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I. Country Performance Assessment
A. Economic Performance Assessment
B. Poverty Assessment
>> C. Assessment of Socio-Environmental Performance
D. Governance: Sound Development Management
E. Implementation Assessment
II. Country Operational Strategy
III. Sector Strategies
IV. Regional Cooperation
V. Donor Activities and Aid Coordination
VI. Cofinancing and Catalyzing External Resources
VII. ADB’s Operational Program
VIII. Economic and Sector Work Program
IX. Local Cost Financing
Country Assistance Plans - Pakistan : I. Country Performance Assessment

C. Assessment of Socio-Environmental Performance

1. Gender Issues

15. Women's social indicators in Pakistan consistently lag behind those of men, despite the significant gains made under the Government's Social Action Program (SAP). The gender ratio is 108 men to 100 women, which compares with 97:100 for developing countries as a whole. Life expectancy at birth of 63.0 years is the same for females and males. The adult literacy rate is 34 percent for females and 58 percent for males. Since the increase in literacy rates has been slower than the increase in population, the number of illiterate Pakistanis has increased by 2.5 times since 1951. The number of illiterate women has increased more than 3 times during the same period. The current primary school participation rates are 89.1 percent for girls compared to 79 percent for boys, due to a 50 percent drop out rate among girls. Of those without basic education opportunities, about 70 percent are girls. Gender disparities in educational attainment are even greater in the rural areas. Only 3 percent of rural 12-year-old girls continue in school, compared to 18 percent of boys.

16. The health indicators for women are among the worst in the world. With a high total fertility rate of 5 births per woman, women's health is debilitated by frequent and closely spaced pregnancies. More than 40 percent of the total female population is anemic. The low health status of women is the result their lower social, economic, and cultural status. Social and familial control over women, including restrictions on mobility result in differential access of males and females to health services. Institutionalized gender bias within the health service delivery system in terms of lack of female service providers, and neglect of women's basic and reproductive health needs, intensify women's disadvantaged health status.

17. Women make a large and generally unrecognized contribution to the economy. The labor force participation rate for women is under-reported in official data. The recent labor force survey cited the refined activity rate for women at 13.6 percent and 70 percent for males, while the crude activity rate was 9 percent and 47 per cent respectively9. Female labour is overwhelmingly concentrated in the agriculture sector, which employs 79 percent of the female labor force as compared to 57.3 per cent of that of males. In urban areas more than three quarters of economically active women are employed in the informal sector. Female workers in the informal sector, especially home-based piece-rate workers, work longer hours for lower wages than men under conditions of job insecurity.

18. The interplay of formal statutory laws, Islamic laws, and customary practices shape women's lives. Qualities enshrined in formal laws may be negated by customary practices. Presently, the gap between equality of gender in formal laws and de facto realities of women's life is very wide. For example, since the society, police, and law enforcement agencies view domestic violence as a private matter it may go unnoticed until it takes extreme forms. Increasing violence against women is a matter of serious concern recognized by the Government, which is also a public health and development issue.

19. The main thrust of the Government's ongoing development efforts is to reduce gender disparities in access to social services, particularly for rural women and low-income women in urban areas. The Government's Interim Poverty Reduction Strategy Paper (IRSP) is intended to be the "roadmap" for the Final PRSP to be produced later in 2000. IRSP recognizes the fact that poverty has a gender dimension and focuses on reducing gender disparities through: (i) reforming discriminatory laws identified in the Commission of Inquiry of Women Report (1997), (ii) establishment of and support to a Permanent Commission on Status of Women to oversee and coordinate policy and measures regarding advancement of women, (iii) strengthening Ministry of Women Development and Provincial Women Development Departments and allied field organizations, (iv) review and modification of national economic and social policies to include clear gender perspective and identification of targets as specified in the National Plan of Action, and (v) strengthening gender focal points set up in the federal ministries. It gives priority to public policy actions such as labor saving technology, water and sanitation, transport alongside education and health actions. Recent initiatives to improve the representation of women holding elected offices and the quality of women's rights under the law have also been announced10. Also women's access to productive resources, such as microfinance, extension services, and training is being pursued. Specific sectoral programs cover education; training and skills development; promotion of labor-based industries employing women; and microfinance provisions. The improvement of women's status is an important stated objective of the Government and its development partners and is being pursued mainly through SAP which incorporates special provisions to ensure access of women to social services.

2. Human Development

20. The 1998 UNDP Human Development Index (HDI) ranks Pakistan 135th among 174 countries and classifies it as a low human development country. However, Pakistan's HDI rank is lower than its rank in real GDP per capita, indicating that more emphasis should be put on human development. Despite some recent progress such as in the adult literacy rate which rose from about 34 percent in 1985 to 47 percent in 1999, Pakistan still spends only 2.3 percent of its GDP on education, compared to UNESCO's target of 4 percent for developing countries. Similarly, in FY1999 expenditure on health amounted to 0.7 percent of GDP compared to WHO's target of one percent. Between 1987 and 1999, life expectancy increased from 58 to 63 years while infant mortality fell from 124 (1980) to 90 (1999) per 1,000 live births. Only limited progress has been achieved in reducing the total fertility rate (5 births per woman) and population growth remains among the highest in the world, at 2.3 percent per annum (although well below the level of 3.1 percent of the mid 1980s), which continues to put pressure on the provision of social services and on the labor market to provide employment.

21. Now in its second phase, SAP continues to emphasize improving the provision of basic services, e.g., education, health, population, rural water supply and sanitation. SAP has managed to address the deterioration in the provision of social services, and SAP sector budgets continue to be generally well protected. SAP I increased average primary school participation rate, although the achievement for girls of 58 percent fell short of the target of 60 percent. Contraceptive use increased from 14 to 22 percent exceeding the target, and access to safe water from 27 to 37 percent11.

22. Despite implementation shortcomings, it is clear that SAP arrested the deterioration of social services in Pakistan and laid the foundation for further improvement. SAP succeeded in ensuring a manifold increase in financial resource allocations. SAP also created greater awareness among policymakers of the importance of the social sector, and the need to adhere to a sector program-based approach. An integral part of the SAP design is to complement individual investment projects so gains from one modality reinforce the other. SAP provides the macro support for key policies associated with financing nonbudget expenditures, staffing, and rationalizing investment choices, while the investment projects provide the means to the end.

3. Environment

23. Pollution associated with industrial and urban activities has emerged as a significant threat to public health, particularly to the poor. The economic cost of water pollution related health issues ranged from $460 million to $1.25 billion per year, while air pollution related health costs ranged from $250 million to $369 million per year, based on a 1995 estimate12. The daily generation of solid waste in the country is about 58,000 metric tons (mt), of which only about 40 percent is transported to the final disposal sites which are generally open dumps. The country is also threatened by health problems related to hazardous and toxic wastes from industries, hospitals as well as residues and unused pesticides from agricultural activities. Among others, increases in these types of wastes have implications for the incidence of cancer, of which there are 30,000 new cases each year. The importation of wastes has continued without proper hazard and toxicity guidelines.

24. Pakistan is a forest-poor country, with only 0.01 ha of forest per capita and an annual loss of natural forest cover of about 2.9 percent between 1990-95. Forests are a major source of fuelwood, and the large demand for fuelwood has contributed to rapid deforestation. This, in turn, has contributed to soil erosion in the catchment areas of the major reservoirs, which are vital for generation of electricity, and the regulation of water supply and irrigation. Recent data shows that about 11 million ha of land in Northwest Frontier Province is prone to soil erosion, and about 40 million mt of soil are carried through the Indus Basin every year. Land degradation by wind and water erosion, waterlogging, and salinity pose major hazards for the agriculture sector. Annual losses due to salinity and waterlogging were estimated at $300 million in 1995. Other sensitive ecosystems such as mangroves, rangelands and wetlands continue to deteriorate, threatening many species of mammals, plants, birds and reptiles.

25. The increasing environmental problems led to the development of the National Conservation Strategy in 1990. In addition, the revised Environmental Protection Act (EPA), adopted by the Government in 1997, provides a legal foundation for environmental management. For biodiversity protection, the National Action Plan on Biodiversity is now being finalized. However, little has been accomplished in implementing the new policies, and enforcing the EPA, due to inadequate resources including skilled staff and funding. Challenges ahead are how to increase accountability in managing the environment and natural resources, and to strengthen enforcement with limited Government resources. In addition, institutional weaknesses, including the absence of monitoring and enforcement mechanisms, should be addressed. The development of self-monitoring capacity in the private sector, and a sustainable mechanism to finance Government enforcement at the local level, are also essential.

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  1. Labor Force Survey, 1996-97, Federal Bureau of Statistics, Statistics Division.
  2. The Chief Executive announced on 23 March the Government's timetable for district government elections in the period December 2000-July 2001. One notable feature was the intention to have half of the seats in union councils (the lowest level) reserved for women and further representation for women at other levels.
  3. Source: Planning Commission 2000.
  4. Source: The World Bank, 1995.


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D. Governance: Sound Development Management