Ministry of Planning

Welcometo the Participants of

The North-South University (NSU), Dhaka.

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Design of the Presentation• Structure of Ministry of Planning• Structure of the Planning Commission

(PC), Evolution, Roles and Functions• National Economic Council and it’s

executive committee, functions and ToR• Sectors / Divisions of the PC and their

functions• Institutional Linkage of the PC• Planning Process• Project Planning• ADP Formulation• Web Address

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Ministry of Planning

Ministry of Planning

Planning Division

Implementation, Monitoring and Evaluation

Division (IMED)

Administration Statistics NEC, ECNEC

Apart from that Ministry of Planning works as the secretariat of the Planning Commission

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Structure of Planning Commission

ChairpersonHon’ble Prime

Minister

Vice ChairmanHon’ble Minister for

Planning

Member SecretarySecretary,

Planning Division

Member, Socio-Economic Infrastructure Division

Member, Programming Division

Member, Industries and Energy Division

Member, Agriculture, Water Resources and Rural Institution Division

Member, Physical Infrastructure Division

Member, General Economics Division

Extended Planning Commission: It includes Finance Secretary, ERD Secretary and IMED Secretary.

June 03, 2009 5

Evolution of Planning Commission

• Pakistan Planning Commission, 1953

• Planning Board Created in 1956 and was renamed as

East Pakistan Planning Department, the full-fledged

planning agency of then East Pakistan.

• Planning Cell created in 1971

• Bangladesh Planning Commission started in 1972

• Project Implementation Bureau(PIB) started in 1975

• External Resource mobilization was entrusted to

ERD in 1975

• The Planning Division created in 1975

• Planning cells created in different Ministries/

Divisions in 1975

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Role of the Commission• Planning Commission is entrusted with

the task of planning socio-economic development of the country

• It has a three-folded role in development Advisory role: Advising the government in matters of

development goals and objectives, priorities, strategies and policy measures

Executive role: Preparation of plan, processing of development projects for approval, preparation of Annual Development Programme (ADP)

Coordination role: Co-ordination of whole range of planning activities

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Functions of the Planning Commission

• Policy Planning• Sectoral Planning• Programme Planning• Project Planning• Evaluation of plans & their impact on the

economic development • Five year Plan• Poverty Reduction Strategy Paper• Preperation of ADP• Appraisal of Projects

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Planning Commission mainly works through:

• National Economic Council (NEC)

• Executive committee on National Economic Council (ECNEC)

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National Economic Council (NEC)

NEC the highest body for consideration of development activities reflecting of long term national policies and objectives

• Composition– Chairperson: Hon’ble Prime Minister– Member: All Members of the Council of

Ministers

• Persons required to assist NEC– Cabinet Secretary– Governor, Bangladesh Bank– All Members of Planning Commission– Secretaries of Ministries/Divisions

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Functions of NEC

• Provides overall guidance for perspective plan, Five Year Plans, PRS, ADP & Economic Policies

• Finalizes & approves plans, programmes &

policies

• Reviews implementation progress of

development programmes/projects

• Takes any decision as and when necessary for

socio-economic development

• Appoint committees as required to assist NEC

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ECNEC• Composition

– Hon’ble Prime Minister – Chairperson– Minister for Finance– Alternate Chairman– Minister for Planning – Member– Minister for Agriculture – Member– Minister for Labour and Employment – Member– Minister for Water Resource – Member– Minister for Commerce – Member– Minister for Communications – Member– Minister for Shipping – Member– Ministers / State Ministers for relevant Ministries – Member

• Officers of assisting ECNEC– Cabinet secretary– Principal secretary/secretary, office of the Prime Minister– Secretaries, Planning, Finance, ERD & IMED– All members of the planning Commission & relevant

secretaries.

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ToR of ECNEC

• Approves projects (costing over Tk. 25 crore)

• Reviews projects’ implementation

• Considers Public Private Partnership (PPP)

proposals

• Monitors economic situation & economic

activities

• Policy review

• Consider measures & impact relating to aid

of the development partners

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Sectors/Divisions of the Planning Commission

Planning Division consists of six divisions (17 Sectors)1. Programming Division2. General Economics Division3. Socio-Economic Infrastructure Division4. Agriculture, Water Resource and Rural

Institution Division5. Industries and Energy Division6. Physical Infrastructure Division

Each Division is headed by one Member (Secretary), one Division Chief (Additional Secretary), Joint Chiefs and other supporting officials.

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Functions of the Programming Division

• Resource Allocation for preparation of Annual Development Programme (ADP)

• Co-ordination and guidance of preparation and finalization of Annual Development Programme

• Co-ordination of multi-sectoral Projects• Release / Reallocation of Funds where

necessary (Revised Unapproved Projects)

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Functions of the General Economics Division

• Evaluation of Plans and Policies• Review of macro-economic situation• Assist to determine macro-economic

Policies.• Co-ordination of finalization of plan,

perspective plan, Five-year plan etc.• Poverty Reduction Strategy Paper,

MDGs, Vision Paper etc.

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Functions of theSocio-Economic Infrastructure Division

• Formulation of sectoral plans for education, health, Socio-Welfare, Women Affairs, Youth and Sports, Cultural Affairs, Mass Communication, Science and ICT, Public Administration, Labour and Employement

• Process and apprise of development projects for approval

• Preparation of sectoral Annual Development programmes in consultation with line ministries

• Formulation of sectoral development and Planning Policies

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Functions of the Agriculture, Water Resources and Rural Development Division

• Formulation of Sectoral Plans for Agriculture including Forest Livestock and Fisheries, Water resources and Rural Development.

• Process and apprise of development projects for approval

• Preparation of sectoral Annual Development programmes in consultation with line ministries

• Formulation of sectoral development and planning Policies.

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Functions of the Industries and Energy Division

• Formulation of sectoral Plans for Industries, Power, Oil, gas and natural resources.

• Process and apprise of development projects for approval

• Preparation of sectoral Annual Development programmes in consultation with line ministries

• Formulation of sectoral development and planning Policies.

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Functions of the Physical Infrastructure Division

• Formulation of sectoral Plans for Transport (Road, Rail, Shipping, Air), Communication, Physical Planning, Water Supply and Housing

• Process and apprise of development projects for approval

• Preparation of sectoral Annual Development programmes in consultation with line ministries

• Formulation of sectoral development and planning Policies

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Institutional Linkages of Planning Commission with other Ministries/Divisions/Organizations

PlanningCommission

NEC/ECNEC

ERD

FD

Ministries/ Divisions

BBS

APD

IRD

BIDS

IMED

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Planning Process• Perspective Plan• 15-20 Years vision indicative• Last one in 1995:Participatory Perspective Plan• Objectives:

– Poverty Reduction– Generation of Productive Employment– Attaining Self Sufficiency in food production– HRD– Private Sector Development

• Work on preparation of participatory perspective plan for 2010-2021 is going on.

• Preparation of vision paper 2030 is going on. • 6th Five-Year plan is under preparation

* Poverty Reduction Strategy: Unlocking the Potentials (2005-2008)

* Second Poverty Reduction Strategy: Moving Ahead (2009-2011)

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Planning Process (Cont…)

• Prepared based on Models – Input Output (IO) table , Social Accounting Matrix (SAM) & Computable General Equilibrium (CGE) model

• Prepared in Consultation with

Sectors, Ministries, Agencies

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Planning Process (Cont…)

Steps in the Formulation of Five-Year Plan

Evaluation of Past Plan Performance

Preparation of Technical/ Policy Framework Indicating Desirable and Realistic Growth Rate

Reconciliation of Sectoral Plans with the Macro Framework of FYP

Resource Forecast in Co-operation with IRD, FD, ERD

Reconciliation Resources/Demands

Sector Divisions Prepare Sectoral Plans/Programmes

Demand of Resource by Ministries/Agencies

Place before NEC/Minister for Approval

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Project PlanningClassification of Projects

Development Projects

Investment Projects

Technical Assistance

Projects

Minister in charge of

Planning is the Approval Authority of

Projects Costing up to Tk. 25

Crore

ECNEC is the

Approval Authority of

Projects Costing

over Tk. 25 Crore

Minister in charge of

sponsoring Ministry is

the Approval Authority of

Projects Costing up to Tk. 7 Crore

Minister in charge of

Planning is the Approval Authority of

Projects Costing over Tk. 7 Crore

Self Financed Projects are approved by the Minister in change of the Sponsoring Ministries.

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Project Planning (Cont…)

A simplified series of steps in Investment Projects Processing / Approval Process

Generation of Project idea from sectoral Plans/Five Year Plan/Poverty Reduction Strategy

Formulation of Development Project Proposal (DPP) by Executing Agencies

Ministries Scrutinize the DPPs

Sector Divisions of the Planning Commission Appraise the DPPs

Project Evaluation Committee (PEC) Recommends for Approval

Minister for Planning Approves Project Costing up to Tk. 25 crore

ECNEC approves Projects costing over Tk. 25 crore

Approved projects listed into ADP for implementation.

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ADP Formulation

A simplified series of steps in the formulation Process of Annual Development Programme

At the initiative of the programming division of the Planning Commission, the Inter-ministerial “Resource Committee” at the Finance Division estimates the resources availability for the ADP

Programming Division of Planning Commission prepares the sector/project wise ADP allocation in consultation with the Sector Divisions and GED of the Planning Commission and sponsoring Ministries and agencies.

Programming Division place the draft ADP at the Planning Commission Meeting for finalization

Planning Division Submit the final ADP to NEC for formal Approval

Please Visit

www.plancomm.gov.bd

Thank You