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8/12/2019 37164063 Pakistan Five Years Plan Overview
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Table of Contents
ACKNOWLEDGEMENT ........................................................... 1
Abstract .............................................................................. 2
Introduction ........................................................................
!earl" De#elo$%ent &e$ort Anal"sis .................................... '
During 1961-62 ........................................................................................................... 4
During 1962-63 ........................................................................................................... 4
During 1963-64 .......................................................................................................... 5
During 1964-65 ........................................................................................................... 7
During 1965-66 ........................................................................................................... 7
During 1966-67 ........................................................................................................... 7
During 1967-68 ........................................................................................................... 8
During 1968-69 ........................................................................................................... 8
During 1971-72 ........................................................................................................... 9
During 1972-73 ........................................................................................................... 9
During 1973-74 ......................................................................................................... 10
During 1974-75 ......................................................................................................... 10
During 1975-76 ......................................................................................................... 11
During 1976-77 ......................................................................................................... 11
During 1977-78 ......................................................................................................... 12
During 1979-80 ......................................................................................................... 12
During 1981-82 ......................................................................................................... 13
During 1982-83 ......................................................................................................... 13
During 1983-84 ......................................................................................................... 14
During 1984-85 ......................................................................................................... 14
During 1985-86 ......................................................................................................... 14
During 1986-87 ......................................................................................................... 15
D i 1987 88 15
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During 1988-89 ......................................................................................................... 15
During 1989-90 ......................................................................................................... 16
During 1990-91 ......................................................................................................... 16
During 1992-93 ......................................................................................................... 16
During 1993-94 ......................................................................................................... 17
During 1995-96 ......................................................................................................... 18
During 1996-97 ......................................................................................................... 19
During 1997-98 ......................................................................................................... 19
During 1997-98 ......................................................................................................... 20
During 1999-2000 ..................................................................................................... 20
During 2000-01 ......................................................................................................... 20
During 2001-02 ......................................................................................................... 20
During 2002-03 ......................................................................................................... 20
(a)istan De#elo$%ent $lans .............................................. 22
First Five Year Plan (1955-60)-An rrati! "eginning t# $lanne% Devel#$&ent. ......23
'e!#n% Five Year Plan (1960-65)- An $eri&ent n *Fun!ti#nal ne+ualit,. ..........23
ir% Five ,ear Plan (1965-70)- A Pris#ner #/ tra#r%inar, vents. ......................23
F#urt Five ,ear Plan (1970-75)- A n#n-starter /r#& te eginning. ......................24
Fi/t Five Year Plan (1978-83)-A eturn #/ te e%iu& er& Planning.................24
'it Five ,ear Plan (1983-88)- Devel#$&ent #/ te $e#$le ", te $e#$le F#r te
$e#$le....................................................................................................................... 24
'event Five Year Plan (1988-93)-Pre!urs#r #/ a l#ng er& visi#n........................25
igt Five ,ear Plan (1993-98)- An eer!ise in etter &a!r#-e!#n#&i!
anage&ent .............................................................................................................25
Conclusion ......................................................................... 2*
&eco%%endations .............................................................. 2+
,iblio-ra$"/ ..................................................................... 0
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ACKNOWLEDGEMENT
Praise is t# Alla Al&igt, te #ne testing us all at all ti&es an% &aing %e!isi#ns
a#ut at e %#nt n# an% !ant n#. riting tis re$#rt a$$eare% t# e a great
e$erien!e t# us. t a%%e% a l#t t# #ur n#le%ge ile e ere #ring #n tis $r#e!t.
/ e sa, tat tis $r#e!t is #ne #/ #ur &erale e$erien!es in stu%ent li/e ten it
#ul% n#t e r#ng.
e #e %ee$ a$$re!iati#n t# Mr. Shahid Hassan /#r sti&ulating #ur !reative ailities
, assigning tis re$#rt t# us. e are i&&ensel, #lige% t# all #ur /ell# stu%ents #
gui%e% us in &aing tis re$#rt it#ut #se !#nsi%erate attenti#n an% interest it
#ul% e %i//i!ult /#r us t# !#&$lete tis $r#e!t #n ti&e. atever e ave learnt /r#&
te& an% tis $r#e!t re$#rt as $ut $er&anent i&$ressi#n #n #ur &in%. t is #ur
!#nvi!ti#n tat tis learning e$erien!e ill ala,s e a s#ur!e #/ el$ in #ur $ra!ti!al
li/e an% $r#/essi#nal !areer.
1
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Abstract
The study about Pakistan Economy related to Industry sector. Theproject comprises on the finding of Annually development reports and five
year plans from 19!"s to #!!$. In this decade many up"s and do%n"s come
in to the Industrial sector.
Industrial sector is second largest sector in the economy of Pakistan in
terms of it contribution in the &'P. In this discuss about the factors that
totally affect or depend the industrial sector. (tatistical analysis of the
consumer goods )(ugar* cement* jute goods and etc+ year to year is count
and analy,e the factors that raise &-P or fall &-P.
After getting familiar %ith the importance and yearly contribution of
Industrial sector in Annual gro%th rate. The study includes some
recommendations for future betterment of the industrial sector.
2
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Introduction
Pakistan has a semiindustriali,ed economy* %hich mainlyencompasses te/tiles* chemicals* food processing* agriculture and other
industries.
The economy has suffered in the past from decades of internalpolitical
disputes* a fast gro%ing population and ongoing confrontation %ith
neighboring India.
Pakistan0s average economic gro%th rate since independence has
been higher than the average gro%th rate of the %orld economy during the
period. Average annual real &'P gro%th rates %ere .2 in the 19!s* 3.2
in the 194!s* and .52 in the 19!s. Average annual gro%th fell to 3.2 in
the 199!s %ith significantly lo%er gro%th in the second half of that decade.
T%o %ars %ith India in (econd 6ashmir 7ar 195 and 8angladesh
iberation 7ar 1941 and separation of 8angladesh adversely affected
economic gro%th. In particular* the latter %ar brought the economy close torecession* although economic output rebounded sharply until the
nationali,ationsof the mid194!s.
Pakistan is aggressively cutting tariffs and assisting e/ports by
improving ports* roads* electricity supplies and irrigation projects. Islamabad
has doubled development spending from about #2 of &'P in the 199!s to
32 in #!!$* a necessary step to%ards reversing the broad
underdevelopment of its social sector.
3
http://en.wikipedia.org/wiki/Textileshttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Food_processinghttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Internalhttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Nationalizationhttp://en.wikipedia.org/wiki/Chemicalshttp://en.wikipedia.org/wiki/Food_processinghttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Internalhttp://en.wikipedia.org/wiki/Politicalhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Nationalizationhttp://en.wikipedia.org/wiki/Textiles8/12/2019 37164063 Pakistan Five Years Plan Overview
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!earl" De#elo$%ent &e$ort Anal"sis
Durin- 1+12The increase in industrial production in the #%as about 1 percent* as
compared to only percent during 191.
'uring the first #.5years of the plan period ):uly 19!dec 19#+* the
previous made in last industrial investment schedule )-ovember 19!+ had
been over committed to the e/tent of 3$ per against the total provision of
rs.#3 crores the amount committed %ar s 3!4 crores.
&uiding objective of government industrial policy to is to ma/imi,e the
production of manufacturing goods %ithin the country and to accelerate ethe development of the less developed regions.
Protection from foreign competition and the various fiscal and
monetary concession and facilities are some of the many aids %hich the
government has provided to industry. &overnment policy to entrust the
public sector %ith only such enterprises as the private sector is either unable
or un%illing to undertake* because of large capital investment or lo% return.
(pecial attention from government to the industrial development of less
developed areas the establishment
Projects of heave industries and the heavy sophisticated and first half
of 19y industries such as trucks* machine tools and electronics e;uipment
have already been sanctioned.
Durin- 1+2
In#est%ent scedule/
It %ill de seen from the above that the amount so far sanctioned has
e/ceeded the provision made in the schedule by 3$
per cent.
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Durin- 1+'
The industrial policy of government continued to aim at rapidly
e/panding the production of consumer* e/portable and producer goods*
improving the industrial efficiency and ;uality of local products and
accelerating the development of less developed regions.
Production of large and medium industries during the first three years
of the second plan period increased by $3 per cent and that of small
industries by 15 per cent* against ! per cent and #5 per cent respectively
aimed at during the entire plan period.
Taking 1959! as the base year the inde/ of industrial production
rose from 119.# in 191# to 1$$. in 19#$ and is estimated to have
increased to 15.5 in the ;uarter oct to dec* 19$.
West (a)istan industrial de#elo$%ent cor$oration/
3ea#" en-ineerin-/the feasibility report on the heavy industry comple/*
estimated to cost #5 crores has been received. Effort is also being made to
associate foreign capital participation.
Ce%ical fertili4ers/The e/pansion %ill raise capacity from 5!=!!! tons to
1 lakh tons. >inancing arrangement s %ith
the supplying countries is being made for
the yallpur factory e/pansion aimed at
raising the capacity by $*!!! tone of
super phosphate.
Ce%ent factories/a scheme for the 5th
plan of the ,eal par cement factory to raise
present capacity by another #* 1!*!!! tons
per annum is in hand* %hile cement plant
of 15*!!! tons capacity are in early stages
of e/ecution.
5u-ar industr"/7.P.I.'.? has sponsored t%o sugar mills at bannu and badin each %ith a capacity of 15*!!! to 1*!!! tons of %hite sugar per annum.
6ute/ This mill at jaran%ala in %est pak %ill manufacture 14*!!! tones ofjute goods per annum.
5
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si$"ard@ the e/pansion scheme form the 6arachi shipyard has beenprepared by the corporation. it provides a second drydock and a secondberth and constriction of ships of 1!*!!! tons per year.
6
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In#est%ent/ A comprehensive industrial investment schedule for the entire
third plane period aimed ensuring fulfillment planes investment target of $!
crores. It covered #!! items involving large medium and small industries the
investment allocation is rupees 1!.5$ crores in the private sectors* 5.!4
crores 7est Pakistan and 5!#.3 crores for East Pakistan.
Credits/ ajor allocations during this year from >rance 1.19 million B.
C((D 9.4 million B.C6 15.9 million B. 7
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cotton yarn 49.2* %hite sugar $.92* vegetable ghee .2* juice goods
5$.3B2. 'uring 194* substantial gains %ere also recorded by cotton
yarn and cloth fertili,es and chemicals* %riting and printing paper etc.
production of board and cycle tyres and tubes* ho%ever* declined during the
year.
Durin- 1+*1*2
Industrial manufacturing is second largest sector in the economy in
term of its contribution to the gross domestic products. ?urrently its account
one fifth of &'P. ?otton* Te/tile* ?ement* leather goods etc are the
products through %hich Pakistan enter in the %orld markets. ?otton te/tile
32 added value in the sector and cigarettes 1!2* sugar 42* basic metals*
electric and transport 52.
Industrial gro%th is not smooth through out the history. (hortfall in thecase of chemical and chemical fertili,ing because of different factor* %ar
%ith India and tight credit polices and East Pakistan crisis. ?onditions are
remaining unfavorable. The gro%th rate of large scale industrial decline from
1$.92 in 1994! to #. in 194!41 and sho%ed a negative gro%th rate of
5. percent in 19414#.
Durin- 1+*2*
Industrial sector had all along been leading sector in terms of sustain
gro%th. Falue added fell by .2during 19414# compared to depress basedof 194!41 %hen the gro%th %as only 1.#2. &-P decline 1#.42 194!41 to
11.42.in 19414#. >actors that affect &-P is loss of East Pakistan market
and shortage of ra% material. -o% manufacturing is no% second largest
sector after agriculture in terms of contribution in &-P. Da% material of
capital goods accounted for 1!.5 2 of total imports and capital goods
constituted 3#.32 of total imports.
3ea#" industr"/ A machine tool factory in 6arachi already gone in
production and produce Ds.15 crore annually. Geavy echanical ?omple/ at
te/tile being built %ith ?hinese assistance. The plant is producing sugar*cement* road building machinery %orth over Ds. 9 crore annually. A steel mill
of 1 million ton capacity near 6arachi %ith assistance of C.(.(.D.
(trikes of labor also disturb the industrial production. abor reforms
introduce to improve the %orkers.
9
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In the start of 194#4$ improve some implications through %hich
gro%th of different product increase. Huantum inde/ of manufacturing
industry %hich had decline 1#.1 in 194!41 to 151.1 in 199414# is
estimated to have increased to 1!. in 194#4$.
Durin- 1+**'
(teady gro%th in 194$43. 'ifferent factor* like %ar %ith India and
tight credit polices and East Pakistan crisis gro%th decline .2 in 19414#.
(teady improvement or recovery in 194#4$. &reater availability of industrial
ra% material increased gro%th rate 11.2 during 194#4$. In 194$43 slo%
do%n in gro%th rate due to slackness* difficulties in obtaining ra% material
and gro%th rate is 42 projected in this year. arge and small manufacturing
scale 152 of total &'P. Pakistan not only manufacture consumer goods its
also e/port cotton cloth* carpet* sports good cement and leather.
Durin- 1+*'*7
anufacturing sector slo%do%n during 194345 because lo% level of
investment and shortage of ra% material. Te/tile has heavy %eight age in
total industrial production.
'ecline e/port of cement fulfills the need of cement in the country.
Import of ra% material increased .2 fairly satisfactory. Improvements in
industries of cotton* sugar and cement in 194345. Also public sector
investment industry is estimated at 194345.
'uring the period july 1943march 1945 different items
decline=increase over a comparable period of last year.
Cotton "arn and clot/'ecline of . 2 in the production of yarn and #$.5
2 decline in cloth.
9ertili4er/Increase in fertili,er production. The factories are %orking above
their rated capacities to fulfill the demand of the agriculture sector.
:e-etable -ee@ The sharp increase of vegetable ghee production betterutili,ation of installed capacity. Actual production is #.#4 lakh tons during
194345.
5u-ar/'ecline in 3.32 in the production of sugar in 194345.
Ce%ent/1.# 2 increase in cement because of operations plants are above
rated capacity.
10
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Ci-arette/!.$ 2 decrease in the production of cigarette during the period
factory in Punjab closed.
5afet" Matces/ Production of safety matches #! 2 increased during
194345.
Electric fans ; M.5. $roducts/ Electric fans decline 1 2 also decline of
.(. products . 2
Durin- 1+*7*
Affects of international recession cause the large scale manufacturing
sector estimated to have gro%th of 12 %ith 152 for the %hole sector 1943
45 there %as also difficult %hen value added project to gro% by 1!2 in the
( sector recorded negative gro%th of 1.42
Inde/ of manufacturing industries %as 1#!.3 in 194345 and has been
risen to 1#1.2 in 19454
At that time overall projects had been embraced both in public and
private sector that supports the manufacturing sector that is performance of
the most of the industries %as satisfactory.
Durin- 1+***
'uring this time manufacturing sector continue to remain under
pressure due to various national and international factors.
E/port of cotton yarn 1.#m in 194#4$ decreases to 13$.4 in 1945
4. Jarn e/ports %as 1!5.9m )19454+ decreases to 4.$m in 19444
E/port of cotton clothes* 94.1 m 19454 increases to 99.#m 19444
but ;uantity decreases because e/ported prices of yarn had improved
Production of cotton yarn and cloth decreases by 12 in 19444 as in 1945
4
In 19444 (I sector record negative gro%th of #2 against target of 92
In 19444 ((I record gro%th of $2
In 19444 manufacturing sector overall decline by !.2
In 19454 %itness the inauguration of heavy foundry and forge at Te/illa
that cost about 1m.
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Processing capacity national refining increase from .5m tons to 1.5 m tons
Project of >ertili,ers also continue to further broader the counties
industrial base setting up a number of ne% fertili,ers ?ement and other
plants.
Durin- 1+***8
All the industries %ere going good but the decline in cotton cloth
industry brought do%n the overall contribution made by all the industries.
Trend of Industrial (roduction
(ome of the items %ere having got rise in production %hile some of
them got short fall@
Cotton Te
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'enationali,ation the agro based industry %as the first step took by
&ovt. in 'ecember 19!. Ever since $# large industries units under 1!
categories %ere take over in Public sectors.
Durin- 1+8182
anufacturing is second largest sector in economy and accounts for
142 of &'P. This industrial gain is due to the Present Industrial policies
pursued since 1944. Principle measured and incentive provided by the &ovt.
are indicated belo%@
Monetar" Incenti#es/ andatory target %as settled for small scale
industry. In :uly 194* the interest rate on loans for fi/ed investment in
industry and agriculture %as reduced from 1#.52 to 112.
9iscal Incenti#es/ 7ith effect from (eptember 3* 194 compensatory
rebates ranged from 4.52 to 1#.52 on >.
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Incenti#es for O#erseas (a)istanis/ achinery up to D(. 15 million %as
allo%ed to be imported against nonreportable investment %ithout any prior
sanction from any agency.
Eone/ To attract the foreign investors
an e/port processing ,one has been set up at 6arachiover an area of !.93 hectares. In this ,one every kind
of import takes place and e/port of goods %as freely
allo%ed. Investment in ,one has been allo%ed income
ta/ e/emption for a period of 5 years and capital gain
on sale of assets %ill be e/empt from ta/es.
Durin- 1+88'
ivestock contributed about .#2 to &'P from 19$3. The
production and the per capita availability have also increased. The e/ports offisheries increased from Ds. 49.9 million to Ds. 94.1 million from 19$3.
If %e come to forestry* Pakistan had only 32 of forest area in country. The
demand is high but the production is lo%. And this gap is met by help from
private farm lands and imports.
anufacturing accounts for 1.9 2 of &'P* 552 of e/ports and 13.92
of labor force. anufacturing gro%th fell to 4.42 during 19$3 from .92
in 19#$* mainly due to lo%er output of cotton te/tiles* as a result of
shortage of ra% cotton.
Durin- 1+8'87
In 193 195 manufacturing gro%th %as about .2 after a slo%
do%n last fiscal year %hich %as .12. -evertheless the gro%th rate achieved
e/ceeded the average gro%th of manufacturing in other countries. As
compared to the previous year* most of the items sa% a 2increase like
sugar* motor tyres and tubes* vegetable ghee etc. 8ut some items such as
sea salt and beverages sa% a decline.
Durin- 1+878
'uring 195* &'P for manufacturing output has been 19.92. during
this year the manufacturing is e/pected to gro% by .#2 as compared to
.2 of previous year.
The annual average gro%th rate for manufacturing sector gro%th for
small scale is 9.3! and for large scale is 4.# making a total of .#3 %hich is
greater than previous year having .1!.
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Durin- 1+88*
The manufacturing output has gro%n by 4.32 in 194 as compared
to 4.2 in 195. The annual compounded gro%th rate has been reducing
since 19444 from 1!. to 4.3
Durin- 1+8*88
Manufacturin-/
According to the latest abor >orce (urvey 194 this sector absorbs
1$.32 of the total employed labor force in the country. This year 194
sho% that the output has gro%n by 4.2 .The rate of gro%th in largescale
industries during 194 %as 4.32 and this gro%th based on the selected
industries %hich constitute !2 of the total large industries subsector.
(roduction trend/
'uring the first 9 months of 194 out of 15 selected industries %ith
a combined %eight of 33.$2 there %as increase in production of cotton yarn
up to 142 and cotton cloth production increases to 15.2. Production of
sugar in this year %as #3.42 %hich means more gro%th of sugar than the
recent t%o years. Production of fertili,er* cement* and paper board and jute
goods decreases to !.#2* 9.#2* !2 and #2 these industries had lo%
gro%th rate as compare to previous t%o years.
Durin- 1+888+
Manufacturin-/
In the budget of 199 large number of fiscal and monetary
incentives had made available to the private sector for industriali,ation.
anufacturing sector %as e/pected to gro% by$.!42 in this year but it had
increased by $.92.
(roduction trend/
Falue added in large scale manufacturing during this year )199+%as increase by 1.192* %hile that in small scale industries by .3!2. The
percentage of share in &'P in this year %as 14.32. There is decrease in the
production of sugar* cement* and fertili,ers and increase in soda Ash
production in this year.
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Durin- 1+8++0
Manufacturin-/
anufacturing sector %as e/pected to gro% by 5.4!2 and it had
increased by same percentage as e/pected. The percentage of share in &'Pin this year %as 14.52.
(roduction trend/
The production inde/ in this year %as 19#.1 as compare to 1$.3 of
last year. In this year there is dramatic increase in the production of
industrial products because of applying ne% policies of last year. There is
increase in the production of sugar* cement* and fertili,ers and decrease in
soda Ash* sugar and paper of all types" production in this year.
Durin- 1++0+1
Manufacturin-/
anufacturing sector %as e/pected to gro% by 5.4!2 and it had
increased by same percentage as e/pected. The percentage of share in &'P
in this year %as 14.12.
(roduction trend/
The production inde/ in this year %as #!1.# as compare to 19#.1 of
last year. In this year large scale manufacturing %as estimated to increase
by 3.4#2 and small scale by .3!2. in 199!91 there is substantial increase
in the production of billets follo%ed by cotton yarn* caustic soda* cement* pig
iron and sugar. The production cotton cloth* vegetable ghee* cigarettes*
fertili,ers* and paper all types declined due to various factors %hich are due
to various factors.
Durin- 1++2+
Manufacturin-/
The value added in manufacturing sector as hole gre% by 5.2 during
this year. 7ithin the sector the small scale industries maintained a gro%th of
.32 based on a conventional assumption* %hereas its share in the &'P rose
from 5.12 of last year to 5.$2.
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(roduction trend/
The production of jute goods* phosphates fertili,er* paper all types*
soda ash and caustic soda declined by #.2* #2* .#2* !.32 and 1.92 in
this year.
Durin- 1+++'
'uring 199$93 policies of privati,ation* deregulation and market
friendly environment %ere reinforced. A ne% concept of publicprivate
partnership %as also introduced to enable private sector to play a key role in
social sector gro%th. In 199$93 performance of manufacturing sector
though short of e/pectations but sho%ed improvements over 199#9$
Te/tile and ancillary industries affected by conse;uential increase in
cotton yarn prices. There %as &lobal shortage of cotton. anufacturing
sector affected by inade;uate po%er supply* break do%n of fe% po%er units
and protracted loadshedding as result of declining %ater levels. (till
manufacturing sector sho%ed resilience and maintained gro%th trend.
Lar-e scale %anufacturin-/
Te/tile industry is largest and important subsector of economy and
the largest source of job opportunities and accounts for $#.#$2 of total
industrial labor force. It suffered seriously in 199$93
Production of yarn increased by 5.342 but production of clothesdecreased by $.$2
Industry also suffered from industrial structure due to lack of efforts to
diversify to other cotton segments* high interests" rate and depreciation
costs. &overnment takes steps to redress the problems of cotton and
ancillary industry. Polyester fiber and yarn industry* to reduce pressure on
ra% cotton and availability of manmade fiber* import duty reduced from
Ds1! to 4.5!=6g.
:ute goods in :uly to march it %ere 45.4mt )199#9$+ to 59.#mt )199$
93+ %ith 2K #1.!mt
>ertili,ers include -itrogenous and phosphates fertili,er in :uly to
march #!$!.mt and #5#.4mt )199#9$+ as #5$.$mt and #3!.#mt )199$
93+ %ith 2K #4.#1 and 3.95 respectively
17
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Ce%ent/ In :uly to march $31mt )199#9$+ to $!mt )199$93+ %ith 2K
!.5#mt
5u-ar/ :uly to march ##3!mt )199#9$+ to #19mt )199$93+ %ith 2K
1.91mt
Fegetable and cooking oil* in :uly to march 945#mt )199#9$+ to 944mt
)199$93+
5%all 5cale Manufacturin-/
Important segments of the economy generates employee
opportunities their share in &'P is 5.52 compare %ith 1$.!2 for the large
scale manufacturing during 199$93. These are operating in all provinces of
Pakistan %here various training and handicrafts units are handled.
(ublic 5ector Industries/ Performance of these increases in 199$93because of efforts focused on to boost production and investment.
Production value ###4m )19#9$+ to #1!#m )19$93+ %ith 2K 4.15m
Production state and cement corporation increased by #9.9$2*
Pakistan steel by 14.#42* Pakistan industrial development corporation by
13.#32* state engineering corporation by 9.#52 %hile production value
decline by 5.#42 and $$.4#2 of national fertili,er corporation and Pakistan
automobile corporation.
-et sales* aggregate net sales of all units by 314#$m )19#9$+ to
3539!m )19$93+ %ith 2K $44
(reta< (rofit=Loss/ %as #3#3m )199#9#+ to 3113m )19$93+ %ith 2K
9.4#m
Ta
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Installed capacity in major sector such as te/tile* cement and sugar
also e/pended during the year. Investment in Industrial sector as a %hole
gre% $4.2 during 959. And foreign investment also increased $!2 during
959. 'irect investment is also increased 93.12 during 959 compare to
the direct investment of 9395.
Production of major items increased as compare to last year and those
items are cotton yarn* cigarettes* cement* soda* ash* caustic soda* motor
cycle and bikes.
Durin- 1+++*
iberali,ation policies also continued in this duration. arge scale
manufactures have fell short of e/pectations in term of gro%th. And then
prime minister announce a package for the support of manufacturing sector.
In this duration small scale manufacturing maintained its gro%th. 8ut largescale declining by 1.3$2 in value added. And over all gro%th of
manufacturing sector %as 1.42 %hich %as previously 3.32.
The items that have sho%ed increase in previous year such as cotton
yarn* cigarettes* cement* soda* ash* caustic soda* motor cycle and bikes
have sho%ed mi/ trend. 8ut there is an increase in products of steel e.g
coke* pig and iron.
Durin- 1++*+8
iberali,ation policies also continued in this duration. 'ue to the
government package the commodity producing sector demonstrated a sharp
acceleration in gro%th in this duration. anufacturing being second largest
commodity producing sector staged a recovery registering a gro%th rate of
.92 in this duration as compare to last year.
arge scale manufacturing sector gro% a dominant improvement %ith
.192. that %as previously #.#92. anufacturing sector overall gro%th %as
.52. And major industries like sugar* te/tile and cement also improved
their installed capacity.
The main items %ho are main contributor in this revival are sugar* jute
goods* cigarettes* motor tires and tractors. And the item like cotton yarn*
cotton cloth* paper* ?F"( and bicycles sho%ed nominal gro%th.
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Durin- 1++*+8
&lobal economic recession has slo%ed do%n the gro%th of large scale
manufacturing in 999. -evertheless it has registered a positive gro%th of
#.42 during 999. (ome industries %hich registered a considerable gro%th
like cotton* cloth* fertili,er* cigarettes* vegetable ghee* soda ash* causticsoda* paper board* cement* bicycles* refrigerator* tv sets* cars* buses and
tractors. And output is also not decreased in certain industries like blended
tea* jute goods* ?F"(* papers and all types of motor cycle and steel
products.
Durin- 1+++2000
In 1999#!!!* the overall manufacturing has gro%n by 1.2. And the
performance of the ( %as very %eak and it sho%s a gro%th of !2. The
factor %hich affects it more %as massive decline in the sugar caneproduction %hich leads to%ard decline in the production of sugar. And its
production lo%er by #32. The gro%th rate e/cluding the sugar industry %as
.32 %hich %as comparatively better performance than last year. In these
period only t%o out of eleven sectors e/hibited substantial decline %hich
%ere 1>ood* 8everages and tobacco # Automobile sector.
Durin- 200001
In #!!!!1 manufacturing staged an impressive recovery and it gre%
4.12 %ith comparison to last year 1.32. And it %as the best in last tenyears. And ( gro%th %as 4.2. All sectors posted positive gro%th. This
gro%th %as same as in 19949 but that gro%th %as only dependent upon
the sugar production.
Durin- 200102
In #!!1!#* ( targeted to gro% by .52 but due to event of 911 it
gre% only 32. This performance %as more than satisfactory because the
revised target %as $.#2. The ( gro%th affected in (ep-ov due to Afghan
%ar but it rose again in 'ecember.
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contribution of .42 by (. The gro%th surpassed the target of .52 for
#!!#!$. This all %as due to domestic demand and macro environment
factors. ood and
beverages ).5+ te/tile and apparel )5.#+ Paper board )15.4+ and tires and
tube )1.#+.
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(a)istan De#elo$%ent $lans
There are total 'evelopment plans have been presented in the history of
Pakistan %hich are listed belo%@
1. >irst >ive Jear Plan )1955!+An Erratic 8eginning to planned
'evelopment.
#. (econd >ive Jear Plan )19!5+ An E/periment In L>unctional
Ine;uality"
$. Third >ive year Plan )1954!+ A Prisoner of E/traordinary Events
3. >ourth >ive year Plan )194!45+ A nonstarter from the beginning
5. >ifth >ive Jear Plan )194$+A Deturn of the edium Term Planning
. (i/th >ive year Plan )19$+ 'evelopment of the people* 8y the
people* >or the people
4. (eventh >ive Jear Plan )199$+Precursor of a long Term vision
. Eighth >ive year Plan )199$9+ An e/ercise in better macroeconomic
anagement.
Gere %e are not discussing the %hole >ive Jears Plan"s but going to take
specific and relevant part related to our topic from each >ive Jear Plan.
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9irst 9i#e !ear (lan ?1+770@An Erratic ,e-innin- to
$lanned De#elo$%ent.
The revised total si,e of the >irst Plan %as Ds. 1*!! crores %ith the public
sector e/penditures of Ds. 45! crores and private sector e/penditures of Ds.
$$! crores. The >irst Plan %as implemented %ithin certain obvious handicapsand limitations and its release %as delayed by t%o Jears. The &-P recoded a
gro%th of 1$2 instead of 152 as targeted in the Plan.
Industry together %ith fuels and minerals received another $12 of the total
resources %hich e/ceeds the target of #2 provided in the Plan.
5econd 9i#e !ear (lan ?1+07@ An E
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1!2 as against 1$2 targeted in the Plan. The industrial sector as a %hole
e/panded at an annual gro%th rate of 4.2 instead of 1!2 targeted in the
Plan. The smallscale industry also performed %ell.
9ourt 9i#e "ear (lan ?1+*0*7@ A nonstarter fro% te
be-innin-.
The revised total si,e of the second Plan %as fi/ed at Ds. 45!! crores*
an increase in 332 over the Third Plan si,e. The increase .52 annual
gro%th rate as compared to 5.52 targeted in the Plan.
The share of the industrial sector that had 1!2 gro%th rate in the last
Plan %as drastically slashed from #2 in the Third Plan to 1!.#2 in the
>ourth.
9ift 9i#e !ear (lan ?1+*88@A &eturn of te Mediu%Ter% (lannin-.
The total si,e of the Plan %as targeted at Ds. #1!!! crores out of %hich
Ds. 13#! crores %ere proposed to be spent in the public sector and Ds.
#!! crores %ere proposed for the private sector.
-o major ne% industrial projects %as planned for the public sector
ho%ever it %as emphasi,ed the completion of the under construction
Pakistan steel mills and fertili,ers and cement factories. Private sector %as
e/pected to pay a vital role in the development of fe% industries %hich is
good for the %ellbeing of the country. As a %hole* the gro%th rate projected
for the industrial sector %as almost fulfilled )gro%th rate %as 9.42 as
compared to 1!2 targeted in the Plan+.
5i
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The industrial sector as a %hole e/hibited a gro%th rate of 4.42 per
annum against the Plan targeted of 9.$2 per annum.
5e#ent 9i#e !ear (lan ?1+88+@(recursor of a lon-
Ter% #ision.
The total si,e of the Plan %as fi/ed at Ds. *!#! crores %hich %as
more than fifth Plan.
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Conclusion'uring 195 there is increase in the production of tea* salt* cotton
cloth and yarn* board* caustic soda* cement and cycle rubber tires and
tubes. The increase in the ;uantum inde/ of manufacturing industries from1!! in 1959! to #!1.4 in 1935. &ro%th in 9 %as 4.32 that %as
previously 4.2. And in 395! the share go agriculture %as standing !2
%hich came do%n to 32 in 9. 'uring 194* substantial gains %ere
also recorded by cotton yarn and cloth fertili,es and chemicals* %riting and
printing paper etc. The gro%th rate of large scale industrial decline from
1$.92 in 1994! to #. in 194!41 and sho%ed a negative gro%th rate of
5. percent in 19414#.the negative gro%th in this year %as due to the %ar
%ith India and separation from the 8angladesh %here e/ist the big industry
of jute.
Industrial sector had all along been leading sector in terms of sustain
gro%th. Falue added fell by .2during 19414# compared to depress based
of 194!41 %hen the gro%th %as only 1.#2.(teady gro%th in 194$43.
'ifferent factor* like %ar %ith India and tight credit polices and East Pakistan
crisis gro%th decline .2 in 19414#. (teady improvement or recovery in
194#4$. anufacturing sector slo%do%n during 194345 because lo% level
of investment and shortage of ra% material. Te/tile has heavy %eight in total
industrial production. 194345 there %as also difficult %hen value added
project to gro% by 1!2 in the ( sector recorded negative gro%th of 1.42.
in 19444 'uring this time manufacturing sector continue to remain under
pressure due to various national and international factors.
In :uly 194* the interest rate on loans for fi/ed investment in industry
and agriculture %as reduced from 1#.52 to 112. In 193 195
manufacturing gro%th %as about .2 after a slo% do%n last fiscal year
%hich %as .12.'uring 195* &'P for manufacturing output has been
19.92. 'uring this year the manufacturing is e/pected to gro% by .#2 as
compared to .2 of previous year. The manufacturing output has gro%n by
4.32 in 194 as compared to 4.2 in 195. This year 194 sho%that the output has gro%n by 4.2 .The rate of gro%th in largescale
industries during 194 %as 4.3
'uring 199$93 policies of privati,ation* deregulation and market
friendly environment %ere reinforced. A ne% concept of publicprivate
partnership %as also introduced to enable private sector to play a key role in
social sector gro%th. anufacturing during 1995199 gre% 3.2. That %as
27
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previously #.92 in 19931995. The large scale manufacturing gre% by $.1$2
during 959. . In 19994 small scale manufacturing maintained its gro%th.
8ut large scale declining by 1.3$2 in value added. And over all gro%th of
manufacturing sector %as 1.42 %hich %as previously 3.32.
arge scale manufacturing sector gro% a dominant improvement %ith.192. That %as previously #.#92.
anufacturing sector overall gro%th %as .52. In #!!!!1
manufacturing staged an impressive recovery and it gre% 4.12 %ith
comparison to last year 1.32. In #!!1!#* ( targeted to gro% by .52 but
due to event of 911 it gre% only 32. The year #!!#!$ become the best
performing year beside #!!!!1for manufacturing sector since 194.
anufacturing gro% by 4.42 %ith the contribution of .42 by (
7e can see the trend according to this la% and order situation. And %ecan also observe that if there is political stability then either there is the
recession but it does not effect the gro%th much. In 1999#!!!* the overall
manufacturing has gro%n by 1.2. And the performance of the ( %as
very %eak and it sho%s a gro%th of !2. The factor %hich affects it more %as
massive decline in the sugar cane production %hich leads to%ard decline in
the production of sugar.
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,iblio-ra$"/
Books
Dr. Aslam Muhammad. (1990),"Comparative Study of Pakistans Five Year
Plan." Development planning in Pakistan. Pg(35-58)
"Pakistan Development Reports. !#!$. P%#$
"Pakistan Development Reports. !$#!&. P%(&'#&
"Pakistan Development Reports. !!'. P%(&)* '+#'&
"Pakistan Development Reports. !'#!,. P%($#&+
"Pakistan Development Reports. !,#!. P%($-#&&
"Pakistan Development Reports. !#!-. P% ($,#&$
"Pakistan Development Reports. !-#!). P%($!#&-
"Pakistan Development Reports. !)#!!. P%(&'#&,
"Pakistan Development Reports. !!#!-+. P%($*$-*&-+
"Pakistan Development Reports. !-+#!-. P%($-#&
"Pakistan Development Reports. !-#!-$. P%($,*$
"Pakistan Development Reports. !-$#!-&. P%(&*&$
"Pakistan Development Reports. !-!-'. P%( &$#&'
"Pakistan Development Reports. !-'#!-,. P%(&)#&!
"Pakistan Development Reports. !-,#!-. P%('*'$
"Pakistan Development Reports. !-#!--. P%(&&*&'
"Pakistan Development Reports. !--#!-). P%(&,
"Pakistan Development Reports. !-!#!)+. P%('#',
Pakistan Development Reports. !)+#!). P%('+#''
30
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Pakistan Development Reports. !)#!)$. P%(&-*'+
Pakistan Development Reports. !)$#!)&. P%($,*$!
Pakistan Development Reports. !)!)'. P%()!#!
Pakistan Development Reports. !)'#!),. P%($&*$'
Pakistan Development Reports. !),#!). P%(
Pakistan Development Reports. !)#!)-. P%()
Pakistan Development Reports. !)-#!)). P%(+!*+
Pakistan Development Reports. !))#!)!. P%($-#$!
Pakistan Development Reports. !!+#!!. P%()
Pakistan Development Reports. !!#!!$. P%()#)$
Pakistan Development Reports. !!$#!!&. P%(!
Pakistan Development Reports. !!!!'. P%(-
Pakistan Development Reports. !!'#!!,. P%(!#$+
Pakistan Development Reports. !!,#!!. P%(!
Pakistan Development Reports. !!#!!-. P%($-
Pakistan Development Reports. !!-#!!). P%($&
Pakistan Development Reports. !!)#!!!. P%($&
Pakistan Development Reports. !!!#$+++. P%($-#&+
Pakistan Development Reports. $+++#$++. P%(&&
Pakistan Development Reports. $++#$++$. P%($)
Pakistan Development Reports. $++$#$++&. P%($!#&+
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