12th Five-Year Plan (2018-23): government projecting to raise investment, industrial output, tax revenue

Setting the ambitious targets for the 12th Five-Year Plan (2018-23), the government is projecting to increase investment from 15 percent to 20 percent, raise industrial output from 13 percent to 20 percent, enhance tax revenue to 16 percent and boost savings up to 18 percent of Gross Domestic Product (GDP).
This has been projected in the 12th Five-Year Plan (2018-23) by the Ministry of Planning, Development and Reform, a copy of which is available with Business Recorder.
The actions envisaged to increase investment include: (i) improved tax administration by making the system taxpayer friendly, innovative and modern; (ii) encouraging financial institutions to expand the range of savings and revitalising industry to ensure maximum GDP and job growth; (iii) technology up-gradation and value addition in export-focussed sectors; (iv) and improvement in competitiveness and cost of doing business indices as well as investment instruments they offer.
The ministry has projected improvement in agricultural terms of trade by 30% through steps including: (i) reduction in cost of production and increase in productivity; (ii) market mechanism for economic holding; (iii) targeted subsidies for smallholders; (iv) efficient agriculture marketing; (v) and price de-capping.
The government plans to make Pakistan a net food exporting country through: (i) agriculture diversification and value addition; (ii) import substitution; (iii) reforming/modernising agriculture produce markets; (iv) harvest opportunities under the CPEC; (v) and taking sanitary and phytosanitary measures and quality compliance.
It is also projected that industrial output to grow from 13% to 20% of GDP and exports to reach $50 billion (high tech exports: 2-5%) by focusing on the steps including; (i) revitalising industry to ensure maximum GDP and job growth; (ii) technological up-gradation and value-addition in export-focused sectors; (iii) promoting high technology exports in traditional sectors including civilian spillovers; (iv) improvement in competitiveness and cost of doing business indices; (v) and implementation of mineral and natural resources development policy/action plan.
About bringing improvement in tax regime, it is projected to enhance the tax to GDP ratio from 12 to 20 % by: (i) removing bottlenecks in tax system and tax exemptions; (ii) review and simplification of tax law, rules and regulations; (iii) creation of central data bank of businesses, non-tax payers and tax payers; (iv) bringing an end to automation of tax system; (iv) establishment of transit trade management system; (v) segregation of functions of tax administration and tax policy; (vi) and implementation of ICT-based National Single Window (NSW) system to provide unified platform for trade regulators.
The government also projected to increase public spending on education and health to 4 percent and 2 percent, respectively, of GDP in the next Five-Year Plan. The government would increase resources for education and make sure 100 percent enrolment of children in schools, besides improving teachers'' training. The government would also take measures to focus on primary and primitive health, and communicable diseases, etc.
The ministry also set a target of adding 14,000 MW electricity in the national grid during the next five years with focus on renewable sources, addition of 35,000 MVA transmission capacity, and augmentation of existing power transmission & distribution systems. The government also plans to eliminate the circular debt.
The government would also take measures for increasing access to modern energy services from current 73% to 85% by the end of Plan period (ultimately 100% by 2030) and successful implementation of plan under Sustainable Energy for All Initiative,
The ministry also projected to reduce population growth rate to less than 1.9 percent by taking measures including political ownership, population policy formulation, legislation for child marriages and the NFC Award. The other measures would also be taken including: (i) demand side focused campaigns; (ii) functional integration of provincial health and population welfare departments; (iii) reforming high risk fertility behaviour, (iv) focusing other determinants of high fertility rate; (v) enhanced funding for population and family planning; (vi) and to ensure contraceptive commodity security and coverage.
The government also plans to promote peaceful and inclusive society by providing access to justice and ensuring rule of law. The government would also take measure to enhance rule of law and equal access to justice and make the institutions efficient, strong, accountable and transparent through capacity building of judiciary, police, FIA, NAB and other law enforcement agencies. The government plans to review and reform the criminal justice system, introduce automation and e-governance of court system through implementation of judicial policy, National Action Plan and National Security Policy in letter and sprit etc.