Home 
Publications Online Publications Document
|
Seminannual Report on Project Administration and Technical Assistance Implementation for the Period Ending 30 June 1999 : Country Implementation Highlights
PakistanThe number of ongoing loans decreased to 45 due to the closing of 8 (including one retroclosed ) loans and approval of 7 loans during the period. Seven of the ongoing loans were rated as unsatisfactory in terms of implementation progress. Five were rated partly satisfactory, and none rated unsatisfactory in achieving development objectives. The increase in the number of partly satisfactory and unsatisfactory loans reflected the deterioration of portfolio performance. Of the three loans approved during the second half of 1997, one became effective during the period under review while two were still awaiting effectiveness. Of the seven loans approved during the period, four became effective, one is awaiting effectiveness, and two are yet to be signed. Implementation of projects continued to encounter delays mainly because of generic factors and fiscal constraints. The limited availability of counterpart funds affected a number of projects, directly resulting in slow implementation, inadequate staffing of project management offices, and lack of budgetary provisions for sustained operation and maintenance of the completed project facilities. One ongoing loan required a minor change in implementation arrangements. Three loans were delegated to the RM and one was closed during the period. Eleven delegated loans were under implementation by the RM. Portfolio performance has also been affected by issues associated with weak governance. The governance problems are multidimensional and include limited accountability of public institutions in policy implementation and in fulfilling their mandates, political interference in the use of public resources, lack of fiscal discipline, and the law and order situation. To improve project quality and portfolio performance, an action plan was agreed upon with the Government during the 1999 CPRM. The plan includes major initiatives such as (i) systematic monitoring of governance-related covenants and other key policy commitments under the ongoing portfolio, (ii) improved feedback of portfolio management through the use of PPRs, (iii) strict enforcement of portfolio management principles, such as timely closure of loans, refunds from nonperforming imprest accounts, nonextension of bid validity in procurement, retention of project managers for the life of a project, and (iv) reexamination of ever-present generic issues through participatory reviews and workshops leading to the development of a detailed and comprehensive plan of action to remove bottlenecks. These initiatives are under various stages of implementation, and the effectiveness and impacts of the changes will be continuously monitored. The first major review of the performance of the new initiatives is expected in the first CPRM in 2000. A serious concern of the Bank was delayed submission or nonsubmission of audited project accounts and financial statements. However, the compliance level improved during the period as a result of implementation of the action plan and continued follow-up by the RM. The management and use of imprest funds also improved. However, timeliness of liquidation of imprest accounts needs further improvement. Contract awards reached $274.6 million, or 93 percent of the semiannual projection of $293.6 million and 54 percent of the annual projection of $508.3 million, mainly because of the higher than expected contract awards and commitments in the agriculture and social sectors. Disbursements reached $327.1 million, or 94 percent of the semiannual projection of $347.6 million and 52 percent of the annual projection of $627.0 million because of awards to the agriculture and social sectors, and a tranche release from a program loan. Given the impact, however, of counterpart fund scarcity on implementation, the achievement was a direct result of very close follow-up by the RM. Owing to tranche releases under program loans, the disbursement ratio for the portfolio including program loans reached 16.8 percent as of 30 June 1999, compared with the Bankwide average of 11.9 percent and 13.3 percent as of 30 June 1998. The disbursement ratio without the program loans was 8.4 percent compared with the Bankwide average of 7.9 percent. Net resource transfer decreased from $124.0 million as of 30 June 1998 to $86.0 million during the period because of higher loan service payments. Audited project accounts and financial statements were due for 30 loans. Compliance was met for only 16 loans. Of the remaining 14, 10 had delays of less than 6 months; 2, between 6 and 12 months; and 2 by more than 12 months. Of the 45 ongoing loans, environmental covenants were met for 18 loans and were ongoing for 16 loans. One loan was noncompliant. The environmental covenants were not applicable to the remaining 10 loans. The social covenants were met for 12 loans and were ongoing for 16 loans, but were not applicable to 17 loans. Tables 47 and 48 summarize the data for Pakistan. Table 47: Pakistan - Financial Performance Indicators  
|
RSS Feeds
Back
Top of page