Five-Year Plans of Pakistan - History - Second Five-Year Plans (1960-1965)

Second Five-Year Plans (1960-1965)

Despite the failure of first five-year plans, the programmes were revived and restated by the military government of President Ayub Khan. The second five-year plans gave highest priority to heavy industrial development, advancement in literature and science, and had single underlying purpose: "to advance the country as far as possible, within the next five years, along the road of these long-range objectives.". Further improvements were made in railways, communications, and transportation. More attention was given to private-sector industrial development and agricultural industries; the second give-year plans aimed to increase the national income by 20%. The unemployment was tackled with the industrialization of the country, and overall major industrial development was carried out in West Pakistan while few in East. The Second Five-Year Plan surpassed its major goals when all sectors showed substantial growth which also encouraged private entrepreneurs to participate in those activities in which a great deal of profit could be made, while the government acted in those sectors of the economy where private business was reluctant to operate.

This mix of private enterprise and social responsibility was hailed as a model that other developing countries could follow. The second five-year plans oversaw the development of water and power utilities in East and West Pakistan and had energy sector was built with the help from private-sector. The financial services heavily depended on the foreign investment and aid from the United States that bolstered the economy. The second five-year plans were a quiet a big success but it was partially due to generous infusions of foreign aid, particularly from the United States.