Pakistan: Public Sector Enterprises Reform Program (Subprogram 1)

Sovereign (Public) Project | 48065-002 Status: Closed

The Pakistan Public Sector Enterprises (PSE) Reform Program will support the efforts of the government to improve the performance of public sector enterprises (PSEs) by improving corporate governance and accountability, and reducing PSE contingent liabilities. The program will facilitate creating fiscal space for critical development expenditures. The two subprograms will be carried out during 2016 -2018.

The impact will be reduced net fiscal transfers to PSEs from the federal budget. The outcome will be improved PSE performance.

The program has the following outputs:

- Output 1: Policies to address labor issues and communication strategy introduced, monitoring system designed, and costs and benefits ascertained.

- Output 2: Financial transparency, monitoring, and corporate governance in public sector enterprises improved.

- Output 3: Restructuring and reform of selected public sector enterprises initiated.

Project Details

Project Officer
Mukhopadhyay, Hiranya Central and West Asia Department Request for information
Country
  • Pakistan
Sector
  • Public sector management
 
Project Name Public Sector Enterprises Reform Program (Subprogram 1)
Project Number 48065-002
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3398-PAK: Public Sector Enterprises Reform Program (Subprogram 1)
Ordinary capital resources US$ 200.00 million
Loan 3399-PAK: Public Sector Enterprises Reform Program (Subprogram 1)
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management - Reforms of state owned enterprises

Gender Equity and Mainstreaming No gender elements
Description

The Pakistan Public Sector Enterprises (PSE) Reform Program will support the efforts of the government to improve the performance of public sector enterprises (PSEs) by improving corporate governance and accountability, and reducing PSE contingent liabilities. The program will facilitate creating fiscal space for critical development expenditures. The two subprograms will be carried out during 2016 -2018.

The impact will be reduced net fiscal transfers to PSEs from the federal budget. The outcome will be improved PSE performance.

The program has the following outputs:

- Output 1: Policies to address labor issues and communication strategy introduced, monitoring system designed, and costs and benefits ascertained.

- Output 2: Financial transparency, monitoring, and corporate governance in public sector enterprises improved.

- Output 3: Restructuring and reform of selected public sector enterprises initiated.

Project Rationale and Linkage to Country/Regional Strategy The program will support the Government's efforts to restructure and privatize selected public sector enterprises (PSEs). Pakistan's PSE sector imposes high fiscal and economic costs constraining investment in the social sectors. Many of Pakistan's PSEs provide critical infrastructure services to the country. While some are profitable, most are poor performers. The Government is implementing an ambitious economic reform agenda to stabilize its finances and put the country on a higher growth path. PSE restructuring is a key component of the program. The ADB program will also facilitate implementing Government's own reform agenda dealing with PSEs.
Impact Reduced net fiscal transfers to PSEs from the federal budget
Project Outcome
Description of Outcome Improved PSE performance
Progress Toward Outcome Progress towards this outcome is on-going.
Implementation Progress
Description of Project Outputs

Policies to address labor issues and communication strategy introduced, monitoring system designed, and costs and benefits ascertained

Financial transparency, monitoring, and corporate governance in PSEs improved

Restructuring and reform of selected PSEs initiated

Status of Implementation Progress (Outputs, Activities, and Issues) Progress towards these outputs is on-going.
Geographical Location Pakistan
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Likely to have minimal or no adverse environmental impacts
Involuntary Resettlement Has no involuntary resettlement impacts. No further action is required.
Indigenous Peoples Not expected to have impacts on Indigenous Peoples. No further action is required.
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders are PSEs' boards, management and staff, regulatory authorities, and ministries. The beneficiaries are expected to be the urban and rural recipients of services (customers), as well as other industrial, agricultural, commercial, and domestic clients of public goods and services provided by PSEs. Representatives of these stakeholders were consulted throughout program design.
During Project Implementation All stakeholders will continue to be consulted throughout program processing. A public communications strategy will be prepared to ensure understanding, transparency, and public support.
Responsible ADB Officer Mukhopadhyay, Hiranya
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
[email protected]_CC.SDNPK.UNDP.ORG
Economic Affairs Div.
Rm. 308 Block "C" Secretariat Bldg
Islamabad, Pakistan
Timetable
Concept Clearance 15 Dec 2014
Fact Finding 04 Apr 2016 to 13 Apr 2016
MRM 13 May 2016
Approval 28 Jun 2016
Last Review Mission -
Last PDS Update 28 Sep 2016

Loan 3398-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jun 2016 28 Jun 2016 29 Jun 2016 30 Jun 2017 - 30 Jun 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 200.00 Cumulative Contract Awards
ADB 200.00 28 Jun 2016 200.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Jun 2016 200.00 0.00 100%

Loan 3399-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jun 2016 28 Jun 2016 29 Jun 2016 30 Jun 2017 - 30 Jun 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 28 Jun 2016 98.63 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Jun 2016 98.63 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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