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The Eight Five Year Plan is now in its fourth yr. Lately, an official midterm assessment for the period 1993-ninety six has been released by the Planning Commission. It paints a discouraging picture of the financial performance during these three years. The general development of the financial system has been well beneath the stipulated goal. Moreover, the pattern of progress and investment, its financing, the mobilization of domestic sources, progress on the path of self-reliance and the pace of privatization have all been at considerable variance with targets visualized.
The stability of funds place throughout the Sixth Plan highlights the fragility of Pakistan’s exterior sector. Remittances from the Middle East fell sharply from the expectation of 10 % annual enhance. A sturdy expansion of exports, however, compensated this adversarial development, and the present account deficit of around three p.c of GNP was not unsustainably high. The nation, nevertheless, remained weak to exterior shocks on account of its narrow export base.
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