Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ACKNOWLEDGEMENT...........................................................1
Abstract..............................................................................2
Introduction........................................................................3
During 1961-62...........................................................................................................4
During 1962-63...........................................................................................................4
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
During 1987-88.........................................................................................................15
i
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
Fourth Five year Plan (1970-75)- A non-starter from the beginning. ......................24
Fifth Five Year Plan (1978-83)-A Return of the Medium Term Planning.................24
Sixth Five year Plan (1983-88)- Development of the people, By the people, For the
people.......................................................................................................................24
Conclusion.........................................................................27
Recommendations..............................................................29
Bibliography:.....................................................................30
ii
ACKNOWLEDGEMENT
Praise is to Allah Almighty, the one testing us all at all times and making decisions
about what we don’t know and can’t know. Writing this report appeared to be a great
experience to us. It added a lot to our knowledge while we were working on this project.
If we say that this project is one of our memorable experiences in student life, then it
We owe deep appreciation to Mr. Shahid Hassan for stimulating our creative abilities
by assigning this report to us. We are immensely obliged to all our fellow students who
guided us in making this report, without whose considerate attention and interest, it
would be difficult for us to complete this project on time. Whatever we have learnt from
them and this project report has put permanent impression on our mind. It is our
conviction that this learning experience will always be a source of help in our practical
1
Abstract
2
Introduction
The economy has suffered in the past from decades of internal political
disputes, a fast growing population and ongoing confrontation with
neighboring India.
Two wars with India in Second Kashmir War 1965 and Bangladesh
Liberation War 1971 and separation of Bangladesh adversely affected
economic growth. In particular, the latter war brought the economy close to
recession, although economic output rebounded sharply until the
nationalizations of the mid-1970s.
3
Yearly Development Report Analysis
During 1961-62
The increase in industrial production in the 2-was about 18 percent, as
compared to only 6 percent during 1961.
During the first 2.5years of the plan period (July 1960-dec 1962), the
previous made in last industrial investment schedule (November 1960) had
been over committed to the extent of 43 per against the total provision of
rs.284 crores the amount committed war s 407 crores.
Projects of heave industries and the heavy sophisticated and first half
of 196y industries such as trucks, machine tools and electronics equipment
have already been sanctioned.
During 1962-63
Investment schedule:
It will de seen from the above that the amount so far sanctioned has
exceeded the provision made in the schedule by 43
per cent. Of the 107 industries provided for in the
schedule, provision in respect of 69 has either been
fully committed or over utilized. Some of the important
items fro which allocation have been exhausted are
steel, pipes, cotton spinning and weaving and
processing of fish, and shrimps, edible oils and
vegetable ghee.
4
During 1963-64
The industrial policy of government continued to aim at rapidly
expanding the production of consumer, exportable and producer goods,
improving the industrial efficiency and quality 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 34 per cent and that of small
industries by 15 per cent, against 60 per cent and 25 per cent respectively
aimed at during the entire plan period.
Chemical fertilizers: The expansion will raise capacity from 50/000 tons to
1 lakh tons. Financing arrangement s with
the supplying countries is being made for
the Lyallpur factory expansion aimed at
raising the capacity by 36,000 tone of
super phosphate.
Sugar industry: W.P.I.D.C has sponsored two sugar mills at bannu and bad
in each with a capacity of 15,000 to 18,000 tons of white sugar per annum.
Jute: This mill at jaranwala in west pak will manufacture 17,000 tones of
jute goods per annum.
5
shipyard: the expansion scheme form the Karachi shipyard has been
prepared by the corporation. it provides a second dry-dock and a second
berth and constriction of ships of 10,000 tons per year.
6
During 1964-65
The efforts made both by the government and by private enterprises
to achieve these objectives have met with a large measure of success. The
increase in manufacturing output was on less spectacular. Its index which
had risen by 12 per cent to 134.2 in 1962-63 rose by 13.8 per cent to 152.7
in 1963-64 and stood at 157.6 in oct- dec 1964.
During 1965-66
During 1965-1966the pace of industrial growth was slower because of
the several factors like the effect of war with India which for sometime
restricted the operation of some industries, suspension of foreign economic
aid and consequent reduction in imported industries raw material and spare
parts and diversion of some national resources to defense. But in-spite of
these problems the industrial growth maintained.
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.
7
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 $.
During 1967-68
The government entered into an agreement with the government of
Poland will provide the equipment required for the implementation of this
project and it consists of 2.6 crore expenditure. In western Pakistan during
this year 143 miles of new forest roads and bridle paths were constructed
and another 150 miles are expected to be constructed. This year
government had given the attention to developed heavy and more
sophisticated industries such as engineering, electrical equipment, machine
tools and petro chemicals etc.
During this year there is increase in the production of tea, salt, cotton
cloth and yarn, board, caustic soda, cement and cycle rubber tyres and
tubes. The increase in the quantum index of manufacturing industries from
100 in 1959-60 to 201.7 in 1964-65.
During 1968-69
Growth in 68-69 was 7.4% that was previously 7.8%. And in 49-50 the
share go agriculture was standing 60% which cam\e down to 46% in 68-69.
This trend towards diversification is also reflected in the pattern of exports
and imports the share of primary commodities, which was 95% of our
exports in 1950 to 1951 decline to 69% in 64-65 and future to
53% in 67-68 the rest being accounted for by
manufacture and semi manufacture. During
1967-68 and 1968-69 the increase in
manufacturing output in certain industries
was a quite impressive. Production of sea
salt and cigarettes have already exceed the
pain target, while the performance of
newsprints and mechanical paper was 47%,
8
cotton yarn 79.6%, white sugar 63.9%, vegetable ghee 68.6%, juice goods
53.4$%. 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 1971-72
Industrial manufacturing is second largest sector in the economy in
term of its contribution to the gross domestic products. Currently its account
one - fifth of GDP. Cotton, Textile, Cement, leather goods etc are the
products through which Pakistan enter in the world markets. Cotton textile
48% added value in the sector and cigarettes 10%, sugar 7%, basic metals,
electric and transport 5%.
Industrial growth is not smooth through out the history. Shortfall in the
case of chemical and chemical fertilizing because of different factor, war
with India and tight credit polices and East Pakistan crisis. Conditions are
remaining unfavorable. The growth rate of large scale industrial decline from
13.9% in 1969-70 to 2.8 in 1970-71 and showed a negative growth rate of
5.6 percent in 1971-72.
During 1972-73
Industrial sector had all along been leading sector in terms of sustain
growth. Value added fell by 6.8%during 1971-72 compared to depress based
of 1970-71 when the growth was only 1.2%. GNP decline 12.7% 1970-71 to
11.7%.in 1971-72. Factors that affect GNP is loss of East Pakistan market
and shortage of raw material. Now manufacturing is now second largest
sector after agriculture in terms of contribution in GNP. Raw material of
capital goods accounted for 10.5 % of total imports and capital goods
constituted 42.4% of total imports.
9
In the start of 1972-73 improve some implications through which
growth of different product increase. Quantum index of manufacturing
industry which had decline 162.1 in 1970-71 to 151.1 in 19971-72 is
estimated to have increased to 160.6 in 1972-73.
During 1973-74
Steady growth in 1973-74. Different factor, like war with India and
tight credit polices and East Pakistan crisis growth decline 6.8% in 1971-72.
Steady improvement or recovery in 1972-73. Greater availability of industrial
raw material increased growth rate 11.8% during 1972-73. In 1973-74 slow
down in growth rate due to slackness, difficulties in obtaining raw material
and growth rate is 7% projected in this year. Large and small manufacturing
scale 15% of total GDP. Pakistan not only manufacture consumer goods its
also export cotton cloth, carpet, sports good cement and leather.
During 1974-75
Manufacturing sector slow-down during 1974-75 because low level of
investment and shortage of raw material. Textile has heavy weight age in
total industrial production.
Cotton yarn and cloth: Decline of 6.8 % in the production of yarn and 23.5
% decline in cloth.
10
Cigarette: 0.3 % decrease in the production of cigarette during the period
factory in Punjab closed.
Electric fans & M.S. products: Electric fans decline 18 % & also decline of
M.S. products 6.6 %
During 1975-76
Affects of international recession cause the large scale manufacturing
sector estimated to have growth of 1% with 15% for the whole sector 1974-
75 there was also difficult when value added project to grow by 10% in the
LSM sector recorded negative growth of 1.7%
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 was satisfactory.
During 1976-77
During this time manufacturing sector continue to remain under
pressure due to various national and international factors.
11
Processing capacity national refining increase from .5m tons to 1.5 m tons
During 1977-78
All the industries were going good but the decline in cotton cloth
industry brought down the overall contribution made by all the industries.
Some of the items were having got rise in production while some of
them got short fall:
Art-silk & Rayon cloth: In 1977-78 art-silk and Rayon cloth got 9%
increase as compare to the period 1976-77 due rising domestic demand and
availability of synthetic fiber.
Vegetable Ghee: In the period 1977-78 vegetable oil got rise of 15.9% over
the period of 1976-77 due to high imports of edible oil and better availability
of domestic cotton seed oil from large cotton crop this year.
Sugar: The increase of 22.9 % in the production of sugar was due to the
better availability of sugar cane.
During 1979-80
The industrial recovery in initiated in 1978-
79, after virtual stagnation for three years
has been further consolidated the sector
recorded a growth rate of 9.2% in 1977-78,
4.8% in 1978-79 and 8.1 % in 1979-80. The
private sector lost confident in Govt. Policies
and there was a visible decline in industrial
investment.
12
Denationalization the agro based industry was the first step took by
Govt. in December 1980. Ever since 32 large industries units under 10
categories were take over in Public sectors.
During 1981-82
Manufacturing is second largest sector in economy and accounts for
17% of GDP. This industrial gain is due to the Present Industrial policies
pursued since 1977. Principle measured and incentive provided by the Govt.
are indicated below:
Other Measures: A sponsor can apply for import license for machinery
directly to the chief controller of Imports and Exports. But normally duty is
payable on the import of machinery. The NRI projects are entitled to 25%
concession in normal custom duty applicable.
During 1982-83
Manufacturing sector registered a growth of 8.3% during 1982-83 as
compared to last year 11.9%. The growth performance of 9% during fifth
plan reflects significant increase in the production of all major consumer
items and some capital goods.
Fiscal Measures:
13
Incentives for Overseas Pakistanis: Machinery up to RS. 15 million was
allowed to be imported against non-reportable investment without any prior
sanction from any agency.
During 1983-84
Livestock contributed about 8.2% to GDP from 1983-84. The
production and the per capita availability have also increased. The exports of
fisheries increased from Rs. 789.9 million to Rs. 897.1 million from 1983-84.
If we come to forestry, Pakistan had only 4% of forest area in country. The
demand is high but the production is low. And this gap is met by help from
private farm lands and imports.
During 1984-85
In 1984- 1985 manufacturing growth was about 8.6% after a slow
down last fiscal year which was 8.1%. Nevertheless the growth rate achieved
exceeded the average growth of manufacturing in other countries. As
compared to the previous year, most of the items saw a %increase like
sugar, motor tyres and tubes, vegetable ghee etc. But some items such as
sea salt and beverages saw a decline.
During 1985-86
During 1985-86, GDP for manufacturing output has been 19.9%. during
this year the manufacturing is expected to grow by 8.2% as compared to
8.6% of previous year.
The annual average growth rate for manufacturing sector growth for
small scale is 9.40 and for large scale is 7.82 making a total of 8.24 which is
greater than previous year having 8.10.
14
During 1986-87
The manufacturing output has grown by 7.4% in 1986-87 as compared
to 7.8% in 1985-86. The annual compounded growth rate has been reducing
since 1977-87 from 10.8 to 7.4
During 1987-88
Manufacturing:
According to the latest Labor Force Survey 1987-88 this sector absorbs
13.4% of the total employed labor force in the country. This year 1987-88
show that the output has grown by 7.6% .The rate of growth in large-scale
industries during 1987-88 was 7.4% and this growth based on the selected
industries which constitute 60% of the total large industries sub-sector.
Production trend:
During 1988-89
Manufacturing:
Production trend:
15
During 1989-90
Manufacturing:
Production trend:
During 1990-91
Manufacturing:
Production trend:
During 1992-93
Manufacturing:
16
Production trend:
During 1993-94
During 1993-94 policies of privatization, deregulation and market
friendly environment were reinforced. A new concept of public-private
partnership was also introduced to enable private sector to play a key role in
social sector growth. In 1993-94 performance of manufacturing sector
though short of expectations but showed improvements over 1992-93
17
Cement: In July to march 6341mt (1992-93) to 6308mt (1993-94) with %∆
-0.52mt
During 1995-96
Many improvements is taking place in this duration due to the policies
of privatization, de-regulation and liberalization.
18
Installed capacity in major sector such as textile, cement and sugar
also expended during the year. Investment in Industrial sector as a whole
grew 37.6% during 95-96. And foreign investment also increased 30% during
95-96. Direct investment is also increased 94.1% during 95-96 compare to
the direct investment of 94-95.
During 1996-97
Liberalization policies also continued in this duration. Large scale
manufactures have fell short of expectations in term of growth. And then
prime minister announce a package for the support of manufacturing sector.
In this duration small scale manufacturing maintained its growth. But large
scale declining by 1.43% in value added. And over all growth of
manufacturing sector was 1.78% which was previously 4.4%.
The items that have showed increase in previous year such as cotton
yarn, cigarettes, cement, soda, ash, caustic soda, motor cycle and bikes
have showed mix trend. But there is an increase in products of steel e.g
coke, pig and iron.
During 1997-98
Liberalization policies also continued in this duration. Due to the
government package the commodity producing sector demonstrated a sharp
acceleration in growth in this duration. Manufacturing being second largest
commodity producing sector staged a recovery registering a growth rate of
6.96% in this duration as compare to last year.
The main items who are main contributor in this revival are sugar, jute
goods, cigarettes, motor tires and tractors. And the item like cotton yarn,
cotton cloth, paper, LCV’S and bicycles showed nominal growth.
19
During 1997-98
Global economic recession has slowed down the growth of large scale
manufacturing in 98-99. Nevertheless it has registered a positive growth of
2.7% during 98-99. Some industries which registered a considerable growth
like cotton, cloth, fertilizer, cigarettes, vegetable ghee, soda ash, caustic
soda, 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, LCV’S, papers and all types of motor cycle and steel
products.
During 1999-2000
In 1999-2000, the overall manufacturing has grown by 1.6%. And the
performance of the LSM was very weak and it shows a growth of 0%. The
factor which affects it more was massive decline in the sugar cane
production which leads toward decline in the production of sugar. And its
production lower by 24%. The growth rate excluding the sugar industry was
6.4% which was comparatively better performance than last year. In these
period only two out of eleven sectors exhibited substantial decline which
were 1-Food, Beverages and tobacco 2- Automobile sector.
During 2000-01
In 2000-01 manufacturing staged an impressive recovery and it grew
7.1% with comparison to last year 1.4%. And it was the best in last ten
years. And LSM growth was 7.8%. All sectors posted positive growth. This
growth was same as in 1997-98 but that growth was only dependent upon
the sugar production.
During 2001-02
In 2001-02, LSM targeted to grow by 6.5% but due to event of 9-11 it
grew only 4%. This performance was more than satisfactory because the
revised target was 3.2%. The LSM growth affected in Sep-Nov due to Afghan
war but it rose again in December. Other factors which affect the growth
were automobile sector by setting up the shortage.
During 2002-03
The year 2002-03 become the best performing year beside 2000-01for
manufacturing sector since 1987-88. Manufacturing grow by 7.7% with the
20
contribution of 8.7% by LSM. The growth surpassed the target of 6.5% for
2002-03. This all was due to domestic demand and macro environment
factors. Only leather industry showed a negative growth. The best industry in
this period who showed positive growth were automobile (49.8) Food and
beverages (8.5) textile and apparel (5.2) Paper board (15.7) and tires and
tube (16.2).
21
Pakistan Development plans
There are total 8 Development plans have been presented in the history of
Pakistan which are listed below:
5. Fifth Five Year Plan (1978-83)-A Return of the Medium Term Planning
Here we are not discussing the whole Five Years Plan’s but going to take
specific and relevant part related to our topic from each Five Year Plan.
22
First Five Year Plan (1955-60)-An Erratic Beginning to
planned Development.
The revised total size of the First Plan was Rs. 1,080 crores with the public
sector expenditures of Rs. 750 crores and private sector expenditures of Rs.
330 crores. The First Plan was implemented within certain obvious handicaps
and limitations and its release was delayed by two Years. The GNP recoded a
growth of 13% instead of 15% as targeted in the Plan.
Industry together with fuels and minerals received another 31% of the total
resources which exceeds the target of 28% provided in the Plan.
The strategy paid off very well as the actual growth rate surpassed the
projected growth rate. The GNP registered a growth of 30% over the plan
period compared to 24% proposed in the plan and per capita income grew
15% instead of 12% projected in the plan.
23
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.
The share of the industrial sector that had 10% growth rate in the last
Plan was drastically slashed from 26% in the Third Plan to 10.2% in the
Fourth.
No major new industrial projects was planned for the public sector
however it was emphasized the completion of the under construction
Pakistan steel mills and fertilizers and cement factories. Private sector was
expected to pay a vital role in the development of few industries which is
good for the well-being of the country. As a whole, the growth rate projected
for the industrial sector was almost fulfilled (growth rate was 9.7% as
compared to 10% targeted in the Plan).
24
The industrial sector as a whole exhibited a growth rate of 7.7% per
annum against the Plan targeted of 9.3% per annum.
The target set for improvement of industrial sector was to achieve 9.4%
25
26
Conclusion
During 1965-66 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 quantum index of manufacturing industries from
100 in 1959-60 to 201.7 in 1964-65. 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. During 1967-68, substantial gains were
also recorded by cotton yarn and cloth fertilizes and chemicals, writing and
printing paper etc. The growth rate of large scale industrial decline from
13.9% in 1969-70 to 2.8 in 1970-71 and showed a negative growth rate of
5.6 percent in 1971-72.the negative growth in this year was due to the war
with India and separation from the Bangladesh where exist the big industry
of jute.
Industrial sector had all along been leading sector in terms of sustain
growth. Value added fell by 6.8%during 1971-72 compared to depress based
of 1970-71 when the growth was only 1.2%.Steady growth in 1973-74.
Different factor, like war with India and tight credit polices and East Pakistan
crisis growth decline 6.8% in 1971-72. Steady improvement or recovery in
1972-73. Manufacturing sector slow-down during 1974-75 because low level
of investment and shortage of raw material. Textile has heavy weight in total
industrial production. 1974-75 there was also difficult when value added
project to grow by 10% in the LSM sector recorded negative growth of 1.7%.
in 1976-77 During this time manufacturing sector continue to remain under
pressure due to various national and international factors.
In July 1978, the interest rate on loans for fixed investment in industry
and agriculture was reduced from 12.5% to 11%. In 1984- 1985
manufacturing growth was about 8.6% after a slow down last fiscal year
which was 8.1%.During 1985-86, GDP for manufacturing output has been
19.9%. During this year the manufacturing is expected to grow by 8.2% as
compared to 8.6% of previous year. The manufacturing output has grown by
7.4% in 1986-87 as compared to 7.8% in 1985-86. This year 1987-88 show
that the output has grown by 7.6% .The rate of growth in large-scale
industries during 1987-88 was 7.4
27
previously 2.9% in 1994-1995. The large scale manufacturing grew by 3.13%
during 95-96. . In 1996-97 small scale manufacturing maintained its growth.
But large scale declining by 1.43% in value added. And over all growth of
manufacturing sector was 1.78% which was previously 4.4%.
We can see the trend according to this law and order situation. And we
can also observe that if there is political stability then either there is the
recession but it does not effect the growth much. In 1999-2000, the overall
manufacturing has grown by 1.6%. And the performance of the LSM was
very weak and it shows a growth of 0%. The factor which affects it more was
massive decline in the sugar cane production which leads toward decline in
the production of sugar.
28
Recommendations
• As we know that the government is not strong enough and does not
have enough resources to boost up all the sectors of economy. That’s
why they should go for the unbalanced growth where investment is to
be invested in one of the leading sector that is textile sector that
ultimately results in improvement to the all lagging behind sectors
that are agricultural sector, Industrial sectors, small and large goods
manufacturing sector etc.
• There should be proper the law and order situation in the country for
the purpose of abolishing the bribery, Corruption, terrorism and other
social and economic evils.
29
Bibliography:
Books
30
• Pakistan Development Reports”. 1981-1982. Pg(37,40)
31