Countries and Regions

	Table of Contents
p. 22 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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VI. Cofinancing and Catalyzing External Resources

93. The bilateral donors remain cautious with regard to new commitments to Pakistan due to large aid backlogs, poor track record of sustained policy reforms, governance problems, and low fiscal and institutional absorptive capacity. In addition, the ongoing debt rescheduling negotiations and the partial economic sanctions continue to have an important effect on investment and donor involvement. Most donors are still withholding their aid programs except in the area of basic human needs. Several donors are now channeling bilateral funds through NGOs with the approval of the Government. As a result the current prospect for mobilizing external resources for cofinancing in the public sector is highly constrained but work is ongoing in identifying areas, such as governance improvement and poverty reduction activities, for future interventions. Although cofinancing opportunities from both official and commercial sources for ADB operations have been limited, the ADB will continue to maintain close contact with both official and commercial cofinanciers in conjunction with ADB operations in Pakistan. For example, initiatives to expand ADB's access to Global Environment Facility resources are being taken which may result in further cofinancing during the program period. With constrained access to external resources on concessionary terms, the Government is heavily reliant on continued multilateral support. Much will depend on early agreement on the IMF's SBA.

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