IMPLEMENTATION – 5ES FRAMEWORK
We fully recognize the acute implementation challenges – including pushback from vested interests – that will be faced to successfully deliver 5Es. We have accordingly made the successful implementation – to be delivered over a rigorously defined road – map and time-line – our primary performance indicator.
Key Aspects:
1. SUSTAINED EXECUTIVE COMMITMENT AND SUPPORT
In addition to strong commitments from federal and provincial governments, this framework represents inputs and consensus from a wide range of stakeholders as highlighted in the beginning of the document. Further, the deep engagement of the private sector and civil society in 5Es will ensure that its attainment remains a focal target for any subsequent government as well. Sustaining this broad commitment will be paramount in facing the acute implementation challenges – including pushback from vested interests – to successfully deliver 5Es. For this purpose, a Governance Framework will be put in place to ensure the necessary oversight required for delivering short term, medium term and long term targets.
2. RESOURCES AND MACROECONOMIC CAPACITY
Improved resource mobilization – including tax collection, exports, domestic savings, and formalization of informal economy will be vital for the successful implementation of the 5Es. More resources will be generated from formalization of informal economy through adequate incentives, such as facilitating documentation, simplifying rules and procedures, easy access to dispute resolution, access to information and generally removing barriers to formalization. Sharing the tax burden between sectors could add another 3-4% to tax-to-GDP ratio in the short-run and up to 6% in the medium-term. To attain and sustain 7-8% GDP growth on average till 2035, we will require: a tax-to-GDP ratio of 16-18%; investment rate in the range of 22-25% of GDP, primarily financed through domestic savings; merchandized exports-to-GDP ratio of 16-19%; and single digit inflation.
Average inflow of foreign savings for the last four years remained at 1.3% of GDP. A healthy inflow of foreign savings is estimated at 3-4% of GDP in the medium-term to long-term. This implies that additional investment will be financed from foreign savings of up to 2.7% of GDP until 2035. The projects in the energy sector and National Economic Corridor will be financed by the substantial inflows of foreign investment and disbursements from multilaterals. In the energy sector and National Economic Corridor will be financed by the substantial inflows of foreign investment and disbursements from multilaterals in loans.
3. PRIVATE SECTOR ENGAGEMENT
Fiscal deficit will be curtailed to below 4% of GDP to avoid crowding out of the private sector. The public and private sectors will mobilize domestic savings of about 18% of GDP by 2035 to finance investment from domestic resources. Financial markets will be strengthened to channel savings into productive sectors. Pakistan’s private sector will engage East Asia, particularly China to draw FDI in sectors such as the chemical and light industry, where these economies are feeling the pressure of rising real wages. This could be a potential source of financing in addition to improving technological capability and the skill base of the Pakistan
economy.
4. 5ES GOVERNANCE FRAMEWORK
5. MOBILIZATION OF DIASPORA
In addition, the Pakistani Diaspora will be mobilized and incentivized to invest in Pakistan and bring know how. Pakistan’s trade linkages with North America, EU, Russia, East Asia and their neighbours will expand especially with China, Central Asia, the Middle East and India. Completion of key infrastructure and energy sector projects will contribute to the national economy.
6. RADICAL IMPROVEMENT IN PRODUCTIVITY
The share of total factor productivity to GDP growth in 2013 is one-fourth of its level during the 1980s. Its contribution to GDP growth will be increased exponentially. Public social sector spending (education, training, health and social protection) will increase to 7-8% of GDP. This will enhance quality and productivity of the national work force. Adoption of progressive farming techniques will improve yield of major crops by 40%. Crop losses will decrease by 50% by streamlining input supplies. Manufacturing and services sectors will focus on high valueadded products to increase productivity.
7. SOCIAL SUSTAINABILITY: UNLEASHING THE POWER OF COLLABORATION – ENGAGING GOVERNMENT, PRIVATE SECTOR, ACADEMIA, CIVIL SOCIETY, AND CITIZENS.
The present government – federal and provincial – is highly committed to deliver the objectives of 5Es on its own. We recognize that active engagement and buy- in from the private sector, academia and the Pakistani Diaspora will be an essential ingredient for its success.
Only the resultant collective and collaborative engagement will provide it with the necessary resources, ideas, and continuity to sustain the requisite momentum to 2035 and beyond. The 5Es framework seeks to unleash the power of collaborative networks and community led initiatives at all levels.
Social sustainability in particular requires a focus on inclusive community engagement, creating opportunities, and fostering social cohesion and inclusion. Considering sustainability aspect, 5Es have several special initiatives and opportunities for citizens at all levels.
To ensure the lasting benefits, and continuity, uniquely designed initiatives would engage multi-stakeholders and exclusively the civil society.
8. NETWORK OF 5ES CHAMPIONS – CHAMPIONS OF REFORMS
To achieve sustainability, and allow active engagement, collaboration and leadership roles,citizens will be encouraged to become 5Es Champions – at District,Provincial and Federal levels. Champions will be selected based on their contribution with exceptional new ideas,notable accomplishments in line with the 5Es aspirations, and leadership roles in community- based initiatives.
Selected 5Es Champions will be facilitated to become part of related networks at the district,provincial and national levels – enabling them to play roles reflecting their full potential.
Some of flagship initiatives for youth engagement include:
- 75 Scholarships for Top-ranked 25 International Universities
- Overseas Scholarship for MS/M. Phil and Ph.D.
- Ba-Ikhtayar Naujawan Internship Program (60000 internships)
- Young Development Fellows (YDFs) (40 young professionals)
- Upgradation of 250 TVET Centers
- Pakistan Innovation Fund
- National Innovation Award
- Prime Minister’s Youth Business & Agricultural Loan Scheme
- Youth Leadership Awards
- Young Peace Development Corps (YPDC)
- Green Youth Movement, and Registration of Youth Organizations
- Talent Hunt Youth Sports League (THYSL)
- 250 Mini Sport Complexes
9. KNOWING- TO- DOING APPROACH
Research and observation shows that knowledge of what should be done to improve organizational performance often fails to translate into activities and behavior that is in line with that knowledge. Accordingly, the Knowing-doing Approach aims to identify and address the causes of good plans not getting implemented. This approach teaches us that the best way to do the right thing and to do it right, is to create bias for action and delivery and learn by doing: plan, avoid procrastination, gather resources and execute!
10. PERFORMANCE MANAGEMENT AND EVALUATION FRAMEWORK
This section presents the essential framework that would be used to enable a portfolio of public sector projects to be aligned to the national vision and help in the execution of these projects at the Federal and Provincial levels. A key to enhancing public sector effectiveness is Performance Based Planning and Implementation. Performance-based dashboards provide a paradigm shift from traditional Management Information System (MIS) – and are designed to reflect Vision/Strategy, Road- Map Targets, Key Performance Indicators (KPIs) and Score cards – at national and provincial levels across institutional, departmental, and individual ranks while leveraging the integrated ICT infrastructure.
- Clarity of Program/Project Scope and Charter: The government will amend the PC-I format so as to allow for the scope of each program and project to be defined clearly. Every PC-I (Project Planning Form) document must contain and use empirically tested project “success factors” and “success criteria” in addition to quantitatively measura ble KPIs and targets to ensure accountability.
- Strategic Delivery Units (SDUs): For large and complex programs and projects, SDUs will be formed. These SDUs will be staffed with qualified and professional personnel that are well versed in project management methodologies and best practices. These units will have the primary project monitoring and assessment responsibility and authority.
- Program Management for Cross Benefits and Coordination with Provinces: A plan ning and benefits coordination exercise will be conducted at the portfolio level, in the Planning Commission, in coordination with all provinces and ministries. After the 18th amendment, many ministries/ divisions have been devolved to the provinces. Accord ingly, their programs and projects will be coordinated effectively to achieve the overall national goals and standards.
- Resources - Technical Capability: Proper training on project management tools, methodologies, and best practices is essential in order to successfully implement and deliver projects. Thus, Federal and Provincial Governments will launch capacity build ing programs in the areas of project management, alternative service delivery, pub lic-private partnership, leadership, and team building at National and Provincial level.
- Balanced Scorecard KPI Approach: Balanced scorecards will be introduced across all Ministries and departments of Federal and Provincial Governments. Key Performance Indicators will be aligned with 5Es priorities. A tracking system will be put in place to create visibility and highlight red flags. Balanced scorecards will help create a high-performance mindset to drive delivery.
- Pillar Labs: Labs will be conducted for each pillar. All key stakeholders (including gov ernment, private sector and academia) will be brought together to chalk out action.
11. DELIVERABLES OF 5ES
A shift from traditional ongoing practices faces resistance from the stakeholders. The biggest challenge when transitioning to a “performance” based management system is transforming the ingrained organizational structure and cultural values. Therefore, getting collective buy-in turns out to be the fundamental precondition besides capacity building of the human resources involved in this initiative.
Accordingly, we are fully committed to mitigate the challenges and potential pushback as mentioned in the following table:
12. FIRST STEPS TAKEN
The first steps towards achieving 5Es have been initiated after extensive consultation with public and private stakeholders during the Turnaround Conference 2022 to turn Pakistan’s future around and move towards prosperity. The Ministry of Planning, Development & Special Initiatives, under the leadership of Minister Ahsan Iqbal, came up with a 5Es framework to combat Pakistan’s socio-economic issues in the short and medium term. This framework builds upon the broader vision outlined in Pakistan Vision 2025, a comprehensive development road map designed to transform Pakistan into a strong, inclusive, and prosperous nation. It contains several new programs, including Scholarships and loan provisions for IT professionals and students, 60,000 internships would be offered to recent graduates from various fields under Ba-Salahiyat Naujawan Internship Programme, Technologies Application in Industry and Development Sectors, 40 Young Professionals under Young Development
Fellows Programme, Value Addition in Industry and Agriculture through SME Cluster Development Plan for High Potential export sector, Power Projects, and Economic Corridor Projects.
13. DOCUMENT REVIEW AND UPDATE
5Es is a live document. To calibrate targets with new national and global imperatives the 5Esd ocument will be reviewed and updated once every three years