Manual for Development Projects - Planning Commission
Manual for Development Projects - Planning Commission
Manual for Development Projects - Planning Commission
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Chapter-1<br />
1.22 The principal instrument <strong>for</strong> adjusting the five year plan to current realities is the annual<br />
plan, which has proved a dependable method <strong>for</strong> translating plan objectives into an operational<br />
programme. In other words, it is regarded as the implementation side of the five year plan.<br />
1.23 The annual plan includes an evaluation of past per<strong>for</strong>mance, a presentation of the main<br />
targets, an assessment of the resource position <strong>for</strong> the year, an outline of the investment<br />
programme in the public and private sectors and a broad outline of the economic policies that<br />
may be necessary to achieve the targets.<br />
1.24 In Pakistan, during the period 1972-77, medium-term planning was abandoned in favour<br />
of annual budgeting. Medium-term planning was revived again with the Fifth Five Year Plan in<br />
1978, but the practice of annual plans was retained.<br />
Roll-On Plan<br />
1.25 In order to bring flexibility into the Five Year Plan and to relate the sectoral and projectwise<br />
allocation with (a) the financial position, and (b) project implementation, a roll-on plan of<br />
medium term is designed in which the sectoral and project-wise position is adjusted according<br />
to the <strong>for</strong>egoing year. For the initial three years, a roll-on plan is prepared <strong>for</strong> 'a', 'b', 'c' years.<br />
Next year, the 'a' year is ousted and 'd' year entered, so that the plan still remains <strong>for</strong> the three<br />
years. For the 'b' and 'c' years, adjustments are made according to the implementation of 'a' year.<br />
This process continues.<br />
Five Year Plan<br />
1.26 A single year is too short a period to accomplish anything. A five year plan on the<br />
contrary has the advantage of reasonable time frame <strong>for</strong> manoeuvering and achievement of<br />
solid results.<br />
1.27 A five year plan is a general statement of objectives and targets relating to the economy as<br />
a whole and its various component sectors. It is not an authorising document in the sense that it<br />
does not authorise expenditure to the relevant operating agencies. It provides a broad<br />
framework <strong>for</strong> <strong>for</strong>mulation of the plan.<br />
Perspective Plan<br />
1.28 Its main purpose is to provide a long-term (15-25 years) economic and social policy<br />
framework so that the objectives to be achieved over a much longer period can be incorporated<br />
in a medium-term framework. Pakistan had her first perspective plan in 1965 <strong>for</strong> the period<br />
1965-85, which became redundant after the separation of its Eastern Wing in 1971 and was<br />
abandoned consequently. A fifteen years perspective plan was announced alongwith the<br />
launching of the 7th Five Year Plan, which covers the period from 1988 to 2003.<br />
1.29 The third five year plan justified the Perspective Plan in the following words:<br />
Page 6 of 13<br />
"The preparation of the perspective plan reflects in many ways the growing confidence of the<br />
country in its future. The plan is more than just a projection into the distant future; it is, in fact,<br />
http://hd2/pc/popup/ch1_p.html<br />
9/23/2010