What is Economic planning?
Economic planning consists in the extension of the function of public authorizes .To organization and utilization of economic resources. Economic growth and development is not the result of any factor. But these depend upon various factors. Like natural resources, stock of capital, manpower, technology ,attitude of the people and political condition in the economy
Basic factor (Economic survey of Pakistan 2023-2024)
| Saving rate | 6.9% |
| Capita income | $1195/annum |
| Literacy rate | 60% |
According to Charles Bettelheim;
‘’ Economic planning is concerned with whole of economic life ,or the entire activity of an economic unit ‘’
Types of Economic planning
- Centralized and decentralized planning
- Integrated and partial planning
- Functional and structural planning
- Physical and financial planning
- Corrective and development planning
Importance of economic planning
Control on poverty the planning, economic development is possible national income . per capita income can be raised and poverty can be removed
Produced use of resources: planning make possible optimum of recourses .In planned economy, huge amount is spending on advertisement.
Industrial development ; without industrial development no country can make progress. Good industrial development need a planning. So planning is necessary for the establishment of new industries .We can find this objective in various plans of Pakistan .
Control on regional disparity; with the help of good economic planning. The regional disparity can be removed. In plan special fund are allocated for the development of backward areas.
No shortage; planning prevent the artificial shortage of goods created .By businessmen to earn more profit the prices of commodities are not allowed to fluctuate.
Productive competition; wasteful competition among the producer’s ends with planning .In unplanned economy huge amount of money is spending on advertisement.
Need for Economic Planning
Fair income distribution; in developing countries there is unfair distribution of wealth .“The poor becoming poorer and the rich are becoming richer” .through the state can be reduce the inequalities in income.
Increase in employment; with the help of good planning ., Optimum of resources becomes possible so, there is a need of employment of competent persons.
Terms of trade ; unfavorable terms of trade adversely affect the rate of economic growth. The state though planning can be control the volume. And directions of foreign trade so the country can move on the path of economic development .
Better CO-ordination ; in under developed countries ,millions of production work without bothering. As to what businessmen are doing the planning authority can co ordinate. The working of individuals in proper way. So country can make progress at the highest growth rate .
Population control ;when size of population is greater than the size of national resources .It becomes dangerous for the economy. So population can be controlled with effective planning .
Decision making; the decision of the state are superior .As compared to that of individuals. Individuals have limited knowledge .Scope for economic activity the state can develop .The country economically at a desired level.
education system ;with the help of economic education system may be good and effectivelyNo food shortage; self sufficiency in food forms a sound and solid base for the economy nowadays. Achieving this objective requires good economic planning. The agricultural sectors are proposed as the target in the 8-year plan.
Economic stability; businesses experience periods of prosperity followed by periods of adversity. Planning is a powerful instrument for mitigating business fluctuations.
Economic stability; the period of prosperity in business is followed by a period of adversity .So planning is a powerful instrument to element the business fluctuation.
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Conclusion
If the above mentioned factors and conditions are fulfilled by any country, it can controlled through economic planning by good planning it can be make development very easily and quickly the result of the above discussion is that prime mover of the economic growth of a country
