Regions and Countries

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p. 10 of 11 BACK | NEXT Executive Summary I. Development Agenda II. Implementation of the Country Strategy and Program III. ADB's Strategy IV. Operational Approach V. Three-Year Assistance Program VI. Performance Monitoring and Evaluation

Country Strategy and Program 2002-2006: Pakistan

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V. Three-Year Assistance Program

A. Funding Assistance Levels and Performance

86. From 2002, the ADF lending level to a developing member country is based on a performance-based allocation (PBA) system. Country-specific triggers based on macroeconomic, structural, and portfolio management performance indicators have been evaluated to determine the low, base, or high-case lending scenario (Appendix 6). The PBA exercise completed for Pakistan indicates a high case lending scenario of $270 million for 2002 based on the analysis of country-specific triggers for 2001. The allocations for 2003-2005 will depend on the conclusion of the PBA exercise for each of the preceding years, but for programming purposes a level of $250 million for the period has been used and therefore should be regarded as indicative.

B. Loan Program

87. The proposed lending program for 2003-2005²⁰ (Appendix 7) is estimated at $2,400 million, or an average of $800 million per anum. The estimated average per anum breakdown between ADF and ordinary capital resources is $250 million and $550 million, respectively. Of the 2003-2005 loan program, core poverty and poverty intervention projects constitute 54 percent of the total program and the cumulative average of policy-based loans constitute 32 percent of the total program. This is a considerable decline from the 84 percent recorded during 2000-2001. The proposed program is aimed at achieving a sustainable reduction in poverty through pro-poor economic growth, inclusive social development, and good governance. The country program will focus on seven sectors.²¹ Cumulatively, ADB has provided assistance to 28 subsectors in Pakistan. Over the years, ADB has left certain subsectors and is currently assisting in 15 subsectors. This CSP proposes a more focused approach comprising 10 subsectors for ADB assistance (Appendix 8).

C. Technical Assistance Program

88. TA program (Appendix 7) supports project processing, good governance, and support for devolution among others. It is balanced between support for project processing and advisory/capacity building assistance. Some examples of the latter include rural livelihood enhancement strategy, enhancement of development assistance program, strengthening of debt management capacity of Ministry of Finance, and regional cooperation. The TA program is estimated between $5million-6 million per annum, and wherever possible will be supplemented with cofinancing resources.

D. Economic Sector Work Program

89. ESW programs of the previous few years have focused on poverty analysis, governance, private sector assessment, water resource management, and gender and development issues. The proposed ESW program (Appendix 5) will continue to support analyses of important economic policy concerns and sector issues that are crucial to deepening ADB's knowledge of the sectors and for continuing policy dialogue. Among others this includes regional cooperation; public expenditure and resource management; support for devolution; and transport sector, financial sector, gas sector and rural livelihood enhancement studies. In addition to the annual country economic reviews, the ESW will focus on governance issues, social protection, debt management, and public expenditure management especially at the levels of the provincial and district governments.

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