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Annual Report 2003 :
Moving the Poverty Reduction Agenda Forward: Priorities and Outcomes :
South Asia
Pakistan
Strategy and Policy Dialogue.
ADB supported ongoing governance and macroeconomic reforms by providing
assistance for secondgeneration reforms at the provincial and sector
levels. The emphasis was on supporting provincial reforms in fiscal
and financial management and developing an SME sector. Continued
assistance was also provided in the social sectors which have devolved
to the local level under the local government ordinances promulgated
in August 2001. ADB lending in these sectors aimed at strengthening
devolution and increasing access of the poor to quality social services
by providing support to local governments for improved education,
health, rural water supply, and urban environments. To support improvements
in growth and reductions in poverty, assistance enhanced access
of rural populations to economic opportunities and social services
by improving the provincial road network, which facilitated trade
in the transport corridor linking Afghanistan, Pakistan, and Central
Asia.

Loans and Technical Assistance.
Eleven loans totaling $870.7 million were approved to (i) implement
a public sector reform program in the province of Punjab, (ii) develop
the road sector network in Balochistan, (iii) enhance social service
provision in Sindh, (iv) reform the regulatory structure for SMEs,
and (v) develop basic urban services in Southern Punjab. Twenty
technical assistance projects totaling $10 million, including cofinanced
grants, were also approved.