Pakistan: Punjab Government Efficiency Improvement Program - Subprogram 2

Sovereign Project | 41666-033

Summary

Punjab is the largest provincial economy and the most populous province of Pakistan, accounting for over 50% of the country's gross domestic product (GDP) and population. The economic performance of Punjab plays a critical role in the overall economic strength of the country. Punjab has achieved robust economic growth and significant poverty reduction in recent years. However, it still faces numerous development challenges. The first is the low living standard and high poverty incidence. Average per capita income in the province is about $1,000 which is about two thirds of the low middle income country average. Poverty ratio remains high at over 20%. The second is the low level of non-income well being as measured by social indicators. For example, over one third of children under 5 years of age are underweight. Third, Punjab faces large infrastructure deficits. There is acute power shortage, and 90% of the provincial road network is rated as "fair to poor".

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Project Name Punjab Government Efficiency Improvement Program - Subprogram 2
Project Number 41666-033
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2547-PAK: Punjab Government Efficiency Improvement Program - Subprogram 2
Ordinary capital resources US$ 75.00 million
Loan 2548-PAK: Punjab Government Efficiency Improvement Program - Subprogram 2
Asian Development Fund US$ 75.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Education - Education sector development
Energy - Energy sector development and institutional reform
Finance - Insurance and contractual savings
Health - Health sector development and reform
Public sector management - Public administration
Transport - Transport policies and institutional development
Gender Equity and Mainstreaming
Description

Punjab is the largest provincial economy and the most populous province of Pakistan, accounting for over 50% of the country's gross domestic product (GDP) and population. The economic performance of Punjab plays a critical role in the overall economic strength of the country. Punjab has achieved robust economic growth and significant poverty reduction in recent years. However, it still faces numerous development challenges. The first is the low living standard and high poverty incidence. Average per capita income in the province is about $1,000 which is about two thirds of the low middle income country average. Poverty ratio remains high at over 20%. The second is the low level of non-income well being as measured by social indicators. For example, over one third of children under 5 years of age are underweight. Third, Punjab faces large infrastructure deficits. There is acute power shortage, and 90% of the provincial road network is rated as "fair to poor". Fourth, Punjab needs productive employment opportunities. Each year nearly 1.6 million youth enter the labor force. The official unemployment rate of 8% underestimates the degree of unemployment due to prevalent under reporting. Three quarters of the nonagricultural employed labor force is in the informal sector.

Addressing Punjab's development challenges requires the province to maintain 7-8% growth per annum. Yet, long run economic growth since the 1970s has only been about 5%. Punjab's growth must also be inclusive. This requires the provision of infrastructure and social services to enable the poor and vulnerable to participate in economic development.

The Government of Punjab (the government) has set accelerating income growth and improving social services as its twin development objectives. Punjab's Vision 2020 envisages the doubling of per capita income to about $2,000 by 2020 and significantly improved service delivery. Realizing that Punjab's Vision requires an efficient public sector and a dynamic private sector. The government has identified an efficient, accountable, and capable public sector as the key institutional foundation for achieving Punjab's development objectives. These elements underpin the design of the Program.

Project Rationale and Linkage to Country/Regional Strategy
Impact High, sustained, and private sector driven growth; and improved service delivery in the province of Punjab
Project Outcome
Description of Outcome An efficient, accountable, and enabling government
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Improved public financial management

2. Improved contingent liability management

3. Improved civil service management

4. Private sector participation promoted

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Punjab
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 not required
Procurement not required
Responsible ADB Officer Michiel Van der Auwera
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Planning & Dev. Dept., Govt. of the PunjabBRDPHQ@BRDP.BWP.BRAIN.NET.PKG.P.O. Box 92
Bahawalpur, Pakistan
Timetable
Concept Clearance 13 Feb 2009
Fact Finding 16 Feb 2009 to 26 Feb 2009
MRM 08 Jun 2009
Approval 17 Sep 2009
Last Review Mission -
Last PDS Update 18 Apr 2008

Loan 2547-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Sep 2009 17 Sep 2009 30 Sep 2009 31 Mar 2010 - 09 Oct 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.00 Cumulative Contract Awards
ADB 75.00 17 Sep 2009 75.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Sep 2009 75.00 0.00 100%

Loan 2548-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Sep 2009 17 Sep 2009 30 Sep 2009 31 Mar 2010 - 09 Oct 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.00 Cumulative Contract Awards
ADB 75.00 17 Sep 2009 76.47 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Sep 2009 76.47 0.00 100%

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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