Public Sector Planning in Pakistan by Imran Ahmad Sajid

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					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 and its supporting components. There is a very comprehensive planning 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. Thanks to Dr. Zari Rafique, the course instructor, who has contributed 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: WHAT IS PLANNING? DEFINITION OF PLANNING? PUBLIC SECTOR PLANNING IN PAKISTAN HISTORY OF PLANNING COMMISSION OF PAKISTAN THE NATIONAL/FEDERAL PLANNING AGENCY DEVELOPMENT BOARD PLANNING BOARD PERMANENT NATIONAL PLANNING BOARD/ PLANNING COMMISSION OBJECTIVES OF PLANNING COMMISSION: MAJOR FUNCTIONS OF THE PLANNING COMMISSION COMPONENTS OF THE PLANNING MACHINERY FEDERAL MINISTRIES/DIVISIONS PROVINCIAL PLANNING & DEVELOPMENT DEPARTMENTS PLAN APPROVAL AND IMPLEMENTATION NATIONAL ECONOMIC COUNCIL (NEC): EXECUTIVE COMMITTEE OF NATIONAL ECONOMIC COUNCIL (ECNEC): CENTRAL DEVELOPMENT WORKING PARTY (CDWP): FEDERAL LEVEL DEPARTMENTAL DEVELOPMENT WORKING PARTY (DDWP): PROVINCIAL DEVELOPMENT WORKING PARTY (PDWP): PROVINCIAL DEPARTMENTAL DEVELOPMENT WORKING PARTY (DDWP): TYPES OF PLANS FORMULATED IN PUBLIC SECTOR ANNUAL PLAN ROLL-ON PLAN FIVE YEAR PLAN PERSPECTIVE PLAN PUBLIC SECTOR DEVELOPMENT PROGRAMME (PSDP) INTRODUCTION TO PC-I, II, III, IV, AND V PROFORMAE PC-I PROFORMA (PROJECT APPRAISAL AND APPROVAL) LOW COST PC-I PROFORMA PC-II PROFORMA (FEASIBILITY REPORT) PC-III PROFORMA (PROJECT REVIEW AND MONITORING) PC-IV PROFORMA (PROJECT COMPLETION REPORT) 1 1 2 3 3 3 4 4 5 6 6 7 7 7 8 8 8 8 8 8 9 9 9 9 10 10 11 12 12 13 13 14 14

V PROFORMA (PROJECT EVALUATION) UMBRELLA PC-I CONCLUSION REFERENCES PRINTED SOURCES LECTURES & VERBAL SOURCES ONLINE AND ELECTRONIC SOURCES ANNEXURE

14 15 15 16 16 16 17 18

INTRODUCTION:
From the very record human beings has deliberated for securing their future. Planning has been an inherent quality of human beings. Animals can not plan for their future. It is the 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 the rapid transformation of a backward agricultural state into a modern industrial power in 1928. It was strongly opposed by the developed Western Countries and the capitalist 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 ،‫منصوبہ‬    ‫پروگرام بنانا‬ ،‫، وقت سے پہلے سارا پروگرام بنا لینا‬ ‫حکمت عملی وغیرہ ۔‬

1

Abdul Haleem Khwaja. (2005). Economic Theory Part-II. Islamabad: Khwaja and Khwaja Publishing House. P. 280. 2 st K.K. Davitt. (1996). Modern Economic Theory. [21 Revised Edition]. New Delhi: Shyani Lal Charitable Trust. P. 676. 3 Ibid.

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Similarly in the English to English dictionary the following words can be found for plan    A scheme, A design, A device,    A drawing, 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

( ‫)ٓنے والے وقت کے بارے میں پہلے سے سوچنے اور فیصلے کرنے کو پالننگ کہتے ھیں۔ عمران احمد ساجد۔‬ ‫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 to be achieved during a laid-down period.”7 According to the today’s famous online encyclopedia, Wikipedia, 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.8

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

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 system of ends to be pursued, 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 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.

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 99 st K.K. Davitt. (1996). Modern Economic Theory. [21 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). Economics of Pakistan. Lahore: New Fine Printing Press. P. 228

pg. 3

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 with questions of rapid economic development of the country. In 1950 a Six-Year 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.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, and social services, secure social justice and equality of opportunity to all and aim at the widest and most equitable distribution of national wealth. b) Terms of Reference: i) To review the development that has taken place since independence. ii) To assess the resources - material and human, which can be made available 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) To make proposals regarding the administrative machinery best calculated to assure the successful implementation of the plan. v) To make proposals regarding the administrative machinery best calculated to assure the successful implementation of the plan. vi) To make any other recommendations which in the opinion of the Board will contribute towards the successful implementation of the plan. (c) Functions: i) To prepare future five year plans of economic and social development. ii) To make additions and alterations in the existing five year plan consistent with the changing economic conditions of the country.

12 13

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.

pg. 4

iii) To tender such technical advice and offer such comments on financial matters bearing on the development plans as may be requested by the Ministries of Government. iv) To stimulate and, where necessary, to initiate the preparation of schemes required to achieve national objectives in the economic and social fields. v) To examine development schemes, programmes and proposals with a 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) To maintain a continuous review of the economic conditions of the country so far as these have a bearing on the development plans. viii) To submit such periodic reports as the Government may desire from time to time. ix) To encourage the improvement and expansion of research (in particular economic research), statistics, surveys, and investigations and evaluation needed to support effective planning and development in the country. x) Generally to advise the Government on economic policies and problems 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. 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
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

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. ii. Developing the utmost resources of the country Making provision for the basic necessities of life, educational and health facilities, and work under just and human conditions iii. Ensuring equitable adjustment of rights relating to the ownership and use of land and between employers and employee iv. Preventing concentration of wealth and means of production and distribution in a 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. Preparation of periodic national plans for the economic and social development of the country; ii. Formulation of an Annual Development Programme (ADP) within the framework of National Medium-term and Annual Plans; iii. iv. Recommendations of adjustments in the National Plans; Monitoring and implementation of the plans and the major development projects and programmes, identification of bottlenecks and initiation of remedial actions; v. vi. Evaluation of on-going and completed projects; Identification of regions and sectors, lacking adequate portfolio of development projects and to stimulate preparation of the required projects; vii. viii. ix. Evaluation of general socio-economic situation and coordination of policies; 17 National Logistics Cell; Administrative control of:-

(a) Economists and Planners Group; (b) Pakistan Institute of Development Economics; and (c) Overseas Construction Board.18
15 16

Saeed Nasir. (2008-09). Opt. Cit. pp. 228-29 Planning Machinery in Pakistan. Opt. Cit. 17 Saeed Nasir. (2008-09). Opt. Cit. P. 229.

pg. 6

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.

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
18

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 19 Ibid.

pg. 7

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 plan 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 operation.

For this purpose competent bodies have been established and designated which accord the required approval. The main bodies and their functions/process are as follows. 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 Province, the PDWP works under Chairmanship of Chairman/Additional Secretary Development of P&D Department with secretaries of the finance and the concerned nation building

pg. 8

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

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 "Perspective Plan", may have a 15-25 years tenure depending upon the peculiar economic 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

20

Saeed Nasir. (2008-09). Economics of Pakistan. Lahore: New Fine Printing Press. pp. 230-31

pg. 9

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 not authorize expenditure to the relevant operating agencies. It provides a broad framework for formulation of the 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

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

pg. 10

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.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 projections, a perspective plan cannot be a specific blueprint for action. The second 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 procedure differs from the project approval procedure. Due to the general constraint which exists on government funds, projects are competing for a limited amount of funds available for development. An essential part of the procedure, therefore, is a shift 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

22

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. 11

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 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. Accordingly, the Task Force agreed that existing PC-Is should continue with some 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:
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

(i) (ii) (iii) (iv) (v)

name of project, authorities responsible for sponsoring and executing of the project, completion period, a summary of cost in detail and objectives of the 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: location, market analysis, general description and justification, operating or recurrent cost estimates, technical description, capital cost estimates, unit costs, sectoral benefits, cash flow, financing arrangements, foreign exchange component, risk analysis, beneficiaries participation etc. Part 'C' deals with "Project Requirements". The information sought in this part includes: (i) (ii) (iii) manpower requirements during implementation, physical and other facilities required and materials, supplies and equipment. (i) (ii) (iii) (iv) (v) (vi) (vii)

Part 'D' deals with enviroumental aspects. It includes information required in respect of (i) impact assessment undertaken separately in case of water, sewerage and solid waste and (ii) recommendations alongwith the measures to be taken to control environmental 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.

pg. 13

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 (i) physical targets and actual achievements; (ii) Planned and actual expenditure; (iii) Quantifiable social, economic, and financial benefits of the project; (iv) Impacts of the project on the target group; (v) Lessons learned from the project; and (vi) Suggestions for planning & implementation of similar projects. 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) Planned and actual recurring cost of the project, with details; (ii) Planned & actual manpower employed; (iii) Planned and actual physical output of the project; and (iv) Every other aspect of the project. The proforma is being given at the annexure.

pg. 14

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 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 responsibility of the Provincial Governments.

CONCLUSION
Now that we have discussed all the planning machinery and the entire planning mechanism in Pakistan, it is clear that 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. 15

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. 16

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/mdp/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. 17

Annexure-I

Revised 2005 GOVERNMENT OF PAKISTAN PLANNING COMMISSION PC-1 FORM (SOCIAL SECTORS)
1. 2. 3. Name of the Project Location Authority responsible for: i. ii. iii. iv. 4. 5. 6. 7. 8. Sponsoring Execution Operation and maintenance Concerned federal ministry

Plan Provision Project objectives and its relationship with Sectoral objectives Description, justification and technical parameters Capital cost estimates Annual operating and maintenance cost after completion of the project Demand and supply analysis Financial Plan and mode of financing Project benefits and analysis i. ii. Financial Social benefits with indicators pg. 18

9. 10. 11.

iii. iv. v. 12.

Employment generation (direct and indirect) Environmental impact Impact of delays on project cost and viability

a) Implementation schedule b) Result Based Monitoring (RBM) Indicators.

13.

Management structure and manpower requirements including Specialized skills during execution and operational phases Additional projects/decisions required to maximize socio-economic benefits from the proposed project 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.

14.

15.

Prepared by _________________________ Name, Designation & Phone#

Checked by _________________________ Name, Designation & Phone#

Approved by _________________________ Name, Designation & Phone#

pg. 19

Annexure-II

Revised 2005 GOVERNMENT OF PAKISTAN PLANNING COMMISSION PC-1I FORM PROFORMA FOR DEVELOPMENT PROJECTS (SURVEY AND FEASIBILITY STUDIES)
1) Name by which survey/ feasibility will be identified 2) Administrative authorities responsible for i) ii) Sponsoring Execution

3) Details of survey/feasibility study i. ii. iii. iv. v. General description and justification Implementation period Year wise estimated cost Manpower requirements Financial plan

4) Expected outcome of the survey feasibility study and details of projects likely to be submitted after the survey.

Prepared by _______________________ Name, Designation & Phone #

Checked by _______________________ Name, Designation & Phone #

pg. 20

Approved by _______________________ Name, Designation & Phone #
Annexure-III

.

pg. 21

pg. 22

Annexure-IV

pg. 23

pg. 24

Annexure-V

From PC-V Revised 2005 Government of Pakistan Planning Commission To be furnished by 31st July of each years for 5 years after completion of Project indicating Projects operational results during the last financial year.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Name of the Project: Objectives & scope of project as per approved PC-I and state as to what extent the objectives have been met: Planned and actual recurring cost of the project, with details: Planned & actual manpower employed: Planned and actual physical output of the project: Planned and actual income of the project: Planned and actual benefits to the economy: Planned and actual social benefits: Planned and actual cost per unit produced/sold: Marketing mechanism: Arrangement for maintenance of building & equipment. Whether output targets as envisaged in the PC-I have been achieved. If not, provide reasons: Lessons learned during the year in: o o o o 14. 15. Operation Maintenance Marketing Management

Any change in project management during the year: Suggestions to improve projects performance.

pg. 25


				
DOCUMENT INFO
Description: This Assignment Report points out how planning is carried out by public sector in Pakistan and what is the mechanism for this purpose. The author, Dr. Imran Ahmad Sajid has delivered a presentation on this topic at the Institute of Social Development Studies (Social Work) University of Peshawar. This assignment report is the explanation of that presentation which is also available at Docstoc and scribd. Dr. IMRAN AHMAD SAJID