The Second Five Year Plan Of Pakistan (1960-1965) marked a significant departure from its predecessor, shifting focus from consolidation to accelerated economic growth. This period witnessed substantial investments in infrastructure, industrial development, and social upliftment programs, shaping the nation’s economic and social landscape.
Aiming High: The Objectives of the Plan
The Second Plan aimed for an ambitious 24% increase in national income, driven by a targeted annual growth rate of 5.2%. This ambitious goal reflected the government’s commitment to rapid modernization and industrialization. To achieve this, the plan prioritized:
- Industrial Development: Emphasis was placed on developing heavy industries like steel, chemicals, and fertilizers.
- Agricultural Modernization: Improving agricultural productivity through modern farming techniques, irrigation projects, and land reforms.
- Infrastructure Enhancement: Investing heavily in transportation, communication networks, and energy generation projects, including the construction of dams.
- Social Development: Expanding education and healthcare facilities while addressing social inequalities.
Funding the Vision: Resources and Investments
The Second Plan proposed a total expenditure of Rs. 24 billion, more than double the allocation of the First Five Year Plan. A significant portion of these funds came from foreign aid, particularly from the United States, as Pakistan aligned itself with the West during the Cold War. Domestic savings and private sector investments also played a vital role.
Successes and Shortcomings: Evaluating the Plan’s Impact
The Second Five Year Plan, while ambitious, yielded mixed results.
Positive Outcomes:
- Impressive Economic Growth: Pakistan achieved an average annual growth rate of 5.8% during this period, surpassing the initial target.
- Industrial Expansion: The industrial sector flourished, with significant growth in manufacturing and large-scale industries.
- Infrastructure Development: Key infrastructure projects, including dams and power stations, were completed, boosting energy production and irrigation capacity.
Challenges and Limitations:
- Income Disparity: The benefits of economic growth were not evenly distributed, leading to a widening gap between the rich and the poor.
- Agricultural Lag: Despite efforts for modernization, the agricultural sector lagged, failing to achieve expected productivity improvements.
- Regional Disparities: Development remained concentrated in urban centers, exacerbating regional imbalances.
A Legacy of Progress and Challenges
The Second Five Year Plan of Pakistan, though imperfect, left a lasting legacy. It laid the foundation for industrial growth, improved infrastructure, and brought about significant social changes. However, the challenges of income inequality, agricultural stagnation, and regional disparities highlighted the need for more inclusive and equitable development strategies in the future.