Pakistan: Rural Enterprise Modernization Project

Sovereign Project | 38447-013


ADB is helping create non-farming jobs in rural areas of Pakistan, particularly for the landless, wage earners, and women. The project will help identify livelihood opportunities, support pilot projects for promising rural enterprises, and study the feasibility of establishing a nonprofit company to catalyze business development services.

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Project Name Rural Enterprise Modernization Project
Project Number 38447-013
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2230-PAK: Rural Enterprise Modernization Project
Asian Development Fund US$ 5.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Industry and trade - Small and medium enterprise development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The designed impact of the TA Loan is to create and diversify job and income-earning opportunities in the rural areas especially for the landless, wage earners, and women. The intended outcome is to develop market facilitation processes by identifying and filling market gaps within selected subsectors in rural and peri-urban areas, and strengthening the competitiveness of the target groups. Steps will be taken to design innovative institutional arrangements and assess the feasibiilty of establishing a not-for-profit company to catalyze business development services and introduce best practices in enhancing social and environmental processes in support of the growth of rural businesses.
Project Rationale and Linkage to Country/Regional Strategy


ADB's Country Strategy and Program for Pakistan (2006 to 2008) notes ADB's role in promoting the private sector as a driver of investment, growth and employment generation.

Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nationwide in clustered production areas based on subsector analysis
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services are required for technical inputs and core project management. The TA loan will provide 108 person-months of international consulting services and 218 person-months of domestic consulting services. All consultants will be recruited according to ADB's Guidelines for the Use of Consultants and other arrangements acceptable to ADB for selection and engagement of domestic consultants. Except for the international team leader/senior markets development specialist, who will be recruited as an individual consultant, the core international and local consultants will be recruited through a firm, with the use of the quality and cost-based system. In addition to the core consulting services, NGOs will be engaged individually as needed to provide inputs in the market surveys, organize small entrepreneurs, and organize training workshops and focus group discussions on potential opportunities in selected locations. Of the consultant services total indicated above, approximately 72 person-months of international services and 170 person-months of domestic services will be available in a flexible resource pool to be tapped when needs arise (e.g., market researchers, subject matter and sector specialists, designers, ICT experts, process engineers, and poverty, gender, and environment specialists).
Procurement Procurement of goods and services under the Project will be carried out in accordance with the ADB Guidelines for Procurement. Vehicles, equipment, and materials will be procured through international competitive bidding if they cost more than $500,000 equivalent, or by international shopping if they cost from $100,000 to $500,000 equivalent. If there are several local suppliers with satisfactory service facilities, equipment or materials valued at less than $100,000 equivalent may be procured through local competitive bidding. The equipment or materials may be directly purchased if they cost less than $50,000.
Responsible ADB Officer Randall Jones
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Min of Industries,Production_& Special Initiatives
Mr. Tahir Shabbaz
Rm. 402, Block A,PAK Secretariat
Islamabad, Pakistan
Concept Clearance 11 Mar 2002
Fact Finding 22 Apr 2005 to 05 May 2005
MRM 16 Sep 2005
Approval 07 Feb 2006
Last Review Mission -
PDS Creation Date 23 Feb 2006
Last PDS Update 27 Jul 2010

Loan 2230-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Feb 2006 21 Feb 2006 19 May 2006 30 Jun 2009 - 30 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.50 Cumulative Contract Awards
ADB 5.00 07 Feb 2006 0.47 0.00 98%
Counterpart 1.50 Cumulative Disbursements
Cofinancing 0.00 07 Feb 2006 0.48 0.00 100%

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Pakistan: Rural Enterprise Modernization Project Validations of Project Completion Reports Oct 2011

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