The plan consisted of a total expenditure of Rs. 2,600 million, of which 54 per cent were to be financed from the domestic and 46 percent from the external resources. But more than Rs. 3,000 million were spent during the first five years. Because of the adverse effects of the Korean War, the Plan had to be suspended two years earlier.
The capital goods were freely imported in 1952 to accelerate the pace of industrialization and the traders showed interest in establishment new industrial units, specially cotton textiles. Pakistan Industrial Development Corporation (PIDC) was set up in 1950 to push-up the development efforts.
However, the industrial development during the period moved at a spectacular rate, but the progress in the agriculture and allied fields was not satisfactory and the production of food grains decreased.