Countries and Regions

	Table of Contents
p. 24 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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VIII. Economic and Sector Work Program

99. Economic and sector work (ESW) will be needed during the 2001-2003 program period to provide crucial inputs for implementation of the poverty reduction strategy, improved governance initiatives and a new COS, the Private Sector Development Strategy, and policy/project planning and implementation. One of the most important tasks in 2000-2001 will be to complete the poverty related studies including the Poverty Profile, Poverty Reduction Strategy and Poverty Reduction Partnership Agreement. A new COS will incorporate the findings of these studies and formulate the ADB's medium to long term operational focus. Routine economic review including the country economic review and update, public sector expenditure review, and Government budget review, etc., will be required throughout the program period. A provincial level public sector expenditure and financial management review will be conducted in 2000-01 in line with Government's efforts on decentralizing administrative authority and devolving power and responsibility to the local level. Three provinces (NWFP, Balochistan and Sindh) have requested ADB's technical assistance in this area.

100. Related to the ESW program policy dialogue will cover: (i) public resource mobilization, particularly at the provincial level, water user charges and related fees, urban services cost recovery, and transport related levies; (ii) public resource management, including improved aid and external debt management; (iii) ongoing trade reform, public enterprise reform, and external debt management; (iv) capital market development, with emphasis on domestic debt markets and development of the institutional investor base, including insurance industry and pension reform; (v) restructuring of the power sector; (vi) public-private partnerships in health, urban development and education; (vii) institutional reform, policy reform and O & M allocations in water resources management, road transport, and the social sectors; (viii) improving the quality education; (ix) control of industrial pollution; (x) integrated pest management; (xi) improving Government-NGO dialogue and partnerships; and (xii) public administration reform. The objective of dialogue in these areas will be to ensure that the Government continues the reform process in a timely and consistent manner, in each of these important areas.

101. In order to improve ADB's long term operational efficiency and policy impact sector analysis needs to be strengthened in the next three years. All sectors in which ADB is involved should have a detailed sector study and a sector development strategy. The operational program will focus on (i) the finance/industry and energy sectors which are priority sectors for the reforms required to assist Pakistan to consolidate its economic recovery; (ii) health, education and other infrastructure; (iii) agriculture and natural resources; and (iv) transport and communications. In addition to the area based rural development program, more integrated province based interventions, are planned in the case of urban development and provincial/rural roads. Delivery of the program in the sectors concerned will be closely linked to expanded sectoral portfolio management and policy reform performance.

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