Countries and Regions

	Table of Contents
p. 20 of 25 BACK | NEXT I. Country Performance 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

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IV. Regional Cooperation

88. The most immediate prospect for subregional cooperation is for power exchange between Pakistan and India. With reduced demand following the 1998 economic crisis, Pakistan is projected to continue to generate power in excess of domestic demand during 2000-2002, while India will continue to face shortages. Subregional economic cooperation between India and Pakistan in electric power exchange would include exploring new ways of efficiently and systematically matching supply and demand for electric power between the two countries. The mutual advantages of such exchange would include: (i) the development of complementary energy resources; (ii) advantage taken of load and hydrological diversities; (iii) increased supply reliability; (iv) reduced reserve capacity requirements; (v) reduced system losses; and (vi) reduced adverse environmental impact. In 1998 the Government formally requested ADB to provide assistance in this regard. A RETA for a Pakistan-India Electricity Exchange Project was proposed in 1999, but with the deterioration of relations between the two countries no immediate progress in this area is expected. In addition a RETA is proposed on Strengthening Marine and Coastal Resource Management for South Asian countries, including Pakistan.

89. Subregional cooperation opportunities are potentially substantial between Pakistan, Afghanistan, and the central Asian republics for communication links and the gas sector. The tertiary education sector (e.g., legal education) is another possibility, particularly through high quality institutions such as the Aga Khan University in Karachi which serves not only Pakistan but also other DMCs in the region. The continuing conflict in Afghanistan has prevented any significant development there to date. The ADB will continue to monitor the situation and explore potential interventions.

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