Planning Commission

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Presentation to the Honourable Prime Minister of
Pakistan Chairman Planning Commission

• by
• Planning Commission
• 13 February 2009

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• The foundations of your State have been laid and
  it is now for you to build and build as quickly
  and as well as you can
• Quaid-e-Azam Mohammad Ali Jinnah

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• The Pakistan Peoples Party is committed to
  assist those that are bypassed by growth and
  development, especially the vulnerable and the
  disadvantaged
• PPP Manifesto
• We Plan success
• We discard failure
• Sardar Aseff Ahmad Ali

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Key Functions

• Define national vision and undertake strategic
  planning
• Comprehensive National Plan for Economic Social
  Development
• Annual Plan Public Sector Development Programme
  within the framework of National Plan
• Assessment and augmentation of human capital
  resources of the country
• Continuous evaluation of economic situation and
  coordination of economic policies
• Sectoral / regional development portfolios

Cont.
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Key Functions (Contd.)

• Reviews and adjustments in plans
• Monitoring and Evaluation
• Integrating research with policy making
• Setting cost and physical standards for project
  appraisal
• Capacity building of agencies involved in
  development
• Association with EAD on external assistance
• Coordination with development partners

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Prime Minister Chairman
Deputy Chairman Planning Commission
Chief Economist
Member (IM)
Member (Energy)
Member (SS)
Secretary/ Member
Member (ST)
Member (Infra)
Member (FA)
Member / VC PIDE
Infra-structure Manage-ment Unit, Projects Wing,
Afghan Recons-truction
Coord. Admin. NEC, ECNEC, ECC, CDWP, PSDP,
Bilateral Multilateral Agencies, DRAP,JACC
Power, Fuel, Alternate Energy, Nuclear Energy
Education, Health, Population Welfare, Social
Protection
Transport and Comm., National Trade Corridor,
Water Resources, Rural/ Urban Dev., Housing
Food Agri., Livestock, Irrigation, Fisheries,
Forestry Wildlife
Research and Analytical Studies for Economic
Decision Making
Macro Economic Management, Poverty, Employment
Research
S T, Industries Minerals, HEC, HRD, ICT
Macro Economic Management, Poverty, Employment
Research
Macro Economic Management, Poverty, Employment
Research
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Sanctioned Staff and in Position
Hired on market pay 26 Specialist/experts, 10
advisors/consultants, 37 young professionals
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Situation Analysis

• Global economic crisis with continued structural
• imbalances have affected Pakistan economy
• Slowing down of economic growth
• Sudden external shocks resulting in high
  inflation and shortages impacting cost of doing
  business
• Rapidly increasing poverty with rising inequality
• Sharp increase in unemployment
• Vulnerability of poor households increased

Need for inclusive development plans focusing on
food security, poverty and supply side challenges
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Public Sector Investment
5.3
4.7
2.1
1.2
1.2
Productive Sector age
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PSDP Poverty Trends
Percentage
No. below poverty line (million)
29.4
34.9
49.3
35.5
55.4-64
Estimated by Panel of Economists Task Force on
Food Security
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Human Development Index (HDI)
Index
0.743 0.741 0.619 0.579 0.551 0.547 0.534
Ranking out of 177 countries
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MILLENNIUM DEVELOPMENT GOALS
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PSDP Release Trend
Rs Billion
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Strategy for Inclusive Development

• Recognizes the need to include all sections and
• regions in the growth process
• Emphasize agriculture and rural development
• Increase agricultural productivity through modern
  irrigation, delivery of inputs, institutional
  credit and training
• Promote animal husbandry, horticulture and
  related activities
• Encourage small and medium enterprises in rural
  areas to generate non-farm employment
• Cont

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Strategy for Inclusive Development

• Upgrade physical and social infrastructure
• Emphasize technical vocational training
• Invest in productive capacity to stimulate
  industrial growth
• Reducing cost of doing business
• Involvement of communities in design and
  implementation of project/ programmes
• Policy support for public private partnerships

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Planning Priorities

• Realize governments objective for agriculture
  development
• Revisit infrastructure development model
• Develop indigenous energy resources
• Develop human resource capital
• Integrate poverty reduction into overall
  development strategy

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Prioritize Projects

• In a resource constrained economy prioritize
• projects that
• Generate economic growth
• Create social impact reducing vulnerability
• Benefit the larger population
• Enhance income generating potential
• Enhance productivity to maximize returns
• Reduce regional disparities

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Development Effectiveness

• To improve effectiveness of public spending
• Better targeting of development projects
• Better design of projects
• Consistency between planning and its
  implementation
• Making planning sensitive to socio-economic needs
• Consistency between short term and long term
  planning

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Programmes and projects initiated byDeputy
Chairman, Planning Commission

• Conceptual framework for Development Planning
• Stress on grant for Social Sector
• Reliance on soft loan for infrastructure
  development
• Encourage public private partnerships
• People centric and user friendly projects with
  minimal bureaucracies
• Initiated Preparation of Five Year Medium Term
  Development Framework
• Increase self reliance in international maritime
  and opening inland waterways for transportation
  of passengers and cargo. Annual savings estimated
  at US 4.00 billion. Task Force constituted
  (Foreign Investment envisaged)

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Programmes and projects initiated byDeputy
Chairman, Planning Commission

• Formulated Skills Development Programme to meet
  local and overseas needs Creation of 250,000
  skilled workers annually. Sustained programme
  will change Pakistans economic landscape.
  Estimated expenditure US 600 million (grant
  assistance expected)
• Augmenting and re-energizing livestock. Projects
  include improvement in livestock Neeli, Ravi and
  Sahiwal breed. Estimated cost Rs 24 billion.
  Fuel provided to farmers as Bio-Gas. (Grants/soft
  loan assistance expected)
• Setting up nursing training institutions in the
  country, one at each divisional headquarter in
  collaboration with Agha Khan University (grant
  assistance expected)

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Programmes and projects initiated byDeputy
Chairman, Planning Commission

• Initiated studies for geo-thermal power
  production and other alternate sources of energy
• Initiated consultancy to prepare 20 years Health
  Plan of the country for providing health care to
  public at affordable rates
• Cool chain project and revamping existing cold
  storages for energy efficiency
• Construction of grain silos for 3.5 MT
• Setting up of at least five radiation plants to
  prevent fruits and vegetable from pests

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Work in Progress

• Task Forces for policy input in core development
  areas
• Development assistance from Friends of Pakistan
• Five year development plan 2010-15
• Public sector development programme 2009-10
• Preparation of annual plan 2009-10
• Organizational capacity building

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Areas of Focus

• Reducing Poverty and Vulnerability of poor
• households
• Planning Commission may again become focal point
  for poverty reduction
• Poverty reduction may be the criteria for
  approval of all development projects
• Private Sector Development
• Recognizing private investment as the main
  accelerator of economic growth, a private sector
  development window in Planning Commission is
  proposed.
• Targeted public sector investment to leverage
  private sector development

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Areas of Focus Cont

• Public Sector Development Programme (PSDP)
• PSDP envelope be enhanced to address poverty and
  infrastructure needs
• MoF may ensure timely releases of PSDP
• Decision on releases may be taken jointly by M/o
  Finance and Planning
• Strengthening capacity of Planning Commission
• Meeting critical HR needs of Planning Commission
  on urgent basis with a sufficient number of PhDs
• Provide incentives to retain quality HR in the
  Commission
• Create a position of Member Governance