FIVE YEAR PLAN, SIXTH (1983-1988) The Sixth Five Year Plan took 16 months to prepare; work on it began soon after the return of Mahbubul Haq to Pakistan in February 1982 Haq’s main objective was to use the Plan to bring about a major structural change in the economy, in particular to promote social development In keeping with this promise, the Sixth Plan allocated Rs 205 billion for education and manpower development and Rs 146 billion for health The two sectors together were provided Rs 351 billion worth of resources out of the cumulative Rs 24249 billion that the public-sector expenditure envisaged for the five-year-plan period This worked out to a share of 118 percent of total public resources

Had this amount of resource commitment been realized, the public sector would have spent 76 percent more on education and health, compared to the actual outlay during the Fifth Plan period It was hoped that the increase in public-sector expenditure would be accompanied by greater privatesector interest in social development and that private entrepreneurs would be induced to invest in those areas of education and health care in which the population was willing to pay for the services provided The Plan also made an attempt to free Pakistan from excessive dependence on foreign savings-foreign borrowing and foreign aid- by aiming at a sharp increase in domestic resource generation The gross investment rate was projected to increase from 164 percent realized in 1982-1983, the last year of the Fifth Plan, to 194 percent in 1987-1988, the last year of the Sixth Plan At the same time, the national savings rate was to increase by 4 percentage points during the course of the plan, from 127 percent to 167 percent of gross domestic product (GDP)The dependence on external capital resources was also to be reduced by following an export-led strategy Although the plan projected a growth rate of 8 percent a year in the volume of exports, it expected export earnings to increase by almost twice as much, or 15 percent

The difference between volume exported and the value of exports was to result from a concentration of government and private effort on the export of high value-added products, such as fashion garments rather than cotton yarn Export receipts in current prices were expected to reach the level of US$194 billion during the five years of the Plan Actual performance, however, was only 816 percent (US$1619 billion) of the target The Plan was a success only in terms of continuing Pakistan’s impressive growth performance GDP increased at a rate of 66 percent, slightly higher than the target of 65 percent In almost everything else, the Plan failed

The structural transformation that it sought and attempted to bring about by redirecting public-sector expenditure did not take place

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