Regions and Countries

	Table of Contents
p. 21 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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V. Donor Activities and Aid Coordination

90. Donor coordination in Pakistan is well structured. Donors' resident missions and representatives meet regularly, including for specific sector commitments such as the SAP, forestry, and environment. In addition to individual meetings, the ADB's annual CPM regularly convenes donor meetings to brief all donors on the ADB's operational program, policy dialogue with Government, and related issues to avoid duplication. The annual Pakistan Development Forum (PDF) is the main broad-based forum for aid coordination and involves substantial and frank discussions on the progress of macroeconomic reforms, aid utilization performance, and sector issues. The PDF format and instruments are currently under review by the World Bank and OECD, in consultation with the ADB, major bilateral donors and civil society groups to ensure their relevance, efficiency and effectiveness. The PDF was not held in 1999 and no date has been set as yet.

91. Cooperation between the ADB and the World Bank benefits from regular exchanges at the programming, operational and policy levels. It has further strengthened with several envisaged key areas of coordination or joint efforts to support the ongoing economic reform program. High level annual consultations between the ADB and the World Bank have proven to be a useful forum to discuss country operations. The modalities of collaboration with the World Bank vary across sectors and subsectors and range from cofinancing and parallel financing to policy approaches and strategies. Recently, both institutions have initiated parallel policy-based lending support for restructuring the power sector, including adoption of a common policy matrix. Joint field missions have been undertaken and design of the policy agenda is being closely coordinated. Following difficulties with accounting data in preparation for the ESAF/EFF program in 1999, the IMF cancelled that program and is now discussing an SBA facility (see para. 9) for consideration in 2000 which will provide the basis for World Bank and ADB financial sector interventions.

92. Other areas where both the ADB and the World Bank maintain close cooperation are: (i) governance, where the ADB has taken the lead on judicial and legal reforms, and both institutions, with DFID, have cooperated in developing a framework for civil service reforms; (ii) water sector, in which both institutions with JBIC are involved to assist the Government to meet significant investments and requirements on promoting the policy reform agenda through NDP; (iii) urban development, where the World Bank is mainly involved in Lahore and major cities in Punjab, while the ADB focuses on other provinces and secondary cities in Punjab; (iv) education and health, as these sectors are common sectors, with the World Bank supporting general basic education, and the ADB focusing on women's aspects and supporting non-formal education; and (v) joint work on the integrated transport sector policy with civil society stakeholders and the private sector. Nonetheless, the ADB and the World Bank need to strengthen cooperation in agriculture and industry. Finally, the ADB and the World Bank need to develop working arrangements to effectuate the utilization of funding from the Global Environmental Facility (GEF) on natural resource management projects. ADB maintains close working relations with UNDP's good governance group in Pakistan. Cooperation between the ADB and bilateral donors, including DFID, SIDA, CIDA, Netherlands, NORAD, Germany, and Japan has generated synergies through parallel financing of programs and projects in forestry, education, health, urban development, water supply and sanitation. With regard to the cooperation between the ADB and UNDP, particularly in urban development and natural resource management, both institutions have demonstrated a good complementarily.

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