Manual for Development Projects - Planning Commission

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