37164063 pakistan five years plan overview

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/Textiles


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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


8/33

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


9/33


10/33

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


11/33

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


12/33

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


13/33

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.

11


14/33

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


15/33

'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 >.


16/33

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!.

14


17/33

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.


18/33

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.

16


19/33

(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


20/33

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


21/33

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.


23/33

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.

22


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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


27/33

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.


28/33

26


29/33

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.

28


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32/33

,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. $++$#$++&. P%($!#&+

37164063 pakistan five years plan overview

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