. The PSDP PSDP proced procedure ure differs differs from from the projec projectt approv approval al proced procedure ure.. Due to the genera generall constraint constraint which exists on governmen governmentt funds, funds, projects projects are competing competing for a limited amount of funds availa available ble for develo developme pment. nt. An essent essential ial part part of the proced procedure ure,, theref therefore ore,, is a shift shift from from the examination of a project in isolation to the selection of a limited number of projects out of a much larger portfolio. The preparation of the PSDP is co-ordinated by the Programming Section of the Planning and Development Division. The procedure is laid down in detail in a PSDP call letter sent annually to all Government Ministries/Divisions, Provincial Governments and Chiefs/Heads of Technical Sections of the Planning and Development Division. The call letter includes a time-schedule and a standard proforma along with guidelines on the preparation of the PSDP and selection of projects. The procedure starts in October/November each year. 23
INTRODUCTION TO PC-I, II, III, IV, AND V PROFORMAE In Pakistan, the present method for planning, processing and reporting on development projects is based on the "Rules of Procedure for Economic Council", Planning Commission and Planning Sub-Commissions, issued by the former Ministry of Economic Affairs, Government of Pakistan in September, 1952. In addition to laying down an effective organization for planning, five (5) proformae (Revised in 1995) were prescribed for preparation and implementation of development schemes (Annexure-II). Two of these deal with submission of project proposals (PC-I and PC-II), one 23
Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In
Planning Commission of Pakistan. Retrieved December 16, 2009 from
http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm
pg. 12
is concerned with the progress of ongoing projects (PC-III) and two, ie PC-IV and PC-V are to be filled in after completion of a project. All of these have been discussed in the ensuing paras.
PC-I Proforma (Project Appraisal and Approval) PC-I is the basic form on which all projects/schemes are required to be drawn up. It was introduced in its simple form in 1952 and substantially revised in July, 1961. This was a composite form and was used for all sectors. But as the time passed on, bigger and complex projects had to be prepared which required quite detailed information for pre-investment appraisal. PC-I form, therefore, was continuously made more elaborate and 12 separate forms suitable for particular sectors were introduced in July, 1974. In 1995, a Task Force headed by Deputy Chairman, Planning Commission was set-up to review the project planning process from indentification to approval as well as PC-I and II proformae to improve project quality. The Task Force reviewed existing 12 PC-Is and observed that formats of existing PC-Is are though quite comprehensive but still require some improvements. Accor ccordding ingly, ly, the the Tas Task Forc orce agre agreed ed that that exis xisting ting PC-Is -Is shou hould cont contin inuue with ith some ome modifications/improvements to cover environmental aspect, social sector benefits, risk analysis and incorporation of detailed financial statements. As many as 14 forms, in all, were designed for various sectors. The PC-I form comprises four parts. Part 'A' is the "Project Digest”. These require mainly information on: (i) name of project, (ii) (ii) auth author oriti ities es res respo pons nsib ible le for for spons sponsor orin ingg and and exec execut utin ingg of the the projec project, t, (iii) completion pe period, (iv (iv) a summar mmaryy of cost cost in deta etail and (v) objectives of the pr project. Part 'B' entitled "Project Description and Financing", forms the core of the PC-I. The precise nature and form of the questions varies from sector to sector. The principal information asked for includes: (i) (ii) (iii (iii)) (iv) (iv) (v) (vi) (vii (vii))
location, market analysis, gene genera rall desc descri ript ptio ionn and and just justif ific icat atio ionn, oper operat atin ingg or or rec recur urre rent nt cost cost esti estima mate tes, s, technical des description, capital tal cost estim timates, unit unit cost costs, s, sect sector oral al bene benefi fits ts,, cash cash flow flow,, fina financ ncing ing arran arrange geme ments nts,, fore foreig ignn exch exchan ange ge component, risk analysis, beneficiaries participation etc. Part 'C' deals with "Project Requirements". The information sought in this part includes: (i) (i)
manp manpow ower er requ requir irem emen ents ts duri during ng impl implem emen enta tati tion on,,
(ii) (ii)
phys physic ical al and and oth other er faci facili liti ties es requ requir ired ed and and
pg. 13
(iii (iii))
mate materi rial als, s, supp suppli lies es and and equi equipm pmen ent. t.
Part 'D' deals with enviroumental aspects. It includes information required in respect of (i) impact assessm assessment ent undertaken undertaken separat separately ely in case of water, water, sewerage sewerage and solid waste waste and (ii) recommendations alongwith alongwith the measures measures to be taken to control control environmental pollution. pollution.
Low Cost PC-I Proforma
A separate PC-I form for the small development projects costing upto Rs 1.00 million (nonrecurring) should be used in respect of all the sectors, instead of comprehensive PC-I form for each sector.
PC-II Proforma (Feasibility Report) PC-II is required for conducting surveys and feasibility studies, in respect of larger projects, intended to get full justification for undertaking the project before large resources are tied up with them. It is in a sense the justification of the project. PC-II tells us whether it is feasible to initiate the project under consideration or not. Kala Bagh Dam project in the country is a good example to mention here. On this project billions of rupees have been spent on PC-II but it has not been approved till the date. Its because the feasibility reports have been politicized.
PC-III Proforma (Project Review and Monitoring) PC-III form is designed to furnish information on the progress of on-going projects on quarterly basis and is required to be submitted by the executing agencies/departments within 20 days of the closing of each quarter. This form gives financial as well as physical progress of the schemes with information on any bottlenecks experienced during the execution of a project. The PC-III proforma has two forms. Form ‘a’ gives information about ht physical progress of the project while Form ‘b’ gives information about the financial progress and any bottlenecks experienced during project execution. The PC-III proforma is being attached at the annexure-.
PC-IV Proforma (Project Completion Report) PC-IV form is required to be submitted at the time when the project is adjudged to be complete. The PC-IV proforma gives information about
pg. 14
(i) (i) (ii) (ii) (iii) (iii) (iv) (iv) (v) (v) (vi) (vi)
phy physica sicall tar targgets ets and and actu ctual achie chieve veme mennts; ts; Plann lanned ed and and actu actuaal exp expend enditu iture; re; Quanti Quantifia fiable ble social social,, econo economic mic,, and and fina financia nciall benef benefits its of the projec project; t; Impa Impact ctss of of the the proj projec ectt on on the the targ target et grou group; p; Less Lesson onss lear learnned fro from th the pro proje ject ct;; and and Sugg Sugges estio tions ns for for plann plannin ingg & implem implemen enta tatio tionn of simi simila larr proje project cts. s.
The PC-IV form is being given at the annexure.
V Proforma (Project Evaluation) The PC-V form is to be furnished on an annual basis for a period of five years by the agencies responsible for operation and maintenance of the projects. PC-V has 15 major headings which provides information on (i) (i)
Plan Planne nedd and and actu actual al recu recurr rrin ingg cost cost of the proj project ect,, with with deta details ils;;
(ii) (ii)
Plann lanned ed & act actuual manp manpoower emp employe loyed; d;
(iii (iii))
Plan Planne nedd and and actu actual al phy physi sica call outpu outputt of the the pro proje ject ct;; and and
(iv)
Every other aspect of the project.
The proforma is being given at the annexure.
Umbrella PC-I
Some times a Federal Ministry is required to prepare a PC-I having provincial components to be financed through a joint loan l oan by a donor agency. Such a PC-I is called an Umbrella PC-I and could fall in any one sector of the economy. Since some inter-provincial coordination is also required, the preparation of the Umbrella PC-I is, sometimes, delayed just because of non-submission of PC-I by a certain province(s). This holds up the entire project. Therefore, proper coordination between the Federal Ministries and the Provincial Governments is required. In such cases, the Federal Ministry can prepare the Umbrella PC-I on the basis of the appraisal report of the project which contains all the necessary information/data in respect of each provincial component. However, if there is delay in submission of PC-I by any province and the Federal Ministry finds it difficult to prepare the Umbrella PC-I, then the matter is to be reported to the CDWP in which the provincial representatives participate and can be advised to expedite. Moreover, efforts should be made to negotiate aid separately for each province particularly in social sectors like primary education, population and rural health projects etc., where project implementation is exclusively the t he responsibility of the Provincial Governments.
pg. 15
CONCLUSION Now that we have discussed all the planning machinery and the entire planning mechanism in Pakistan, it is clear that t hat our state has a very comprehensive planning mechanism and commission. But despite this what is the country seems to be moving forward without any plan? The simple answer given by Dr. Javed Iqbal, Instructor National Institute of Public Administration (NIPA), Peshawar, is that the people here do not want to work. According to him; (Knowledge + Skill) x value = Productivity 24 We have knowledge and skills, to some extent, but we do not want to work. This is the reason that our planning is flawed and haphazard or there is no planning in most of the cases. For achieving true economic and social development of the country we must bring change in our attitude to make the country a success story.
Pakistan Zindabad!
24
Dr. Javed Iqbal. (2007). Psychological Causes of Violent Behavior. [Lecture Delivered in Participatory Rural Development Training]. Peshawar: Pakistan Academy for Rural Development (PARD).
pg. 16
REFERENCES Printed Sources
K.K. Davitt. (1996). Modern Economic Theory. [21st Revised Edition]. New Delhi: Shyani Lal Charitable Trust. Khwaja, H. Abdul. (2005). Economic Theory Part-II. Islamabad: Khwaja and Khwaja Publishing House. Plan. (2000). Longman Handy Learner’s Dictionary. [New Edition]. Essex, England: Laurence Delacroix Publishers. Plan. (n.d.). Gem Pocket Dictionary. [21th Century Edition]. Lahore: Azhar Publishers. Saeed Nasir. (2008-09). Economics of Pakistan. Lahore: New Fine Printing Press. Rafique, Zari. (2003). Community Development: Concept and Practice. Peshawar. Saif Printing Press. Khalid, Muhammad. (2003). Social Work Theory and Practice with Special Reference to Pakistan. [Revised Edition]. Lahore: Kifayat Academy.
Lectures & Verbal Sources
Faizan, A. (2007). Capital Planning and Budgeting Techniques . [Lecture Delivered in Participatory Rural Development Training]. Peshawar: Pakistan Academy for Rural Development (PARD). Iqbal, Javed. (2007). Psychological Causes of Violent Behavior. [Lecture Delivered in Participatory Rural Development Training]. Peshawar: Pakistan Academy for Rural Development (PARD). Sajid, A. Imran. (Dec 18, 209). Public Sector Planning in Pakistan . [Presentation Delivered to M.Phil Scholars]. Peshawar: Institute of Social Development Studies (Social Work), University of Peshawar.
pg. 17
Online and Electronic Sources
Planning Machinery in Pakistan. (n.d.). Manual of Development Projects, Chapter-1. In Planning Commission of Pakistan. Retrieved December 16, 2009 from
http://www.planningcommission.gov.pk/md http://www.planningcommission.gov.pk/mdp/ManualPlan/D1/CH-1.htm p/ManualPlan/D1/CH-1.htm Planning. (2009, December 4). In Wikipedia, The Free Encyclopedia . Retrieved 09:57, December 20, 2009, from http://en.wikipedia.org/w/index.php? title=Planning&oldid=329640445 Plan. (2009, December 19). In Wikipedia, The Free Encyclopedia . Retrieved 09:59, December 20, 2009, from http://en.wikipedia.org/w/index.php? title=Plan&oldid=332592680
pg. 18
Annexure-I
Revised 2005 GOVERNMENT OF PAKISTAN PLANNING COMMISSION PC-1 FORM (SOCIAL SECTORS) 1.
Name of the Project
2.
Location
3.
Authority responsible for: i. ii. iii. iii. iv. iv.
Sponsoring Execution Opera perati tion on and and maint ainten enan ance ce Conce oncern rned ed fede federa rall mini minisstry try
4.
Plan Provision
5.
Proj Projec ectt obj objec ecti tive vess and and its its rel relat atio ions nshi hipp wit withh Sec Secto tora rall obj objec ecti tive vess
6.
Desc De scri ript ptio ion, n, jus justi tifi fica cati tion on and and tec techn hnic ical al para parame mete ters rs
7.
Capital cost estimates
8.
Annua Annuall oper operat atin ingg and and main mainte tena nanc ncee cost cost afte afterr comp comple leti tion on of the the project
9.
Demand and supply analysis
10. 10.
Fina Financ ncia iall Pla Plann and and mode mode of fina financ ncin ingg
11. 11.
Proj Projec ectt bene benefi fits ts and and anal analyysis i. ii. ii.
Financial Soci Social al bene benefi fits ts with with indi indica cato tors rs
pg. 19
iii. iii. iv. v.
Empl Employ oyme ment nt gene genera rati tion on (dir (direc ectt and and indi indire rect ct)) Environme nmental impact Impa Impact ct of dela delays ys on proj projec ectt cos costt and and viab viabil ilit ityy
12.
a) Implementation schedule b) Result Based Monitoring (RBM) Indicators.
13.
Manage Managemen mentt struc structur turee and manpow manpower er requir requireme ements nts includ including ing Specialized skills during execution and operational phases
14.
Additi Additiona onall proje projects cts/de /decis cision ionss requi required red to maxi maximiz mizee socio socio-ec -econo onomic mic benefits from the proposed project
15.
Certified that the project proposal has been prepared on the basis of instructions provided by the Planning Commission for the preparation of PC-I for Social Sector projects.
Prepared by _________________________ Name, Designation & Phone#
Checked by _________________________ Name, Designation & Phone#
Approved by _________________________ Name, Designation & Phone#
pg. 20
Annexure-II
Revised 2005 GOVERNMENT OF PAKISTAN PLANNING COMMISSION PC-1I FORM PROFORMA FOR DEVELOPMENT PROJECTS (SURVEY AND FEASIBILITY STUDIES) 1) Name by which which survey/ survey/ feasibi feasibility lity will will be identif identified ied 2) Administr Administrative ative authori authorities ties respons responsible ible for for i)
Sponsoring
ii)
Execution
3) Details Details of survey/f survey/feasib easibilit ilityy study study i. General General descript description ion and justif justificati ication on ii. Implem Implement entati ation on period period iii. iii. Yea Yearr wise wise estima estimated ted cost cost iv. Manpow Manpower er require requiremen ments ts v. Finan Financi cial al plan plan 4) Expected Expected outcome of the survey survey feasibilit feasibilityy study and details details of projects projects likely to be submitted after the survey. Prepared by _______________________ Name, Designation & Phone # Checked by _______________________ Name, Designation & Phone #
pg. 21
Approved by _______________________ Name, Designation & Phone # Annexure-III
.
pg. 22
pg. 23
Annexure-IV
pg. 24
pg. 25
Annexure-V
From PC-V Revised 2005 Government of Pakistan Planning Commission To be furn furnis ishe hed d by 31st July July of each ach year yearss for 5 year yearss aft after completion of Project indicating Projects operational results during the last financial year. 1.
Name of the Project:
2.
Obje Object ctiv ives es & scop scopee of pro proje ject ct as as per per appr approv oved ed PCPC-II and and stat statee as to to what what ext exten entt the objectives have been met:
3.
Plan Planne nedd and and actu actual al recu recurr rrin ingg cos costt of of the the proj projec ect, t, with with details:
4.
Planned & actual ma manpower em employed:
5.
Plan Planne nedd and and actu actual al phys physic ical al outp output ut of the the proj projec ect: t:
6.
Plan lanned ned and actual tual inco income me of the the proj projeect:
7.
Pla Planned ned and and actua tual be benefit efitss to to the the econom onomy: y:
8.
Planned and actual so social benefits:
9.
Pla Planned ned and and actua tual co cost per per un unit pro prodduce uced/s d/sold old:
10.
Marketing mechanism:
11. 11.
Arra Arrang ngem emen entt for for main mainte tena nanc ncee of buil buildi ding ng & equi equipm pmen ent. t.
12.
Whethe Whetherr outpu outputt targe targets ts as as envis envisag aged ed in in the the PC-I PC-I hav havee been been ach achiev ieved. ed. If not, not, provid providee reasons:
13.
Lesso ssons lea learne rned du durin ring the the year in: in: o o o o
Operation Maintenance Marketing Management
14. 14.
Any Any cha chang ngee in in pro proje ject ct mana manage geme ment nt duri during ng the the yea year: r:
15. 15.
Sugg Sugges esti tion onss to impr improv ovee proj projec ects ts per perfo form rman ance ce..
pg. 26
