Economic Planning is essential for development

Estimated reading time: 2 minutes

Economic Planning is essential for the development of economy in any state. That’s why every state set its economic goal. So, to achieve those goals, and objectives. State formulate policy by keeping in view the certain economic goals.

Prof: Lewis Lorwin has defined planning in the following words:

“Economic planning is a scheme of an economic organization ……. For the purpose of utilizing all available resources to achieve maximum satisfaction of people’s needs within a given time.”

Reasons for planning:

Economic Planning is essential for the development of economy in any state; following reasons suggest that the question of economic planning deserves special attention of the policy makers in Pakistan.

  • National income needs to be enhanced.
  • Standards of living need to be improved by increasing per capita income level.
  • New job opportunities need to be created in order to meet the problem of unemployment.
  • In order to stabilize prices inflation needs to be checked.
  • Self-sufficiency in food needs to be achieved.
  • Disparity among different classes of the people needs to be reduced.
  • A batter balance of payment needs to be acquired by improving foreign exchange earning capacity.
  • Investment behavior needs to be reoriented and brought in conformity with the national interests instead of the narrow personal interests of the investors.
  • Fundamental rights of the labour force need to be protested; their working conditions and wages need to be improved.
  • Process of sustainable economic growth needs to set in by creating an atmosphere congenial for long term development planning.

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