According to prof. Chamberlain, “Planning starts with purpose until objectives are defined, there can be no sense of direction, no standard of measuring the adequacy of efforts or acceptability of results. But the planning objectives differ from country to country and they may change in the same country as it gradually begins to achieve higher growth rates consequent upon rapid industrialization”. However, we explain planning objectives with reference of Pakistan development plans.
- TO INCREASE PER CAPITA AND NI
The increase in per ca pita and NI of a country is regarded as an indicator of economic development. The increase in income represents higher standard of living as well as increased efficiency. The per ca pita income of Pakistan is around $1368 per Annam in the year 2012-13. While the per capita of US is more than $40,000. Such gap is widening day by day. As once Dr. Mahbub-ul-Haq said that, “To attain per ca pita income equal to DCs Pakistan will be in need of 100 years.” Therefore, each development plan of Pakistan aimed at raising per ca pita and NI of the country. The targets to raise per ca pita incomes in 1st, 2nd and 3rd five year plants were 15%, 24% and 37% respectively.
Thus, we find that overriding objective of planning as far as UDCs like Pakistan are concerned is to attain increase in NI and per capita income. But the objective will change when considered from DCs point of view. They wish to maintain a sustained increase in real NI over a long period.
- HIGHER LEVEL OF EMPLOYMENT
The objective of planning in DCs is this that they want to maintain full employment without inflation and deflation. In case of DCs if population is growing it will necessitate an increase in real income for maintaining per capita income. If labor force is expanding, output must also expand to ensure full employment. If net investment takes place, income should also grow to avoid idle capacity of the economy. Therefore, the problem of DCs is to maintain full employment. On the other hand, the problem faced by UDCs is ever-rising unemployment while in urban areas, there is under-employment as well as educated unemployment.
Therefore, the aim of planning particular from Pakistan’s point of view is to expand employment opportunities. In 1st plan it was proposed to create new jobs of 20 lac; 30 lac jobs in 2nd plan; 55 lac jobs in 3rd plan, and 75 lac jobs in 4th plan. In 6th plan, employment was to be provided to 80 lac people.
- PRICE STABILITY
Along with the process of development the demand for consumer goods increases rapidly. The existing resources of the economy fail to respond such increased demand. Moreover, the artificial shortages are created by the producers to raise their profits. In addition to this, govt of UDCs have to depend upon deficient financing because of low taxable capacity, low savings and traditional set up. As a result of such all factors, the prices start rising very sharply. Inflation not only severely affects the fixed income group but costs of development also increased. BOP problems emerge and flight of capital takes place. Therefore, it is an important task of economic planning, particularly in UDCs like Pakistan to have price stability.
OBSTACLES IN THE WAY OF EFFECTIVE ECONOMIC PLANNING IN PAKISTAN
The objective outlined above have hardly been attained in UDCs like Pakistan. The gap between rich poor is widening. The disparities in regions are increasing. The unemployment is mounting. The agriculture and industrial productions are hardly increased. Simply we can say that all the plans of Pakistan did not prove to be the landmarks in economic history of Pakistan. In respect of failure of economic planning in Pakistan following reasons are given.
- LACK OF STATISTICAL DATA
For a proper planning, the planners must have accurate information regarding different sectors of the economy etc. But our planners are provided with the data regarding finance, manpower and natural resources etc. Which is doubtful as well as obsolete. In such state of affairs planning would not be effective.
- LACK OF TECHNICAL PERSONS
In our country ‘Planning Commission’ is the authority to formulate and execute a development plan. But except a few years such commission has always been headed by a bureaucrat. Such civil servants hardly planned in accordance with country’s requirements. “As” at the time of ‘Independence.’ Prof. Nag Raj from Poona University was the head of India planning commission while our planning commission was chaired by an ICS officer.
- LACK OF PUBLIC CO-OPERATION
The successful implementation of a plan requires co-operation on the part of public. But in Pakistan due to illiteracy and vested interests, there has been no support, interest and enthusiasm on the part of people to make the plan successful. The administrative machinery is aimed at law and order while public has nothing to do with plan targets.
- POLITICAL INSTABILITY
Our govt has never been stable. Either the govt change rapidly or aphorism is followed by the undemocratic govt. Consequently, no clear cut policies have ever been in practice. Whenever the resources are far-short of the requirements of plan targets the objectives are revised, hence the desirable results of the plan are hardly attained.
- FOREIGN ASSISTANCE
“Since” independence our planning is based upon foreign aid. The foreign aid is attached with heavy interest charges and political affiliations. Sometimes when there is conflict between ‘Donors and Recipients’ the aid is postponed or stopped. This happened so many times with Pakistan. Moreover, plan targets and programs are the mercy of ‘Aid-giving Consortium.’ So many times the aid and assistance remained short of the requirements which obstructed the “Plan’s successes”.