Economic planning sets the road map for maximizing social good and lays down a mechanism for achieving it. However, 'planning' in Pakistan has unfortunately become a casualty of apathy and surrender to transitional 'authorities' including international financial institutions.

No country in the world has divested itself of economic sovereignty in the manner we have. When Pakistan came into existence in 1947, it inherited the areas which were widely regarded as an economic wasteland.

Whatever little base of economy that existed, it was paralyzed with the emigration of Hindus who dominated it. There was no industrial base and no industrialist 'worth to name.

The circumstances needed vigorous state intervention not only to rehabilitate the narrow base of the economy but also to set in motion a development process for expanding the base. Accordingly, a national plan of development popularly known as 'first 5-year plan' for the period 1955-60 was approved in principle.

The plan espoused development of resources of the country - material and human- as rapidly as possible so as to promote welfare of the people, provide adequate living standards and social services, secure social justice and equality of opportunity and aim at the widest and most equitable distribution of income and property.

In conformity with the socio-economic objectives, sectoral distribution of resources and targets were laid down in the Plan. Thus, an area of quantitative planning was inaugurated in the country with the formulation of the First Five Year Plan.

However, unlike the then communist countries, Pakistan chose to adopt a model under which individual enterprise remained as the source of economic decision rather than a centralized agency and the government induced producers and consumers to do that which the state planned that they should do.

This pattern of planning has continued with launchings of 5-year plans, ending with 8th Plan (1993-98). A 9th Plan (1998-2003) was formulated on the same lines as previous 5-year plans but not launched because it was not responsive to the needs of time.

In order to implement these 'national plans' planning structures and systems were raised. The apex body was National Economic Council created under Article 156 of the Constitution of 1973 with Prime Minister as its chairman and such other members as the President may determine and one member each from provinces, nominated by the respective provincial governments.

As per Constitution, the functions of the NEC were to review overall economic conditions of the country and to formulate plans in respect of financial, commercial, social and economic policies.

As the NEC could not meet regularly, the executive committee of the National Economic Council (Ecnec) was created as an executive arm of the NEC with federal finance minister as chairman, federal ministers of selected economic ministries, deputy chairman, Planning Commission, provincial finance and planning ministers etc.

The Ecnec - an executive arm of the NEC - is more or less an approving authority of projects costing more than Rs200 million rather than a forum for monitoring implementation of financial, commercial, social and economic policies.

The central development working party at federal level and provincial development working party at provincial level also act as approving authorities of the federal and provincial projects respectively, costing up to Rs200 million.

The traditional planning systems and structures have ceased to have any relevance in the context of globalization which calls for a plan - a plan to implement, what Boutros-Ghali, the former Secretary General of the United Nations calls a new social contract at the global level, for laying down a road map for facilitating integration of global economy at minimal social costs and risks of unemployment, poverty, environmental degradation and, above all, fragmentation of the states along racial, linguistic and religious lines.

The plan, as such, calls for developing mechanisms and policy instruments in the realm of fiscal, monetary, trade policies, etc, which are mindful of the judgment and sentiments of global financial markets, international competitiveness and external balance of the economy and, at the same time, guard against major social upheavals of unemployment and poverty in the country.

In order to grapple with the challenges, many developing countries of the world principally in East Asia were quick to start the process of adjustments and, thereby, gained from globalization while Latin American countries remained in a state of ambivalence, making adjustments in a lacklustre manner.

Sub-Saharan African countries remained largely on the sidelines due to lack of initiation of process of adjustment. Perhaps, Pakistan falls in the category of Sub-Saharan countries.

As a result, negative effects of globalization in social upheaval are quite pronounced. Instead of restructuring and strengthening our structures to face the challenges of transnational forces and safeguarding the adverse social effects, the planning structures in Pakistan have not only become outdated but atrophied over time.

The structures - be it Ecnec, CDWP, PDWP, EC or the Planning Commission or provincial development departments - have not only deteriorated but are ill-equipped both in men and material to keep abreast with daily changes in the world economy and to take measures for swift adjustment of the domestic economy to ward off negative effects.

The outcome is that there is an increasing trend to set the sails of the boat of the economy on the advice of international finance institutions. With the planning structures in shambles, the onerous task of running the economy now squarely lies on the ministry of finance with finance minister heading all economic bodies namely, Ecnec, the Planning Commission, ECC, the Fiscal and Monetary Board etc.

Taking clue of winds of change and preparing the planning structures and systems to counter the negative effects of globalization, the commission in India was strengthened and resuscitated in February, 2001 with six full time members who are specialists in their fields and head functional divisions.

Besides, finance minister and defence minister are ex-officio members of the commission and a minister of state for planning works under a Deputy Chairman with the Prime Minister as the Chairman.

The functions of the commission have also been redefined in the context of globalization to include laying down of an indicative plan and formulating policies in all critical areas of the economy.

Similarly, Malaysia and Indonesia have strengthened their planning structures and redefined functions to cope with the challenges emanating from transnational force particularly mobile investment and finance.

Keeping in view the international market forces and to neutralize negative effects of these forces on our country, it is imperative that the commission should act as a secretariat of the NEC.

The Ecnec should be headed by the Deputy Chairman of the commission and, instead of acting as an approving authority of the projects, it should act as a composite body for all economic and financial matters of the state including functions of cabinet committees on economic matters and fiscal and the monetary board.

The Planning Commission, as in India, should be an independents body and a think tank of the NEC with Prime Minister as chairman and a deputy chairman should be an internally recognized professional, having the status of full Cabinet Minister who should be assisted by four internationally recognized professionals as Members.

The commission should be responsible for preparation of indicative plans and for formulation of all policies relating to economic, commercial, fiscal and monetary matters. We must reckon that unless we restructure our whole system of economic governance, we will continue to be plagued by unemployment, poverty and social strifes.