PLANNING COMMISSION AND PLANNING DEVELOPMENT_094440

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 8

PLANNING COMMISSION AND PLANNING DEVELOPMENT (PAKISTAN)

The Need for Planning


As we know at the time of independence Pakistan had inadequate social and physical
infrastructure, and there was need to develop roads, industry, schools, dams, power houses,
hospitals and other government structure.
In 1948 Development Board was created in Economic Affairs Division. The Board was to plan
the
socio-economic development of the new country. The Board in 1950 prepared a Six- Year
Development Plan.
In 1953 the Government created Planning Board with a purpose to ‘develop the resources of the
country as rapidly as possible to promote the welfare of people, provide adequate living
standards, socialwelfare services, and secure social justice and equality of opportunities to all.’
In 1958 the Planning Board was re-designated as Planning Commission. The objectives of the
Commission were more or less the same as the board, but in addition it was to consult the
Central,
Provincial and relevant agencies to prepare national plans, make assessment of human and
material
resources. The Planning Commission was the highest body for making national plans.
ORGANIZATIONAL SETUP

Functions
Following are the major functions of Planning Commission:
1. To prepare comprehensive national plan for socio-economic development of the country
2. To formulate within the framework of national plan, of annual plan and annual development
programme projects and programmes of national development.
3. Monitoring the implementation of all major development projects and programmes (which are
above Rs. 40 million)
4. Continuous evaluation of economic situation and coordination of economic policies 5.
Examination and technical appraisal of development projects received from Federal Ministries
and Provincial Government for consideration of Central development working Party (CDWP)/
Executive Committee of National Economic Council (ECNEC)
Relationship of Plan and Projects
There is a complementary relationship between plan and projects. Projects are to plan what
bricks
are to building.
What does national plan comprise?
A national plan comprises number of small projects
What is a project? A Project is work undertaken to achieve goals in a given time period. It has
following characteristics:
1. Investment of resources: all projects require resources like capital, machinery & equipments.
2. It consumes inputs and gives outputs: when the projects start producing. These consume
inputs like raw material etc., to produce output
3. It has beginning and an end: A project is started and it gets completed after which it starts
producing output or service Examples: of project is Terbala Dam Project, School
construction Project, Highway Project (N-5).
Process of Project Completion
A project follows a sequential process of “beginning” and ending which is as follows:
1. Project Identification and Formulation (PC-II)
2. Project Appraisal and Approval (PC-I)
3. Project Implementation and Monitoring (PC-III)
4. Project Completion (PC-IV)
5. Project Evaluation (PC-V):
Project Identification and Formulation (PC-II): At this stage one project idea, out of several
alternatives, is chosen and defined based on a need analysis. The PC-II proforma is required to
conduct surveys and feasibility studies, with respect to larger projects, intending to obtain full
technical justification for undertaking the project before resources are committed and invested.
Further, the defined project idea is carefully developed, and a project plan is prepared in
accordance with the PC-I proforma.
Project Appraisal and Approval (PC-I): Every aspect of the project idea is subjected to a
systematic and comprehensive appraisal. The detailed proposal is submitted for approval and
financing to the appropriate entities and relevant forum. Final appraisal (working paper and the
minutes of the approval forum) reports of selected/Core Projects will be placed online.
After appraisal the project goes to the approving body. Following are the project approving
bodies:
The key federal/national level 1 forums for approval of development projects and programs are
as follows
Project Implementation and Monitoring (PC-III): With necessary approvals and financing in
place,
the project plan is implemented. At every execution stage, the progress ofthe projectis assessed
against the planned activities of the project. Course corrections are also done to ensure on time
and within budget completion. This is the monitoring stage and requires PC-III proforma. This
form is designed to furnish information regarding the financial as well as physical progress of the
ongoing projects, including information on any bottlenecks experienced during project execution
and staffing issues.
Project Completion (PC-IV): The project closure brings project execution to a formal
conclusion,
informing all stake holders about the completion of the project, and winding up technical,
operational, and administrative actions. PC-IV form is required to be submitted at the time of
project closure or the termination of the physical implementation of the project. At the stage of
project closure, PC-IV is submitted.
Project Evaluation (PC-V): Upon completion, the project is reassessed in terms of its
deliverables, performance (results), efficiency and effectiveness. This form is to be furnished to
the Planning Commission on an annual basis, by the 31st of July of each year, for five years by
the agencies responsible for the operation and maintenance of the project. It is aimed at carrying
out impact evaluation of the project by reporting operational results during the previous fiscal
year.

Formulation of the PSDP


1.14 The formulation of the Annual Plan and the annual PSDP at the federal level is steered by
the Planning Commission in collaboration with the Finance Division and Economic Affairs
Division. The annual PSDP must be aligned with the growth strategy, the Five-Year Plan or
Long-Term Perspective Plan (if any) or vision document, provisions of the Public Finance
Management Act, 2019,international economic and social landscape, current development
challenges and priorities, economic growth targets, and country’s commitments to the
Sustainable Development Goals (SDGs) and Paris Climate Agreement 2016 among other
priorities and commitments of the Government of Pakistan.
1.15 The final approval of the plans along with the federal budget lies with the National
Assembly (NA).The budget incorporates proposals for development and non-development
expenditure as well as resource availability. The Money Bill is not voted in the Senate. The
Senate deliberates on the budget proposals and sends its recommendations to the NA. NA is the
constitutional forum for the approval of the budget including the development budget. The NA
finally approves the Annual Budget Statement including development expenditure under Article
82 of the Constitution of Pakistan. Following approval of the NA, the Prime Minister of Pakistan
authenticates the Schedule of Authorized
Expenditure under Article 83 of the Constitution. The process for PSDP formulation and
approval is 1.16 While considering the portfolios and budgets for next year, the Planning
Commission and respective
ministries prioritize fast-moving, strategic, and important projects. Other considerations include
recommendations from the NA Standing Committees of the respective ministries/ divisions,
availability of resources and the Indicative Budget Ceiling.
1.16 (b) New projects will be included only after providing the adequate funding to the on-going
projects as per their approved annual phasing and keeping in view the throw forward of the
PSDP. Ideally,
throw forward should not exceed the 3 times of the size of the PSDP.
1.17 The Priorities Committee considers policy priorities, outputs, past performance of the
ministry,
current year’s budgetary allocation, the indicative ceiling for the budget year and forecast years,
and
overall resource availability for the development budget, both local and foreign funding.
1.18 While formulating the federal PSDP, now there is an increased emphasis on promoting
innovative financing modes (Public-Private Partnerships) to reduce the burden on the limited
public
sector resources. The Public-Private Partnership Authority (P3A) has been made more functional
to attract private sector investment in development activities.
PROVINCIAL ANNUAL DEVELOPMENT PROGRAMME
1.19 The provincial ADP formulation Is steered by the P&D boards/departments of the provinces
in close coordination with the provincial finance departments, while the later start the preparation
with the issuance of the Budget Call Circular. The process is based on the national priorities,
communicated by the Planning Commission, and resource availability in each of the provinces.
The
process for formulation of the provincial ADP is depicted in the figure below. In April of each
year, the
Draft ADP for the next fiscal year is submitted for a review of the Chief Minister and the
minister
concerned or the cabinet (as necessary) and is shared with the APCC and is reflected in the
summary, which is finally presented to the National Economic Council (NEC). While approving
the
ADPs, the NEC may direct modifications in the national priorities and the overall magnitude of
the
development effort to ensure balanced sectoral and regional development in the country
1.20 The provincial ADP is then formally submitted to the provincial cabinet for consideration
and approval in June after which it is submitted to the provincial assembly for discussion and
vote. As
soon as the ADP along with the budget is approved by the provincial assembly, the Schedule of
the
Authorized Expenditure is authenticated by the Chief Minister under Article 123 of the
Constitution of
Pakistan.

Concepts
ˆ Project: it is a distinct activity which requires investment and has
beginning and end.
ˆ Project cycle: project cycle is a sequential process of project identification,
feasibility, preparation, appraisal, approval, implementation &
evaluation

You might also like