Q.3. Discuss the factors hindering Effective Planning in Pakistan
Introduction
Pakistan, like other less developed countries, is caught up in the vicious circle of poverty. Since Partition, the Government of Pakistan is anxious to raise the standard of living of the people hut it has not yet been able to come out of the boggy of poverty. On the other side, the developed countries are growing at a fast speed as they have a set of favourable conditions for growth. The gap between the developed and the developing countries is widening instead of narrowing. In order to overcome the shortcomings of market mechanism and to push up the tempo of development, the Government of Pakistan has drawn up eight five years plans. Some of the plans did succeed in raising industrial and agriculture production but the overall performance of the plans is discouraging. The main factors which have inhibited partially or wholly effective planning in Pakistan are as follows:
1. Lack of Basic Data
In order to draw a comprehensive and realistic plan, the accurate statistical information about the existing conditions of the economy should be available to the planners. In Pakistan, the date on natural, human and financial resources provided to the planning machinery are mostly inaccurate and unreliable. If the date are obsolete or continue wide margins or error, the objectives of the plans would not be achieved and the plan ends in failure.
2. Appointment of Non-Technical Persons
Another important factor standing in the way of effective planning in Pakistan is the appointment of non-technical persons in drawing up and execution of the plans. In the entire history of the Planning Commission, (except for ten years) of Pakistan, the Planning Commission has been headed by a senior member of the civil service, rather than by a professional economist.
3. Lack of Public Co-operation
Lack of co-operation and mistrust of the Government has remained an important hurdle to effective planning in Pakistan. The Planning Machinery has not been able to enlist the co-operation, support and enthusiasm of the people for the implementation of the plans.
4. Political Instability
Another major bottleneck to effective planning is the political instability in Pakistan. The rapid change over of the government set up, has led to unplanned, haphazard economic growth. The uncertainties of the election results have hindered, and slowed down the rate of economic development in the country and have made the plans mostly ineffective.
5. Role of Foreign Assistance
Pakistan has been relying on foreign aid for quickening the tempo of economic development since the first day of economic planning in Pakistan. The loan giving countries do not finance the project of the developing countries for philantrophic motive. They have their political and economic interests. So long the interest between the aid giving countries and the aid receiving countries do not conflict, the aid is given. As and when the interests of the two clashes, the aid is immediately stopped or reduced Pakistan aid has been curtailed many a times in the past and the achievement of the plans fell short of expectations.
6. Natural Calamities
Agriculture is the backbone of our country. It now contributes 25% of GDP accounts for 45% of foreign exchange earning and engages 50% of the labour force. If in any year or years, the rain is untimely, weather unfavourable or locust storm attacks the standing crop, the agricultural productions falls short of the target. Export of raw material and manufactured goods decline. Expenditure on the import of food-grain increases. The sectorial allocations in the plan then have to be revised which upsets the whole programme of planning.
7. Dualism
Dualism is another important constraint on the effective planning in Pakistan. The difference in social customs, difference of technology and a gap in the level of per capital income between the four provinces of the country, have stood in the way of effective planning in Pakistan.
8. Ambitious Plan
If we look at the objectives of all the Eight Five Year Plans, we will find them too ambitious but they are not properly fetched in time. When the objectives of plans are partially achieved , it create discontentment among the people and reduce the usefulness of the development plans.
Pakistan, like other less developed countries, is caught up in the vicious circle of poverty. Since Partition, the Government of Pakistan is anxious to raise the standard of living of the people hut it has not yet been able to come out of the boggy of poverty. On the other side, the developed countries are growing at a fast speed as they have a set of favourable conditions for growth. The gap between the developed and the developing countries is widening instead of narrowing. In order to overcome the shortcomings of market mechanism and to push up the tempo of development, the Government of Pakistan has drawn up eight five years plans. Some of the plans did succeed in raising industrial and agriculture production but the overall performance of the plans is discouraging. The main factors which have inhibited partially or wholly effective planning in Pakistan are as follows:
1. Lack of Basic Data
In order to draw a comprehensive and realistic plan, the accurate statistical information about the existing conditions of the economy should be available to the planners. In Pakistan, the date on natural, human and financial resources provided to the planning machinery are mostly inaccurate and unreliable. If the date are obsolete or continue wide margins or error, the objectives of the plans would not be achieved and the plan ends in failure.
2. Appointment of Non-Technical Persons
Another important factor standing in the way of effective planning in Pakistan is the appointment of non-technical persons in drawing up and execution of the plans. In the entire history of the Planning Commission, (except for ten years) of Pakistan, the Planning Commission has been headed by a senior member of the civil service, rather than by a professional economist.
3. Lack of Public Co-operation
Lack of co-operation and mistrust of the Government has remained an important hurdle to effective planning in Pakistan. The Planning Machinery has not been able to enlist the co-operation, support and enthusiasm of the people for the implementation of the plans.
4. Political Instability
Another major bottleneck to effective planning is the political instability in Pakistan. The rapid change over of the government set up, has led to unplanned, haphazard economic growth. The uncertainties of the election results have hindered, and slowed down the rate of economic development in the country and have made the plans mostly ineffective.
5. Role of Foreign Assistance
Pakistan has been relying on foreign aid for quickening the tempo of economic development since the first day of economic planning in Pakistan. The loan giving countries do not finance the project of the developing countries for philantrophic motive. They have their political and economic interests. So long the interest between the aid giving countries and the aid receiving countries do not conflict, the aid is given. As and when the interests of the two clashes, the aid is immediately stopped or reduced Pakistan aid has been curtailed many a times in the past and the achievement of the plans fell short of expectations.
6. Natural Calamities
Agriculture is the backbone of our country. It now contributes 25% of GDP accounts for 45% of foreign exchange earning and engages 50% of the labour force. If in any year or years, the rain is untimely, weather unfavourable or locust storm attacks the standing crop, the agricultural productions falls short of the target. Export of raw material and manufactured goods decline. Expenditure on the import of food-grain increases. The sectorial allocations in the plan then have to be revised which upsets the whole programme of planning.
7. Dualism
Dualism is another important constraint on the effective planning in Pakistan. The difference in social customs, difference of technology and a gap in the level of per capital income between the four provinces of the country, have stood in the way of effective planning in Pakistan.
8. Ambitious Plan
If we look at the objectives of all the Eight Five Year Plans, we will find them too ambitious but they are not properly fetched in time. When the objectives of plans are partially achieved , it create discontentment among the people and reduce the usefulness of the development plans.
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