While celebrating Independence Day, it would be appropriate to highlight recommendations of the Economic Planning Committee (EPC) appointed by Quaid-i-Azam in August 1945, as they are still relevant in the prevailing economic situation.

Referring to the production of low orders, the EPC emphasised making the fullest use of production resources to satisfy the basic needs of the people as the first consideration. It was primarily concerned about the ‘practical problems of life’, such as the provision of adequate food, clothing and shelter, and the social services essential for modern civilised life.

According to the EPC, the end objective of a development plan must be the progressive improvement in the standard of living of people. The guiding points listed by the committee were full employment, adequate wages and reasonable prices.

Moreover, the Quaid’s advice to the EPC was “to undertake, in real earnest, a constructive programme for the uplift of our people educationally, socially, economically and politically”. For that, talents were picked by him for the EPC from all parts of India; foremost among them were top-ranking political party leaders. The full text of the EPC report and the strenuous efforts put into preparing it are the topic of the book titled ‘*Quaid-i-Azam’s Unrealised Dream*’ by Khalid Shamsul Hasan.

The EPC recommended that production should be for the use of the community and not for the private profit of a few

The committee noted that anti-social profit motives come in the way of the fullest possible use being made of the resources of production as a major problem. It added that it is important that cooperation be made the rule of life and not competition the motive force to exploit its resources.

Its proposals did not involve a serious reduction in real consumption: if the essential requirements of the large number of people are to be satisfied and a high level of production has to be maintained, as much as possible, the increased income should be allowed for their consumption.

Every attempt has to be made not only to assure gainful occupation for all but also to see that the profit derived is divided in accordance with the canons of distributive propriety. The material resources of the country are vast, and there is a heritage of scientific discoveries and inventions. The gifts are for the state to exploit in the interest of strengthening the standard of living of all the people and not for a small fraction for personal gain and fortune. The committee said, “Industry is a social function carried out in the interests of all.”

Production should be for the use of the community and not for the private profit of a few who command the instrument of production. The country has the manpower and can raise the technical skill and develop the organising capacity.

Jinnah’s advice to the EPC: “Undertake, in real earnest, a constructive programme for the uplift of our people educationally, socially, economically and politically”

The exercise of individual enterprise and initiative has an important contribution to make, and there should be no drying up of this incentive to progress. The success of any development depends upon inducing a flow of investment sufficient to maintain full employment, purchasing power and a steady improvement in income structure — particularly in a sphere which provides the greatest scope for equitable distribution of wealth.

Acknowledging that there will be dependence on foreign countries for machinery and services of experts, it was stressed that financing them fully was indispensable: “The future savings will not come to be mortgaged: the foreign loans are proposed to be paid off within the period.”

The committee did not support social security, such as unemployment allowances, as the system employed enforced idleness, and it would not be conducive for the self-respect of persons who are capable of contributing to the general welfare to live as a charge on the community.

Unemployment benefits are not a productive use of funds, and they do not replace the demand for work with the demand for maintenance. The right to work, adequately remunerated and appropriate to the mental and physical capacity and training or aptitude of workers, should be guaranteed. No country which utilises the people’s power to work need be poor.

Money is regarded as the lifeblood of business and, instead of being a commodity, has become a power. It should be used just as productivity is to be increased for the benefit of citizens and not at the cost of citizens.

Agriculture is the sphere which gives a high level of opportunity for sound and profitable investment in human welfare and progress, and priority should be given to the sector.

Cooperative societies and panchayats (village councils) should be fostered to the utmost extent if moneylenders are ever to be eliminated for the betterment of the lives of rural masses. For peasant farming to be successful, the improvement must first be in the farmers themselves. This can only come through cooperation.

The cooperative movement has not succeeded so far because the sources of agricultural income are not very stable. Given the requisite stability and a certain amount of compulsion, there is no reason why cooperative farming should not succeed.

Published in Dawn, The Business and Finance Weekly, August 18th, 2025