Analysis of 3rd Five Year Plan

(1965-1970)
Economy of Pakistan
Analysis of 3rd Five Year Plan
(1965-1970)
Economy of Pakistan
 “IN THE NAME OF
ALLAH
THE MOST BENEFICIENT
THE MOST MERCIFUL”
 If you want the the prosperity of 1 year then
grow 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 )
 Dedicated to

Prof. Sheikh Usman Yousaf

For there continuous effort in educating
us and leading us to right path
Presented By:
Dilawar khan
(Mi09Mba044)

Mohammad Asif Sohail

(Mi09Mba012)

Gohar Azeem
(Mi09mba062)

Usman Shaukat
(Mi09mba054)

Sajjad raza (Mi09mba052)

MUHAMMAD USMAN SHAUKAT

Mi09mba054
 Outline

• History
• Size of Plan
• Objectives of Plan
• Strategy
• Eveluation of 3rd Plan
• Targets of 3rd Plan
• Achivements of 3rd Plan
• Recommendation
• Conclusion
What is a Plan
 What is a Plan

• A Plan 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 be achieved
within a specific period of time.
• The general goals of a plan are Growth, Modernization, full
Employment, 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 in
agriculture. For example our First Five Year Plan was geared to
improving the state of agriculture and the Second to improve
Industry.
History of 3rd Five
year Plan
1965-1970
 3rd Five year Plan 1965-1970

• Prepared by Planning Commision of Pakistan in May

1965 and approved by NEC
• Revised in 1966 due to
– Indo pak war 1965
– Change in climate condition in 1966
Size of 3rd Five year Plan

1965-1970
 Size of 3rd Five Year Plan

• Total size PKR 52,000 Millions

• Annual rate of growth targeted to 6.5%
• Investment in Public Sector 30000 Million
• Investment in Private Sector 22000 Million
• Finance taken as 68% from internal resources and
32% from external Resources
Objectives of 3rd Five Year Plan

1965-1970
 Objectives of Plan

• Attain rapid growth in Economy from 5.2% to 6.5%

• Remove desperity of income per head between East & West
Pakistan
• To provide atlest 5.5 million New Job Oppertunities
• To reduce level of unemployment
• Increase Foreign exchange
• To develop basic industry for manufacturing of producer goods
• Acceleration in Agriculture Sector
• To contrôle growth of Population
 Objectives of Plan

• To provide Better housing , education and health

services.
• To diminish inequalities in wealth , power and
resources
• To maintain growth of industrial sector
GOHAR AZEEM

Mi09mba062
Strategy of Plan
 Strategy

• To maintain growth of last 15 years by planning for

next 20 years
• Greater emphises was given to the Agricultural
Sector
• Projected annual increase is 5% in Agriculture, 10%
in industry, 7.1% in other sectors
• It emphesses laid on heavy industtry and creating an
infrastructure in East Pakistan
• It must maintain a high margin rate of saving
 Strategy

• 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

• There are four main strategies

– Balance of Payment Strategies

– Regional Strategies

– Employment Strategies

– Allocation Strategies
 Balance of Payment Strategy

• Main aim is to reduce the need of foreign assistance

• There are three main elements

– Increase exports more then GNP

– Imports of capital goods

– Economize the use of foreign exchange

 Regional Strategy

• 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 East
Pakistan and 35% for West Pakistan
• This was 30% and 28% respectively in 2nd Five year plan
 Employment Strategy

• This plan will provide employment to new generation as well

as it also provide opertunity to unemployed labour force by
starting different development programs
• It will also start some labour intensive programs

• It will also start training to the labour to equip them and to

make jobs more easy for them
 Allocation Strategy

• 26% of total allocation is fix for industry and 1/3 of that is fix
for capital goods
• A careful planning is done for agriculture sector for there
physical inputs
• Allocation for other sector is decided on there consistancy
and efficiency
MOHAMMAD ASIF SOHAIL

Mi09mba012
Yearly Development
Report Analysis
 During 1965-66

• 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

• production of manufacturing industries increased by 6% from 201.7 in 1964-65 to

214.2 in 1965-66
• There 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 1966-67

• The production trend during this year appears to b

encouraging with the expectation of chemical and cotton
textile
• The production of minerals increases very slowly
• The index of minerals production rose by 1.5% point from
174.5 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

• Investment: A comprehensive industrial investment schedule

for the entire third plane period aimed ensuring fulfillment
planes investment target of 830 crores. It covered 200 items
involving large medium and small industries the investment
allocation is rupees 1088.53 crores in the private sectors,
586.07 crores West Pakistan and 502.46 crores for East
Pakistan.
• Credits: Major allocations during this year from France 16.19
million $. USSR 9.67 million $.UK 15.98 million $. WORLD
BANK 9.18 million $ and Belgium 4 million $. Total allocation
increase from 89.21 million $ in this year to 121.48 million $.
 During 1966-67

• Credits: Major allocations during this year from France 16.19

million $. USSR 9.67 million $.UK 15.98 million $. WORLD
BANK 9.18 million $ and Belgium 4 million $. Total allocation
increase from 89.21 million $ in this year to 121.48 million $.

Country Credit (million $)

France 16.19
USSR 9.67
UK 15.98
WORLD BANK 9.18
Belgium 4
Total overall alocation 121.48
SAJJAD RAZA

Mi09mba052
 During 1967-68

• an agreement with the government of Poland to provide the

equipment required for the implementation of the projects and it
consists of 2.6 crore expenditure.
• In western Pakistan during this year 143 miles of new forest roads
and bridle paths were constructed and another 150 miles are
expected.
• This year government had given the attention to developed heavy
and more sophisticated industries such as engineering, electrical
equipment, 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 rubber tyres
and tubes. The increase in the quantum index of manufacturing
industries from 100 in 1959-60 to 201.7 in 1964-65.
 During 1968-69

• Growth in 68-69 was 7.4% that was previously 7.8%. And in

49-50 the share go agriculture was standing 60% which came
down to 46% in 68-69.
• This trend towards diversification is also reflected in the
pattern of exports and imports the share of primary
commodities, which was 95% of our exports in 1950 to 1951
decline to 69% in 64-65 and future to 53% in 67-68 the rest
being accounted for by manufacture and semi manufacture.
• During 1967-68 and 1968-69 the increase in manufacturing
output in certain industries was a quite impressive.
 During 1968-69

• Production of sea salt and cigarettes have already exceed the

pain target, while the performance of newsprints and
mechanical paper was 47%, cotton yarn 79.6%, white sugar
63.9%, vegetable ghee 68.6%, juice goods 53.4$%.
• During 1967-68, substantial gains were also recorded by
cotton yarn and cloth fertilizes and chemicals, writing and
printing paper etc. production of board and cycle tyres and
tubes, however, declined during the year.
During 1969-70
DILAWAR KHAN

Mi09mba044
Evaluation
 Evaluation

• Perspective Planning of 20 years (1965-1985) has been

formulated
• Review of 2nd plan
• Development is committed to make double, then fourth and
sixth in future plans through this five year planning
• Review of 4th plan
• In 1965 the Indo-Pak war has resulted in shortfall of
– Public sector development expenditure
– External aid
– Plan priorities
 Evaluation

• 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
Targets and
Achivements
 Balance of Payment Strategy

Object Target Achievements

Growth Rate 6.5% per annum 5.7% Per Annum

Per Capita Income 3.5 % compound Annual 2.9% Compound Annual

Growth Growth
Regional Development Removal of inter Regional It increased from 36.5% to
Disparities in incomes 47.4%
Foreign Exchange Earning It must reach to Rs. 4800 Foreign Exchange earning
and Gap Million and Gap to be Rs. reached Rs. 4302 M and
15000 Million Gap Rs. 11303 M
Food Grains Increase from 17596000 Production exceed plan
ton to 21465000 tons target by 1340000 tons
 Balance of Payment Strategy

Object Target Achievements

Cash Crop Increase in production Apart from Sugar Cane and
Tobacco other targets
were not achieved
Industry Targets not achieved
Irrigation 5.74 M Acres new land to 3.72 m acre
be irrigated
20.32 m acre improved 13.65 m acre
land
Installed power capacity Increase from 1300 MW to 2593 MW
3030MW
Transport and Apart from new Busses,
communication telephone connections and
trucks no other target
achieved
 Balance of Payment Strategy

Object Target Achievements

Health 4200 new doctors, 1800 5852 new doctors, 1670
new busses, 12800 new nurses 3650 additional
additional hospital beds hospital beds
Education Primary:
26414 schools 6062 schools
5.80 m enrolments 3.19 million
Secondary:
710 high school to 650 improved
improve
Middle school 0.78 Million
enrolments 0.90 Million
college enrolment 0.14 Million
0.13 ,million
Conclusion
 Third Five year Plan (1965-70)
A Prisoner of Extraordinary Events

• The revised total size of the second Plan was fixed at Rs. 5200
crores as compared to Rs. 2300 crores in (1960-1965). In this
Plan there was a great visible investment shift from consumer
goods to capital goods industry.
• If we talk about the achievement of this Plan, the performance
in the industrial sector was also far from satisfactory
particularly in the large-scale industrial sector. The large-scale
industrial sector exhibited a growth rate of 10% as against 13%
targeted in the Plan. The industrial sector as a whole
expanded at an annual growth rate of 7.8% instead of 10%
targeted in the Plan. The small-scale industry also performed
well.
Question and
Comments
Question and
Comments
Question and
Comments