fbpx 48031-001: Public Sector Enterprise Reforms Project | Asian Development Bank

Pakistan: Public Sector Enterprise Reforms Project

Sovereign (Public) Project | 48031-001 Status: Closed

The Asian Development Bank is helping Pakistan pave the way for the sell-off of inefficient and costly public sector enterprises (PSEs). The technical assistance project will raise the capacity of the government to carry out its PSE privatization program and support measures to prepare the enterprises for restructuring.

Project Details

Project Officer
Mtchedlishvili, Levan G. Central and West Asia Department Request for information
  • Pakistan
  • Loan
  • Public sector management
Project Name Public Sector Enterprise Reforms Project
Project Number 48031-001
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3214-PAK: Public Sector Enterprise Reform (TA Loan)
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management / Economic affairs management - Reforms of state owned enterprises

Gender Equity and Mainstreaming No gender elements

The Project will strengthen the Government of Pakistan's capacity to privatize and restructure its designated public sector enterprises (PSEs) by (i) strengthening the privatization program; (ii) improving corporate governance, structure, and management capacity in selected PSEs; and (iii) enhancing governance and regulatory regimes in selected sectors currently dominated by PSEs.

The expected impact of the project is a reduction of the fiscal and economic costs associated with Pakistan PSEs. The expected outcome is successful privatization and restructuring of selected PSEs. This will be measured through the number of government divestments from fiscally costly PSEs and the number of fiscally costly PSEs effectively restructured.

Project Rationale and Linkage to Country/Regional Strategy The government has requested the Asian Development Bank and other development partners to support the strategic policy and financial requirements of the PSE reform and privatization agenda. The Project will finance technical assistance to PSE reforms. This assistance is aligned with the ADB country partnership strategy for Pakistan and is included in the country operations business plan 2014 -2016.
Impact Reduced fiscal and economic costs associated with Pakistan''s PSEs
Project Outcome
Description of Outcome Successful privatization and restructuring of selected PSEs
Progress Toward Outcome To be determined. Project activities has yet to start.
Implementation Progress
Description of Project Outputs

Strengthened privatization program

Corporate governance, structure and management capacity improved in selected PSEs

Governance and regulatory regimes enhanced in selected sectors currently dominated by PSEs

Project efficiently and effectively managed

Status of Implementation Progress (Outputs, Activities, and Issues) With the slowdown of the privatization program and use of the government's own resources for energy sector reform monitoring, the government is now focusing only on completing the energy sector reform monitoring reports by April 2017.
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project will finance technical assistance to support government's reforms in public sector enterprises (PSEs). It is anticipated that it will have no adverse environmental impacts.
Involuntary Resettlement The Project does not include civil works with land acquisition. It will finance consulting services to support government's policy reforms.
Indigenous Peoples The Project will finance consulting services to support government's reforms in public sector enterprises (PSEs). The reforms will be applied across PSEs and are not expected to have adverse impacts on any specific minority ethnic groups in the country.
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders are PSEs management and staff, regulatory authorities, ministries, consumer organizations, and labor unions. Representatives of these stakeholders were consulted throughout project processing. The beneficiaries will primarily be the domestic, industrial, agricultural, and commercial clients of public goods and services provided by PSEs, who will gain from improved service delivery. Taxpayers and recipients of government services will indirectly benefit from reduced fiscal costs of PSEs. Workers in PSEs are expected to benefit from a consistent and fair approach to labor retrenchment to be provided through the mitigation framework for labor-related matters to be developed under the Project.
During Project Implementation Representatives of the stakeholders will continue to be consulted throughout project processing. The Project will prepare a public communications strategy to ensure transparency, understanding, and public support to PSE reforms by all stakeholders. The customer surveys to be financed by the Project will monitor service delivery and tariff structures of PSEs throughout project implementation, with specific consideration of poor consumers.
Business Opportunities
Consulting Services All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).
Responsible ADB Officer Mtchedlishvili, Levan G.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Finance, Revenue and Economic Affairs
Block Q, Pakistan Secretariat
Islamabad, ICT, Pakistan 44000
Concept Clearance 18 Apr 2014
Fact Finding 31 Mar 2014 to 11 Apr 2014
MRM 06 Aug 2014
Approval 04 Dec 2014
Last Review Mission -
Last PDS Update 30 Mar 2017

Loan 3214-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2014 27 Jan 2015 17 Apr 2015 30 Jun 2020 - 19 Jul 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 22.54 Cumulative Contract Awards
ADB 20.00 04 Dec 2014 0.00 0.00 0%
Counterpart 2.54 Cumulative Disbursements
Cofinancing 0.00 04 Dec 2014 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

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Related Publications

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Procurement Plan