Select Page

Manual for Development Projects (the manual) is one of the most sought after documents by professionals associated with public sector project management in Pakistan. The compilers have termed it as an achievement in furtherance of planning and development activities in the country.

Purpose of the Manual

The manual contains detailed description and analysis of various phases across generic life cycle of public sector projects in Pakistan. It chronicles and compiles relevant rules, orders, and instructions of Government of Pakistan, from time to time, across these phases.

In a way, it streamlines and presents overall planning and development framework in Pakistan. Furthermore, it is intended to serve as a guide to take on challenges faced across different project phases – preparation, appraisal, approval, implementation, monitoring, and evaluation.

It was well received by concerned organizations and their representatives. Furthermore, they benefited immensely from it. It is was aimed to serve as a guide for all those who are concerned with the public sector project development and implementation in Pakistan.

Evolution of the Manual

The manual has evolved significantly over time. First edition of the manual was published in 1991 by Projects Wing, Planning and Development Division, Government of Pakistan. Later on, it was revised, updated and published in May 1997. Over a very short time span it went out of print despite growing demand. Finally, the manual was renamed and transformed to Guidelines for Project Management and was published in August 2008 by Projects Wing, Planning Commission, Government of Pakistan.

Manual for Development Projects (Revised) 1997

Over here we are presenting the revised version (or second edition) of Manual for Development Projects which was published by Projects Wing, Planning and Development Division, Government of Pakistan in May, 1997.

Please note that the revised edition of the manual contains all revisions and changes made in the intructions, rules and procedural guidelines over time span of 1991 till February 1997.

A number of practitioners argue that though a number of individual elements of the manual may not reflect current situation, however, the overall framework remains intact. For example, like mentioned in the manual, we still have PC-I, II, III, IV and V. However, they have been updated.

Therefore, it is advised that readers may confirm currency of a particular element of the manual before it implementation.

Main Parts of Manual for Development Projects

The comprises of two parts.

  • Part – I is the Main Text of the Manual and contains guidelines based on Government orders and instructions. It incorporates practical insigts gained over time.  It comprises of ten chapters. The first chapter starts with review and chronicles of planning and development framework in Pakistan. Chapter 2 to 8 details the framework using project life cycle or span approach. The last two chapters are about Social Action and NGOs Support Programmes.
  • Part – II is collection of Annexures. It comprises of a rich list of annexes that have been referred to in the main text of the manual. In certain cases, they serve as supporting or foundational material to the main text of the manual

Summary of Main Text of the Manual

Chapter 01 – Planning Machinery in Pakistan: The chapter portrays public sector planning and development framework in Pakistan. It focuses on evolution of Planning Machinery with specific emphasis on institutional or structural arrangements for managing development policies and its implementation through programmes and projects.

Chapter 02 – Project Identification: The chapter describes first phase of the prescribed project life cycle or span. It duly stresses on importance of fixation of priorities and formulation of feasible projects in the back drop of resources availability. Furthermore, it elaborates different potential sources for identification of projects in the public sector.

Chapter 03 – Feasibility Study: Selection of a sound project is critical to achievement of planned objectives for a particular sector. The chapter underscores this fact and discusses roles of feasibility studies in ensuring this. It also provides guidelines on preparation and processing of PC-II proforma required for conducting surveys and feasibility studies.

Chapter 04 – Project Preparation: The chapter focuses on preparation of public sector projects, especially issues and guidelines related to it at different levels. Project are prepared using a project document known as PC-I proforma. The chapter provides guidelines on individual elements of the proforma.

Chapter 05 – Project Appraisal: It is third phase of the project life cycle. The chapter provides an in-depth account of different aspects and types of appraisals. Specific emphasis is placed on finacial and economic appraisal. It also deliberates on different methods and techniques of appraisal. Example or practice statements are also included.

Chapter 06 – Project Approval: Normally, project approval is based on results of appraisal. The chapter discusses dynamics of project approval for different types of projects at different levels in Pakistan. It differentiates between different types of approvals.  It also gives account of various approving bodies and their corresponding sanctioning powers.

Chapter 07 – Project Implementation and Monitoring: It is the fourth phase where you actually carry out the planned work. Issues discussed includes change in scope,  delays, and scheduling techniques like PERT and CPM. The chapter depicts true role of monitoring and describes related concepts, methods & techniques, and quarterly progress reporting mechanism.

Chapter 08 – Project Evaluation: It is the final phase of project cycle. Evaluation is essential for improving effectiveness and efficiency of development expenditure. The chapter describes need and importance of evaluation, different types of evaluation, difference between monitoring and evaluation, requirements for undertaking and use of evaluation studies.

Chapter 09 – Social Action Programme (SAP): SAP was a national programme that aimed to strengthen basic social services. It promoted active involment and coordination of all stakeholders – national and provincial governments, NGOs, private sector, and communities. The chapter discusses design and implementation aspects of the programme in detail.

Chapter 10 – NGOs Support Programme: Recognizing the key supporting role of NGOs in socio-economic development and increasing interest shown by international donor community,  necessitated the government to streamline foreign assistance programme to NGOs in the country. The chapter details specifics of Standing Committee on NGOs created for the purpose. 

Table of Contents – Manual for Development Projects

Chapter 01 - Planning Machinery in Pakistan
1. Planning Concept
2. Development Board
3. Planning Board
4. Planning Commission
5. Planning & Development Division
6. Federal Ministries/Divisions
7. Provincial Planning & Development Departments
8. Conceptual Definitions
a) Annual Plan
b) Roll-On-Plan
c) Five Year Plan
d) Perspective Plan
e) Public Sector Development Programme (PSDP)
– i) Federal Vs Provincial Projects
– ii) On-going Vs New Projects
– iii) Foreign-Aided Projects
9. Transformation of Plan into Viable Projects/Programmes
10. Definition of Project and its Contribution Towards Achievement of Overall Plan Goals/Objectives
11. PC-I, II, Ill, IV, and V Proformae
12. Umbrella PC-I
Chapter 02 - Project Identification
1. Sources of Project Identification
2. Plan Priorities/Plan Documents
3. Sectoral Analysis and Current Situation
4. Special Policy Directives
5. New Ideas/Areas of Investment
6. Potential Projects
Chapter 03 - Feasibility Study
1. Why Feasibility Study Needed
2. Dimension of a Feasibility Study
3. Preparation/Processing of PC-I I
4. Appointment of Consultants
Chapter 04 - Project Preparation
1. General
2. Linking Projects to Resources
3. Location, Area and Population Coverage
4. Project Description
5. Project Objectives and Targets
6. Change in Scope of Projects
7. Cost Estimates
8. Revised Cost Estimates
9. Financial Plan
10. Financial Phasing
11. Physical Scheduling of Activities
12. Period of Implementation
13. Appointment of Consultants for Project Preparation, Detailed Designing and Tender Documents Economic Benefits
14. Inter-Agency Coordination
15. Preparation of PC-I/Project Document
Chapter 05 - Project Appraisal
1. Purpose
2. Various Aspects of Appraisal
a) Technical Analysis
b) Institutional/Organizational/ Managerial Analysis
c) Social Analysis
d) Commercial Analysis
f) Financial Analysis
g) Economic Analysis
h) Pricing of Project Inputs and Output
i) Identifying Project Cost and Benefits
j) Appraisal Methods/Techniques
k) Pay Back Period
l) Value Added
m) Capital-Output Ratio
n) Proceeds per Unit of Outlay
o) Average Annual Proceeds Per Unit of Outlay
p) Discounting Techniques
q) Net Present Worth (NPW)
r) Benefit-Cost Ratio (BCR)
s) Internal Rate of Return (IRR)
t) Net Benefit-Investment Ratio (NBIR = NIK Ratio)
u) Sensitivity Analysis (Treatment of Uncertainty)
v) Choosing between Mutually Exclusive/ Alternate Projects
w) Domestic Resource Cost (Modified Bruno Ratio)
Chapter 06 - Project Approval
1. Approval Stage
2. Project Approving Bodies
3. National Economic Council (NEC)
4. Executive Committee of National Economic Council (ECNEC)
5. Economic Coordination
6. Committee(ECC) of the Cabinet
7. Central Development Working Party (CDWP)
8. Departmental Development Working Party (DDWP)
9. Provincial Development Working Party (PDWP)
10. Sanctioning Powers of Approving Authorities
11. Submission of Schemes to the Competent Authority
12. Processing of Schemes Procedure for Meetings of Various Bodies
13. Time Limit for Approval of Projects
14. Anticipatory Approval
15. Anticipatory Approval of Communication Projects
16. Issuance of Administrative Approval
17. Concept Clearance for Foreign Aid Negotiation of Projects
18. Public Private Partnership Projects
Chapter 07 - Project Implementation and Monitoring
1. Project Management & Supervision
2. Appointment of Project Director
3. Increase in Scope of Work and Delay in Execution of Projects
4. Project Execution/Supervision• Development of
5. Management Information System (MIS)
6. PERT/CPM Techniques
7. Steps in Project Formulation/Implementation
8. Listing of Activities
9. Acquisition of Land
10. Tendering of Civil Works and
11. Award of Contracts
12. Procurement of Machinery & Equipment
13. Local Purchase/Fabrication
14. Foreign Procurement/Utilization of Foreign Aid
15. Submission of Completion Report
16. Project Review and Monitoring
17. Progress on PC-Ill Proforma
18. Progress Review by the Ministries/Divisions
19. Projects Review Groups
20. Review of Foreign Economic Assistance and Problematic Foreign Aided Projects by the (ECNEC) Committee
21. Protect Monitoring
22. Role in the Project Cycle
23. Conceptual Definition
24. Kinds of Monitoring-Internal Vs External
25. Monitoring Indicators
26. Institutional Arrangements
27. Progress Monitoring Proformae
28. ECNEC Decisions
29. NEC Decisions
30. Monitoring Methodology- Methods and Techniques
31. Project Selection Criteria
32. Collection of Monitoring Data
33. Monitoring Teams
34. Progress Monitoring Reports
35. Inter-Agency Meetings
36. Performance Auditing
Chapter 08 - Project Evaluation
1. Significance
2. Purpose of Evaluation
3. Types of Evaluation
4. Difference between Monitoring and Evaluation
5. Evaluation Indicators
6. Requirements for Undertaking an
7. Evaluation Exercise
8. Feed-back for the Future
Chapter 09 - Social Action Programme (SAP)
1. Conceptual Framework
2. Selection Criteria
3. Institutional Arrangements
4. SAP Operational Secretariat in Ministry of Local Government and Rural Development
5. Role of District Social Action Boards (DSABs)
6. Processing of SAP Schemes
7. Monitoring and Evaluation System
8. SAP Disbursement Through Statement of Expenditure (SOES)
9. SAP Procurement Procedures
10. Accounts, Audit and Reporting System
11. Releases of SAP Tied Funds
12. Staff Appointment for SAP Sectors
13. Exemption of SAP from Budget Cuts
Chapter 10 - NGOs Support Programme
1. Composition
2. Functions
3. Procedure of Applying for Foreign Assistance
4. Eligibility Criteria
5. Scrutiny & Approval of Project Proposals
6. List of the Documents to be attached with the Application Form

Part – II Annexures

I. Public Sector Development Programme (PSDP) 1996-9
II. PC-I, PC-II. PC-Ill, PC-IV, PC-V and Low Cost PC-I Proforma
III. Task Force Guidelines for filling PC-I and PC-II Proformae
IV. Improving the Efficiency of Development Expenditure through Institution of Appropriate Monitoring and Evaluation Procedures (Preparation of Feasibility Studies)
V. Procedure for Preparation and Approval of Development Schemes
VI. Consultancy Provision-Directive of ECNEC/ECC
VII. Extracts from the Summary on submission of a Programme to Rationalise the Foreign Consultancy Element in the Foreign Assistance in the 7th Five Year Plan
VIII. Guidelines for the Appointment of Domestic and Foreign Consultants
IX. Protection of Key Points
X. The Concept of Development Expenditure for the Second Five Year Plan
XI. Question whether limit of 15% for incurring Expenditure in excess of the Originally Approved Cost without re-submitting the Scheme to the Approving Authority should be applicable to the successive revision
XII. Conformity with Approved PC-I in Implementation of Projects (December 1989)
XIII. Conformity with Approved PC-I in Implementation of Projects (January 1996)
XIV. Extension in the Period of Execution of the Projects
XV. Revision of Schemes as soon as Excess Cost beyond. 15% comes to knowledge
XVI. Approval of the Schemes Revised on account of de-linking of Pakistan Rupee from US Dollar
XVII. Provision for Cost Escalation in the Development Schemes
XVIII. Improving the Efficiency of Development Expenditure through Institution of Appropriate Monitoring and Evaluation Procedures
XIX. Typical CPM Chart
XX. Financial Powers of various Authorities/Fora (Approved by the ECNE.C on 9-7-1987 and NEC on 21-5-1987 and 20-5-1991)
XX-A Procedure regarding Approval of Development Schemes
XX-AI Strengthening of Planning Process
XX-AII Corporations Investment Programme, 1996-97
XX-B Prior Clearance of the Finance and Cabinet Division in respect of those Construction Projects not related to Social Sector
XX-C Construction of Administration/Office Buildings
XXI. Re-Constitution of the Executive Committee of the National Economic Council (ECNEC)
XXII. Re-Constitution of the Economic Coordination Committee (ECC)
XXIII. Procedure for Preparation and Approval of Development Schemes
XXIV. Composition of the Central Development Working Party
XXV. Submission of all PC-ls and PC-IIs etc. to the Financial Advisor concerned for his Comments/Clearance before submitting them to the Central Development Working Parties concerned.
XXVI. Procedure for submission of Schemes to the Planning & Development Division for approval by the CDWP/ECNEC.
XXVII. Flow Chart of PC-I/PC-II in the Planning Commission
XXVIII. Procedure in regard to Executive Committee of the National Economic Council
XXIX. Procedure for Approval of Development Schemes- Pre-CDWP Meetings
XXX. Procedure in regard to ECNEC- Grant of Anticipatory Approval by the Chairman, ECNEC
XXXI. Procedure for Preparation and Approval of Development Schemes-Power -of various Authorities to Sanction Development Schemes
XXXII. Delegation of Powers to the Provincial Governments to Grant Anticipatory Approval in respect of Projects within their Sanctioning Competence
XXXIII. Issue of Administrative Approval. in respect of Schemes Approved by the Executive Committee of the National Economic Council
XXXIV. Inclusion of Foreign Aided Projects in the Annual Development Programme
XXXV. Composition of the Concept Clearance Committee
XXXVI. Revised Format for submission of Projects Proposals for Concept Clearance
XXXVII. Clearance of Foreign Aided Projects by the Prime Minister
XXXVIII. CDWP Concept Clearance of Projects
XXXIX. Increase in Scope of Work and delay in the Execution of the Development Projects
XL. Import of Machinery and Engineering Goods
XLI. Prompt Supply of Monitoring Information/Data by Executive Agencies (Cabinet Division’s D.O. No.52/CF/81, dated February 26, 1981)
XLII. PMES-1 and PMES-11 Proformae
XLIII. Implementation of the Recommendations of the Federal Task Force on Delegation of Powers to Project Authorities/Implementing Agencies
XLIV. Monitoring of Development Projects- Basic Steps
XLV. Project Monitoring Report (Format)
XLVI. Proforma for Post-Completion Evaluation of Development Projects
XLVII. Notification regarding Standing Committee in Economic Affairs Division in respect of NGOs.
XLVIII. Proforma for Project Proposals Sponsored by NGO’s (Re-Designed Proforma)
Share This