1.

Introduction
The South Asian Association for Regional Cooperation (SAARC) comprises
Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri
Lanka. SAARC is a manifestation of the determination of the peoples of South
Asia to work together towards finding solutions to their common problems in a
spirit of friendship, trust and understanding and to create an order based on
mutual respect, equity and shared benefits. The main goal of the Association is
to accelerate the process of economic and social development in member states,
through joint action in the agreed areas of cooperation.

The idea of regional cooperation in South Asia was first mooted in November
1980. After consultations, the Foreign Secretaries of the seven countries met for
the first time in Colombo, in April 1981. This was followed, a few months later, by
the meeting of the Committee of the Whole, which identified five broad areas for
regional cooperation. The Foreign Ministers, at their first meeting in New Delhi, in
August 1983, formally launched the Integrated Programme of Action (IPA)
through the adoption of the Declaration on South Asian Regional Cooperation
(SARC).

At the First Summit held in Dhaka on 7-8 December 1985, the charter
establishing the South Asian Association for Regional Cooperation (SAARC) was
adopted.

The objectives, principles and general provisions, as mentioned in the SAARC

Charter, are as follows:

 To promote the welfare of the peoples of South Asia and to improve their
quality of life;
 To accelerate economic growth, social progress and cultural development
in the region and to provide all individuals the opportunity to live in
dignity and to realise their full potentials;

 To promote and strengthen collective self-reliance among the countries of

South Asia;

 To contribute to mutual trust, understanding and appreciation of one

another's problems;

 To promote active collaboration and mutual assistance in the economic,

social, cultural, technical and scientific fields;

 To strengthen cooperation with other developing countries;

 To strengthen cooperation among themselves in international forums on

matters of common interests; and

 To cooperate with international and regional organizations with similar

aims and purpose.

1.1 PRINCIPLES

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  Cooperation within the framework of the Association is based on respect
for the principles of sovereign equality, territorial integrity, political
independence, non-interference in the internal affairs of other states and
mutual benefit.
 Such cooperation is to complement and not to substitute bilateral or
multilateral cooperation.

 Such cooperation should be consistent with bilateral and multilateral

obligations of the member states.

 Decisions at all levels in SAARC are taken on the basis of unanimity.

 Bilateral and contentious issues are excluded from its deliberations.

1.2 Technical committees

1. Agriculture
Agriculture was among the original five areas identified for fostering regional
cooperation. The first meeting of Technical Committee was held in 1983.
Subsequently, Forestry was also included in the work of the Committee was
instrumental in the setting up of SAARC Agricultural Information Centre (SAIC) at
Dhaka in 1988 - the first SAARC regional institution of its kind.

2. Communications

TC on Telecommunications and TC on Postal Services both established in 1983

were amalgamated into a single TC on Communications with effect from 1993.
With a view to bringing about an over-all improvement in the postal services in
the region, the work programme in Postal sector includes training, seminars,
workshops study tours etc. covering a number of areas. Training programmes
were held for First and Middle Level Officers and for Trainers as well as in
Philately, International Postal Services, International Mail Accounting and
Routing, Postal Management Services and Post Office Savings Banks. Seminars /
Workshops were organized on Postal Operation and future challenges,
Mechanisation of Postal Operations, Agency functions, Financial Services, Caring
for Customer, Expedited Mail Service (EMS), Circulation System of EMS and
Postal Marketing.
3. Education, Culture and Sports

TC on Education (established in 1989) and TC on Sports, Arts and Culture

(established in 1983) were amalgamated into a single TC on Education and
Culture in January 1993. The Technical Committee was renamed Technical
Committee on Education, Culture and Sports with effect from 1st January 1995.
4. Environment and Meteorology

TC on Meteorology and TC on Environment were merged as a single TC with

effect from January 1996.Environment was identified as an area that called for
the urgent attention of SAARC in 1987, during which year the Heads of State or
Government decided to commission a Study on "Causes and Consequences of
Natural Disasters and the Protection and Preservation of the Environment".
Following this decision at the Third SAARC Summit in Kathmandu in 1987,
National Studies were undertaken and subsequently consolidated into a Regional
Study, which was approved by the Sixth SAARC Summit (Colombo, 1991).
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5. Health, Population Activities and Child Welfare

Health and Population Activities was one of the original five areas of cooperation
identified by member states. The First Meeting of the Technical Committee
assigned these subjects was held in 1984 and since then fifteen meetings have
been held so far.
The primary focus of the Committee has been on children, population welfare
and policy, maternal and child health, primary health care, disabled and
handicapped persons, control and eradication of major diseases in the region
such as malaria, leprosy, tuberculosis, diarrhoea diseases, rabies, AIDS, and
iodine deficiency disorder.

6. Prevention of Drug Trafficking and Drug Abuse

Since its establishment in 1987, the Committee has implemented a number of

programmes in law enforcement, prevention, treatment and rehabilitation as
essential elements of a coordinated regional strategy in combating drug
trafficking and drug abuse. It contributed significantly towards the finalisation of
the SAARC Convention on Narcotic Drugs and Psychotropic Substances in
November 1990, which came into force in September 1993 upon its ratification
by all member states.

7. Rural Development

Rural Development is one of the five original areas identified for cooperation
under the IPA. The first meeting of the Committee was held in 1984. Specific
activities taken up by the Technical Committee include, exchange of information
and literature among member states on issues relating to rural development,
preparation of research studies on selected topics, compilation of lists of experts,
training institutes, and institutions involved in transfer of appropriate technology
in member states, with a view to exchanging expertise and sharing training
facilities within the region.
8. Science and Technology

Since its establishment in 1983, Technical Committee on Science and Technology

has undertaken a wide variety of programmes which include short-term activities
such as Seminars/Workshops/ Meetings of Experts, Training Programmes, Joint
Research Projects, preparation of State-of-the-Art Reports and compilation of
Directories.
9. Tourism

The Committee was established in 1991 to promote cooperation in the field of

tourism in the region. At its first meeting held in Colombo in October 1991, the
Committee decided on an Action Plan on Tourism to promote cooperation in the
areas such as training programmes, exchange of information, joint promotion,
joint-venture investment, intra-regional tourism etc. The Committee is also
charged with the responsibility of reviewing the progress on the SAARC Scheme
for Promotion of Organized Tourism. These topics have formed an integral part of
the agenda of the meetings of the Committee which have been held so far.
10. Transport

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The Technical Committee on Transport, established in 1983, covers three major
segments of transport, i.e. land transport, divided into roadways and railways;
sea transport sub-divided into inland waterways and shipping; and air transport.
11. Women in Development

Women in Development was included as an area of cooperation under the IPA in

1986 and since then twelve meetings have been held so far. Specific issues
taken up by the Committee include, preparation of a Regional Plan of Action for
Women, effective dissemination of technical information relating to women in
development generated by Member States. So far four SAARC Solidarity Journals
have been published with the Fifth issue on the theme "Violence Against Women"
to be published by Sri Lanka in time for the Tenth SAARC Summit. It may be
noted that the previous issues have covered the subjects - Rural Development
for Women; The Girl Child; and Women in the Informal Sector. One of the most
important features of the work of the Technical Committee was designating 1990
as the SAARC Year of the Girl Child and 1991-2000 as the SAARC Decade of the
Girl Child. A Plan of Action was also drawn up to observe the Decade. A mid-
decade review on the implementation of the Plan of Action for the SAARC Decade
of the Girl Child was conducted in October 1996 in India which took into
consideration priority concerns under Health and Nutrition, Education and
Literacy and Marriage and Motherhood.

12. POVERTY ERADICATION

The Sixth SAARC Summit (Colombo, 1991) accorded the highest priority to the
alleviation of poverty in South Asia and decided to establish an Independent
South Asian Commission on Poverty Alleviation (ISACPA) consisting of eminent
persons from member states to conduct an in-depth study of the diverse
experiences of member states and report their recommendations on the
alleviation of poverty to the Seventh Summit.
A consensus on poverty eradication was adopted at the Seventh SAARC Summit
(Dhaka, 1993). The Summit welcomed the ISACPA report and expressed its
commitment to eradicate poverty from South Asia preferably by the Year 2002
through an agenda of action which would, inter-alia, include a strategy of social
mobilization, policy of decentralised agricultural development and small-scale
labour-intensive industrialisation and human development. The Summit also
stressed that within the conceptual approach of "Dhal-Bhaat", the right to work
and primary education should receive priority. It also underscored the critical
links between the success of national efforts at poverty alleviation and relevant
external factors. The Summit urged major actors in the world economic scene to
create an enabling atmosphere supportive of poverty alleviation programmes
and expressed the need for a new dialogue with donors for this purpose. The call
for a new dialogue with donors has led to important initiatives in this respect,
among which was the SAARC/World Bank Informal Workshop on Poverty
Reduction in South Asia (Annapolis, USA, October 1993). UNDP and ESCAP are
formulating proposals for cooperation with SAARC in Poverty Reduction.

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 2. Development Plans of SAARC Member Countries

Attitude and process of planning have undergone substantial changes in SAARC

countries in the recent years. Since late 1990’s some countries in the region
have abandoned periodic planning and formulated need and issue based
planning covering different time periods.
The study of planning in SAARC region suffered from the death of literature.
However, with the beginning of the 21 st century, the proponents of liberation and
privatization also came to safe guard the interest of excluded and marginalized
section of the population and provide the social services like health, education,
drinking water.
Many of the SAARC countries are categorized in ‘Low income country’ by World
Bank. The common economic, social, geographical and religious-cultural
characteristics prevailing in the region enable for the similar type of strategy
within region. Mass poverty, low per-capita income low standard of income, low
GDP growth rate, high inequality etc. are the common problems within the
region.
Thus planning practices in SAARC are recommendatory and not mandatory
because of several reasons in the process of preparing planning, Implementation,
evaluation and monitoring.
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2.1 Common Features of Planning in SAARC
 Initiated their planned strategies on the 50’s.
 Periodic plans with duration of 2, 3, 5 years.
 Similar type of problems and common targets in planning.
 Slow rate of obtaining achievement.
 Lack of proper resource allocation
 Lack of co-ordination
2.2 Problems in Plan Formulation
 They are based on imeaviably inaccurate assumptions.
 It lacks practical outlook.
 Faculty implementation is one of the major obstructions.
 The plans are unduly over ambitious
 Rapid growth of population

3. Planning Experience of SAARC Countries

3.1 Afganisthan
Sustained growth in Afghanistan. From 1970 until April 1978 by the combined
Ḵalq and Parham branches of the Communist Party followed by the Soviet
invasion in December 1979, the Afghan economy experienced sustained high
economic growth. Gross domestic product (GDP) rose at a rate of 4.5 percent
annually in constant prices. Major structural changes also occurred, as aggregate
shares of output and employment declined in the agricultural and primary sectors
and increased in manufacturing and service industries. The high rate of growth in
comparison with the previous decade was generated by increasing domestic
investment and to a lesser extent by foreign assistance. The absolute value of
annual gross capital inflows had risen from a low of $31 million in 1970 to $41
million by 1979. As a proportion of gross national product (GNP), capital inflows
had, however, declined from about 48 to 29 percent, indicating a smaller
contribution to the growth of GNP (Noorzoy, 1976). According to World Bank data,
gross domestic investment rose at a rate of about 11 percent a year during the
period 1970-77, whereas in the preceding decade it actually fell . It seems that
large public investments in the infrastructure, including communications,
transportation (especially the road system), education, health services, and
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irrigation, under the series of five-year plans from 1956 to 1969 were bearing
fruit.

3.2 Bangladesh

After West Pakistani owners of industrial enterprises fled in 1971, the government
of Bangladesh seized their plants as abandoned properties. The government
suddenly found itself managing and operating more than 300 medium- and large-
scale industrial plants, which represented nearly 90 percent of the value of all
such enterprises in the new nation. It organized public corporations to oversee
the major industries: jute, textiles, sugar, steel, paper and paperboard, fertilizer,
chemicals, pharmaceuticals, engineering and shipbuilding, minerals, oil and gas,
food and allied products, and forest products. With government control over major
industries and massive inputs of foreign aid, the economy gradually returned to
the levels of the late 1960s, but it was still among the world's poorest and least
developed countries.

The main government institution responsible for coordinating national

rehabilitation and development was the Planning Commission. Sheikh Mujibur
Rahman (Mujib), the first president of Bangladesh, led the formation of the
national-level Planning Commission, which prepared plans that directed economic
priorities for five-year periods. The First Five-Year Plan covered the period July
1973 to June 1978. It was succeeded by a two-year plan, covering the period July
1978 to June 1980, which was followed by a year-long hiatus. The Second Five-
Year Plan (1981-85) and the Third Five-Year Plan (1985-90) put the planning
process back on track. The broad objectives of the Third Five-Year Plan were to
reduce poverty, bring down the rate of population growth to 1.8 percent annually,
increase exports by 5.9 percent and domestic savings by 10 percent, attain self-
sufficiency in food production, and realize an annual growth of the gross domestic
product of 5.4 percent. These ambitious goals went well beyond the previous
actual performance of the economy.

Five-year plans are financed through the development, or capital budget, which
was separate from the government's revenue, or administrative, budget. The
Third Five-Year Plan envisaged a total outlay of more than US$12 billion,
approximately 65 percent of which was destined for public sector projects. About
55 percent of the needed funds were to come from foreign sources, including
private investment, the aid programs of international financial institutions, and
bilateral donor nations. Foreign commitments in the early and mid-1980s were
around US$1.7 billion per year (exclusive of external private investment, which in
any case was not significant). The portion of the development budget to come
from domestic sources (45 percent) represented a substantial increase from the
15 to 20 percent of earlier development budgets.
The Planning Commission translates the multiyear development plan into public
investment through the Annual Development Programme. The commission also
ensures that public programs and policies are in conformity with its long-term
strategy through its project approval process and through its advisory position on
the country's highest economic decision-making bodies, the National Economic
Council and its Executive Committee. The National Economic Council in the late
1980s was chaired by the president of Bangladesh and included all government
ministers plus the governor of the Bangladesh Bank and the deputy chairman and
members of the Planning Commission. The Executive Committee of the National
Economic Council made most of the decisions on major development projects and
development issues in general. The committee included the ministers of key
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economic sectors (finance, planning, industries, commerce, and public works)
and, according to the agenda, any other sectors concerned. A third organization
involved in the planning mechanism is the Project Evaluation Committee, which
monitors the progress of five-year-plan programs.

3.3 Bhutan

Under Bhutan's first four development plans, 1961 to 1981, considerable

improvements were made in agriculture, irrigation, and forestry, as well as
electric power generation and road transportation. Until 1974 when the first
tourists were allowed into the country, the main source of foreign exchange was
exotic postage stamps bought by collectors. The plans were funded 90% to 100%
by India, which contributed more than $197 million over the 20-year period.

Under the fifth economic plan (1981–87), priorities were agriculture and animal
husbandry (14% of outlays) and public works (13%). The centerpiece was the
construction of the 336 MW Chhukha hydroelectric project, completed in 1987
and connected to the Indian power grid. Investments under the Fifth Plan were
about 31% financed by India and 30% by UN agencies and other foreign sources.
GDP grew briskly in this period, 6% to 8% annually according to the plan, but
progress was hampered by the lack of local skills. The Sixth Fiscal Year Plan
(1987–91), accordingly, emphasized the improvements in education and
personnel training to develop the skills needed for trade and industry, and to
reduce dependence on Indian expertise and labor. Other goals included expansion
of the tax base to decrease the dependence on foreign grants, encouragement of
the private sector to provide local employment, and decentralization to the
district level to check excessive rural to urban migration. GDP was targeted to
grow at 6.9% a year, with priority given to industry, trade and commerce (20%)
and power (13%). The Bhutan Development Finance Corporation (BDFC) was
established in 1988 to promote small and medium state industries in various
sectors of the economy.

However, by the end of 1988, the King and other traditional leaders had become
thoroughly alarmed at the impacts the surge in economic activity was having in
Bhutan, as well as in neighboring Nepal, where they witnessed its monarchy being
pressured into democratic reforms. Bhutan was closed to individual tourists, who
were accused of having desecrated holy places, defiled and stolen sacred objects
and having a corrupting influence on the population. In 1989, the King issued
edicts imposing a strict Buddhist dress and social code (the Driglam Manzha) and
the Dzongka language of northern Bhutan. Bhutanese Hindus of Nepalese origin,
just over half of the population, rejected these impositions in the name of a
prodemocracy movement. In April 1990, the King ordered fines and imprisonment
to enforce the Driglam Manzha, and banned foreign television networks. In late

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1990, Hindu residents were essentially declared stateless as the government
asserted that only ethnic Bhutanese were rightful citizens. By 1991, an estimated
50,000 ethnic Nepalese had fled the country, including several senior officials,
high-level bureaucrats, and other trained personnel.

In the seventh economic plan (1992–1997) the government had shifted goals had
to priorities on preserving national identity; preserving the pristine environment;
economics, especially food, self-sufficiency; indigenous human resource
development, and encouragement of privatization in manufacturing and services.
Specific environmental objectives included the promotion of sustainable
agriculture through soil erosion control as well as the setting aside of 20% of the
country's land area as nature reserves and other areas protected from
commercial timber extraction. The personnel problem soon became acute as
many as 70,000 ethnic Nepalese joined the exodus to UN-supported refugee
camps just outside the country, including the bulk of Bhutan's technocrats, civil
servants, police and army personnel. In 1993, GDP growth plummeted to 3%, well
below the targets set in the plan. In 1995, however, growth had recovered to
7.4%. A goal to meet all recurrent expenditures from domestic revenues by the
end of the planning period, thus reducing Bhutan's dependence on external
grants, was achieved in 1996, thanks primarily to revenues from the Chhukha
power project.

In the eighth fiscal year plan (1997 to 2002) priorities were on the expansion of
the hydroelectric sector, education and training improvements, protection of the
natural environment, and further development of the private sector. In 1997 a
second commercial bank, the Bhutan National Bank (BNB), was founded, with
computerized operations and 49% public participation. In 1998, with the start of
construction on the 1020 MW Tala Hydroelectric Project (THEP), GDP growth
jumped briefly from 6% to 7.3%, before proceeding at an average of about 6% for
the rest of the planning period. Indeed, 6% has been the average growth rate for
Bhutan across the last three economic plans, 1988 to 2002.

The ninth fiscal year plan (2002 to 2006) promises a continuation of the same
moderate progress, although it calls for a 75% increase in outlays over the
revised eighth FYP. A central strategy of the plan is to check what is seen as
excessive urbanization, up to 21% in 2002, through, intensive rural development.
For the first time the plan includes separate plans for each of the country's 201
local units or geogs. The four priorities of the plan are increasing domestic tax
revenue, improving rural quality of life and income, geog-based planning, and
enhancing the private sector. The prospect is for Bhutan to continue to proceed at
its own restrained pace.

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 3.4 India
Independence came to India with the partition of the country on 15 August 1947.
In 1948, an Industrial Policy Statement was announced. It suggested the setting
up of a National Planning Commission and framing the policy of a mixed
economic system.
There is a long history of the evolution of economic thinking and approach to
planning in India and, therefore, its features are changing with the change of the
economy. Structure and objectives of each and every country never remain
uniform as well as linear. One can also see a wide difference in the political
viewpoint as well as political approaches. Such differences lead to different
approaches to planning varying from country to country.
In other words, every country has its own peculiarities of economic planning, and
India is no exception to this. Further, such characteristics of Indian planning are
not uniform. It is to be noted here that the features relate to the initial situation
that shape the future of planning. Again, the objectives of planning are not static
in the sense they need to be changed according to the needs and opportunities
of the country.
Indian history of planning can be divided into three periods: pre-independent,
1951- 1991 and 1991 onwards. We will, however, concentrate on planning of
independent India down from 1951 till date. Now we will present some of the
essential features of Indian planning so as to understand the mechanics of
planning both in a controlled and planned economy, and planning in a market-
friendly economy.
Though India’s plans are of a 5-year period, such planning is linked with a long
term view. Sino-India War (1962), Indo-Pak War (1965), and the unprecedented
drought in the mid-60s forced to adopt the approach of ‘plan holiday’ from the
Fourth Five Year Plan. Instead of a regular Five Year Plan, planning was
discontinued through three ad hoc Annual Plans during the period 1966-69.
Again, with the assumption of power by the Janata Government in 1977, rolling
plan on a year to year basis or the Sixth Plan had been formulated for the period
1978-83. In 1980, this rolling plan concept was discontinued by the Congress (I)
Government much ahead of the scheduled time and the Sixth Plan came into
operation from 1980 and continued till 1985. Because of unprecedented political
crisis in New Delhi and frequent changes of power, the Eighth Five Year Plan
scheduled for the period 1990-95 could not be launched.
The Eighth Five Year Plan was delayed by two years, though the years 1990-91
and 1991-92 had not been projected as ‘plan holiday’. The Eighth Five Year Plan
came into operation in 1992. Since then there has been no break from the five
year planning system.
3.5 Maldives
The Maldives consists of 1,192 small tropical islands that cross strategic shipping
routes, and it has a richly diverse marine environment. With more territorial sea
than land, marine resources have played a vital role in shaping the contours of
economic development, with nature-based tourism and fishing being the main
drivers of economic growth. In the early 1980s, it was one of the world's 20
poorest countries, with a population of 156,000. Today, with a population of more

10
than 300,000, it is a middle-income country with a per capita income of over
$6,300.
Economic planning for socio economic development of Maldives began in fifties
with the initiation of the initiation of the Three Year Plan for 1950-53. This plan
addressed the pressing issues facing the Maldives at the time; it stated
objectives, laid down strategies, and outlined a policy framework for national
development. However following this initial planning effort, there was no
articulated development for a prolonged period of 26 years. After passing
political turmoil of three decades, National planning Agency was formed to study
and formulate clear strategies for socio economic development in the nation in
1978.
The national planning agency was upgraded and renamed Ministry of Planning
and Development in 1982, and the first Comprehensive National Development
Plan was prepared by the ministry for the year 1985 to 1987.
Since the inception of first plan, Maldives has formulated and implemented many
plans. Each plan articulated national will and priorities for socio economic and
infrastructure development. These plans have ensured the development of a
solid economic foundation, universalization of primary education, and health
care, and strengthening of democratic governance and socio economic
institutions.
The first plan was from 1985 to 1987 followed by the second plan from 1988 to
1990, the third plan from 1991 to 1993, the fourth plan 1994 to 1996, the fifth
plan from 1997to 2000 and the sixth plan from 2000 to 2005. The national
planning council was formed on 2009 to ensure coordination of planning
functions of different sectors to determine priorities, to provide advice on long
term development policies and strategies, to ensure sustainable development of
nation.
3.6 Nepal
Some approach for development started only after 1951. Just before Second
World War, during Rana regime, a 20 year plan was announced. In 1949 “Rastriya
Yojana Samiti” was established for the formulation of 15 year plan. But both of
those plan though announced were not executed. It was only in 1952 that a
separate ministry of planning and development was formed for promoting
national development. Hence the planning in Nepal in the real sense started with
the implementation of the first plan in 1956. The year 1956 regarded as the
‘golden year’ in the efforts of planned development of Nepal.

The First Five-Year Plan (1956–61) allocated about Rs576 million for
development expenditures. Transportation and communications received top
priority with over 36 percent of the budget allocations. Agriculture, including
village development and irrigation, took second priority with about 20 percent of
budget expenditures. The plan, which also focused on collecting statistics, was
not well conceived, however, and resulted in actual expenditures of about
Rs382.9 million—two-thirds the budgeted amount. In most cases, targets were
missed by a wide margin.

After Parliament, which had been established under the 1959 constitution, was
suspended in 1960, the Second Plan failed to materialize on schedule. A new
plan was not introduced until 1962 and covered only three years, 1962-65. The

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Second Plan had expenditures of almost Rs615 million. Transportation and
communication again received top priority with about 39 percent of budget

The first two plans were developed with very little research and a minimal data
base. Neither plan was detailed, and both contained only general terms. The
administrative machinery with which to execute these plans also was
inadequate. The National Planning Commission, which formulated the second
plan, noted the difficulty of preparing plans in the absence of statistical data.
Further, as was the case with the first plan, the bulk of the development budget
depended on foreign aid—mostly in the form of grants. The failure of these plans
was indicated by the government's inability to spend the budgeted amounts

The Third Five-Year Plan (1965–70) increased the involvement of local panchayat.
It also focused on transport, communications, and industrial and agricultural
development. Total planned expenditures were more than Rs1.6 billion

The Fourth Five-Year Plan (1970–75) increased proposed expenditures to more

than Rs3.3 billion. Transportation and communications again were the top
priority, receiving 41.2 percent of expenditures, followed by agriculture, which
was allocated 26 percent of the budget. Although the third and fourth plans
increased the involvement of the panchayat in the development process, the
central government continued to carry most of the responsibilities

The Fifth Five-Year Plan (1975–80) proposed expenditures of more than Rs8.8
billion. For the first time, the problem of poverty was addressed in a five-year
plan, although no specific goals were mentioned. Top priority was given to
agricultural development, and emphasis was placed on increasing food
production and cash crops such as sugar cane and tobacco. Increased industrial
production and social services also were targeted. Controlling population growth
was considered a priority

The Sixth Five-Year Plan (1980–85) proposed an outlay of more than Rs 22 billion.
Agriculture remained the top priority; increased social services were second. The
budget share allocated to transportation and communication was less than that
allocated in the previous plan; it was felt that the transportation network had
reached a point where it was more beneficial to increase spending on agriculture
and industry

The Seventh Five-Year Plan (1985–90) proposed expenditures of Rs29 billion. It

encouraged private sector participation in the economy (less than Rs22 billion)
and local government participation (Rs2 billion). The plan targeted increasing
productivity of all sectors, expanding opportunity for productive employment,
and fulfilling the minimum basic needs of the people. For the first time since the
plans were devised, specific goals were set for meeting basic needs. The
availability of food, clothing, fuel wood, drinking water, primary health care,
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sanitation, primary and skill based education, and minimum rural transport
facilities was emphasized.

The Eighth Plan (1992-97) gave priorities on intensiveness and diversification of

agriculture, development of rural infrastructure, energy development,
employment creation, human resource development, population control, export
promotion and diversification and industrial development and tourism.

The Ninth Plan (1997-02) focused on alleviation of poverty consistent with 20

year long-term development perspective. The target was to reduce the
population below the poverty line from 42 to 32percent.

The tenth plan had only the objective of reducing poverty. The tenth plan had set
the target to reduce the people poverty line from 38 percent to 30 percent.

Three year interim plan (2007-10) with a vision to build a prosperous, Modern
and just Nepal. In the envisioned situation Nepal will be free from absolute
poverty all Nepalese will have obtained full rights to live in suitable human
conditions. The main goal of the interim plan is to prepare a basis for economic
and social transformation for building a prosperous, Modern and Just Nepal.

Three year Plan (2010-13) with the objective to make directly realize changes in
life of general public by facilitating poverty alleviation and establishing
sustainable peace by means of employment – centered inclusive and equitable
economic growth.

Three year plan (2013-16) aims at reducing human economic poverty to bring
the feeling of direct positive change in living standards of common people. The
main goal of plan is to bring down the population living below the poverty line to
18 percent.

3.7 Pakistan
The Five-Year Plans for the National Economy of Pakistan were the series of
nationwide centralised economic plans and targets as part of the economic
development initiatives, in the Pakistan. The plan was conceived by the Ministry
of Finance (MoF), and were studied and developed by the Economic Coordination
Committee (ECC) based on the theory of Cost-of-production value, and also
covered the areas of Trickle-down system. Supervision and fulfillment of this
programme became the watchword of Pakistan's civil bureaucracy since early
1950s.
First Five-Year Plans (1947-1955; 1955-60) At the time of partition of British
India by the United Kingdom, Pakistan was an under-developed country,
relatively standing with Asian countries with distressful economic situations. The
country's systems of production, transportation, trade and consumption yielded
a very low standard of living of the people, with little opportunity for education,
oreconomic advancement in the country. The industries and financial services
were non-existed in the country and agriculture development was among the

13
lowest in the world. The vast majority of the population was still habitated in
villages and were untouched with the scientific and technological development in
past two centuries
Second Five-Year Plans (1960-1965) The second five-year plans gave highest
priority to heavy industrial development, advancement in literature and science,
and had single underlying purpose: "to advance the country as far as possible,
within the next five years, along the road of these long-range objectives.
Third Five Year Plans (1965-1970) After the 1965 Indo-Pakistani
War over Kashmir, the level of foreign assistance declined and economic
constraints were imposed on Pakistan. The third five-year plan was designed
along the lines of its immediate predecessor, produced only modest growth. The
country had become urbanised by 1970 and only 10% population lived in rural
areas as compared to 1950.
Fourth Five Year Plans (1970-1975) The fourth five-year plans were abandoned
after the fall of Dhaka East-Pakistan. Virtually, all fourth five-year planning was
bypassed by the government of Prime minister Zulfikar Ali Bhutto. Under Bhutto,
only annual plans were prepared, and they were largely ignored.
Fifth Five-Year Plans (1978-1983) The Fifth Five-Year Plan (1978–83) was an
attempt to stabilise the economy and improve the standard of living of the
poorest segment of the population. Increased defense expenditures and a flood
of refugees to Pakistan after the Soviet invasion of Afghanistan in December
1979, as well as the sharp increase in international oil prices in 1979-80.
Sixth Five-Year Plan (1983-88) The sixth five-year plans represented a significant
shift toward the private sector. It was designed to tackle some of the major
problems of the economy: low investment and savings ratios; low agricultural
productivity; heavy reliance on imported energy; and low spending on health and
education. The economy grew at the targeted average of 6.5% during the plan
period and would have exceeded the target if it had not been for severe droughts
in 1986 and 1987.
Seventh Five-Year Plan (1988-93) The seventh plans provided for total public-
sector spending of Rs350 billion. Of this total, 36.5% was designated for energy,
18% for transportation and communications, 9% for water, 8% for physical
infrastructure and housing, 7% for education, 5% for industry and minerals, 4%
for health, and 11% for other sectors. The plan gave much greater emphasis
than before to private investment in all sectors of the economy.
Eight Five Year Plans (1993-98) This group, which included leading industrialists,
presidents of chambers of commerce, and senior civil servants, submitted its
report in late 1992. However, in early 1994, the eighth plan had not yet been
announced, mainly because the successive changes of government in 1993
forced ministers to focus on short-term issues. Instead, economic policy for FY
1994 was being guided by an annual plan.

Vision 2025 and 11th Five-Year Plan 2013-18. Consequently, 38 groups have been
constituted. These groups include, Agriculture & Food Security (Livestock
Fisheries, Horticulture), Civil Service Reforms , Exports, Inclusive Growth, Law
and Order / Justice, Poverty Alleviation, Services Sector, Tourism, Transportation
(Rail, Road, Air, Sea), Water, Art, Culture & Sports, Employment & Job Creation,
Housing & Physical Planning, Investments & Private Sector Development, Mass
Media, Role of Federation in Post-Devolution Era, Science & Technology, Textile,
PSEs, Youth, Banking & Financial Services Sector, Education, Health &
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Population , Information Technology/Data, Minerals & Natural Resources, SMEs,
Taxation, Urban Development/ Smart Cities, Climate, Eco System & Forests,
Energy, Infrastructure, Industry, Macroeconomic Framework, Gender/Women
Development, Small Business Development, Telecommunications, Values and
Ethics

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