Printer Friendly

Asian Development Bank operations in Pakistan.

Operational Strategy

The Bank seeks the development of a self-sustained, open and outward-looking economy through fiscal, financial sector and other policy reforms. The emphasis is on improving economic efficiency, strengthening domestic capital markets and privatizing government entities, as well as providing for basic human necessities, reducing poverty and developing human resources.

Considering Pakistan's climate, limited water resources and scarce domestic financing, the Bank's assistance to the agriculture sector continues to focus on increasing crop productivity through better water management, irrigation systems and farm-to-market roads. In the energy sector, the major objective is to bridge the gap between demand and supply, and to develop indigenous energy resources to reduce costly petroleum imports. In industry, the Bank seeks to create a suitable environment for private investment. Catalyzed where necessary by direct Bank financing or equity participation. In the social sector, efforts are focused principally on education, health, water supply and sewerage, and urban rehabilitation and development. Institutional development in all sectors is the objective of advisory technical assistance.

Policy Dialogue

Direct taxation of farming income, the phasing out of fertilizer subsidies, and full recovery of the operation and maintenance costs of irrigation systems were among the issue discussed during the year in relation to agriculture. The Provincial Highways Project allowed discussions on improving maintenance standards, taxation on heavy trucks, overloading, road safety and prioritization of road development. The Teacher Training Project gave an opportunity to examine issues like incentives to teachers in rural areas, a more efficient use of school resources and the role and quality of private sector teacher training. Under the Health Care Development Project, policy issues relating to budgetary allocations, cost-recovery measures and the role of the private sector were discussed.

TABULAR DATA OMITTED

Loans and Technical Assistance

Five loans totalling $ 410.3 million were approved during the year, all from the Asian Development Fund. The five loans were $ 32.8 million for the North-West Frontier Province Barani Area Development Project to disseminate new technologies for rained farming; $165.4 million for the Provincial Highways Project, along with technical assistance grants of $ 500,000'$ 60 million for the Health Care Development Project to upgrade the quality of health care services and delivery, and to alleviate the acute shortage of health manpower; $ 52.1 million to support the Government's ongoing efforts for teacher training; and $ 100 million for the Flood Damage Restoration (Sector) Project, processed under accelerated procedures, to rebuild infrastructure destroyed or damaged by the 1992 floods. Fourteen technical assistance projects amounting to $ 4.6 million were also approved during the year.

Project implementation

Of the 147 loans approved as of end-1992, 80 had been closed (including two loans which were cancelled) and 67 were under administration (including nine awaiting effectivity). Five loans were closed during the year. Contract awards during the year totalled $ 483 million, bringing the cumulative total to $ 3.687 million bringing the cumulative total to $ 3.687 million or 59 per cent of the total net effective loan amount. Disbursements for the year amounted to $ 437.8 million, bringing cumulative disbursements to $ 3.566.7 million, or 57 per cent of net effective loan amount. The Pakistan Resident Office continued to provide support in project implementation and with regard to dialogue with the Pakistan Government on macro-economic and sectoral policies. In July, a country project review mission was undertaken to discuss and resolve cross-sectoral issue affecting project performance.

TABULAR DATA OMITTED

TABULAR DATA OMITTED

TABULAR DATA OMITTED
COPYRIGHT 1993 Economic and Industrial Publications
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Special Section: Industrial Finance
Publication:Economic Review
Date:Jun 1, 1993
Words:572
Previous Article:Development financial institutions.
Next Article:The Bank of Khyber.
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters