Countries and Regions

	Table of Contents
p. 16 of 25 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Province Level Interventions G. Private Sector Development 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 : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

77. More recently, the Government has intensified policy reforms towards anticorruption, decentralization, transparency in policy formulation, and efficient civil service, but the efforts have generally not been successfully institutionalized. Although "core" governance activities have progressed slowly, there have been notable advances in individual sectors with support from various donors, including the ADB. Institution and capacity building is ongoing in various areas of ADB activity and are included in virtually all areas of ADB operations, including portfolio management. The ongoing TEPI loan is targeted on lower tariff rates, reduced tariff exemptions/concessions, and privatization of SOEs. Additional capacity building is provided through TA loans approved together with the TEPI loan²⁹.

78. ADB operations and policy dialogue will be increased over the program period to improve governance and to develop competitive markets and improve the environment for the private sector. Review of the role of government will be encouraged through increasing stakeholder involvement in design and implementation of all ADB interventions in the governance area. The main area of intervention will be the strengthening and modernization of key institutions in the legal and judicial system, especially the subordinate courts where ordinary citizens are frequently denied justice through extensive court delays, outdated administrative procedures, and lack of resources. TAs³⁰ to assist the Government and the Judiciary were completed in early 1999 to prepare the reform agenda. This will be expanded through an ADTA for Strengthening of Institutional Capacity for Judicial and Legal Reform (2000), and a Judicial and Legal Reform³¹ Program loan for $80 million in 2001. In addition TAs for civil service reform, and capacity building for devolution, is provided for in the program. These interventions, together with sector-level efforts to strengthen the role of the market mechanism in resource allocation, will support key elements of the ADB's governance and anti-corruption policies. The Energy Sector Restructuring Program loan will address corporate governance of power utilities (KESC and WAPDA), and associated technical assistance to be developed during loan processing will help develop the policy and regulatory environment, and transition programs for affected employees and populations at risk from the restructuring. PWD will complete a Governance Issues Study in 2000 in its economic and sector work program to determine the most effective means of achieving governance improvements at federal and provincial levels.

79. While a firm framework for the process of change in civil service and an action plan for its implementation are still at early stages of discussion, initial work in this area has been supported by the major donors and further assistance is programmed. ADB technical assistance programmed for 2000 in the area of Civil Service Reform, consistent with the COS and the COF, will follow Government approval of an action plan for reform programs, and a Civil Service Reform Program loan for $100 million, has been included for 2002. However, the Government's commitment to significantly improve governance must be sustained if progress is to be made.

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