' 3

I-L
PERFORMANCE OF SEVENTH PLAN
, / ,
The Seventh Five Year Plan was prepared within a broad based socio-
economic framework of a fifteen years perspective (1988-2003), emphasizing
efficient
growth in output on one hand and improving the quality of life on the
other. Of the Perspective Plan total incremental targets, about 23.6 percent of
GDP, 22 percent of investment,23.8 percent of exports, 26.2 percent of imports
and 2L percent of revenue, were envisaged to be attained during the Seventh Plan.
It attempted to address the deficiencies in social sectors, education, health,
women development etc. as well. as economic problems like f,rscal and current
account deficits, inflation and unemployment. Many policy reforms were launched
during the Plan period and a new economic edifice based on free enterprise, open
market, privatization, deregulation and liberalization has been raised.
2. The tempo of growth was affected by unforeseen events on domestic and
'
international fronts including economic contraction of Eastern Europe and the
former Soviet Union, recession in Pakistan's export markets, the Gulf War, the
delay in the settlement of the Afghan issue, the
political uncertainties on the
domestic front, frequent changes of government, civil disturbances in 1989-90 and
floods of 1988-89 and L992-93. However, the overall performance has been
satisfactory.
Growth Performance
,
3.
'
The growth performa.nce though below the plan target, was in line with
'the
historical trends,' and satisfactory in the context of internal and external
constraints. GDP grew by 5.0 percent (target 6.5To), agriculture 3.8 percent
(target of 4.7%), manufacturing 5.9 percent (target 8. lTo) and other sectors 5.3
percent against the target of 6.7 percent. In aggregate terms over 74 percent of
the incremental output targets were achieved. However, self-reliance in the
production of wheat, edible oils, iron-ore, crude oil and capital goods did not
show a significant improvement.
' 4
Macro-Eco nomic Framework
4. The fiscal scenario conceived in the Plan did not materialize. Targets
relating to additional resources and control of current expenditures were not
achieved. The trend of fiscal deficit has been as follows:-
Years
1988-89
1989-90
1990-91
L99L-92
1992-93
percent of GDP
7. 4
6. 5
8. 7
7. 5
7. 9
5. As a consequence of deficits, the domestic debt more than doubled during
the Plan period, rising from Rs 290 billion in 1987-88 to Rs 605 billion in
1992-93
6. The annual growth in monetary assets at ls.zpercent was higher than the
Plan target of 12.5 percent but close to th9 nominal growth of GNP at L4.9
percent. Domestic credit increased to Rs 326.7 billion
-
well above the Plan
estimate of Rs 179.9 billion..Government credit expanded to Rs 190.6 billion
against the target of Rs 64.zUittion. This was due mainly to increase in budgetary
support, which reached Rs 175.6 billion against the Plan target of Rs 51.7 billion.
7. Fortunately, the "crowding out" effectin credit allocation was restrained
reflectiig the emphasis on private investment. Credit utilization was Rs 155.5
billion against the Plan allocation of Rs 115.2 billion.
a
8. On the external side the current account deficit rose from $ 1.68 biltion
in 1987-88 to $ 3.69 billion in t992-93. This was mainly a result of deterioration
in the invisibles i.e. fall in remittances and increase in service payments. As a
corrective measure rupee exchange rate was brought close to the market value.
The dollar
-
rupee exchange rate went up from Rs 18.12 per dollar in July 1988
to Rs 21.15 per dollar in June 1993.
9. The performance on investment front has been encouraging. Against the
gross domestic fixed investment target of Rs 660.2 billion, the actual investment
(1987-88 prices) amounted to Rs 682 billion; with private investment exceeding
the target by about 19.6 percent while the public investment experienced a
shortfall of 9.6 percent.
10. For the public sector development
programme, the Seventh Plan had
provided an outlay of Rs 350 billion at 1987-88 prices. The actual expenditure is
estimated to amount to Rs 321 .4 billion, showing an achievement of 91 .8 percent.
5
Economic Structure
11. The Plan marks a distinct change in the economic structure. Spurred by
a steady growth in line with the earlier Plans, the industrial sector increased its
share of total output steadily, surpassing agriculture for the first time. Since the
First Plan, the share of industrial sector in G.D.P. has gone up from 15 percent
to 26.7 percent and services sector frtim 38 percent to 49.5 percent while
agricultuie has gone down from 46.6 percent to 24.5 percent.
Sectoral Picture
Agriculture
L2. The thrust of plan was on the achievement of self-sufficiency in basic
food items and improvement in productivity through efficient use of inputs and
credit. The farmers were to be provided remunerative support prices. Research
and extension were to be strengthened.
13. Policy measures to improve agricultural productivity and income of the
farmers were introduced. A Productivity Enhancement Programme (PEP) was
launched. A relief package on outstanding loans was announced. Liberal credit
facilities were prouiaeO. lmpott duties on agricultural implements including
tractors were reduced. The farmers were also provided adequate return for their
produce through support prices. In order to boost the export of fruits and
vegetables, rebate of 25 percent was announced on freight on national carriers.
Comprehensive
programmes were also planned for afforestation, watershed
management, range management and resource conservation.
L4. Financial outlay on agriculture was Rs 7..552 billion at 1987-88 prices
against the PSDP allocation of Rs 8.167 billion indicating 92.5 percent utilization.
The subsidy on fertilizer was Rs 4.971 billion against"the plan allocation of Rs
3.3 billion. Besides the public sector development outlay, the private sector
invested Rs 51.6 billion at 1987-88 prices in the agriculture.
1,5. The growth rate was 3.8 percent against the plan target of 4.7 percent.
The shortfall is mainly due to the setback on account of devastating floods in
1988-89 and lgg2-93. Thete was a remarkable increase in cotton production
during the plan period. Its production increased to 12i8 million bales in 199I-92,
but decreased to 9.1 mitlion bales in L992-93 due to floods and, leaf curl virus.
However, on the basis of five year total the output targets of cotton" sugarcane,
potato and onion were exceeded while those of
yvheat, maize and rice were
achieved to the extent of 99 percent, 90.5 percent and 83.9 percent respectively.
On the other hand substantial shortfall was experienced in the output of non-
traditional oil seeds, gram and rapeseeds and mustard. The overall growth
performance of the livestock sub-sector was 5.8 percent against the target of
5.3 percent.
6
Manufacturing
16. The value-added in manufacturing increased by 5.9 percent against the
target of 8.1 percent a year. The entire shortfall from the t4rget is attributed to
the large-scale manufacturing sector which could only attain a growth rate of 4.9
percent against the target of 8.0 percent. The short fall can be attributed to law
and order situation, infrastructural constraints, delays in the commissioning of
new projects, non availability of raw material and a world-wide recession.
t7 . The Production
targets
of motor tyres, sugar, soda ash, caustic soda, cotton
yarn cotton cloth, trucks and buses were achieved and in a few cases exceeded,
while shortfall was experienced in the production of vegetable ghee, cement,
nitrogenous fertilizer, steel billets, rolled sheets, cigarettes, tractors, papers,
bicycles and petroleum products. Growth of engineering and capital goods
industries was far below the expectations.
18. A sum of Rs 10.07 billion was allocated to various Public Corporations
in the manufacturing sector, for BMR and creation of new capacities. Most of the
planned projects were completed by the end of the 7th plan
19. Financial utilization under the PSDP in the manufacturing sector reached
to Rs 6.352 billion against the target of Rs 10.07 billion reflecting 63 percent
utilization. Out of the utilization of Rs 6.352 billion, Rs 1.186 billion were
utilized through the budgetary development programme and the remaining
Rs 5.116 billion from Public Corporations Programme indicating |z.Opercent and
51.0 percent utilization of the budgetary and corporate resources.
20. Against the investment target of Rs 87.5 billion in the manufacturing
sector (at constant prices of 1987-88), the private industrial investment amounted
to Rs 145.3 billion at 1987-88 prices. Foreign private investrnent in the
manufacturing sector was Rs 27 billion against the tafget of Rs 26 billion at
1987-88 prices.
Mineratl
21. The Seventh Plan placed great emphasis on enlarging the production base
of mineral sector through rapid expansion of local and foreign investment.
22. During the 7th Plan period different collaborative development projects
were started. These projects have helped in the training of GSP,PMDC and RDC
personnel.
23. The Seventh Plan allocated Rs 7.012 billion (Rs 3.122 billion from the
budget and Rs 3.89 billion from the Corporations Programme) for the
development of mineral sector. An amount of Rs I.597 billion (at constant prices
of 1987-88) has been utilized against the budgetary provision of Rs 3.12 billion.
7
Rs 0.625 billion has been utilized against the target of Rs 3.89 billion in the
public corporations
programme. Besides the Public Sector, Private Sector invested
Rs 0.903 billion in the mineral sector.
Energg
24. Expeditious development of indigenous resources, comprehensive energy
pricing policy and conservation of energy were the main ingredients of the energy
strategy.
25. Oil extraction in the country has increased from 44684 barrels per day
during 1987-88 to 60,000 barrels per day in 1992-93 against the target of 76000
BPD showing 79 percent achievement. About 217 wells were drilled during the
plan period against the target of 375 showing 57.9 percent achievement of the
taryet.
26. As regards gas, the production (average) increased from 1200 MMCFD
to 1598 MMCFD. About 700,000 new gas connections were provided during the
7th PIan.
27. LPG production was only 303 tones/day against the plan target of 518
tones/day indicating only 59 percent achievement.
28. Total installed capacity for power increased frorn 67g4MW to 9786 MW.
Number of the additional villages electrified was 17
,447
against the plan target
of 10336 showing 169 percent achievements. A total of 2.7 million new electric
connections were provided durin g 7th Plan period.
Ruml Development
29. For the developrnent of rural areas, a comprehensive
frogramme
involving
an outlay of Rs 112.2 billion was envisaged in the Plan. For this purpose about
9000 K.M. roads were constructed under the rural/farm-to-market roads
programme against the Plan target of 8500 K.M. Under the People's Programme,
18507 schemes relating to different sectors were approved during the period from
March 1989 upto 6th Augest 1990. Similarly, under the Tameer-e-Watan
Programme, initiated in October 1991, about 32971 schemes comprising rural
roads, repair of school buildings, street drainage, water supply, village
electrification, health facilities, community centres, grave yards and construction
of bridges etc, were approved upto June 1993
30. Under rural education, about 9750 mosque and 18900 primary schools
were constructed against the target of 15,000 mosque and 31152 primary schools.
Besides, 3780 primary and 1950 middle schools were upgraded to middle and
high levels respectively against the target of 5850 primary and 2775 middle
l f .
8
31. In the rural health sub-sector, l660BHUs and 106 RHCs were established
against the Plan target of 1882 and lzl RHCs. Undpr the rural water and
sanitation programme, 20 million additional population was supplied drinking
water against the target of 3l million. Sanitation facilities were provided to 1l
million'additional people against the target of l7 million. Against the target of
10336 villages/abadis, L7447 villages/abadis were electrified showing an
achievement of 169 percent.
Regional Development
32. The areas which are included in the regional development plan are Azad
Kashmir, Northern Areas and the Federally Administered Tribal Areas which
.share
certain common geo-physical l<ication and economic characteristics. During
the plan period, an amount of Rs 13.2 billion at 1987-88 prices was allocated for
the special areas'out of this Rs 8.75 billion at 1987-88 prices were utilized
showing utilization of 66.3 percent. Rs 5.2 billion were allocated for Azad
Kashmir against which an amount of Rs 3.5 billion were utilized. Northern Areas
were provided Rs 2.7 billion out of which Rs 2.05 billion were utilized. Against
an allocation of Rs 5.3 billion for FATA and FATA/DC an amount of Rs 3.2
billion were utilized.
Transpott & Communications
33. The Seventh Plan catered for the rehabilitation of assets and a modest
expansion in the capacities of the Road, Railways and Port sub-sectors. The Plan
envisaged improvement in rail/road traffic ratio from 20:80 in 1987-88 to 26:74
in 1992-93 through allocating long lead freight traffic to Railways and short lead
traffic to roads. Induction of private sector in highway development, shipping,
roads construction, domestic aviation services and telecommunications was also
envisaged. Resurfacing and maintenance of highways and development of port
facilities for container traffic were" to be undertaken. Besides moderni zing
Karachi shipyard and engineering works, possibilities of developing existing river
and land networks for inland navigation from Port
Qasim
to Kalabagh and tahore
were to be explored.
34. Major railway's projects completed during the Plan included Locomotive
Factory at Risalpur, manufacturing of 158 passenger coaches, recommissioning
of 37 DE locos, procurement of 5 DE locomotives as well as Rail renewal of 298
Kms. and sleepers renewal of 357 Kms. Freight traffic, however, did not increase
primarily due to operational inefficiency.
35. The highway sub-sector was given a major thrust. National Highway
Board (NHB) was converted into a National Highway Authority (NHA) and given
larger powers. Among the major projects, work on the upgrading and
improvement of the Indus Highway (National Highway N-55) as the alternate
North-South link on the West Bank of River Indus and dualization of 537 KM of
National Highway N-5 under the Fourth Highway Project funded by the World
Bank waS accelerated. A significant development was the launching of
maintenance oriented projects under the development budget namely
'Maintenance
Backlog Reduction' and
'Resurfacing
and Strengthening' programmes. These
projects, prepared to overcome the problem of shortage of maintenance funds
were financed by the World Bank under the Transport Sector Loan. Efforts to
induct private sector in highway construction did not materialize. Work on the
motorway between Lahore-Islamabad was initiated, about 7329 Kms of new roads
were constructed and 8237 Kms of existing roads improved
36. The on-going project of Port
Qasim
(phase-I) was almost completed.
Gwadar Fish Harbour and the Miniport were also completed.
37, In Civil Aviation, two major projects viz, new terminal complex at
Karachi and Aeronautical communications and control (AC&C) system were
completed and old runway at Lahore Airport upgraded for Airbus A 300 84
operations. The PIA acquired four Airbuses 4310-300, 4 used Fokker F 27
Aircrafts during the plan period. Domestic traffic carried by PIA fell short of the
plan target while international traffic carried by it exceeded the plan target.
Private sector was inducted in Airline business.
38. The installation of l, 128,000 new telephone lines was close to the target
of 1,150,000 new lines, indicating an achievement of 98.1 percent. Private sector
which was inducted in telecommunications on Built Irase and Transfer (BLT)
basis installed 500,000 telephone lines during the plan period. T&T Department
was converted into Pakistan Telecommunication Corporation (PTC).
39. An investment of Rs 26.654billion (at 1987-88 prices) in the Federal and
provincial Public Sector and Rs 39.569 billion for the Public Sector Corporation
was made against the plan allocation of Rs 29.2 billion and Rs 32.30 billion
respectively. During the plan period Rs 27.368 billion and Rs 28.786billion was
utilized for the Federal and Provincial Public Sector and Public Corporations
programmes. Utilization stood at93.7 per cent and 89.12 per cent in the Federal
Public Sector and the Public Sector Corporation respeclively. The over all
utilization was 91.3 per cent
Irrtgation and Druinage
40. During the 7th Five year Plan anti water-logging and salinity control
programme was given a high priority.
l 0
41. Work on Chashma Right Bank Canal on Phase-II and Pat Feeder Canal
Rehabilitation Projects was under taken, About 5,500 tubewells were installed on
annual basis in the private sector. Besides, many small irrigation schemes were
executed. As a result, 1.53 MHM additional water, irrigating additional
cultivable land of 1.012 million hectares became available.
42. To conserve irrigatipn water, Irrigation System Rehabilitation Project-Il,
Command Water Management and On-Farm Water Management Programmes
were implemented. The Command water Management Project and Phase-II of
the On-Farm Water Management (OFWM) Programmes have been completed and
Phase-III dovetailed with phase-Il. Physical accomplishments included renovation
of 10,000 water courses and levelling precisely 128932 acres (52178 hectares) of
land.
43. About l1 SCARPS and a Pilot SCARP Transition Project in Punjab have
also been completed, which would protect 2.13 MA (0.86 MHA) of disastrous
areas.
44. A sum of Rs 21.5 billion (at 1987-88 prices) was utilized during the 7th
Plan against the Plan allocation of Rs 28.4 billion reflecting 75.7 percent
utilization, Utilization of ADP allocation has, however, been estimated at 105
percent (at current prices).
Science & Technolog;t
45. The main goals of the sector were to promote productivity and
competitiveness in agriculture and industry, and to enhance the efficiency of
transport, energy, health and other sectors by giving boost to technological
development efforts and R&D activities.
46. The Seventh Plan could not achieve fully the integration of Science and
Technology with development plans and production sectors. Some progress,
however, was made in improving the infrastructure equipment and other facilities
in institutions like PCSIR, PCAT, PCRWR, etc. Some potential revenue
generating projects have been started by NIO, PCSIR, NCTT, CAMB, NIE,
PARC, HDIP; NIH and SUPARCO etc which is a beginning towards self-
financing of activities of Science & Technology sector. No attractive incentives
were given to the private sector to encourage investment in R&D.
47. Under the human resources development programme 877 scholars were
sent abroad for higher studies leaciing to Ph.D in hi-tech fields to overcome the
dearth of the technical competence. During Plan period 262 scholars completed
their studies while 252 returned to Pakistan.
48. A sum of Rs 2.25 billion was allocated to Science and Technology against
which the estimatcd expenditure is Rs 1.61 billion (at 1987-88 prices).
Education & Truining
49. In 1987-88 prices the total expenditure of education sector programmes
was Rs 19.0 billion against the plan allocation of Rs 23.1 tr billion. Thus in real
term the overall financial expenditure has been 82 percent, of the Plan allocation.
Consequently there have been short-falls in the achievement of physical targets.
Some of the important policy initiatives proposed in the Seventh Plan could not
be implemented. At primary level, about 21,000 primary and 13,000 mosque
schools were established against the target of 34,613 primary schools and 20,000
mosque schools. Buildings were constructed for 16,500 shelterless schools
against the target of 20,075. About 13,000 class rooms were added in the
existing primary schools against the target of 8,750. About 3.1 million additional
children (including 1.5 million girls) were enrolled at the primary level against
the Plan target of 4.6
million
(includine 2.7 million girls). Majbr reasons for
shortfall of about 32 percent in the additional enrolment can be attributed to
socio-economic factors that inhibit the low income families from sending their
children to the school; high drop out rate and non-enactment of compulsory
primary schooling legislation proposed in the Seventh Plan
50. During the Plan period, about 4,201 primary and 2,600 middle schools
were upgraded to middle and secondary level against the target of 6,500 primary
and 3,700 middle schools respectively. Besides 110 new high schoois *erl
established, Intermediate classes were added in more than 368.secondary schools
respectively. Two million additional students were enrolled at secondary level in
classes VI-X against the target of 1.88 million. In quantitative terms about 100
percent of the enrolment target has been achieved but much remains to be done
for improving quality and relevance of secondary education.
51. Some headway was made towards diverting students to technical and
vocational streams. Towards this end works were started on establishment of 29
poly-technics
and only 4 of them were completed. Work on the remaining
institutions is expected to be completed during the Eighth Plan.
52. The Seventh Plan period also witnessed a number of initiatives of
managerial nature for the acieleration of educationat development. These include:
i) Education Foundations were established for encouraging the
private sector's participation in the establishment of new
educational institutions on non-commercial basis, particularly in
the rural areas.
t 1
The "Tarneer-e-Walan"
programme was launched. Under this
programffits,'legislators identify the immediate needs of the people
at the grass-roots level (including, most prominently, education)
and develop projects for implementation through normal channels
under their supervision.
Foreign assisrance for education sector was made available to the
provinces over and above their normal ADP shares.
The pay scales of school teachers were upgraded by one step, and
the upper age limit for appointment of primary schools teachers
was relaxed.
The Social Action Programme (SAP) was launched in 1992-93 ta
accelerate integrated developlnent of social sectors. Basic
education, including primary education, functional literacy, and
female education, forms the largest component of the Social Action
Programme.
53. Against the Plan target of 1,882 Basic Health Units 1,660 units were
established reflecting 88.2 per0ent achievements. 106 Rural Health Centres were
set up against the target of l2l reflecting 87.6 percent achievement. Only 50
Urban Health Centres against the target af 227 were established.
54. Against the target of 16,252 Hospital beds, 12,006 Hospital- beds and
17,528 doctors against the target of l7
,535
were added. Against the target of 800
dentists and 10,240 Nurses, 775 Dentists and 8,768 nurses were achieved.
Similarly, 21,259 para-medics against the target of 35,950 and 26,635 TBAs
against the target of 27,150 were trained.
55. 16.8 million children were immunized against the target of 18.8 million,
and about 43.3 million Packets of ORS against the target of 50.4 million Packets
were distributed.
56. Financial utilization of Rs 10.0 billion under PSDP against the allocation
of Rs I2.8 billion for health sector is about 78.1 percent
Women Development
57. The Ministry of Women Development sponsored a variety of small
projects for women development in collaboration with Federal and Provincial
Line Departments and NGOs. These projects included community/welfare centres,
dispensaries, eye units, gyne wards, day care centres, working women hostels,
industrial homes, training centres, water supply schemes, women cooperatives,
darul
falah/amans, legal aid centres, credit schemes, literacy/education centres,
i i )
iii)
iv)
v)
l 3
libraries, strengthening of fernale educational/technical institutions, grant-in-aid
for women programmes and NGOs. Special credit facilities for women were
arranged through the First Women Bank.
58. Against the Plan allocation of
estimated to be Rs 648.493 million (at
utilization rate.
Populatiotn and Social Planning
Rs 900.0 million, total utilization is
1987-88 prices) indicatinE 72 percent
59. The main objective of Population Welfare Programme during the Seventh
Plan was fertility management by voluntary birth intervals and birth preventions
through multi-sectaral activities as well as maternal & child health system.
Public, private, NGO and commercial sectors were involved in service delivery.
60. Birth prevention target for Seventh Plan was 3.17 million. The
programme achieved 73 percent targets by preventing about 2.3I million births.
The foregoing birth prevention was achieved by establishing 1,505 service outlets,
involvinE 3,168 public sector health outlets (federal and provincial), 580 outlets
of non-Governmental Organizations (NGOs) and 5,000 Traditional Birth
Attendants (TBAs), 2,500 Registered Private Medical Practitioners, and 4,000
Hakeems and Homoeopaths. The programme also established 67,000 sale points
in the commercial medical/drug stores through the project entitled " Social
Marketing of contraceptive (SMC)".
61. The Seventh Plan provision for the programme was Rs 3.535 billion and
total PSDP allocation amounted to Rs 3.040 billion at 1987-88 prices. The
programme however) utilized an estimated amount of Rs 3.047 billion which is
100 percent of the PSDP and 86 percent of the Flan allocation.
Employment and Manpower
62. Initial employment prqjections of the Seventh Plan indicated substantial
ingreases in unemployment in the form of open unemployment and under
employment. In view of low elasticity of employment with respect to GDP
growth, the Plan emphasized promotion of relatively more labour intensive
sectors to alleviate the expected unemployment pressures. For this purpose, the
Seventh Plan postulated a 10-point strategy expected to generate 6.1 million
jobs.
63. Most of the provisions of the l0-Point Strategy could not be made
effective during the first three years. Several factors were responsible for this.
First, there was some delay in the preparation of policies and projects. Second,
political developments inhibited continuity of policy and development
programmesl Third, reduction in the foreign aid prevented undertaking of new
programmes. Employment situation deteriorated during the first three years.
t 4
64. According to rough estirnates, about 3.122 million additional
jobs
were
created against the 7th Plan target of 6. I million, reflecting about 5L.2 percent
achievement.
65. The Seventh Plan allocated Rs 2.56 billion for the development
programrnes in the manpower sector, against which Rs L.074 billion or 41.8
percent were actually spent. Low utilization is mainly due to weak resources
position and implementation capability of the sector.
Culture, Sports and Tourism
66.
lTh"
Seventh Plan followed an integrated approach towards cultural
development covering all important dimensions like preservation of cultural
heritage, historical and archaeological research, cultural history, anthropology,
arts and crafts and architecture. Major portion of PSDP allocation provided for
archaeology and archieves was spent on preservation of Mohen-jo-daro
Monuments. The renovation of
Quaid-i-Azam
house and archives building phase
1 were completed. The physical work on construction of 2 spurs reached advance
stage while ground water control works of Mohen-jo-daro monuments brought
down the water level to 30 ft. Malam Jabba skiing resort was constructed. Work
on Khirthar National Park in Sindh was near completion. The construction of new
motels at Choa Saidan Shah, Khuzdar and Ayubia were completed by PTDC.
Besides, extension work at the existing motels at Skardu,Ziarat, Gilgit, Besham,.
Khuzdar and Texila were also cornpleted. Moreover, road side facilities at
Barseen on KKH were commissioned. An amount of Rs 74.64 million were spent
for youth development programrne. About 85 youth skill development centers all
over the country and three youth hostels at
Quetta,
Peshawar and Islamabad were
completd, & sport stadium at Hasilpur was also constructed. Similarly, museurn
galleries at Lok Virsa, Islamabad were completed. However, there was no worth-
while progress in the construction of International Conference Hall, Cultural
Heritage centers at Multan,
Quetla,
Peshawar and Sehwan Sharif and National Art
Gallery.
Mass Media
67. The Seventh Plan aimed at expanding the coverage through radio and
television to the entire population. The major completed project during the plan
was the 2nd television channel under a Japanese grant of Rs 507 million and
government support of Rs 119 miilion. Besides, technical and production
facilities at Karachi, Lahore and Islamabad TV centers were also completed.
A adequate funds were not available for the radio sub-sector. As a result short-
wave transmitters could not be added. Only one 300 KWMW transmitter at
Khuzdar brought a sizeable area of Baluchistan under radio coverage. Moreover,
two new small power transmitters at Gilgit and Faisalabad and village
broadcasters at Sibi, Chitral and Abbottabad were added. Besides, APP replaced
58 old teleprinters, and modernized the news gathering system.
l 5
Physical Planning & Housing
68. The 7th Five year Plan aimed at reducing gap between demand and supply
of houses. Emphasis was given to the provision of houses to the shelterless and
low incomg groups and meeting the basic needs of drinking water and providing
sewerage and sanitation facilities.
69. Against the target of development of 650 thousands plots in urban oress;
630 thousand
plots were developed. In rural areas 2.9 million 7-Marla plots were
allotted to the low incorne shelterless against the target of 2.2 million. The target
of improving the living conditions of Katchi abadis was achieved to the extent of
80 percent. As regards the provision of water supply/sanitation facilities in urban
areas, the targets achieved were 85 percent (water) and 60 percent (sewerage)
respectively. In rural areas, 50 percent population has access to water supply and
17 percent to sanitation facilities.
Social Welfare
70. The Seventh Plan while emphasi zing expanding national production
through development of physical resources ensured various policies, measures and
necessary programmes in order to promote and enhance Social Welfare services
for betterment of the physically, socially and economically handicapped
population in the country. The Social Welfare programmes have been designed
in a way that they help to harmo nize the forces of social change and offset their
adverse repercussions caused by total development processes. Zal<at and Ushr
system for helping the indigent and poor remained in operation. The policy to
follow a collaborative effort of the Government and the Non-government
Organizations (NGO$ in implementation of Social Welfare Programmes was
enforced
7L. Around 300 Sccial Welfare Institutions were established during the Plan
period. These institutions include 131 Social Service institutions ( 33 Federal &
98 Provincial) in various fields like child welfare, youth welfare, wornen welfare,
community development, patient's welfare, staff welfare, welfare of the agd,
etc. It also included 169 institutions for special educatiori and rehabilitation
services for the disabled persons (99 Federal and 70 Provincial). The social
welfare sector was provided an amount of Rs 0.794 billion against which
Rs 0.602 billion was utilised.
Conclusions
72. While the groyth targets were not achieved, the overall performance was
satisfactory. GDP grew at 5 percent a yffit, agriculture 3.8 percent and
manufacturing 5.9 percent. Investment in fixed assets amounting to Rs 682 billion
exceeded the target of Rs 660 billion due to a surge in private invpstment, which
exceeded the target by 19.6 percent. Substantial advances were rnade in physical
r 6
infrastructure. Gas production increased by 34 percent and power generation
increased by 44 percent. Rural electrification was well ahead of the target
-
18,265 villages/abadis were electrified compared with the plan target of 10,336.
73. In the final year of the Plan, a Social Action Programme was launched to
address the stubborn neglect of education, health, nutrition, rural water supply
and sanitation and population planning. The focus of the programme is on women
and rural development. It emphasizes improved delivery system and greater
participation of the comrnunity.
74. In terms of macro economic framework, perfonnance at the internal and
external front was not upto the mark. The level of fiscal deficit rose from 6.5
percent of GDP in 1989-90 to 7 .9 percent of GDP in 1992-93. There was a rapid
build up of domestic debt which increased from Rs 290 billion in 1987-88 to
Rs 605 billion in 1992-93, a mirror image of the growing deficits.
75. The dev"ilp,rr*nts in the Middle East and recession in Japan, Europe and
America had an adverse effect on balance of payments. Current account deficit
went up from 4.4 of GDP in 1987-88 to 7.1 percent in 1992-93. Rupee value was
adjusted by 32.2 percent (cumulatively) against the dollar, but the position
remained vulnerable, particularly during the Gulf crisis.
76. The structure of public expenditure depicted a shift to the corporate sector.
The investment by public corporations went up frorn Rs 49.0 billion to Rs 69.8
billion in 1992-93 in response to larger autonomy and delinking from the
budgetary process.
77. The economy went through a process of deregulation and liberalization.
Foreign exchange regulation, sanctioning procedures for industrial units and trade
policy were deregulated and liberalized. Price controls were removed and
subsidies reduced. The process of rationalizing tariff structure was started.
78. Sector which were hitherto reserved for public sector were opened to
private investment. These included power generation, telecommunications,
shipping, airlines and export of rice and cotton. Parallel to this two banks and 63
industrial units were privatized. The process of deregulation and privatization is
likely to be consolidated in the Eighth Plan.