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Analysis of 3rd Five Year Plan(1965-1970)
Economy of Pakistan
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Analysis of 3rd Five Year Plan(1965-1970)
Economy of Pakistan
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IN THE NAME OF
ALLAH
THE MOST BENEFICIENT
THE MOST MERCIFUL
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If you want the the prosperity of 1 year thengrow grains,
If you want the the prosperity of 10 year then grow
trees,
If you want the the prosperity of 100 year then
grow people..
(chinese proverb )
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Dedicated to
Prof. Sheikh Usman
Yousaf
For there continuous effort in
educating us and leading us toright path
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P resented By:D ilawar khan
(Mi09Mba044)
Mohammad Asif Sohail(Mi09Mba012)
Gohar Azeem(Mi09mba062)
Usman Shaukat(Mi09mba054)
Sajjad raza (Mi09mba052)
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MUHAMMAD USMAN SHAUKAT
Mi09mba054
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Outline
HistorySize of P lanObjectives of P lanStrategyEveluation of 3rd P lan
Targets of 3rd P lanAchivements of 3rd P lanRecommendationConclusion
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W hat is a Plan
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A P lan is a delebrate attempt to spell out how the resources of a country should be put to use.It has some general and specific goals , which are to beachieved within a specific period of time.The general goals of a plan are Growth, Modernization, fullEmployment, Self Reliance and Equity. But all plams may not
give equal importance to all of them.Each plan can have some specific goals like improvement inagriculture. For example our First Five Year P lan was geared toimproving the state of agriculture and the Second to improve
Industry.
What is a P lan
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History of 3rd Five
year P lan1965-1970
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P repared by P lanning Commision of Pakistan in May1965 and approved by NECRevised in 1966 due to
Indo pak war 1965 Change in climate condition in 1966
3rd Five year P lan 1965-1970
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Size of 3rd Five year Plan
1965-1970
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Total size P KR 52,000 Millions
Annual rate of growth targeted to 6.5%Investment in P ublic Sector 30000 MillionInvestment in P rivate Sector 22000 Million
Finance taken as 68% from internal resources and32% from external Resources
Size of 3rd Five Year P lan
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O bjectives of 3rd Five Year Plan
1965-1970
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Attain rapid growth in Economy from 5.2% to 6.5%
Remove desperity of income per head between East & WestPakistanTo provide atlest 5.5 million New Job OppertunitiesTo reduce level of unemployment
Increase Foreign exchangeTo develop basic industry for manufacturing of producergoodsAcceleration in Agriculture Sector
To contrle growth of Population
Objectives of P lan
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To provide Better housing , education and health
services.To diminish inequalities in wealth , power andresourcesTo maintain growth of industrial sector
Objectives of P lan
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GOHAR AZEEM
Mi09mba062
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Strategy of Plan
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To maintain growth of last 15 years by planning for
next 20 yearsGreater emphises was given to the AgriculturalSectorP rojected annual increase is 5% in Agriculture, 10%
in industry, 7.1% in other sectorsIt emphesses laid on heavy industtry and creating aninfrastructure in East PakistanIt must maintain a high margin rate of saving
Strategy
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There were Four main elements for mobilizing
domestic saving i.e Favour the saving sector
Industrial sector contribution
Import of capital goods
Effort to increase Govt fiscal contribution to development
Strategy
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There are four main strategies Balance of Payment Strategies Regional Strategies
Employment Strategies
Allocation Strategies
Strategy
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Main aim is to reduce the need of foreign assistance
There are three main elements
Increase exports more then GN P
Imports of capital goods
Economize the use of foreign exchange
Balance of Payment Strategy
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It implied a greater acceleration in the growth rate of East
Pakistan as compared to West Pakistan.The disperity of regional per capita income were to be
removed over the perspective plan period.
It impose an increase of 40% in the regional income of EastPakistan and 35% for West Pakistan
This was 30% and 28% respectively in 2 nd Five year plan
Regional Strategy
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This plan will provide employment to new generation as well
as it also provide opertunity to unemployed labour force bystarting different development programs
It will also start some labour intensive programs
It will also start training to the labour to equip them and tomake jobs more easy for them
Employment Strategy
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26% of total allocation is fix for industry and 1/3 of that is fixfor capital goods
A careful planning is done for agriculture sector for therephysical inputsAllocation for other sector is decided on there consistancyand efficiency
Allocation Strategy
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MOHAMMAD ASIF SOHAIL
Mi09mba012
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Yearly D
evelopmentReport Analysis
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Pace of industrial growth was slower because of effect of war with India restricted operation of some industries suspension of foreign economic aid consequent reduction in imported industries raw material and spare
parts diversion of some national resources to defen
Iin-spite of these problems the industrial growth maintained
During 1965-66
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production of manufacturing industries increased by 6% from 201.7 in 1964-65 to214.2 in 1965-66There was significant increase in 65-66 in the production of
Sugar vegetable ghee Cigarettes jute goods art silk and rayon cloth some varieties of and some organic chemicals like sulphuric acid and chlorine
gas.However there were declines in the production of cotton, textile, newsprint, straw,and paper board, packing and other paper, tea, sea salt, cement, tyres and tubes,paints, super phosphate and few fertilizer and soda ash.
During 1965-66
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The production trend during this year appears to bencouraging with the expectation of chemical and cotton
textileThe production of minerals increases very slowlyThe index of minerals production rose by 1.5% point from174.5 to 176 during this year.
It rose by 6.2 points to 182.2 during 66-67.The index is estimated to rise by 9% to 233 in 66-67.
During 1966-67
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Investment: A comprehensive industrial investment schedulefor the entire third plane period aimed ensuring fulfillment
planes investment target of 830 crores. It covered 200 itemsinvolving large medium and small industries the investmentallocation is rupees 1088.53 crores in the private sectors,586.07 crores West Pakistan and 502.46 crores for EastPakistan.Credits: Major allocations during this year from France 16.19million $. USSR 9.67 million $.UK 15.98 million $. WORLDBANK 9.18 million $ and Belgium 4 million $. Total allocationincrease from 89.21 million $ in this year to 121.48 million $.
During 1966-67
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Credits: Major allocations during this year from France 16.19million $. USSR 9.67 million $.UK 15.98 million $. WORLD
BANK 9.18 million $ and Belgium 4 million $. Total allocationincrease from 89.21 million $ in this year to 121.48 million $.
During 1966-67
Cou nt ry Credit (milli on $)
France 16.19
USSR 9.67UK 15.98
WORLD BANK 9.18
Belgium 4
Total overall alocation 121.48
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SAJJAD RAZA
Mi09mba052
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During 1967-68
an agreement with the g overnment of Po land to provide theequipment required for the implementation of the projects and itconsists of 2.6 c ror e expenditure.In w este rn Pakistan during this year 143 miles of ne w for est ro adsand bridle paths were constructed and another 150 miles areexpected.This year government had given the attenti on t o devel op ed heav y
and m or e s op histicated ind u st ries such as engineering, electricalequipment, machine tools and petro chemicals etc.During this year there is increase in the production of tea, salt,cotton cloth and yarn, board, caustic soda, cement and cycle rubbertyres and tubes. The increase in the quantum index of
manufacturing industries from 100 in 1959- 60 to 201 .7 in 19 64 -65 .
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During 1968-69
Growth in 68 -69 w as 7.4% that was previously 7.8%. And in49-50 the share go agriculture was standing 60% which came
down to 46% in 68-69.This trend towards diversification is also reflected in thepattern of exports and imports the share of primarycommodities, which was 95% of our exports in 1950 to 1951decline to 69% in 64-65 and future to 53% in 67-68 the restbeing accounted for by manufacture and semi manufacture.During 1967-68 and 1968-69 the increase in manufacturingoutput in certain industries was a quite impressive.
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During 1968-69
P roduction of sea salt and cigarettes have already exceed thepain target, while the performance of newsprints and
mechanical paper was 47%, cotton yarn 79.6%, white sugar63.9%, vegetable ghee 68.6%, juice goods 53.4$%.During 1967-68, substantial gains were also recorded bycotton yarn and cloth fertilizes and chemicals, writing andprinting paper etc. production of board and cycle tyres andtubes, however, declined during the year.
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During 1969-70
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DILAWAR KHAN
Mi09mba044
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Evaluation
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Perspective P lanning of 20 years (1965-1985) has beenformulated
Review of 2 nd planDevelopment is committed to make double, then fourth andsixth in future plans through this five year planningReview of 4 th plan
In 1965 the Indo- Pak war has resulted in shortfall of Public sector development expenditure External aid P lan priorities
Evaluation
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Income inequalities widened due to following reasons Certain sectors were there where extension of social controle is
needed Tex concession was given in early phase of industrialization Development of industrial zones in less developed areas Country is highly depending on foreign aid which is 45% of plan
expectation
Evaluation
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Targets and
Achivements
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Balance of Payment Strategy
Obj ect Ta rget Achievements
Growth Rate 6.5% per annum 5.7% Per Annum
Per Capita Income 3.5 % compound AnnualGrowth
2.9% Compound AnnualGrowth
Regional Development Removal of inter RegionalDisparities in incomes
It increased from 36.5% to47.4%
Foreign Exchange Earningand Gap
It must reach to Rs. 4800Million and Gap to be Rs.15000 Million
Foreign Exchange earningreached Rs. 4302 M andGap Rs. 11303 M
Food Grains Increase from 17596000ton to 21465000 tons
P roduction exceed plantarget by 1340000 tons
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Balance of Payment Strategy
Obj ect Ta rget Achievements
Cash Crop Increase in production Apart from Sugar Cane andTobacco other targets werenot achieved
Industry Targets not achieved
Irrigation 5.74 M Acres new land tobe irrigated20.32 m acre improved
land
3.72 m acre
13.65 m acre
Installed power capacity Increase from 1300 MW to3030MW
2593 MW
Transport andcommunication
Apart from new Busses,telephone connections andtrucks no other targetachieved
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Balance of Payment Strategy
Obj ect Ta rget Achievements
Health 4200 new doctors, 1800new busses, 12800additional hospital beds
5852 new doctors, 1670new nurses 3650additional hospital beds
Education Prima ry :26414 schools5.80 m enrolments
Seconda ry :
710 high school toimproveMiddle school
enrolments 0.90 Millioncollege enrolment
0.13 ,million
6062 schools3.19 million
650 improved
0.78 Million
0.14 Million
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C onclusion
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The revised total size of the second P lan was fixed at Rs . 5 200 cror es as compared to Rs. 2300 crores in (1960-1965). In this
P lan there was a great visible investment shift from consumergoods to capital goods industry.If we talk about the achievement of this P lan, theperformance in the industrial sector was also f ar fro msatis f act ory particularly in the large-scale industrial sector.The large -scale ind ust rial sect or exhibited a growth rate of 10 % as against 13 % targeted in the P lan. The ind ust rial sect or as a w ho le expanded at an annual growth rate of 7.8%instead of 10 % targeted in the P lan. The small-scale industry
also performed well.
Third Five year P lan (1965-70)A P risoner of Extraordinary Events
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Q uestion and
Comments
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Q uestion and
Comments
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Q uestion and
Comments